Under-fire PM Truss vows to get UK 'through the tempest' with growth plan
British Prime Minister Liz Truss speaks on stage at the Conservative Party's annual conference in Birmingham, Britain, Oct. 5, 2022. (Reuters Photo)


Prime Minister Liz Truss vowed to steer the U.K. "through the tempest" as she closed her party's tumultuous annual conference on Wednesday, making an unapologetic pitch for economic "growth, growth, growth."

Just a month since she succeeded Boris Johnson, Truss has alienated voters, financial markets and many in the ruling Conservative party with a crash program of debt-fueled tax cuts to boost Britain's stagnant economy.

But Truss argued in her speech that the status quo was not an option, despite the botched rollout of her fiscal plan leading to a humiliating U-turn on a pledge to cut income tax for the highest earners.

"In these tough times, we need to step up," she told delegates, taking aim at what she said was an "anti-growth coalition" holding back attempts to revive the economy.

"I'm determined to get Britain moving, to get us through the tempest and put us on a stronger footing as a nation," she added, mentioning the word "growth" 27 times during the speech.

Despite only being leader for exactly a month, Truss's calamitous start, with a 10-day hiatus because of the death of Queen Elizabeth II, has already seen her fighting to keep her job.

Former Minister Grant Shapps, who supported Truss's leadership rival Rishi Sunak, said she could face a no-confidence vote by lawmakers if the keynote speech fails to start reviving the party's dismal standing in opinion polls.

"In the end, I don't think members of parliament, Conservatives, if they see the polls continue as they are, are going to sit on their hands," he told Times Radio.

"A way would be found to make that change."

The speech wasn't without its hiccups, with protesters holding a Greenpeace banner saying "who voted for this?" disrupting the prime minister around 15 minutes into her message.

Truss's critics, including allies of Johnson, have accused her of lacking a national mandate for her unpopular reforms after she won the Tory leadership.

But she insisted Britain needed to "do things differently", with no time for "more drift and delay."

"Whenever there is change, there is disruption. Not everyone will be in favor.

"But everyone will benefit from the result – a growing economy and a better future," she said.

'Keep faith'

It remains to be seen whether the speech has the effect 10 Downing Street wants.

Truss' media interviews in the build-up to Wednesday focused unrelentingly on the U-turn she and Chancellor of the Exchequer Kwasi Kwarteng were forced to stage on the signature element of their reform overhaul.

Cabinet splits emerged in Birmingham on indications that despite the impact of the crisis on the poor, the pair will next cut welfare benefits.

Truss denied she had lost control of her cabinet after putting on a show of unity with the beleaguered Kwarteng on a visit to a construction site in Birmingham on Tuesday.

"We are working with our MPs, this is a team, this Conservative team, putting forward our policies for the country and delivering for the country," she told ITV.

But there was little team spirit on display from Home Secretary Suella Braverman, who accused party critics of seeking to stage a "coup" against Truss.

Dissident ringleader Michael Gove was one of Braverman's targets. But he kept up his running criticism of Truss, stressing all Conservative lawmakers had been elected on Johnson's manifesto of 2019.

"We've got to keep faith with what Boris wanted," Gove said, underlining the point that Truss has yet to face the U.K. electorate herself.

But asked by reporters if Truss would survive beyond the end of the year, the former minister said: "Yes."

Sterling softens

Following Truss’ speech, Britain's pound weakened against the dollar on Wednesday, ending a six-day rally, but staying well off recent lows.

At 11:12 a.m. GMT the pound hit a session low of $1.1346 versus the dollar, down 1.1%. Against the euro, the pound was down 0.4% at 87.410 pence per euro.

After tumbling to a record low of $1.0327 against the dollar last week in the aftermath of the government's "mini-budget" announcement, the pound has recovered some ground. It was also boosted on Monday after the government reversed a cut to the highest rate of income tax.

"Compared to the wild swings over the past week or so it's not a significant move," said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, referring to the pound's performance.

Sterling got a small uplift after the final S&P Global UK Composite Purchasing Managers' Index came out slightly higher than first estimated.

Despite the slightly better reading, the data brings into focus the challenges facing British businesses as they suffer the sharpest contraction in activity since early last year.

Amid recession fears and concerns around the U.K.'s fiscal policy, the pound is down 16.5% versus the dollar so far in 2022.

Meanwhile the dollar has been rising, as the U.S. Federal Reserve hiked interest rates aggressively to control inflation.

The Bank of England is also battling to control soaring inflation, with the market expecting a bumper hike of 100 basis points at its next meeting in November.