London Daily

Focus on the big picture.
Monday, Nov 03, 2025

RIP Trussonomics: New UK Chancellor Jeremy Hunt tears up Liz Truss’ entire agenda

RIP Trussonomics: New UK Chancellor Jeremy Hunt tears up Liz Truss’ entire agenda

Most strikingly, planned cut to basic rate of income tax will be put on hold ‘indefinitely.’

In a brief, five-minute televised statement, Jeremy Hunt read the last rites on Trussonomics.

After weeks of market turmoil following U.K. Prime Minister Liz Truss’ controversial tax-cutting budget of September 23, her hastily-appointed replacement chancellor on Monday morning pulled the plug on her entire blueprint for growth.

“Growth requires confidence and stability,” Hunt said, in a clear admission Truss has been unable to provide either since her appointment as prime minister on September 6.

“The United Kingdom will always pay its way,” he added. “This government will therefore take whatever tough decisions are necessary.”

Those ‘tough decisions’ represent an economic U-turn on a scale rarely seen in the modern political era, with Hunt torching £32 billion of tax cuts only announced by the government last month. In the House of Commons later, Truss sat stony-faced as Hunt explained to MPs why he was course-correcting and tried to assure the public each of his decisions "will be shaped by core compassionate Conservative values."

The scale of Hunt's emergency economic surgery cannot be overstated.

He massively scaled back Truss’ energy price support scheme as he sought to reassure markets that Britain’s finances can be returned to a stable footing. Hunt said the energy price guarantee, the flagship policy of Truss’ debut mini-budget and designed to prevent huge increases in household energy bills, will only remain universal until April, when a new targeted plan will be put in place.

Truss’ planned cut to the basic rate of income tax will also be put on hold “indefinitely, until economic circumstances allow,” Hunt said.

The initial reaction from markets to Hunt’s statement was positive. Gilts — bonds issued by the British government which reflect the cost of national borrowing — extended their rally, while the pound rallied against the dollar in the immediate aftermath of Hunt’s words.


Truss in peril


But while the financial markets appear calmer for now, Truss' own position remains highly perilous, with an increasing number of her own MPs demanding she be replaced immediately.

Shortly after Hunt’s statement Angela Richardson, the Tory MP for Guildford, told Times Radio it was not tenable for Truss to stay in her post any longer. Other Conservative MPs — Crispin Blunt, Andrew Bridgen and Jamie Wallis — publicly called for Truss to go over the weekend, while veteran Tory MP Charles Walker told Sky News Monday night that if Truss didn't decide to go "right now, it won't be her decision."

He warned: "That agency will be taken away from her."

In the Commons Monday afternoon, MPs erupted in laughter when they were initially told Truss had been “detained on urgent business” after she declined to show up to an urgent question put forward by the opposition Labour Party.

Penny Mordaunt, a former Truss leadership rival who now serves as leader of the Commons, took questions in Truss' place — and was forced to deny the charge from Labour MP Stella Creasy that the prime minister was "cowering under her desk and asking for it all to go away."

Mordaunt said: "The prime minister is not under a desk… I can assure the house."

Truss later showed up for a Commons statement by Hunt, during which she looked on as her new chancellor distanced her government from its own economic decisions. Hunt even appointed a new advisory council whose members, including Rupert Harrison — once the top adviser to former Tory Chancellor George Osborne — resembled the "Treasury orthodoxy" Truss once railed against.


'When, not if'


Behind the scenes, dozens if not hundreds more MP want Truss gone. “It feels like when, not if,” a senior backbench MP said Monday.

It is only a matter of weeks since Truss was selected as leader by Conservative Party members who were won over by her bold — and highly risky — platform of unfunded tax cuts and deregulation, which quickly became known as Trussonomics.

Her plans to cut income tax, freeze alcohol duties, cut dividend tax rates, reverse payroll working reforms introduced in 2017 and 2021 and introduce a new VAT-free shopping scheme for non-U.K. visitors will all now be scrapped, however.

Truss had already announced last Friday, hours after sacking her initial pick as chancellor, Kwasi Kwarteng, that she would raise corporation tax in line with the previous U.K. administration’s plans, having pledged during the Tory leadership contest not to do so.

Indeed, the only tax cuts to survive from September’s mini-budget will be the reversal of a hike in national insurance, changes to stamp duty, and a permanent £1 million annual investment allowance for businesses.

Truss held a meeting with her Cabinet an hour before Hunt’s TV statement during which she insisted the government was still committed to a growth agenda, including introducing new low-tax investment zones, speeding up roads projects and increasing energy supplies.

But critics from all political sides said her premiership had already failed, and that her authority as leader was shot.

The Conservatives have “lost all credibility,” Labour’s Shadow Chancellor Rachel Reeves said. “The chancellor said that growth requires ‘confidence and stability’ — yet it’s clear that the Tories can’t provide this.”

Some speculated the swift abandonment of Trussonomics would have long-term repercussions for the U.K.’s political outlook.

“Libertarians will not be allowed anywhere near power for generations to come,” Matt Goodwin, a professor of politics at the University of Kent, who has researched radical-right politics and Euroskepticism, tweeted on Monday.


