Former Prime Minister Liz Truss has said she accepts "not very much" responsibility for the economic turmoil caused by her 2022 mini-Budget, instead blaming the Treasury and the Bank of England during a heated Sky News interview.
In a combative exchange with journalist Wilfred Frost, Ms Truss - who lost her seat in 2024 - insisted the mini-Budget itself was not at fault. "It wasn't the mini-budget that went wrong. I think this is very important," she said. "What there was was a spike in the gilt market. That's what led to the chain of events that ultimately led to my resignation."
When pressed on how much personal responsibility she took, Ms Truss replied: "Not very much is the answer."
Claims of Unawareness
Ms Truss, who lasted just 49 days in office before being ousted by her own party, claimed she and then-Chancellor Kwasi Kwarteng were not told about the risks posed by liability-driven investment (LDI) banking strategies and quantitative tightening (QT). She said she had not been warned that her £45 billion of unfunded tax cuts, announced without an independent forecast, would cause market chaos.
Mr Frost countered that she should "unequivocally have known" about the dangers of QT, pointing to soaring inflation driven by the Ukraine war as a warning sign. "That would suggest to everyone: go cautiously, don't go all at once," he said. "I don't think it's okay to say, 'My lieutenant in the Treasury didn't warn me about this'. You're the captain of the ship. You went full steam ahead."
Deflection and Defence
Ms Truss hit back: "I was Prime Minister at the time. We had a myriad of issues that we were dealing with." She then asked: "Are you suggesting that as Prime Minister I should go online and do my own research? Surely in our system you're meant to be able to rely on the Treasury to tell you about what the risks are of making a particular announcement at a particular time?"
Mr Frost responded: "With all due respect, former Prime Minister, I kind of am saying that, because the Prime Minister's role is to be aware of all the risks out there and to make judgements."
The interview also touched on Ms Truss's decision to fire the head of the Treasury, Sir Tom Scholar, and her failure to consult the Office for Budget Responsibility (OBR). Ms Truss defended the move, saying: "I did fire the head of the Treasury, because this is somebody who did not share our views on how things should change. Are you saying there's only one person at the Treasury who has any expertise? That's not a credible statement."
The mini-Budget crisis sent mortgage rates soaring and triggered a sharp fall in the value of the pound, leading to Ms Truss's resignation after 49 days in office.
