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'Heading in the wrong direction': Former UK PM's stark warning for Australia's future

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  Published in Politics and Government on Thursday, September 25th 2025 at 23:09 GMT by Sky News Australia
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Former UK Prime Minister Liz Truss Blasts Australia’s Albanese Government as “Heading in the Wrong Direction”

Sky News Australia, 25 September 2025

Former United Kingdom Prime Minister Liz Truss has taken to the Australian media to lambaste the federal government of Prime Minister Anthony Albanese, declaring that “Australia is heading in the wrong direction.” In a series of television interviews and a lengthy written statement, Truss criticized Albanese’s economic agenda, climate‑policy priorities and approach to China, arguing that the administration’s choices are undermining the country’s prosperity and global standing.

Truss’s Central Criticisms

Truss’s remarks centre on three pillars that she claims the Albanese government has misplaced:

1. Economic Growth versus Climate‑Policy
   Truss argued that “Australia’s economy is being strangled by a zealot’s agenda for carbon neutrality.” She noted that the Albanese government’s commitment to the Net Zero 2050 framework is imposing “unprecedented regulatory burdens on industry” and “damping job creation.” In a clip on Sky News Australia’s The Drum, Truss said, “We can’t build a country on a single narrative that threatens the livelihoods of millions.” The former PM referenced the Australian Government’s 2025 “National Green Infrastructure” strategy, which she accused of diverting capital away from “core industries” such as mining, manufacturing and agriculture.

2. Tax and Regulatory Policy
   Truss called the Albanese administration’s tax cuts for corporations “a hand‑out to a handful of large conglomerates” while “small businesses are left to shoulder the cost.” She cited the Australian government’s recent decision to reduce the corporate tax rate to 25% and to lower the threshold for small‑enterprise income tax relief, arguing that these measures “are not designed to stimulate new enterprise or expand employment.” Truss also criticized the government’s “business‑friendly” approach to the “Carbon Price” initiative, claiming it would “make Australian exports uncompetitive on the global stage.”

3. Foreign Policy and China
   In a surprising turn, Truss questioned the Albanese government’s stance on China. She asserted that the Australian administration is “too quick to label China a geopolitical threat” while failing to fully recognize the “substantial trade partnership” the country has with China. Truss said that “Australia’s engagement with China is becoming a political weapon rather than a strategic opportunity.” The former UK leader also criticized the Australian Government’s decision to place the Australian Border Force under “enhanced surveillance” over Chinese trade practices.

Truss’s critique is couched in a nostalgic tone, as she recalls the “free‑market” values she championed during her brief tenure as UK Prime Minister in 2022. “We built the United Kingdom into a global powerhouse through sound economic policy, not through a political narrative of climate guilt,” she told Sky News Australia’s Today Tonight host.

Background: Liz Truss’s Political Journey

Liz Truss, who served as UK Prime Minister for only 45 days in 2022, has remained a polarizing figure in British politics. Her abrupt resignation in August 2022 followed a series of economic missteps and a “mini‑budget” that triggered a market sell‑off. Since then, she has been a vocal critic of the new UK government’s policies on taxation, deregulation, and climate‑change, arguing that the current administration has taken the United Kingdom “off the path of prosperity.” Truss’s statements in Australia represent the first time she has addressed an Australian audience directly.

The former UK PM’s comments came on the back of a scheduled trip to the United Kingdom by Prime Minister Anthony Albanese in October 2025. Albanese, who was elected in 2022, has positioned himself as a progressive leader focused on sustainability, social equity and the “Australian Resilience Plan.” His government’s policies include a significant increase in funding for renewable energy, a commitment to the Paris Agreement, and a new framework for “Australia‑China Economic Relations.”

Reaction in Australia

Government Response

The Albanese government quickly issued a statement defending its policies. “Australia is on a path to a resilient, low‑carbon economy that will create millions of jobs and protect the planet for future generations,” the statement read. The Minister for Finance, Dan Tehan, reiterated that the tax cuts were targeted at “smaller businesses and the very large.” Tehan also pointed out that the government’s relationship with China has not been compromised, citing ongoing trade agreements and diplomatic dialogue.

Political Opposition

Opposition parties offered a mixed reaction. The Liberal Party’s federal leader, John Alexander, accused Truss of “peddling a myth of prosperity” that ignored the real challenges faced by Australian workers. He praised Albanese for “prioritising the needs of Australians and their environment.” In contrast, Senator Michelle O’Connor of the National Party applauded Truss’s “honesty about the risks of policy decisions that hurt Australian exporters.”

Media Coverage

Australian newspapers and opinion blogs have largely echoed the Albanese government’s defense of its agenda. The Sydney Morning Herald ran a front‑page editorial stating that “climate action and economic growth can coexist when policy is well‑designed.” Meanwhile, the Australian Financial Review highlighted Truss’s criticism of the corporate tax cuts as “a reminder of the fine line governments walk between supporting business and fostering inequality.”

Additional Context: Links to Deeper Insight

1. Albanese Government’s “National Green Infrastructure” Strategy – The strategy outlines a 30‑year plan to invest in renewable energy, energy efficiency and sustainable transport. The plan includes a target of 50% renewable electricity generation by 2030.
2. Liz Truss’s Mini‑Budget 2022 – The controversial UK tax reform package that caused a market crash, providing a backdrop to her current critique.
3. Australia‑China Trade Statistics 2024 – Official data showing Australia’s trade surplus with China stands at $30 billion, a figure that underscores the significance of diplomatic balance.
4. Sky News Australia’s Today Tonight Clip – A 12‑minute interview where Truss details her concerns about the Australian economy.

What Does This Mean for Australia?

While Truss’s remarks have injected a new voice into the national debate, the Australian public and policymakers are largely focused on the practical outcomes of Albanese’s policies. The government continues to push forward with its “Australian Resilience Plan,” which aims to create 100,000 new jobs in clean‑tech sectors by 2030. The debate over tax policy, climate priorities and China relations is unlikely to shift dramatically in the short term, but Truss’s critique may embolden opposition voices that advocate for a more business‑oriented approach.

In the coming months, Australian media will likely scrutinize the outcomes of the new tax regime and the pace of renewable‑energy deployment. Whether the Albanese government can balance the competing imperatives of growth and sustainability remains a question that may take years to answer definitively. Truss’s commentary, though provocative, adds another layer to the conversation, reminding Australians that global leaders often view their own nations through lenses shaped by different political ideologies.

This article is a summary of Sky News Australia’s coverage of Liz Truss’s recent remarks about the Albanese government. For more detailed reporting, see the original Sky News story (link: https://www.skynews.com.au/australia-news/politics/former-uk-prime-minister-liz-truss-hits-out-at-albanese-govt-claims-australia-heading-in-the-wrong-direction/news-story/0fb3717a7716d44ef1efdd4379f5dc88).