Liz Truss

• Liz Truss's aims

  To shift the country's focus from redistribution to economic growth
• 'Trussonomics'


  Truss's economic plan for breaking out of the 'trap' of high taxes and low economic growth
• Trussonomics


  1. Cutting taxes and scrapping some regulations to create market conditions and economic incentives for investment and work to drive up the rate of economic growth

  2. Making up the shortfall in reduced tax revenue by borrowing cheaply from the markets
• Truss announced her resignation on 22nd October 2022, only 44 days after entering No.10
• Challenges Truss faced when entering No.10

  • Lack of a clear mandate
  • Challenging political and economic climate
  • Divided Conservative Party
• Truss's lack of a mandate


  Critics argued she lacked a clear mandate to pursue her new policy direction
• Challenging political and economic climate

  Continuing effects of COVID-19 pandemic, Russia's invasion of Ukraine, rising inflation and interest rates
• Divided Conservative Party

  Many backbench MPs opposed Truss's economic plan, including former ministers and those who had backed Rishi Sunak
• Mistakes in Truss's delivery of 'Trussonomics'

  • Not taking more time to sell her pro-growth agenda to the public
  • Rushing the mini-budget without adequate preparation or consultation
  • Failing to address the concerns of her party and the public
• Truss gave her first speech as Prime Minister on 6th September, but the 10-day national mourning period for Queen Elizabeth II's death began on 8th September, leaving her with only a few working days to make the case for her reforms before the mini-budget was delivered on 23rd September
• Reasons for Truss's downfall

  • Not taking enough time to sell her pro-growth agenda to the public
  • Bypassing the OBR and surprising the markets with the mini-budget
  • Bypassing her cabinet and not getting input on controversial policies
  • Filling her cabinet with loyalists, leaving many factions without a voice
• The market reaction to the mini-budget

  Undermined a core pillar of 'Trussonomics' - the belief that markets would be willing to lend at low interest rates to fund the transition to a lower tax, higher growth economy
• Truss sacking Kwarteng as Chancellor

  Further undermined Truss's authority, as it was unclear why she should remain in office if her key ally had to be dismissed
• Truss's U-turns on the mini-budget

  Emboldened her critics and invited further rebellions, as it appeared further challenges could win more concessions
• The decisive rebellion came from Conservative MPs opposing the lifting of the fracking ban, despite it being initially presented as a confidence vote
• Truss announced her resignation the day after the fracking vote rebellion