He had barely unpacked after moving to Downing Street when Liz Truss and her finance team announced a budget plan that required immediate repacking of the country’s finances. In just three weeks, the first minister faced a sinking pound, a shaken gilt market, and mounting pressure on mortgage rates, while pension funds trembled. The Economist captured the mood with a harsh verdict on performance, calling it a misstep in government leadership. The mini-budget, introduced by the Minister of Finance, Kwasi Kwarteng, included bold tax cuts financed by borrowing, and its aftermath left a clear mark on the markets and credibility alike.
The Bank of England stepped in to avert a crisis akin to the 2008 near-meltdown, orchestrating a rescue package worth around 65 billion pounds over three days after the budget announcement 45 billion in tax relief was pledged. Before that intervention, market confidence had eroded significantly. Economist and professor David Blanchflower voiced a strong critique, describing the situation as unprecedented and deeply troubling for economic policy and governance.
budget at the bar
The fallout extended beyond markets into politics. The crisis stirred major turmoil within the Conservative Party, rapidly shaking public support. Pollsters and pundits suggested the party faced a difficult path to the next election, with some predicting a landslide for Labour. A YouGov poll reported Labour in a substantial lead, prompting observers to question the party’s readiness for an electoral contest. On Channel 4, a senior deputy highlighted that if an election were held tomorrow, the Tories might face a sweeping defeat. Critics described the budget process as poorly managed and the narrative around the numbers as muddled. The Guardian later recounted the story of Truss and Kwarteng, illustrating the broader social and political context around Greenwich and neighboring communities, where public sentiment was turning decisively against the government.
“Why don’t you admit you were wrong?”
After a period of silence during the market upheaval, the prime minister resurfaced with a series of interviews on local radio. She assumed suburban journalists would be less aggressive than their metropolitan rivals, only to discover that scrutiny remained intense. Reporters pressed for accountability and questioned how conservatives could restore trust in economic stewardship. The probing questions reflected a broader demand for candor about the policy missteps and their consequences for households and businesses alike.
When Truss responded by pointing to external factors, from international affairs to volatile energy costs, critics argued that the crisis exposed a failure to communicate or to anticipate the public’s needs. Commentators used stark comparisons to describe the public mood, with critics suggesting that people were worried about heating their homes and the security of their homes in the face of rising costs. The response strategy from the administration faced sharp scrutiny, and social media commentary reflected a sense of embarrassment within the team as elite commentators urged clearer, more responsible messaging.
Will she stay in office by Christmas?
The Conservative Party’s annual conference would soon be held in Birmingham, with the new leadership expected to address the gathering on the opening day. The mood, however, was far from celebratory. The leadership contest had produced concern about stability, and rival candidates for the top job warned that the party might face a difficult winter. Observers noted that while some supporters would attend, others doubted whether the party could recover in time for the festive season. Analysts speculated about possible changes to the budget strategy and the leadership team, with suggestions that adjustments to policy direction might be necessary. The broader question remained whether the administration could regain credibility and deliver effective economic management in the months ahead, or whether further reshuffles would be required to restore confidence among voters and markets alike.