The Conservative Party is distancing itself from former Prime Minister Liz Truss’s controversial mini budget, which has been widely criticized for its role in destabilizing the UK economy. The budget, introduced in September 2022, proposed significant, unfunded tax cuts and deregulation measures that led to market turmoil, a sharp depreciation of the pound, and increased borrowing costs.
Former Chancellor Kwasi Kwarteng, who co-authored the mini budget, admitted that he and Truss “got carried away” and “blew it,” acknowledging the lack of fiscal responsibility in their approach. The policy’s immediate negative impact on financial markets and public confidence prompted swift reversals and the eventual resignation of both Truss and Kwarteng.
Conservative MPs have been vocal in their disapproval. Mel Stride, the Shadow Chancellor, stated that the party would never again risk the economy with such unfunded tax cuts, emphasizing the importance of responsible fiscal policy. Other MPs, including Julian Smith and Simon Hoare, described the mini budget as “wrong” and “inept madness,” reflecting a broader consensus within the party against Truss’s economic strategy.
The fallout from the mini budget has had lasting effects on the Conservative Party’s reputation for economic competence. As the party seeks to rebuild trust, distancing itself from Truss’s policies appears to be a necessary step in restoring credibility with the electorate.
