Liz Truss: cease and desist letter to Keir Starmer explained, did Prime Minister's budget 'crash' the economy?

• Liz Truss’s lawyers have sent a cease and desist letter to Sir Keir Starmer
• The letter demands Starmer stop claiming Truss ‘crashed the economy,’ calling the statements defamatory and false
• Truss’ lawyers argue that market fluctuations during her tenure shouldn't be labelled as a crash
• They say Starmer’s repeated claims were likely to harm Truss’s reputation

Lawyers acting on behalf of former Liz Truss have issued a cease and desist letter to Sir Keir Starmer, demanding that he stop claiming that the former prime minister caused an economic crash.

The letter, initially reported by The Telegraph, argues that Starmer’s assertions that Truss “crashed the economy” or was “crashing the economy” are defamatory, false, and misleading.

It also suggests that such statements were likely to have had a significant impact on public opinion during the last general election, when Truss lost her Norfolk seat.

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As part of her short tenure, Truss - who assumed office as prime minister in September 2022 - unveiled a mini-budget that included sweeping tax cuts. In the aftermath, there was a negative market response, with mortgage costs rising sharply.

She resigned less than seven weeks after being handed the keys to 10 Downing Street, and holds the record for the shortest term of office, at just 49 days.

The cease and desist letter argues that the market fluctuations during Truss’ time in office in September and October 2022 should not be described as an economic crash.

It says that fluctuations in exchange rates during that period “cannot properly be described as a crash of the economy.

The letter, sent by lawyers at Asserson, references remarks made by Starmer in June 2024, in which he claimed that Truss “crashed” or had “crashed” the economy.

“Of particular concern are the false and defamatory public statements you made about our client in the lead-up to the UK general election from late May 2024,” it reads.

“At a time when you knew or ought to have known that those statements were false; and the statements were likely to materially impact public opinion of our client whilst she was standing as the parliamentary candidate for the Conservative Party in South West Norfolk.”

The lawyers also suggest that Starmer’s repetition of the claims in the lead up to last year’s general election “gives rise to a strong inference” that they were intended to “damage our client’s reputation and/or for political purposes”.

They demand that the Prime Minister "immediately cease and desist" from making these claims.

What does it mean for Keir Starmer?

A cease and desist letter is essentially a formal request, not a legal order. It signals that the sender (in this case, Liz Truss’ lawyers) believes Keir Starmer’s statements are defamatory and is demanding he stop making them.

But he is not legally obligated to comply unless the issue escalates to court, and a court rules in favour of Truss.

If Starmer ignores the letter, Truss’ legal team could pursue legal action, such as filing a defamation lawsuit. For now, it’s more of a warning and an attempt to deter him from repeating the claims, potentially putting him under public and political scrutiny.

Whether or not he stops depends on his legal assessment of the risks and his political strategy.

What do you think about the claims made by Sir Keir Starmer and the response from Liz Truss’ lawyers? Do you believe her policies led to an economic crash, or is this an unfair accusation? Share your thoughts in the comments section.