Tory leadership LIVE: Truss vindicated as BoE announce major interest hike

Liz Truss has claimed victory in the row over tax cuts in a humiliating blow to her rival Rishi Sunak.

Following the Bank of England’s interest rates decision this morning, she said*: 

“Today’s news underlines the need for the bold economic plan that I am advocating.

“We need to take immediate action to deal with the cost of living crisis, grow the economy and deliver as much support to people as possible. As Prime Minister, I’d use an emergency budget to kickstart my plan to get our economy growing and offer immediate help to people struggling with their bills. Through supply side reforms, dealing with burdensome business regulation and cutting taxes, I will get our economy back on track. My tax cuts are necessary, affordable and not inflationary.

“You cannot tax your way to growth. Business as usual will not do. Instead, we need a new approach on the economy, we need to challenge the failing economic orthodoxy and we need to deliver the necessary reform to tackle inflation and achieve sustainable growth.“