London Daily

Focus on the big picture.
Tuesday, Jun 23, 2026

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
UK Heatwave Disrupts Transport, Healthcare and Public Services as Red Weather Alerts Expand Nationwide
Barclays Warns of Growing Cyber Risk Divide Between Large UK Firms and Micro Businesses
European Defence Plans Including Ukraine Integration Prompt UK Strategic Reassessment
UK Equity Markets React as US–Iran Peace Roadmap Eases Oil Price Pressures
United Kingdom Expands Global Clean Energy Partnerships With Brazil, Morocco and Tanzania
Lord David Frost Urges Incoming UK Leadership to Abandon EU Regulatory Reset Strategy
Housing Groups Support Amendment to Strengthen Fire and Gas Safety Access Powers in Social Housing
South London NHS Estates Staff Ballot on Industrial Action Over Pay Structures in Hospital Maintenance Services
United Kingdom Government Invests £60 Million in AI Research Labs at Oxford and University College London
Barclays Cyber Security Report Highlights Rising Threat Exposure Among UK Small Businesses in AI-Driven Attacks
UK Met Office Heatwave Triggers Transport Warnings as Rail Operators Urge Cancellations Amid Infrastructure Strain
South London NHS Estates Workers Ballot for Strike Action Over Pay Disputes Across Major London Hospitals
Barclays Warns of Severe Cyber Security Gap Between Large Corporations and Small Businesses in the United Kingdom
United Kingdom Government Allocates £60 Million for Artificial Intelligence Research Laboratories at Oxford and UCL
National Health Service Approves Teplizumab Treatment to Delay Onset of Type One Diabetes in First European Rollout
Met Office Issues Rare Red Extreme Heat Warning Across London, South East and West Midlands as Transport and Health Systems Face Disruption
Prime Minister Keir Starmer Resigns After Labour Party Revolt Following Economic Stagnation and Local Election Losses
United Kingdom Economy Contracts for Second Consecutive Month as Private Sector Weakens and Job Loss Fears Rise
Taxpayer Support Grows for Higher Digital Levies on Multinational Tech Companies
Bank of England Signals Caution Over Inflation Despite Easing Energy Prices
Lloyds Banking Group Expands Artificial Intelligence Hiring Amid Sector-Wide Automation Shift
Film Producer Corporate Collapse Leaves Creditors Facing Unrecoverable Losses
UK Ten-Year Brexit Anniversary Highlights Ongoing Political and Economic Uncertainty
Nottingham Maternity Scandal Inquiry Reveals Systemic Failings in NHS Care
Met Office Heatwave Prompts Public Health Warnings Across United Kingdom
Concerns Rise Over Fiscal Stability as Political Uncertainty Weighs on UK Borrowing Costs
UK Taxpayers Back Higher Digital Taxes on Global Technology Firms, Survey Shows
Bank of England Holds Interest Rates Steady Amid Persistent Services Inflation
Reform UK and Opposition Leaders Call for General Election Following Starmer’s Departure
Ten Years After Brexit Referendum, UK Faces Ongoing Political Fragmentation and Economic Debate
Nottingham University Hospitals Maternity Inquiry Exposes Severe NHS Failures
Met Office Issues Heat Health Alerts as United Kingdom Faces Record-Breaking Temperatures
Andy Burnham Emerges as Front-Runner for Labour Leadership After Starmer’s Resignation
Keir Starmer Resigns as UK Enters New Phase of Political Leadership Transition
UK Expands Alcohol Ban Enforcement Using Tagging Technology Ahead of World Cup
UK Invests £50 Million in Critical Minerals Supply Chain Security
UK Appoints Special Envoy on Preventing Sexual Violence in Conflict
UK Introduces Fines for Landlords of Unsafe Rental Properties
Reform UK Leads Opinion Polls as Immigration Debate Reshapes UK Politics
Police Investigate Edinburgh Attacks as Potential Hate Crimes
King Charles to Publish Personal Tax and Royal Household Financial Records
Nottingham University Hospitals Maternity Inquiry Report Set for Publication
Heat-Health Alerts Issued Across London and Southern England Amid Rising Temperatures
UK Economy Shows Pressure From Middle East Conflict Despite Modest Growth
Brexit Anniversary Reignites Debate Over UK Economic and Political Direction
UK Parliament Continues Legislative Work Amid Leadership Transition
Financial Markets Hold Steady After UK Leadership Shake-Up
Andy Burnham Enters Labour Leadership Race With Strong Parliamentary Backing
Keir Starmer Resigns as UK Prime Minister After Two Years in Office
Reform UK MP Lee Anderson to Raise Pension Concerns Over British Coal Staff Superannuation Scheme
×