Exclusive

Bank of England governor Andrew Bailey should resign over response to mini-budget, Liz Truss tells LBC

15 April 2024, 11:17

The former prime minister Liz Truss joined Iain Dale for a wide-ranging discussion ahead of the release of her new book
The former prime minister Liz Truss joined Iain Dale for a wide-ranging discussion ahead of the release of her new book. Picture: Getty/LBC
Kieran Kelly

By Kieran Kelly

Former Prime Minister Liz Truss has told LBC she believes Bank of England governor Andrew Bailey should resign over his reaction to her government's catastrophic 2022 mini-budget.

Listen to this article

Loading audio...

Asked by LBC’s Iain Dale if she believed she was ‘stitched up’, Ms Truss said the reaction to her mini-budget represented “groupthink rather than a conspiracy”.

“They believe in the current economic model Britain has, they believe in the economic consensus. They essentially believe, in my view, in managing decline,” Ms Truss told LBC.

Asked if she thought Andrew Bailey, the governor of the Bank of England, should retain his position, Ms Truss said: “No, I don’t.”

Ms Truss also called for a “proper investigation into what happened in September 2022 and the actions the Bank took”.

She resigned as Prime Minister after just six weeks in the job after her government's mini-budget crashed the pound and sent household costs soaring.

Watch the full Liz Truss interview on Global Player, the official LBC app, from 7pm Monday

Liz Truss says Andrew Bailey should resign

“Our country has been held back for too long by low economic growth,” she said as she resigned in October 2022.

“We set out a vision for a low tax, high growth economy that would take advantage of the freedoms of Brexit.”

After calling on Mr Bailey to resign, Ms Truss acknowledged the “difficulty” in a prime minister being able to move a governor of the Bank of England on, blaming Gordon Brown.

Read More: From Israel & Rwanda to shoplifting and swastikas - a nervous Rishi Sunak covered it all with no notes

Read More: Suella Braverman says Rwanda plan as it stands may send one 'token flight' but will not suffice as 'deterrent'

“I think big mistakes have been made with monetary policy. I think interest rates were too low for too long. I think quantitative easing has done a lot of damage to our economy,” Ms Truss added.

“I’m not advocating going back to the situation that we saw pre-the independent bank of England, where Chancellors were setting interest rates, but I do think democratically-elected ministers should be responsible for managing fiscal and monetary policy.”

Governor of the Bank of England, Andrew Bailey
Governor of the Bank of England, Andrew Bailey. Picture: Getty

Ms Truss’ government erupted into chaos after the-then Chancellor Kwasi Kwarteng announced a series of radical measures to ‘fix’ the economy.

This included £45bn of unfunded tax cuts.

Ms Truss had promised a "bold plan" to cut taxes and grow the economy and "deliver on the energy crisis", but the mini-budget, unveiled four days after the Queen's funeral, with its plans to abolish the top rate of income tax for the highest earners sent the markets into turmoil.

Matt Frei's views on Liz Truss' premiership

Ms Truss insisted she stood by the package but in the end sacked Mr Kwarteng, whose successor, Jeremy Hunt, reversed most of the measures.

Ms Truss's stint as PM was the shortest in British history. The previous record-holder was Tory statesman George Canning, who spent 118 days as prime minister in 1827 before dying in office from ill-health.

More Latest News

See more More Latest News

Jack Grealish

Jack Grealish 'slapped in the face by Manchester United fan' in derby, as man charged with assault

A police cordon in Elm Street, South Moor, Stanley, County Durham, where a man was fatally shot.

Tributes paid to 'thoroughly decent’ dad, 60, shot dead through window in broad daylight in County Durham

Lady Victoria Hervey claims Prince Andrew accuser Virginia Giuffre's credibility 'destroyed' following hospital release

Lady Victoria Hervey claims Prince Andrew accuser Virginia Giuffre's credibility 'destroyed' following hospital release

China vows to 'fight to the end' as Trump threatens additional 50 per cent tariffs amid global market turmoil

China vows to 'fight to the end' as Trump escalates war with further 50 per cent tariffs amid global market turmoil

Couple holding hands

Campaigners 'deeply moved' by baby loss certificate scheme - as more than 100,000 issued since service started

Pregnancy

Diabetes during pregnancy linked to increased risk of disorders like autism and ADHD in children, study suggests

Just 3% of England’s local road network received any form of maintenance in the 2023/24 financial year, new analysis shows.

Only 3% of local road network received maintenance in the last year

Yuan Yang and Abtisam Mohamed were rejected from entering Israel

Israel's decision to bar two MPs from entering country 'smacks of racism', claims MP

c

Baby girl makes history as first child in UK to be born from womb transplant

US-ISRAEL-POLITICS-DIPLOMACY-TRUMP-NETANYAHU

Trump says US will hold direct talks with Iran as he insists Tehran cannot get nuclear weapons

Video footage shows the convoy had emergency lights flashing when it was hit

Israeli troops opened fire on ambulances because of 'perceived threat', IDF investigation finds

Angela

Angela Rayner quizzed on whether Army could be deployed to Birmingham to help collect bins during strike

John Lees

Teacher who crashed car into tree on way to school after drinking half bottle of wine avoids ban from teaching

LBC's Tom Swarbrick headed to Birmingham to investigate the bin strikes

LBC's Tom Swarbrick investigates the Birmingham bin strike as 'mountains of rubbish' fill the streets

Neighbours rushed to the terraced house after a gunman fired into its living room on Sunday.

Horror video shows moment ‘gunman shoots dad, 60, dead through downstairs window’ in broad daylight

Police have launched an urgent search for missing girl, who was last seen 24 hours ago in Stoke-on-Trent.

Urgent hunt for missing schoolgirl, 12, after she didn't return home last night