Tory leadership – live: Liz Truss civil service anti-semitism claims ‘abhorrent’
The FDA boss which represents civil servants said the foreign secretary’s comments are ‘inflammatory’
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Liz Truss's claims that she will tackle “woke” Civil Service culture that “strays into antisemitism” are “inflammatory” and will be viewed as “insulting and abhorrent”, a union leader has warned.
The foreign secretary was blasted by the head of the FDA, which represents civil servants, for providing “no evidence for her accusation”, which he said “goes further than the usual dog-whistle politics” of the leadership election.
It comes after the Truss campaign said she would “change woke Civil Service culture that strays into antisemitism”.
In response, FDA general secretary Dave Penman said: “The Conservatives have been in Government for more than 12 years now and, for most of that time, Liz Truss has been a minister.
“A prime minister is also minister for the Civil Service, and throwing around such unfounded inflammatory accusations illustrates a lack of leadership, the very thing that she claims to be demonstrating.”
Zahawi says economy has been ‘incredibly resilient’
Chancellor of the Exchequer Nadhim Zahawi said: “Our economy showed incredible resilience following the pandemic and I am confident we can pull through these global challenges again.
“I know that times are tough and people will be concerned about rising prices and slowing growth, and that’s why I’m determined to work with the Bank of England to get inflation under control and grow the economy.
“The Government is providing billions of pounds of help for households with rising costs, including £1,200 for eight million of the most vulnerable households.”
Health ‘biggest reason’ for contraction
Commenting on the gross domestic product (GDP) figures that showed a 0.1% contraction in the second quarter of the year, Office for National Statistics director of economic statistics Darren Morgan said: “With May’s growth revised down a little and June showing a notable fall, overall the economy shrank slightly in the second quarter.
“Health was the biggest reason the economy contracted as both the test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter.
“These were partially offset by growth in hotels, bars, hairdressers and outdoor events across the quarter, partly as a result of people celebrating the Platinum Jubilee.”
Labour MP defends Starmer ‘absence’ during cost crisis
Asked where Labour leader Sir Keir Starmer currently is as the cost-of-living crisis continues, shadow business secretary Jonathan Reynolds told LBC: “He is working like he does every day on the job. I honestly cannot fault the man’s work ethic.”
Pressed about whether the opposition leader was on annual leave, Mr Reynolds added: “I think he is spending some time with his family and that is the right thing to do, but I cannot fault the man’s work ethic, he has been relentless since he became leader of the opposition.”
Mr Reynolds also said Labour was “getting the detail” of its plans ready to intervene on rising energy bills, adding it had only had success with calling for a windfall tax because its proposals were detailed and costed.
Truss insists energy firm profits ‘not evil or dirty'
Conservative leadership favourite Liz Truss defended the energy giants’ huge profits, insisting that they should not be seen as either “dirty or evil”.
It comes as the oil and gas industry chiefs urged Truss and her rival Rishi Sunak to scrap the windfall tax on profits as soon as possible – and not to extend it beyond 2025.
Truss – who is resisting opposition calls to expand the windfall tax – said: “I don’t think profit is a dirty word. And the fact it’s become a dirty word in our society is a massive problem.”
Coffey says ‘every option’ for cost of living is on the table - including handouts
Liz Truss supporter Therese Coffey has said that “every option”, including handouts, will be considered when it comes to support with the cost of living.
Asked by Sky News whether Ms Truss would consider handouts to help with energy prices rises if made prime minister, Work and Pensions Secretary Ms Coffey said: “Absolutely, every option will be considered in terms of support schemes that may be needed, whether it is a targeted way or the general way of removing that national insurance increase which Liz is absolutely committed to do in an emergency budget.
“People are going to get help. I think it is about what change in help may be needed, but help is already being given and will be given in the future as well.”
Ms Coffey suggested the Government is “getting ready” to provide more help once Ofgem has announced the new price cap.
She added: “Of course, we need to wait formally for Ofgem to report at the end of the month and then we can take further steps potentially, but I think … the reason I am supporting Liz is to get that growth, to make sure people have more money in their own pocket instead of waiting for Government to do these schemes and pay people back.”
Work and Pensions Secretary downplays £5,000 bill warning
Average energy prices next year will be “nowhere near” the predicted £5,000, a minister has said.
Work and Pensions Secretary Therese Coffey told ITV’s Good Morning Britain: “Just like happened in May, we waited for Ofgem to come out with the formal changes on what might happen to energy prices or what would happen with the price cap.
“All the figures I have seen does not in any way suggest an average energy bill next year of £5,000, nothing near like that.”
Liz Truss supporter Ms Coffey added: “Nevertheless, Government is preparing now … for options to be considered and, as I say, we will take the necessary steps including, if necessary, new primary legislation which we would need to undertake.”
Watch Truss lose direction at Cheltenham hustings
Liz Truss mistakenly told the Cheltenham hustings she was in Derbyshire, despite the town being located in Gloucestershire.
When asked how she is going to tackle the cost of living crisis, the Tory leadership challenger told Conservative members she wants to concentrate on “lowering taxes”.
Ms Truss then appeared to get her counties mixed up, saying “we need to get on with delivering the small modular nuclear reactors which we produce here in Derbyshire”.
Her claim was still met with a small round of applause from the Cheltenham audience.
Labour shadow chancellor accuses Tories of losing control of economy
Shadow chancellor Rachel Reeves said: “The economy shrinking. Inflation skyrocketing. It is clearer than ever that the Conservatives have lost control of the economy.
“With the Bank of England forecasting a recession lasting the whole of next year, the Conservative leadership contenders need to stop playing to the gallery and start coming up with a serious plan to get Britain’s economy back on track.
“Labour will take the action that’s needed now to get people through the cost-of-living crisis and build the stronger, more secure economy Britain deserves.”
TUC general secretary Frances O’Grady said: “Under the Conservative government’s current plans, the Bank of England says that we are heading for a recession.
“Ministers must do much more to get pay rising. We need an early boost to the minimum wage this autumn and pay rises across the public sector that keep up with inflation. This will help protect demand and business confidence.”
Shrinking economy shows government ‘missing in action’, say Lib Dems
Responding to figures which show that GDP fell by 0.6 per cent in June, the Lib Dems’ Treasury spokesperson for Sarah Olney MP said: “The warning lights are flashing red but the government is missing in action.”
“There’s no time to waste, ministers must act now to boost confidence and avoid a recession.
“It’s time to reassure families by scrapping the energy price rise, funded through a windfall tax on the record profits of oil and gas giants.”
Truss considering ‘every option’ on energy bills, says Coffey
Liz Truss supporter Therese Coffey has said that “every option” – including direct support payments – will be considered when it comes to dealing with energy bills, our politics correspondent, Adam Forrest, reports.
Asked by Sky News whether Ms Truss would consider handouts to help if made prime minister, the work and pensions secretary said: “Absolutely.”
She added: “Every option will be considered in terms of support schemes that may be needed, whether it is a targeted way or the general way of removing that National Insurance increase which Liz is absolutely committed to do in an emergency budget.”
But Coffey again emphasised tax cuts over “handouts” when talking about further steps. “The reason I am supporting Liz is to get that growth, to make sure people have more money in their own pocket instead of waiting for government to do these schemes and pay people back.”
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