Facts

During a Conservative leadership debate Rishi Sunak referenced a Times article where Patrick Minford, one of Liz Truss’ financial advisors, said tax cuts would increase interest rates up to 7%.

Mr Sunak went on to explain how an increase in borrowing would increase mortgage rates citing the US as an example, however he was interrupted by Liz Truss saying “I’m sorry, this is scare-mongering. This is project fear.”

Following Liz Truss becoming Prime Minister and her government’s mini-budget, mortgage rates rose dramatically.  

Verdict

Sunak’s warning was neither “scare-mongering” nor “project fear”. It was chillingly accurate. Liz Truss was misleading Tory members, as well as the wider electorate. She was also misleading herself. 

Note that Liz Truss here is using the term “Project Fear” to discredit accurate and well-researched advice about the consequences of government action. For another example of the term “Project Fear” being used in this way, see Suella Braverman’s dismissal of warnings about the outstanding liabilities accruing the UK to the EU as a consequence of Brexit.

We emailed Liz Truss’ office offering her the chance to respond. The email was received, but no reply.