https://leftfootforward.org/2023/09/the-political-and-economic-consequences-of-liz-truss/
12 months after her shambolic premiership commenced, we look at the lasting impact of our shortest-serving PM’s disastrous attempt to remould Britain into a low tax, deregulated economy.
Liz Truss. A political figure you are probably trying to forget, but a reminder that the short-term actions of politicians can have long-term outcomes. She was the prime minister who started her No 10. tenure on September 6, 2022, and oversaw a catastrophically unfunded, tax-cutting ‘mini’ budget, which cost the country a staggering £30bn. She then set about making a series of screeching U-turns and abandoned her entire policy programme, as she battled to settle the market meltdown and save her own skin.
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One year on after Truss took office and mortgage rates have hit a 15-year high, inflation remains uncomfortably high, and the growth the UK’s shortest-serving PM promised is nowhere to be seen, as millions fret about how they will afford their bills when winter comes.
After criticism that the Tory government was ‘rudderless’ in the face of soaring inflation, Liz Truss promised to make tackling the cost-of-living crisis her number one priority if she became PM. Recession is ‘not inevitable’ she had said as she pushed to stand out in the crowd of hopefuls during last summer’s Tory leadership campaign.
Instead of helping Britons tackle soaring living costs, Truss, together with her chancellor Kwasi Kwarteng, managed to do the exact opposite.
The sweeping tax cuts announced by Kwarteng triggered investor panic over the future health of the UK economy. The mini-budget (called ‘mini’ instead of just ‘budget’ to avoid scrutiny by the Office for Budget Responsibility) prompted a sharp fall in the value of the pound and drove up government borrowing costs.
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https://leftfootforward.org/2023/09/the-political-and-economic-consequences-of-liz-truss/