Ex-Bank Chief: Liz Truss Made UK 'Argentina on the Channel

Truss defends policies amid mounting criticisms

by Nouman Rasool
Ex-Bank Chief: Liz Truss Made UK 'Argentina on the Channel
© Leon Neal/GettyImages

Former Bank of England Governor, Mark Carney, has unleashed a scathing critique of ex-Prime Minister Liz Truss, likening her governance to turning the UK into an “Argentina on the Channel”. Carney, who was at the helm of the Bank between 2013 and 2020, made this striking comment during a speech in Canada, his homeland.

He accused Truss of fundamentally misunderstanding economic drivers. Carney boldly asserted that certain Brexit enthusiasts harbored dreams of a Singapore-styled UK, but under Truss’s leadership, what was realized bore more resemblance to Argentina.

Additionally, he commented on right-wing populists, branding them as wreckers, treating tax cuts as the reflexive solution to every economic hiccup.

Truss Counters Carney's Critique

In retaliation, Truss fired back, highlighting Carney's contribution to a “25-year economic consensus” that arguably brought about sluggish growth in the West.

She also pinpointed the one-year mark of her criticized mini-Budget, targeting the "anti-growth coalition" while advocating for a reduction in taxes, minimized welfare expenditure, and an elevation in the retirement age. Ejected from her PM seat after a mere six weeks, Truss has since been vocal about her preference for free-market ideologies, even amidst rising living costs.

At a recent event at the Institute for Government, she took a light-hearted approach, joking about her calmer September this year and promoting her soon-to-be-released book. This prompted Deputy Labour leader Angela Rayner to weigh in, emphasizing the widespread economic stress experienced by UK families, a strain she attributes to Tory policies.

Truss has consistently defended her controversial £45 billion tax cut package from the previous year, dismissing claims of its detrimental fiscal impact. She also contended that if her proposed growth strategies had been implemented, the nation would have observed more robust growth.

Critics haven’t been sparse. Conor Burns, ex-Tory minister and Boris Johnson ally, labeled Truss as politically “toxic”, while Rupert Harrison, former senior Treasury official and current Tory candidate, criticized her lack of genuine regret over her policies.

The Labour party has even urged Rishi Sunak to veto Truss's proposed resignation honors list. Kwasi Kwarteng, Truss’s former chancellor, delivered perhaps the most personal critique. In a recent book interview, he openly shared his affection for Truss but questioned her suitability for the prime minister role, suggesting her temperament was ill-suited for the demanding position.