The Master Investor Podcast with Wilfred Frost Liz Truss: UK Is Heading for Calamity, & Inside the Mini-Budget
Sep 3, 2025
Liz Truss, former UK Prime Minister, discusses the looming calamity facing Britain due to an oversized government and excessive regulation. She defends the tax cuts from her controversial mini-budget and believes that a lower tax burden is vital for economic rejuvenation. Truss expresses support for a trade deal with the US while criticizing the Labour government’s approach. Reflecting on her time in office, she debates the accountability for the ensuing financial turmoil, all while predicting the challenges ahead for her political successors.
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Smaller State To Restore Growth
- Liz Truss argues Britain needs a much smaller, more accountable state to revive growth.
- She says she cannot fix problems without shrinking government power and bureaucracy.
Target Government Size Under 33% GDP
- Truss believes the ideal government size is under one-third of GDP to avoid debt or higher taxes.
- She links lower tax burden to faster economic growth raising GDP per capita.
Europeanization Weakened UK Accountability
- Truss traces many UK regulatory problems to European laws and 'Europeanization' of institutions.
- She argues retained EU rules and institutional changes made the British state less accountable.