More to come


For the beleaguered Truss government, further big challenges lie in store.

Hunt made clear in his statement there would be “more difficult decisions” to come on tax and spending, with some economists forecasting a further £20 billion to £30 billion of cuts and tax rises will be required when the chancellor brings forward his full fiscal plan on October 31.

"This is now very clearly a tax-raising parliament,” said Torsten Bell, chief executive of the center-left Resolution Foundation think tank, “with the tax take set to reach highs not sustained since 1950.” Trussonomics, he added, had been "junked."

Bell said those tax rises would at least reduce the scale of public spending cuts required to balance the books on October 31, but warned that "many of Jeremy Hunt’s tough choices still lie ahead.”

Hunt will meet other senior ministers this week to discuss a plan for spending cuts which will then be submitted to the government’s independent fiscal watchdog, the Office for Budget Responsibility, for audit ahead of the October 31 statement.

Bell warned the cuts to the energy price guarantee from next April would also hit millions of households hard.

“The price of shielding the public finances from wholesale gas markets next year is more pressure on households,” he said, “with the energy price cap now on course to hit £4,000 next April — almost double its effective level today."

Newsletter

Related Articles

0:00
0:00
Close
Erling Haaland’s Remarkable Run: 13 Premier League Goals in 10 Matches and Eyes on History
UK Labour Peer Warns of Emerging ‘Constituency for Hating Jews’ in Britain
UK Home Secretary Admits Loss of Border Control, Warns Public Trust at Risk
President Trump Expresses Sympathy for UK Royal Family After Title Stripping of Prince Andrew
Former Prince Andrew to Lose His Last Military Title as King Charles Moves to End His Public Role
King Charles Relocates Andrew to Sandringham Estate and Strips Titles Amid Epstein Fallout
Two Arrested After Mass Stabbing on UK Train Leaves Ten Hospitalised
Glamour UK Says ‘Stay Mad Jo x’ After Really Big Rowling Backlash
Former Prince Prince Andrew Faces Possible U.S. Congressional Appearance Over Jeffrey Epstein Inquiry
UK Faces £20 Billion Productivity Shortfall as Brexit’s Impact Deepens
UK Chancellor Rachel Reeves Eyes New Council-Tax Bands for High-Value Homes
UK Braces for Major Storm with Snow, Heavy Rain and Winds as High as 769 Miles Wide
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
King Charles Strips Prince Andrew of Titles and Royal Residence
Trump–Putin Budapest Summit Cancelled After Moscow Memo Raises Conditions for Ukraine Talks
Amazon Shares Soar 11% as Cloud Business Hits Fastest Growth Since 2022
Credit Markets Flooded with More Than $200 Billion of AI-Linked Debt Issuance
U.S. Treasury Secretary Scott Bessent Says China Made 'a Real Mistake' by Threatening Rare-Earth Exports
Report Claims Nearly Two Billion Dollars in Foreign Charity Funds Flowed into U.S. Advocacy Groups
White House Refutes Reports That US Targeting Military Sites in Venezuela
Meta Seeks Dismissal of Strike 3’s $350 Million Copyright Lawsuit
Apple Exceeds Forecasts With $102.5 Billion Q3 Revenue Despite iPhone Miss
Israel's IDF Major General Yifat Tomer-Yerushalmi Admits to Act Amounting to Aiding Hamas During Wartime (Treason)
Shawbrook IPO Marks London’s Biggest UK Listing in Two Years
UK Government Split Over Backing Brazil’s $125 Billion Tropical Forest Fund Ahead of COP30
J.K. Rowling Condemns Glamour UK Feature of Nine Trans Women as 'Men Better at Being Women'
King Charles III Removes Prince Andrew’s Titles and Orders His Departure from Royal Lodge
UK Finance Minister Reeves Releases Email Correspondence to Clarify Rental-Licence Breach
UK and Vietnam Sign Landmark Migration Deal to Fast-Track Returns of Irregular Arrivals
UK Drug-Pricing Overhaul Essential for Life-Sciences Ambition, Says GSK Chief
Princesses Beatrice and Eugenie Temporarily Leave the UK Amid Their Parents’ Royal Fallout
UK Weighs Early End to Oil and Gas Windfall Tax as Reeves Seeks Investment Commitments
UK Retail Inflation Slows as Shop Prices Fall for First Time Since Spring
Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance
Reform UK’s Lee Anderson Admits to 'Gaming' Benefits System While Advocating Crackdown
United States and South Korea Conclude Major Trade Accord Worth $350 Billion
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
Vice President Vance to Headline Turning Point USA Campus Event at Ole Miss
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Bill Gates at 70: “I Have a Real Fear of Artificial Intelligence – and Also Regret”
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Amazon Announces 14 000 Corporate Job Cuts as AI Investment Accelerates
UK Shop Prices Fall for First Time Since March, Food Leads the Decline
London Stock Exchange Group ADR (LNSTY) Earns Zacks Rank #1 Upgrade on Rising Earnings Outlook
Soap legend Tony Adams, long-time star of Crossroads, dies at 84
×