In search of Trussonomics

When Liz Truss entered the leadership race there was no such thing as ‘Trussonomics’. She began her campaign with no real expectation of winning and without any serious guiding philosophy. Rishi Sunak did her a great service by portraying her throughout the leadership campaign as a crazed tax-cutter, a disciple of Ronald Reagan. But in truth, her economic policy was nowhere near as coherent as Sunak made out.

Truss just about scraped through the soundbite war of the debates, but without any real pro-growth, tax-cutting agenda. All she pledged to do during her campaign was to freeze forthcoming corporation tax rises and shave 1 per cent off National Insurance. This she did mainly because the 2019 Tory manifesto promised not to raise tax. Reneging on manifesto pledges damages trust in politics, Truss argued. But this is a tiny tax cut and unlikely to inspire any sort of economic growth.

Kwasi Kwarteng, the Chancellor, talks about a plan to return Britain to 2.5