Liz Truss is set to urge the government to cut taxes – and insist her plan to grow the economy would eventually have worked.
A year on from her disastrous mini-budget, the former Tory prime minister will also say it was unfair to suggest her programme of tax cuts, amounting to £45bn, was unfunded.
She and her chancellor, Kwasi Kwarteng, were in a “rush” to get “results”, she will admit during a speech at the Institute for Government thinktank in central London on Monday.
But Ms Truss will also blame her swift demise on reaction from the “political and economic establishment which fed into the markets”.
Her remarks come after the former governor of the Bank of England, Mark Carney, launched a scathing attack on Ms Truss – accusing her government of turning Britain into “Argentina on the Channel”.
In her speech, Ms Truss will say: “I was effectively forced into a policy reversal under the threat of a UK meltdown.”
She will also claim that describing her planned tax cuts as unfunded is “not a fair or accurate description”.
Ms Truss will add: “Independent calculations by the Centre for Economics and Business Research suggest that cutting the higher rate of income tax and the ‘tourist tax’ would have increased rather than decreased revenues within five years.
“So quite the opposite of being unfunded, these tax cuts could have increased funding for our public services.”
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1:33
Truss’s time as PM, one year on
The policies of her successor, Rishi Sunak, will come under fire too.
Ms Truss, who was in office for only 49 days, will claim Mr Sunak’s government has spent £35bn more than she would have had she remained in Downing Street.
“Investment would not have faltered in the North Sea, were it not for the windfall tax,” she will say.
“We would have got moving on fracking and lower energy bills would now be on the horizon.
“A more competitive rate of corporation tax would have persuaded the likes of AstraZeneca not to relocate elsewhere.
“There would have been more duty-free shoppers and a boom in the number of self-employed.”
Image: Liz Truss before resigning as prime minister last October
Ahead of Chancellor Jeremy Hunt’s Autumn Statement, Ms Truss will call for corporation tax to be reduced back down to 19%.
She will also suggest binning the tourist tax (VAT imposed on visitors) and abolishing the windfall tax.
Ahead of her address, Labour frontbencher Jonathan Ashworth has written to the prime minister, calling on him to block Ms Truss’s yet-to-be published resignation honours list.
In the letter to Mr Sunak, Mr Ashworth said: “Families and business across Britain are still paying (the) price for the Conservative Party crashing the economy and leaving working people worse off, with higher taxes, higher mortgages and higher food and energy bills.
“Despite this, it has been widely reported that Liz Truss has submitted up to 14 people to receive resignation honours.
“This means that those who crashed the economy, who left millions to pay more for their mortgage and who undermined our economic institutions could receive an award.
“I urge you to block these honours.”
Liberal Democrat deputy leader Daisy Cooper mocked Ms Truss.
She said: “Liz Truss giving a speech on economic growth is like an arsonist giving a talk on fire safety.”
Only a quarter of British adults think Sir Keir Starmer will win the next general election, as the party’s climbdown over welfare cuts affects its standing with the public.
A fresh poll by Ipsos, shared with Sky News, also found 63% do not feel confident the government is running the country competently, similar to levels scored by previous Conservative administrations under Boris Johnson and Rishi Sunak in July 2022 and February 2023, respectively.
The survey of 1,080 adults aged 18-75 across Great Britain was conducted online between 27 and 30 June 2025, when Labour began making the first of its concessions, suggesting the party’s turmoil over its own benefits overhaul is partly to blame.
The prime minister was forced into an embarrassing climbdown on Tuesday night over his plans to slash welfare spending, after it became apparent he was in danger of losing the vote owing to a rebellion among his own MPs.
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Govt makes last-minute concession on welfare bill
The bill that was put to MPs for a vote was so watered down that the most controversial element – to tighten the eligibility criteria for personal independence payments (PIP) – was put on hold, pending a review into the assessment process by minister Stephen Timms that is due to report back in the autumn.
The government was forced into a U-turn after Labour MPs signalled publicly and privately that the previous concession made at the weekend to protect existing claimants from the new rules would not be enough.
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While the bill passed its first parliamentary hurdle last night, with a majority of 75, 49 Labour MPs still voted against it – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.
It left MPs to vote on only one element of the original plan – the cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.
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Govt makes last-minute concession on welfare bill
An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.
The incident has raised questions about Sir Keir’s authority just a year after the general election delivered him the first Labour landslide victory in decades.
And on Wednesday, Downing Street insisted Rachel Reeves, the chancellor, was “not going anywhere” after her tearful appearance in the House of Commons during prime minister’s questions sparked speculation about her political future.
The Ipsos poll also found that two-thirds of British adults are not confident Labour has the right plans to change the way the benefits system works in the UK, including nearly half of 2024 Labour voters.
Keiran Pedley, director of UK Politics at Ipsos, said: “Labour rows over welfare reform haven’t just harmed the public’s view on whether they can make the right changes in that policy area, they are raising wider questions about their ability to govern too.
“The public is starting to doubt Labour’s ability to govern competently and seriously at the same levels they did with Boris Johnson and Rishi Sunak’s governments. Labour will hope that this government doesn’t end up going the same way.”
Image: Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA
It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.
Her spokesperson says it was a personal matter that they will not be getting into.
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Even Kemi Badenoch, not usually the most nimble PMQs performer, singled her out. “She looks absolutely miserable,” she said.
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The Tory leader asked the PM if he could guarantee his chancellor’s future: he could not. “She has delivered, and we are grateful for it,” Sir Keir said, almost sounding like he was speaking in the past tense.
Image: Rachel Reeves looked visibly upset behind Keir Starmer at PMQs. Pic PA
It is important to say: Rachel Reeves’s face during one PMQs session is not enough to tell us everything, or even anything, we need to know.
But given the government has just faced its most bruising week yet, it was hard not to speculate. The prime minister’s spokesperson has said since PMQs that the chancellor has not offered her resignation and is not going anywhere.
But Rachel Reeves has surely seen an omen of the impossible decisions ahead.
How will she plug the estimated £5.5bn hole left by the welfare climbdown in the nation’s finances? Will she need to tweak her iron clad fiscal rules? Will she come back for more tax rises? What message does all of this send to the markets?
If a picture tells us a thousand words, Rachel Reeves’s face will surely be blazoned on the front pages tomorrow as a warning that no U-turn goes unpunished.
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