Former PM Liz Truss has claimed that widely-ridiculed mini-Budget 'may pay off in the long term'
12.07.2023 - 13:35
/ manchestereveningnews.co.uk
Liz Truss, Britain's shortest-serving prime minister, has suggested that her mini-budget may have paid off in the long term, as her newly-convened taskforce warned that the UK risks falling behind other nations unless it tackles stagnation.
During the launch of the Growth Commission, the former PM likened sluggish growth in recent years to a "boiling a frog situation." When asked about her own economic approach, she responded, "It's a long game."
Members of the taskforce made grim predictions, emphasising the need for the UK to harness the opportunities presented by artificial intelligence and other technological advances. US economist Tyler Cowen warned that living standards in Poland could surpass those of Britain within a decade unless the UK economy is boosted.
Truss, who plays no formal role in the commission beyond convening it, expressed her concerns about the situation, stating, "We've been through a boiling a frog situation... It hasn't dramatically gone away, but it's got worse and worse."
The co-chairmen of the commission, Shanker Singham and Douglas McWilliams, highlighted that sluggish growth is not exclusive to the UK but a pervasive problem in G7 countries. However, McWilliams noted that Britain, in particular, has not seemed to have regained its economic momentum in the post-Covid years.
Improving competition was identified as a key factor in boosting growth, with McWilliams stating: "We are almost fanatically pro-competition... We feel that's the thing that will make the difference."
Singham emphasised the need for more "dynamic" economic modeling, which takes into account the long-term impact of issues like tax policy, so that people understand the "cost" of government decisions.
The Growth Commission