It was a mini-budget with a major impact. Shortly after the UK chancellor announced his plans for a “new era” full of tax cuts, there were dramatic falls in the pound, a nervous response from mortgage lenders and an urgent intervention from the Bank of England.
Such high levels of uncertainty, especially during a cost-of-living crisis, have led to widespread criticism of Liz Truss’s new government, and a huge boost in the polls for the Labour Party. Aside from a U-turn on ditching a tax cut for the highest earners, at the time of writing, Truss appears to be sticking to most of her plan.
But she should take note perhaps of the way her predecessors in No.10 have dealt with economic whirlwinds of the past – for there have been plenty. Some of their effects lasted years and caused major political upheaval. Here’s a reminder of some of them.
