Senior economists and ex-chancellor George Osborne round on former PM after she says Treasury officials raised no concerns
Senior economists and the former chancellorhave cast doubt over Liz Truss’s account that she was not warned about the risks to the UK economy as she prepared her mini-budget.
The former prime minister said specifically that no officials in the Treasury had raised concerns about liability-driven investments, which pension funds use to cover their obligations. The Bank of England said pension funds with more than £1tn invested in them came under severe strain with a large number in danger of going bust.
“Needless to say, it later emerged that the budget was explicitly designed to force the Bank of England to raise interest rates faster than it was by pushing up market interest rates further; to claim that they were not sent warnings that such a course of action would imperil financial stability is highly misleading and should be called out.”
Roger Bootle, the former chief economist for HSBC, said he had been broadly supportive of Truss’s agenda but said she should have realised how the markets would react.
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