Disastrous Truss budget ‘cost £30 billion’

Disastrous Truss budget ‘cost £30 billion’

Analysts from the Resolution Foundation (RF) have shown that the mini-budget put forward under Liz Truss cost the country an estimated £30 billion.

It resulted in a doubling of the fiscal hole the Treasury has said Jeremy Hunt will have to fill with this week’s expected range of tax rises and spending cuts.

The Treasury puts the fiscal hole at £60bn and the RF calculates that the Truss government’s decision-making was responsible for about half of this. The thinktank added that without the U-turns already taken the deficit would have been much higher, the Guardian reports.

In her brief premiership, RF economists believe an estimated £20bn was squandered by Truss and chancellor Kwasi Kwarteng on unfunded cuts to national insurance and stamp duty. A further £10bn was accrued as a result of higher interest rates and government borrowing costs amid adverse market reactions.

The RF says the remainder of the £60bn fiscal hole can be attributed to worse than expected economic conditions leading to lower growth and lower taxes taken in by the Treasury.

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