Liz Truss Defends Mini-Budget, Claims Current Economy Weaker

Former Prime Minister Liz Truss has defended her brief tenure by asserting that the United Kingdom's economy is currently in a more precarious state than it was during her 49 days in office. In her new book, "Bank Job," Truss contends that the economic measures she attempted to implement in her 2022 mini-Budget would have resulted in stronger public finances than the current government's policies.

Truss places blame for the market turmoil that led to her removal on the financial establishment and the Bank of England, rather than her own policies. The mini-Budget, announced by her Chancellor Kwasi Kwarteng, included £45 billion in tax cuts, which caused bond yields to spike and the pound to plummet.

In contrast, Treasury sources indicate that Chancellor John Healey's upcoming Budget will adopt a more cautious approach, focusing on modest energy bill support and targeted business aid. This will reportedly be funded by increased taxes on banks and a reduction in fiscal buffers.

Truss writes in "Bank Job" that billionaires are leaving Britain at an accelerated rate, with the UK leading global rankings for departures. She expresses concern that the City of London is being overshadowed and that the nation is falling behind in the technology and capital races.

"People said my tax cuts would... worsen the public finances. We've now tried the opposite and the public finances are worse," Truss states. She points to the 30-year gilt yield exceeding 6 percent, a figure higher than in 2022, as evidence of a "lack of trust in the entire system."

The book, which reportedly details how the Bank of England "broke the bond market and brought down the government," also criticizes individuals within her own party, whom she labels "Tory Traitors," and the "media and political class" for promoting what she calls a "false narrative of unfunded tax cuts."

Meanwhile, Andy Haldane, former chief economist at the Bank of England, has warned the current Prime Minister of the need to significantly cut public spending to avoid a crisis similar to Truss's, stating that Britain is "close to being taxed out and maxxed out in terms of borrowing."

Some former colleagues have been critical of Truss's defense. Sir Conor Burns, her former trade policy minister, called her "financially illiterate" and an "international embarrassment with zero self-awareness."