Former Prime Minister Liz Truss has revived discussions over her mini-budget, arguing that the British economy would be healthier today if her policies had been fully enacted.
In a video on X, Truss reflected on the two-year anniversary of the fiscal plan that led to her resignation, stating: “Two years on, it’s clear that the British economy would be in much better shape if the mini-budget had been implemented as intended.”
The mini-budget, introduced by then-Chancellor Kwasi Kwarteng in September 2022, proposed £45 billion in unfunded tax cuts, including the abolition of the 45p top rate of income tax and a freeze on corporation tax.
In her video, the former PM said the British economy would be in far better shape if her 2022 mini-budget had been implemented.
She pointed out her fiscal plan would have led to lower energy bills through fracking, attracted more corporations to the UK due to competitive tax rates, and fostered a “dynamic, go-getting economy” with improved conditions for the self-employed through IR35 reforms.
Truss blamed the economic establishment for sabotaging her proposals. She pointed to the Bank of England’s announcement to sell £40 billion worth of gilts the day before her mini-budget, accusing them of failing to properly regulate the pension markets and liability-driven investments (LDIs), which contributed to financial instability. Truss claimed that two-thirds of the spike in gilt yields around that time was due to these failures, not her policies.
She also criticised the Office for Budget Responsibility (OBR) for leaking a supposed £70 billion black hole in public finances, which was later proven false. Truss argued that the backlash against her mini-budget led to her government being forced out of office and resulted in the continuation of economic policies she believes have harmed the country.
She highlighted that current policies have led to record-high taxes, with a surge in emigration, particularly of high-net-worth individuals, second only to China. Meanwhile, low-skilled migration has reached unprecedented levels, which Truss argues is not contributing to the economy. She pointed to the closure of key industries, such as steelworks and refineries, due to what she described as the “extreme cost of Net Zero zealotry.”
Truss warned that under Labour, these issues will only worsen, as the government continues to raise taxes, increase regulation, and impose stricter Net Zero policies. She noted that tax revenues are falling as companies and talent leave the UK, while Chancellor Rachel Reeves is imposing financial strain on pensioners during a time of high energy costs.
Ms Truss states:
“Things will only get worse under Labour. We’re seeing the economic doom loop accelerating. Labour are raising taxes. They are increasing regulation. They’re putting in place more extreme Net Zero policies.
“We’re already seeing what is happening. Tax revenues are not as high as people and companies are leaving the country. And instead the Labour Chancellor is taking out the economic pain on Britain’s pensioners at a time when energy prices are very high thanks to their failed policies.”
Truss concluded that the only way to break free from this “economic doom loop” is through supply-side economics, proper monetary policy, and cutting taxes. She emphasised that confronting the economic establishment is essential for achieving these changes and revitalising the UK economy.
And she’s right.
A few people who follow financial news understood this back when it happened, but the problem was that very few people follow such news, so these actions go under the radar.
If the average Brit reads anything financial, it will be no more than a headline via a glance at some mainstream media lefty’s tripe, then they will go on to read about football or reality TV.
That is why we are in decline – proving that empires crumble from within. We’re still crumbling.