49. Who Killed Liz Truss? Death on the Square Mile (Part 3)
Apr 15, 2024
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Exploring the aftermath of Truss's death at the Bank of England, Hunt's crisis meeting at Chequers, and the lasting impact on the UK. The podcast delves into political murder, leadership challenges, regulatory oversight in the financial sector, and the mysterious events in the horse racing industry.
22:35
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Quick takeaways
Leaders must be assertive and make significant decisions in times of crisis to stabilize the economy.
The Bank of England's lack of accountability and scrutiny reveals the necessity for reforms and reviews to prevent future economic disasters.
Deep dives
Chancellor's Appointment and Power Dynamics
When Jeremy Hunt was appointed as Chancellor, it was a pivotal moment of power where he could set the tone for his tenure. Hunt's approach included reversing the planned rising corporation tax, making statements on the fiscal plan, and scaling back the energy price guarantee. His assertiveness during a crisis meeting at Chekkers showcased his authority and willingness to make significant decisions to stabilize the economy.
Resignation of Liz Truss
Liz Truss's resignation was almost inevitable after the dismissal of Quasi Khatang and the subsequent appointment of Jeremy Hunt. The fallout from the mini budget reversal and the instability within the government led to her decision to step down. The continuous political turmoil highlighted the challenges faced by leaders in maintaining stability and facing consequences for their decisions.
Bank of England Failures and Public Accountability
The Bank of England's failure to anticipate and address the LDI crisis without proper external review raised concerns about accountability. The lack of scrutiny and public criticism towards the Bank of England's role in the financial turmoil and political outcomes was remarkable. The aftermath of the crisis highlighted the necessity for comprehensive reviews and reforms to prevent future economic disasters.
After Truss's demise, will any heads roll at the Bank of England? What happened at Jeremy Hunt's first crisis meeting in Chequers? How is the UK still paying the price for this calamity?
In the final episode of our three part series, Steph and Robert reveal the lasting impact from this calamitous period and assess how the Bank of England got away with political murder.