Liz Truss came into office promising to boost the country's growth rate through a forensic combination of tax cuts, reforms to the country's supply side and spending restraint. This was not dissimilar to the kinds of policies espoused by Ronald Reagan and Margaret Thatcher.
The mini-budget of 23 September was a small document with extraordinarily large consequences. Ironically, the more expensive the measures were, the less controversial they turned out to be. The scheme to cap household energy unit costs will potentially cost hundreds of billions of pounds, yet investors barely batted an eyelid. They carried on lending to this country at more or less the same or equivalent rates.
The most obvious - and the one that perhaps will have the longest legacy - is the rise in mortgage rates. But the unexpected consequences were even more worrying, among them a crisis in funds used by pension schemes. That sparked a"run dynamic" which compelled the Bank of England to step in with an emergency support scheme.
In the event, the answer was: no. But something else changed matters: growing rumours of a U-turn. That brings us to this morning. The chancellor, pulled back from Washington early, was dismissed. The U-turn began. The corporation tax freeze is to be abandoned. The coming medium-term fiscal plan will involve austerity and a big dose of fiscal pain. The upshot is that Trussonomics, which was hinged clearly on tax cuts like these, is dead in the water.
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