British PM returns to business of politics

Britain's Liz Truss will use her first international trip to New York as prime minister to pledge continuing support for Ukraine. Photo: AAP
Britain’s Prime Minister Liz Truss signalled her priorities after the funeral of Queen Elizabeth by flying to her first major summit and rushing out measures to try to avert an economic slump.
Politics — or at least the discussion of its ins and outs — has been on pause since the queen’s death on September 8 for a period of national mourning.
The pause, which followed a two-month leadership campaign, came as Britain risks falling into a lengthy recession and faces an energy crisis that threatens the finances of millions.
Sources said it had allowed some of Prime Minister Truss’s ministers time to get established in their new departments and fine-tune their policies.
New policies will be crammed in during the few days parliament sits this week, including a support package to help businesses cope with rising energy prices, a statement on cutting wait times for treatment at Britain’s state-run National Health Service and much-promised tax cuts to try to spur growth.
Prime Minister Truss will meet US President Joe Biden at the United Nations General Assembly on Wednesday after speaking with several leaders who travelled to the UK for the queen’s funeral.
“I think we will see a focused, punchy start, showing momentum and direction of travel free of distractions and side dramas,” said a veteran member of the governing Conservative Party.
“The policies were there already, but they were bedded into the departments (during the mourning period).”
On her second full day in office, Truss made a big announcement about measures to ease the pain of sky-high energy prices which was eclipsed hours later by news the queen had died.
The new prime minister had to change gear immediately, concentrating on striking the right tone in speeches and tributes to the queen, while keeping some distance to allow the royal family to take the lead. For some in her governing Conservative Party, the pause softened any criticism of her first, expensive moves.
While Prime Minister Truss’s team declined to make announcements during the national mourning period, her government pressed on with its work.
Britain’s financial industry also cancelled events and postponed meetings during mourning, which culminated in a public holiday on Monday – something that could reduce economic output by 0.2 percentage points this month.
Prime Minister Truss’s overriding mantra for what she wants to achieve in government is “growth”.
Her mini budget is expected to be delivered by finance minister Kwasi Kwarteng on Friday, when he will scrap an increase in national insurance contributions and freeze corporation tax.
Minister Kwarteng will also give an estimated cost for the energy package, but it will be up to the business department to offer the detail. He may also announce the end to caps on bankers’ bonuses.
The Bank of England is set to raise interest rates on Thursday to fight inflation, seemingly moving in the opposite direction to Minister Kwarteng, whose tax cuts could stoke prices.
– AAP