LONDON (Reuters) – Former British Prime Minister Liz Truss on Sunday accused the Treasury, other countries and parts of the ruling Conservative Party of economic “orthodoxy” of undermining her. prime ministerial term and “growth plan”.
Truss’ tenure was cut short last year after her mini-budget was largely unfunded and tax cuts drove up borrowing costs and mortgage rates, sending sterling plummeting and wrecking UK finances stable reputation.
Truss makes her first foray into politics after abruptly ending her premiership after more than six tumultuous weeks in power, she writes in the Sunday Telegraph , which she believes is the right thing to do by cutting taxes and removing some regulations.
But she didn’t succeed, she wrote, because she underestimated “vested interests” and orthodoxy.
” I’m not saying I’m above reproach for what happened, but fundamentally, I didn’t get a realistic chance of a very powerful economic institution setting my policies, plus Lack of political support,” she wrote.
“I entered Downing Street assuming that my mandate would be respected and accepted. I was wrong. While I expected resistance from the system to my plans, I underestimated the extent of it
She blames this reaction not only on what she describes as the left-leaning orthodoxy of the economic system, but also on my liability-driven investing (LDI), which pension funds use to pay their obligations. LDI is at the center of market turmoil following her mini-budget. ” and the drive to “limit competition among major economies” on the global stage.
“As I made clear during my leadership campaign, I want to pursue growth … but it is not in line with fiscal the visceral view of the Ministry of Finance (Treasury) or the wider orthodox economic ecosystem. The first is to reduce debt, lower inflation and boost growth.
The British opposition Labor Party says it’s time for a change of government.
“The Tories have crashed the economy, devalued the pound, put pensions at risk and put working people through higher mortgages for years to come Pay the price,” said Rachel Reeves, Labor’s head of financial policy.
“After years of low growth, crushing wages and high taxes by the Tories13, only Labor offers the leadership and ideas to fix our economy and make it Growth”