London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

Grant Shapps: Liz Truss's tax cuts were clearly the wrong approach

Grant Shapps: Liz Truss's tax cuts were clearly the wrong approach

Liz Truss's radical tax-cutting plan was "clearly" not the right approach, according to Grant Shapps, who briefly served in her short-lived government.

In a return to the political fray, Ms Truss wrote in the Sunday Telegraph that her economic agenda was never given a "realistic chance".

Business Secretary Mr Shapps said he agreed with Ms Truss on wanting lower taxes - but inflation must fall first.

"You can't just go straight to those tax cuts," he said.

In her 4,000-word essay, Ms Truss stood by her plans to boost economic growth, arguing they were brought down by "the left-wing economic establishment".

But she acknowledged she was not "blameless" for the unravelling of the mini-budget.

They are the first public comments the former PM has made on her resignation in October of last year.

Ms Truss resigned after she and her chancellor Kwasi Kwarteng introduced a £45bn package of tax cuts - including a cut to the top rate of income tax - which panicked the markets and alienated Tory MPs.

Mr Shapps was asked on BBC One's Sunday With Laura Kuenssberg show whether Ms Truss's approach had been the right one.

"Clearly it wasn't," he said.

He admitted that the UK's tax burden was currently "very high", and said he agreed with Ms Truss that Conservatives must be "making the good arguments" that a lower-tax economy can be successful in the long term.

But before the government cuts tax, it must first halve inflation, get "growth into the economy" and get debt "under control", he said.

Grant Shapps was home secretary under Liz Truss for her final six days in office

He tried to avoid addressing Truss's criticism that the Conservative Party had failed, for years, to make the case for free-market economics with low taxes and low regulation.

Mr Shapps said he took the role of home secretary in the final days of Ms Truss's government out of a sense of "national duty", and that by that point "we'd seen the impact on the markets".

He replaced Suella Braverman, who resigned over two data breaches. Six weeks earlier, as Ms Truss entered Downing Street, she had fired Mr Shapps as transport secretary, a role he held under the former Prime Minister Boris Johnson.

Ms Truss's brief time in power - 49 days - made her the shortest-serving prime minister in UK history.

In her essay, Ms Truss said that while her experience last autumn was "bruising for me personally", she believed that over the medium term her policies would have increased growth and therefore brought down debt.

She argued that the government was made a "scapegoat" for developments that had been brewing for some time.

"Frankly, we were also pushing water uphill. Large parts of the media and the wider public sphere had become unfamiliar with key arguments about tax and economic policy and over time sentiment had shifted leftward," she wrote.

She also said she had not appreciated the strength of the resistance she would face to her plans - including plans to abolish the 45p top rate of income tax.

"I assumed upon entering Downing Street that my mandate would be respected and accepted. How wrong I was."

Mr Kwarteng dropped the 45p income tax proposals 10 days after they were announced, telling the BBC it was "a massive distraction on what was a strong package".

Less than a fortnight later, Ms Truss sacked Mr Kwarteng, something she said she was "deeply disturbed by". She described Mr Kwarteng in her essay as "an original thinker and a great advocate for Conservative ideas" - but that it was clear the tax proposals could not survive.

With the benefit of hindsight, she would have acted differently during her premiership, she wrote - but she still backs her plans for growth.

Sir Jake Berry, who was Conservative party chairman under Ms Truss, said he agreed with her assessment of the problems facing the UK economy, but "not necessarily the cure".

Speaking on the Sunday With Laura Kuenssberg show, he added that Ms Truss had been wrong to say the Conservatives had failed to make the argument for lower taxes.

Meanwhile, shadow chancellor Rachel Reeves said Ms Truss's policies "made working people pay the price".

"The Conservatives crashed the economy, sank the pound, put pensions in peril and made working people pay the price through higher mortgages for years to come.

"After 13 years of low growth, squeezed wages and higher taxes under the Tories, only Labour offers the leadership and ideas to fix our economy and to get it growing."

While Ms Truss resigned as prime minister, she is still serving in parliament as the MP for South West Norfolk.


Watch: Liz Truss' approach 'clearly' not right - Shapps


Newsletter

Related Articles

0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×