Future Of British Business
Liz Truss’s Historic Gamble With the UK Economy Is Already Unraveling
- Markets crash after UK unveils massive unfunded tax cuts
- Analysts warn that traders are losing confidence in the pound
This article is for subscribers only.
Liz Truss’s plan for growth, melding the biggest tax giveaway in half a century with Thatcherite deregulation, is a straight-up gamble with Britain’s future, and even before her chancellor of the exchequer had finished delivering it on Friday the bet was starting to sour.
The market’s verdict on the £220 billion policy blitz set out by Kwasi Kwarteng was swift and devastating. Sterling crashed below $1.11 for the first time since 1985, taking its slump for the year to date to 19%. Five-year gilts posted their biggest ever daily decline.