Announced a lot of unfunded tax cuts financed by borrowing - these have now been walked back on. The main issue was not really that she cut taxes, it's the unfunded borrowing to cover. Borrowing with the current high interest rates was always going to be risky and the market didn't have confidence that the cuts would lead to growth. This caused the value of the pound and of UK gov bonds (gilts) to plummet. Several large pension funds (which usually hold large numbers of gilts) were in danger of being margin called, which would cause them to have to sell gilts to cover the responsibility, which would drive down the price further, causing more sell offs. To prevent this the Bank of England (BoE) announced that they would be buying up to £65B of UK gilts - which calmed the markets and prevented a sell off (for now). But it has significantly worsened the economic outly for the country, buying your own bonds at a premium during a period of high inflation is a horrible position to be in.
The gov also declined to get the Office of Budget Responsibility (OBR) to check the impact of the plans. This is something the OBR does before every budget and it's very unusual that they didn't do this - even though it turns out they offered to before the budget was released. It didn't help that a lot of the taxes cut were targeted for high earners - It's hard to argue how cutting the top 45pc tax rate for earners over £150,000 and dropping a cap on bankers bonuses would help people in the short term (or dare. I say, the long), when the majority of people in the UK were struggling with the massively increased cost of living. It almost seemed as if the conservatives were trying to force through a list of long desired for tax cuts for the wealthy without the proper mandate (as Truss was only. elected by Conservative party members, rather than the general electorate) - and this made her gov monstrously unpopular.
The gov also declined to get the Office of Budget Responsibility (OBR) to check the impact of the plans. This is something the OBR does before every budget and it's very unusual that they didn't do this - even though it turns out they offered to before the budget was released. It didn't help that a lot of the taxes cut were targeted for high earners - It's hard to argue how cutting the top 45pc tax rate for earners over £150,000 and dropping a cap on bankers bonuses would help people in the short term (or dare. I say, the long), when the majority of people in the UK were struggling with the massively increased cost of living. It almost seemed as if the conservatives were trying to force through a list of long desired for tax cuts for the wealthy without the proper mandate (as Truss was only. elected by Conservative party members, rather than the general electorate) - and this made her gov monstrously unpopular.