Former prime minister Liz Truss has made a three-and-a-half minute video to claim the British economy would be in better shape if her controversial mini-budget had not been scrapped.

The former South West Norfolk Conservative MP released the video on X, formerly Twitter, exactly two years on from the 2022 mini-budget which hastened the end of her brief spell in Downing Street.

The £45bn of unfunded tax cuts outlined by Ms Truss and her chancellor Kwasi Kwarteng panicked the markets, triggered a run on sterling and led to soaring mortgage costs.

 

But, in Ms Truss's video, in which she is filmed in a study, she insisted: "If the mini-budget hadn't been undermined by the economic establishment, things would be different now.

"The economy would be growing. People would be paying lower energy bills, thanks to getting on with fracking.

"Corporations would want to locate in the UK, thanks to our relatively low tax rates."

Accompanied by charts and graphs, Ms Truss claimed the financial instability had been created by the Bank of England's lack of regulation.

She said: "Things will only get worse under Labour. We're seeing the economic doomloop accelerating."

Following Ms Truss's mini-budget, the Bank of England stepped in with an emergency programme to buy UK government bonds to calm markets.

Chancellor Rachel Reeves, ahead of the Labour party's conference, said Ms Truss's mini-budget had done "such damage to the economy", putting pensions in peril and causing spiralling mortgage rates.

She said: "It undermined our reputation on the world stage."

Liz Truss lost her South West Norfolk seat in JulyLiz Truss lost her South West Norfolk seat in July (Image: Press Association)

Ms Truss quit as prime minister after 44 days and, in July, she lost the South West Norfolk seat she had held since 2010 to Labour's Terry Jermy.