CEOs and Market Analysts React to Truss departure

Andrew Megson, CEO of My Pension Expert, said: “Truss’ reign as Prime Minister has caused a tremendous amount of damage in a short space of time. Her vision was for the UK to punch its way out of trouble, going all-in on growth and productivity to fend off the cost-of-living crisis and impending recession. Unfortunately, she has merely piled more financial worries onto households across the country.

“Financial markets have been put in a spin by wayward economic policy. Inflation is back above 10% and likely to rise further when the now only six-month price cap ends in Spring 2023. And the Bank of England has said that interest rates will rise faster than expected as it seeks a degree of stability.

“Financial planning has been made very challenging. Take the multiple U-turns over the triple-lock pension – will the Government commit to it or not? How can people map out their financial futures with such inconsistency?

“We can only hope that Truss’ replacement can quickly bring about calmness, clarity, and certainty, allowing people to effectively plan for the future. In the meantime, it is important that those worried about their finances, whether that is unmanageable debt, the performance of investments or their retirement strategies, seek out advice and support.”

 
Mohsin Rashid, Co-founder of ZIPZERO, said: “While brief, Truss’s premiership has caused economic damage that could take months if not years to correct. Her juggernaut vision for the economy was horribly misjudged and has exacerbated the financial burden on millions of families across the country. Inflation has returned to the 40-year high seen in July and the Bank of England is set to raise interest rates faster than anticipated. Support on energy bills – Truss’ first and flagship policy – has been scaled back and mortgage rates have skyrocketed. These are hugely challenging times.
 
“The arrival of a new Prime Minister was meant to bring a new urgency in attacking the cost-of-living crisis; instead, it has swallowed millions of more families into financial ruin. It’s unclear if the arrival of the next one will make things any better, but regardless, Truss’ 44 days as PM have set the UK back significantly. Her replacement must urgently take a hold of the energy crisis and stabilise the markets. Families will be punished by inaction as we again wait for the latest government to get to grips with the crisis. The new PM must deliver support and long-term certainty or risk poverty and inequality rising to levels unseen in modern Britain. Families cannot continue to bear the cost of poor decision-making.”

 
Giles Coghlan, Chief Market Analyst, HYCM, said: “After just 44 days in office, it appears that the markets and a party in open revolt have sealed Liz Truss’s fate. Although Truss was brought into usher in an era of growth and ‘trickle-down economics’, her strong pro-growth policy was poorly timed, sending the UK bond markets into a sharp sell off as her policies fanned the flames of surging inflaton. To fend off instability, the Bank of England has even intervened in gilt markets, and it remains to be seen whether the central bank will now hike interest rates more quickly.

“With all that in mind, Truss’s departure is likely to be mildly GBP positive, depending on her successor for the premiership. Already, the UK gilt market was supported as rumours of the prime minister’s resignation came to light this morning, which is a good sign for the pound’s stability.”