London Daily

Focus on the big picture.
Friday, Mar 20, 2026

Sunak attacks Truss’s plans to curb Bank of England’s independence

Sunak attacks Truss’s plans to curb Bank of England’s independence

Former chancellor says rival’s economic proposals could ‘spook international investors’

Liz Truss’s plans to curb the independence of the Bank of England could spook investors and “be bad for all of us”, Rishi Sunak has said as he continued to attack her economic policy.

Sunak, a former chancellor, said the government needed to “let the Bank of England get on with its job with interest rates”.

On Tuesday, he told Sky News: “I’m worried, quite frankly, by reports from others that they want to curb the independence of the Bank of England. I think that would be a mistake, and I think it would spook international investors into the United Kingdom and will be bad for all of us.”

With Truss firmly in the lead to be the next prime minister and less than two weeks to go, she has indicated she would review the Bank’s mandate.

Her ally Suella Braverman, the attorney general, has said the review would look at the Bank’s independence, having said it would examine “exactly what the Bank of England does, and see whether it’s fit for purpose in terms of its entire exclusionary independence over interest rates”.

Sunak warned about Truss’s plans for the Bank of England as well as repeating criticism of her plans for tax cuts, amid a further row about whether her economic policies would be accompanied by independent forecasts from the Office for Budget Responsibility (OBR).

Mel Stride, the chair of the Commons Treasury committee, urged the government’s economic watchdog to produce forecasts alongside any emergency budget this autumn, after Truss indicated she would try to avoid early scrutiny of her plans.

The Conservative MP said the chancellor must ensure that the OBR provided its assessment at the same time as the new prime minister made any big fiscal decisions.

Stride – who is backing Sunak – said the absence of forecasts would mean the new prime minister would be “flying blind” without the public being able to see an independent assessment of the government’s balance sheet.

“OBR forecasts provide transparency and reassurance to the markets on the health of the nation’s finances,” he said. “As a committee, we expect the Treasury to be supporting and enabling the OBR to publish an independent forecast at the time of any significant fiscal event, especially where, unlike other recent fiscal interventions, this might include significant permanent tax cuts.

“Whether such an event is actually called a budget or not is immaterial. The reassurance of independent forecasting is vital in these economically turbulent times. To bring in significant tax cuts without a forecast would be ill-advised.”

It was reported over the weekend that Truss had downgraded her emergency budget planned for mid-September to a more minor event to bring in tax cuts and set out her wider economic outlook. It would therefore not necessitate full OBR forecasts about the state of the economy.

However, with inflation expected by Citi to reach 18%, and energy bills forecast to top £6,000 annually next year, according to the energy consultancy group Auxilione, there are worries among some experts that the next prime minister will be basing decisions on out-of-date advice if there is no new information from the OBR.

Stride asked the chancellor, Nadhim Zahawi, to ensure the OBR was preparing forecasts of the UK’s fiscal position already, as the government usually gave it 10 weeks’ notice of a fiscal event, such as a budget.

The committee did not mention Truss’s campaign specifically. However, Stride told LBC: “At the moment the Liz camp are saying, I believe, that there will not be any OBR forecast produced at that time and that is kind of like flying blind.”

Sunak’s campaign has repeatedly called on Truss to “come clean” about how her proposed tax cuts, including reversing the rise in national insurance, would be funded and said her plans to borrow to fund tax cuts were “dangerous”.

He told the BBC: “Liz’s plans are promising the Earth to everybody. I don’t think you can have your cake and eat it. I don’t think life is that simple, and I think her plan risks making everything worse.”

Truss has argued that tax cuts will help to grow the UK’s economy and boost prosperity.

A Truss campaign spokesperson said: “The cost of living crisis means immediate action is required. A Truss government would seek to act as soon as possible to help people across the UK, by cutting taxes and introducing a temporary moratorium on energy levies.”

Newsletter

Related Articles

0:00
0:00
Close
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
×