On October 14, 2022, Liz Truss was still the Prime Minister of the United Kingdom — but her entire economic vision was already dead. For 11 days, she held the title while her own government buried the policies she’d staked her premiership on. It was a constitutional oddity: a leader in office, yet powerless over the economy. The man who pulled the plug? Jeremy Hunt, her former rival turned Chancellor, who moved within hours of his appointment to dismantle Trussonomics — lock, stock, and barrel.
The Mini-Budget That Shook Markets
It all began on September 23, 2022, when then-Chancellor Kwasi Kwarteng unveiled a £45 billion unfunded tax cut package. No one had seen it coming. The plan scrapped the 45% top income tax rate, cut the basic rate from 20% to 19% in 2023, and reversed a 1.25% national insurance rise. The most explosive move? A pledge to slash corporation tax from 19% to 15% by April 2023. The message was clear: growth through deregulation and tax cuts. But the markets didn’t buy it. Within 48 hours, the pound plunged to $1.0327 — its lowest ever against the dollar. UK government bond yields soared as investors fled, fearing unsustainable debt. The Bank of England was forced to step in with £65 billion in emergency gilt purchases between September 28 and October 14. The Office for Budget Responsibility warned the plan would push UK debt to 102.4% of GDP by 2026-27 — a level not seen since the 1960s.
Trussonomics Dies at 12:01 AM
Truss didn’t fire Kwarteng because he failed. She fired him because he’d become toxic. At 12:01 AM on October 14, she appointed Jeremy Hunt — a man who’d lost the Conservative leadership race to her just weeks earlier. Within hours, Hunt reversed course. The 45% tax cut was scrapped. The Energy Price Guarantee, originally announced on September 8, was slashed from two years to six months — though the £2,500 cap remained. By October 17, Hunt confirmed the corporation tax cut was dead. Markets calmed. The pound rose. But Truss was now a ghost in 10 Downing Street. Her policies were gone. Her authority, shattered.
A Leader Without a Mandate
Truss had won the Conservative leadership on September 5, 2022, with 81,326 votes to Rishi Sunak’s 60,399. But her mandate evaporated faster than a morning fog. YouGov polling in early October showed a 33-point Labour lead. By October 19, 118 Conservative MPs had submitted no-confidence letters to Sir Graham Brady’s 1922 Committee. Party rules protected her from a leadership challenge for a year — but the rebellion was open. MPs whispered in corridors. Senior figures publicly urged her to go. The public? A November 2025 YouGov survey showed her net favorability had cratered to -70. Only 5% viewed her favorably. Seventy-five percent saw her negatively. That’s not just unpopular — it’s historic.
The 11-Day Limbo
From October 14 to October 20, Truss remained Prime Minister — but Hunt was running the economy. On October 20, she announced her resignation in an 89-second statement: “I cannot deliver the mandate on which I was elected.” She didn’t blame Hunt. She didn’t blame the markets. She blamed herself. The timing was deliberate: she wanted to give her successor time to prepare. The Conservative Party leadership election began immediately. By October 25, Rishi Sunak was unopposed and sworn in. Truss resigned. Her tenure: 49 days. Shorter than any British Prime Minister in history.
Why It Matters Beyond One Leader
This wasn’t just about Liz Truss. It was about the fragility of political authority when economic credibility vanishes. The UK had just experienced the most severe market reaction to any fiscal event in living memory, according to the Financial Times. The episode exposed how quickly investor confidence can collapse when fiscal discipline is ignored. It also revealed the deep fractures within the Conservative Party — a party that had spent a decade promising fiscal responsibility, only to embrace radical, unfunded tax cuts in its final act under Truss. The fallout reshaped British politics. Sunak’s first act as PM was to restore trust — not with new spending, but with restraint. The Office for Budget Responsibility’s October 31 forecast, which had once terrified markets, now became the baseline for recovery.
What Happened to the Energy Price Guarantee?
Originally announced on September 8, 2022, the Energy Price Guarantee was meant to shield households from soaring bills. It capped average annual bills at £2,500 — for two years. The cost? £150 billion. Hunt didn’t scrap it. He shortened it. The cap remained, but the duration was cut to six months. The government saved £100 billion in projected spending. Critics called it a betrayal of vulnerable families. Supporters said it was the only responsible choice after the financial chaos. Either way, it became the symbol of Trussonomics’ abrupt end.
Frequently Asked Questions
How did Jeremy Hunt manage to reverse Trussonomics so quickly?
Hunt, as Chancellor, had full authority over fiscal policy. Once appointed on October 14, he used existing Treasury mechanisms to issue emergency guidance, effectively nullifying the September 23 mini-budget without needing parliamentary approval. His background as a former Health and Foreign Secretary gave him credibility, and his calm, methodical approach contrasted sharply with Kwarteng’s ideological zeal. Markets responded within hours.
Why did the Bank of England have to step in?
The pound’s collapse and surging gilt yields threatened pension funds and mortgage markets. Many UK pension schemes held long-dated gilts as assets and used leverage to hedge risk. When yields spiked, they faced margin calls — risking systemic failure. The Bank’s £65 billion bond-buying program was a fire extinguisher — not a solution — designed to buy time until fiscal credibility could be restored.
Was Truss the only woman to serve as UK Prime Minister for less than a month?
Yes. Liz Truss is the shortest-serving Prime Minister in British history. Margaret Thatcher served over 11 years, and Theresa May served 1 year and 11 months. No other woman has held the office for fewer than 49 days. Truss’s tenure was also the shortest of any British PM since Robert Jenkinson in 1827.
What impact did Trussonomics have on UK public trust in government?
Trust in economic management plummeted. A YouGov poll in November 2022 showed only 21% of Britons believed the government could handle the economy well — down from 39% in July. The episode fueled skepticism toward both Conservative economic theory and the idea that tax cuts automatically boost growth. It also damaged the reputation of the Conservative Party as fiscally responsible — a brand it had cultivated since the 1980s.
Could this happen again under a future Conservative leader?
It’s less likely — but not impossible. The 2022 crisis forced a reckoning. The Office for Budget Responsibility’s independence was reaffirmed, and the Treasury now requires stricter costings for major fiscal announcements. However, ideological pressure within the party remains. If future leaders ignore economic realities in pursuit of populist tax cuts, markets will react again — and this time, the political cost may be even higher.
How did the public react to Truss’s resignation?
Relief was widespread. Social media flooded with memes of Truss’s resignation speech. Major newspapers ran front pages calling it a “national embarrassment” and “a cautionary tale.” In public spaces, people spoke of exhaustion — not anger, but weariness. The resignation ended a period of chaos that had affected everything from mortgage rates to household budgets. Many saw it as the necessary end to a failed experiment.