Merryn Talks Money Odd Lots: Liz Truss on the 'Doom Loop' Engulfing the UK Economy
Sep 8, 2025
Liz Truss, former UK Prime Minister and author of '10 Years to Save the West', shares her insights into the UK's economic crisis and her brief tenure in office. She dives into the 'doom loop' affecting financial stability and the challenges of implementing meaningful fiscal policies. Truss discusses the complexities of navigating spending cuts and the political will needed for reform. Additionally, she addresses issues of free speech and media sensationalism, reflecting on the lessons learned from her experiences in government and the pressing state of the economy.
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UK In A Fiscal 'Doom Loop'
- Liz Truss warns the UK is in a 'doom loop' of higher taxes, lower growth, and rising debt.
- She believes the country is heading toward a very serious fiscal crisis without a political way out.
Institutional Resistance Shapes Policy
- Truss argues powerful institutions and mainstream economists opposed her agenda and created a hostile environment.
- She says monetary policy has become driven by fiscal policy and coordination is very difficult for elected governments.
Pair Tax Moves With Realistic Reforms
- Do combine tax measures with realistic spending restraint and supply-side reforms to boost growth.
- Truss says she sought modest spending controls and supply-side steps like fracking and North Sea drilling alongside tax moves.
