London Daily

Focus on the big picture.
Tuesday, Nov 03, 2026

If the Tories listen to the siren voice of 49-day Liz Truss they will be sunk

If the Tories listen to the siren voice of 49-day Liz Truss they will be sunk

When a party falls to pieces, look out for the phase in which it starts to blame the world for its own flaws. In a 4,000-word essay in The Daily Telegraph that would have been funnier but no less absurd if it had been written by Lewis Carroll, the 49-day former PM Liz Truss seriously tried to suggest to us that her time in office was cut short because of a Left-wing conspiracy conducted by those notorious pinkos, Treasury officials and bond market traders. Playing the victim is now occupying the psychological space that used to be taken up by blaming the European Union for Britain’s problems. If this takes hold, the party is truly sunk.
Let us return briefly to reality and recap what happened because Truss herself seems either confused or in the grip of a delusion. Truss had the top official at the Treasury sacked and refused to allow the Office for Budget Responsibility to publish forecasts. She was proved to be catastrophically wrong but now blames a conspiracy of Left-wing civil servants.

In fact, as former chancellor George Osborne pointed out last night, it was the bond market reaction that stopped the £45 billion of unfunded tax cuts she had planned. The cost of borrowing surged and some of the pension providers with more than £1 trillion invested came close to collapse. There is no getting away from the fact that it was the biggest self-created fiasco in modern British economic policy. There is nothing Truss can say except sorry — and she has proved to be incapable of saying that.

We know very well that Truss was warned at the time that her proposed tax cuts would leave this country perilously close to being unable to service its debt. We know that because Truss herself used it as the reason she was forced to sack her chancellor, Kwasi Kwarteng. Besides, the flaw in Truss’s case is obvious to everyone but her. As international trade secretary between 2019 and 2021, Truss was the great champion of market freedom, which she earnestly believes is the royal road to prosperity. The bond markets expressed themselves with great clarity on the Truss premiership and she was forced, against her will, to listen. There is no such thing, she was learning, as a free market.

In fact, one of her predecessors and intellectual heroes, Margaret Thatcher, had a different view of markets. In a brilliant explanation of the sources of Thatcherism, Shirley Robin Letwin showed that it was precisely the discipline imposed by markets that attracted Mrs Thatcher. The bond markets imposed fiscal discipline on an incontinent Tory prime minister and chancellor. It is about as far from a Left-wing coup as you can imagine.

Since the Kwarteng-Truss calamity, current Chancellor Jeremy Hunt has done a good job of calming the markets and bringing the borrowing premium down. It looked briefly as if a period of calm might be reinstated. Truss’s determination to prove that she was right all along shows how deeply divided the Conservative Party is, how eminently ready for opposition it is now becoming. For the first time in British history, three former prime ministers sit on the backbenches. Theresa May will behave with dignity and restraint but neither of those words describe Boris Johnson and Truss has shown herself to be spoiling for a fight. Not since Ted Heath skulked in the shadows while Mrs Thatcher tried to run the country have we seen the ghost of a previous regime so present at the feast of its successor.

There is a risk for the Conservative Party that tax cuts become for the Right what socialism was for the Left — the panacea that has never properly been tried because it is thwarted by conspirators. We have travelled a long way here from practical common sense and it shows the state the Conservative Party has now got itself into. If the Tory party is going to behave like this, then all Labour needs to do is to hold tight and wait.

There is certainly an audience within the Conservative Party for the delusions of two successive former prime ministers. Some of the faithful think Johnson should come back and some of them think Truss was right all along, just as she does. Maybe Johnson carrying out Trussonomics would be the perfect combination of Tory delusion. It is unlikely that the former prime ministers in their midst will be capable of a period of silence. Deluded and seeking vindication, they will take their party with them.
Newsletter

Related Articles

0:00
0:00
Close
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
×