Truss Blames Bank of England for 2022 Crisis
The former UK prime minister's new book, Bank Job, argues that pension fund exposure, not her mini budget alone, drove the gilt market turmoil that ended her 49-day tenure.
Updated on Nov. 4, 2026 in Economic Policy
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Former UK prime minister Liz Truss was pictured at a Mar-a-Lago dinner on the night of the 2026 Midterm Elections, days after promoting a book that places blame for the 2022 economic turmoil on the Bank of England. Truss said two-thirds of the gilt market spike was caused by LDI pension funds.
Why it matters
Truss's account revisits the 2022 mini budget, which included £45 billion in unfunded tax cuts and was followed by her resignation after 49 days in office. Her argument that market mechanics, rather than the fiscal package alone, triggered the crisis shapes how the episode is remembered in UK economic policy debates.
The 2022 mini budget included £45 billion in unfunded tax cuts, according to the figures cited in Truss's account. Truss attributes two-thirds of the gilt market spike to LDI pension funds, a claim the extraction does not independently verify.
The players
Liz Truss
Former UK prime minister who served 49 days in 2022 before resigning after the mini budget turmoil, and author of the book Bank Job.
Dominik Tarczyński
Polish politician and member of the European Parliament whose book Truss promoted at Mar-a-Lago.
The details
Truss posted a photo of herself holding a copy of Dominik Tarczyński's book at Mar-a-Lago, captioned 'Be Like Poland!'. Her new book, Bank Job, argues the Bank of England began quantitative tightening the day before the mini budget and that she did not know about the LDI market before becoming prime minister.
Timeline
2022: Truss's mini budget and resignation after 49 days in office.
Earlier in 2026: Tarczyński banned from entering the UK to speak at a Tommy Robinson rally.
November 4, 2026: Truss pictured at Mar-a-Lago on Midterm Elections night.
Economic Policy Context
Truss's reassessment of the 2022 gilt market crisis reopens debate over whether the September 2022 mini budget or Bank of England quantitative tightening was the decisive trigger. The argument matters for how future UK governments weigh unfunded tax cuts against central bank tightening.
The 2022 episode illustrates how unfunded fiscal decisions and central bank policy can rapidly raise government borrowing costs. Households exposed to mortgage rates and pension valuations are affected when gilt yields spike.
The takeaway
Market shocks often arise from interactions between fiscal policy and financial plumbing rather than a single cause. Readers following UK economic policy should weigh competing accounts of the 2022 crisis before drawing firm conclusions.
Further reading
For broader background on the policy debates behind this account, see Economic Policy.
Source note: This article includes information reported by The Independent.
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