Australia’s Financial Services Minister Stephen Jones takes swipe at UK Prime Minister Liz Truss’ ‘devastating’ error

Liz Truss is clinging onto her job just weeks after taking office after her disastrous ‘mini-Budget’ led the Pound to tank.

An Australian minister has taken a swipe at UK Prime Minister Liz Truss after her “loose” financial plans wrecked the British economy.

Ms Truss is clinging onto her job just weeks after taking office after her disastrous ‘mini-Budget’ led the Pound to tank, saw mortgage rates soar and caused her party to plunge in the polls.

Her £45 billion ($81 billion AUD) raft of unfunded tax cuts were completely scrapped by her new Chancellor yesterday and five of her own MPs have called on her to resign.

Australia’s Assistant Treasurer and Financial Services Minister Stephen Jones joined the pile-on on Tuesday in an unprompted remark during a press conference.

UK Prime Minister Liz Truss is under pressure to resign (Photo by PRU / AFP)

“The worst thing that the [Australian] government could be doing right now is to be ploughing even more money into the economy through loose fiscal policy when we’ve got inflation already high.

“We saw a real-life example of what happens when you have loose fiscal policy in the UK over the last month. There is an immediate response.

“We don’t want to repeat the mistakes that have had such a devastating impact in the UK here in Australia.”

He added: “We can’t be writing billion-dollar cheques and expect that that’s not going to have an immediate impact on every household in the country, it will.

“We saw in the UK what happens when you have loose fiscal policy and governments don’t get spending under control.”

Assistant Treasurer and Financial Services Minister Stephen Jones

It is unusual for allies to criticise or comment upon each other’s domestic policies.

Despite that, US President Joe Biden also called Ms Truss’ tax cuts a “mistake” on Sunday while visiting an ice cream parlour.

“I wasn’t the only one that thought it was a mistake,” Biden said.

“I think that the idea of cutting taxes on the super-wealthy at a time when … I disagree with the policy, but it’s up to Britain to make that judgment, not me.”

Ms Truss apologised for going “too far too fast” with her tax reforms on Monday night, but vowed to stay on as leader.

She told the BBC that she still believed in a “high-growth, low-tax economy”, but that economic stability was “my priority as prime minister”.