Is there anything left of Trussonomics?

After two major U-turns over last month’s mini-Budget and the sacking of a chancellor, what’s left of Liz Truss’s economic agenda? Parts of it remain intact. But it’s now shaping up to be significantly different from what the Prime Minister intended when she entered Downing Street.

The key assumption behind Trussonomics as it was developed during the leadership race was that the markets would be delighted to lend to the government, on the cheap, to see through its tax-cutting, growth-stimulating agenda. That assumption was quickly killed off after former chancellor Kwasi Kwarteng sat down from presenting his mini-Budget, and the cost paid by governments to borrow began to soar. It landed Truss in a huge economic mess: making her the international focal point for less amenable lending markets worldwide. But in an attempt to pick up the pieces, even more pillars of her economic agenda are collapsing.

U-turning on plans to abolish the 45p tax rate two weeks ago seemed to mark the end of Truss’s revolutionary-like attitude towards economic change.