Truss’ attempt to boost growth in a recession-threatened economy was fuelled by eye-watering levels of debt, damaging her government’s credibility on financial marketsLiz Truss, the shortest serving prime minister in UK history, leaves lasting scars
Truss’ attempt to boost growth in a recession-threatened economy was fuelled by eye-watering levels of debt, damaging her government’s credibility on financial marketsLiz Truss, the shortest serving prime minister in UK history, leaves lasting scars on the economy after her botched budget rocked markets, spiked borrowing costs and tanked the pound.
The crisis-hit PM, elected Conservative leader just six weeks ago on a tax-slashing platform, announced her resignation Thursday.
Her budget, peppered with tax cuts and delivered last month, sought to boost growth in Britain’s recession-threatened economy and freeze energy prices to ease a cost of living crisis.
However, the costly measures were fuelled by eye-watering levels of debt that damaged the government’s credibility on public finances and sent bond yields and mortgage rates soaring.
«The great political gamble of Liz Truss has spectacularly backfired but not before wreaking significant damage to the UK economy,» remarked Susannah Streeter, analyst at stockbroker Hargreaves Lansdown.
«It will take considerable time before the risk premium attached to UK assets fades away, following the financial nervous breakdown which followed the mini-budget.
