PMQs: Liz Truss pledges no public spending cuts as she defends mini-budget

Liz Truss has said she was "absolutely" not planning public spending cuts, despite rising borrowing costs.

Ms Truss told MPs the government would focus on reducing debt but "not by cutting public spending but by making sure we spend public money well".

Last month's mini-budget would "protect our economy at this very difficult time internationally," she added.

Labour Leader Sir Keir Starmer said the government's "borrowing spree" had caused the value of the pound to drop.

Speaking during Prime Minister's Questions, he said the prime minister needs to "stop ducking responsibility" and reverse the "kamikaze budget".

Government borrowing costs have increased following market turmoil over the last month.

The Bank of England has warned interest rates could rise again as the value of the pound has plummeted against the dollar.

The pound fell to record lows against the dollar following the government's mini-budget on 23 September - which set out its plans to increase borrowing to fund the biggest tax cuts in 50 years.

Ms Truss said: "We are seeing interest rates rising globally in the face of Putin's appalling war in Ukraine.

"What we are making sure is that we protect our economy at this very difficult time internationally.

"As a result of our action - and this has been independently corroborated - we will see higher growth and lower inflation."

The government has previously said it was committed to spending settlements, set out in the 2021 Comprehensive Spending Review.

Chancellor Kwasi Kwarteng said earlier this month: "I think it's a matter of good practice and really important that we stick within the envelope of the CSR."

PM claims there won't be cuts - but will there?

One line that stood out from the prime minister was when she claimed there wouldn't be any cuts in government spending.

And yet senior figures in government acknowledge that cuts are coming.

How do these things match up? Well, I'm trying to find out. It may be that budgets don't keep up with inflation and so shrink in real terms but the actual number doesn't.

That said, given the scale of cuts some, such as the Institute for Fiscal Studies, have suggested may be needed, it's hard to see how these numbers add up.