Truss’ growth diagnosis was correct

One of the tragedies of Liz Truss’s death is that her main economic observation, that Britain isn’t growing fast enough, may be lost in history. This is due to the unpleasant way her chancellor tried and failed to correct the situation. The noise from the new administration may be, to be sure.

This argument is worth repeating: Britain’s large elderly population places greater demands on (untreated, impractical and unproductive) health services. The public sector must be reformated or increased tax collection if the rest of the country is to function properly. Economic growth is the only way to increase the treasury’s coffers, since raising taxes in a large amount would be economic self-destructive.

Downing Street clearly wants the UK’s long term financial plan to be reaffirmed. This is both smart and sensible. It’s also true that market views on everything, from inflation to interest rate, have changed since then. Kwasi Kwarteng non-miniature budget, The wriggling room that Rishi Sonak and Jeremy Hunt have should give the economy more breathing room. It is crucial that they don’t flush the baby with the bathtub water.

For all the growth fiscal policy can encourage, the real prize is supply side reform. Ex-think tank Matt Sinclair, ranked number 10, has been developing really interesting ideas on everything, from immigration to childcare. It would be a shame to delay these reforms in order to rid the government from anything even remotely like those six weeks.

We won’t need to wait long before we see the economic solution that Jeremy Hunt considers essential for the country. It would be wise for both the chancellor & prime minister to promise sugar to the country to help reduce medicine in the form a promise that they will revive some of these much-needed reforms.