Liz Truss Bewildered By Suggestion She Do Her Own Economic Research

Liz Truss appeared bewildered when it was suggested she should have done her own research before launching the disastrous mini-Budget. The former prime minister was in office for a record-breaking period of just 49 days back in 2022. Her decision to unveil £45 billion of unfunded tax cuts led to significant inflation, sent the pound into decline and the markets into turmoil as pensions schemes lingered close to structural collapse. The Bank of England had to step in to steady the economy and outraged Tory MPs promptly kicked Truss out of No.10.

Three years later, the former PM has released a book called “Bank Job” blaming the Bank of England and the Treasury for her terrible premiership. She claimed the Bank “rug-pulled” her government as it decided to sell £80bn of gilts the day before her mini-Budget – without warning anyone. Actually, the Bank had announced the plan five days before, and then had to delay the sale until November 1 due to the unexpected mini-Budget. But Truss still avoided taking any responsibility for the crisis she caused this morning, when speaking to Sky News.

“Why didn’t you know about those problems?” Presenter Wilfred Frost asked, saying people in the markets were aware of the risks. She said that as prime minister she had a “myriad” of problems to deal with, adding: “The Treasury, who were responsible for drawing up the mini-Budget, had an estimate of how much the gilt market would be affected by our announcements. “They thought it was not new. Now, of course gilts would move as a result of it, they did not think it was a major issue.”

She continued: “The people who were in charge of coordinating fiscal monetary policy did not tell us the risks. “Are you suggesting that as prime minister I should go online and do my own research? “Surely, in our system, you’re meant to be able to rely on the Treasury to tell you what the risks are about making a particular announcement. “You’re making my case for me that all these people are not doing their jobs.” Frost replied: “I kind of am saying that, because the prime minister’s role is to be aware of all the risks out there and make judgements.”

He added that even as a journalist in the US at the time, he was aware the UK had 12 years of ultra-low interest rates – and when that turned, there would be risks, then exacerbated by the Ukraine war from February 2022. “I don’t think it’s OK to say my lieutenant in the Treasury didn’t warn me about this. You’re the captain of the ship,” Frost said. “You went full steam ahead.” He said Truss did not put her ideas past the Office for Budget Responsibility.

The ex-PM said she did fire the former head of the Treasury as they did not “share our views”, but added: “Are you saying there’s only one person at the Treasury who had the expertise? That’s not a credible statement.” She also claimed it was only “proper democracy” if the chancellor and the prime minister are fully in control of monetary policy. Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed.

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