The Newshound

Truss urges Britain to 'get rid of the Bank of England Act' and warns Budget will deepen the 'doom loop'

From the Newshound archive · first published 24 September 2026.

John Healey, Chancellor of the Exchequer, is weighing whether to cut the fiscal headroom buffer below £23.6bn to soften tax rises in the 28 October Budget.
John Healey, Chancellor of the Exchequer, is weighing whether to cut the fiscal headroom buffer below £23.6bn to soften tax rises in the 28 October Budget.

Liz Truss has called on parliament to repeal the Bank of England Act 1998, branding the institution "unaccountable and unsackable" and alleging that it drove up the cost of government borrowing while she was in office. Speaking to Nick Ferrari, she warned that Chancellor John Healey's forthcoming Budget would lock in a vicious cycle in which higher taxes squeeze businesses and capital flees the country. Her remarks follow August borrowing figures that came in £3.5 billion above the Office for Budget Responsibility's forecast. Shadow Chancellor Andrew Griffith said Labour had "lost control of the public finances".

Truss argued the Bank of England was "ideologically against" her growth agenda and quipped it had "Bailey'd" her out of office.

Public sector borrowing reached £18.3 billion in August 2026, the second-highest figure for that month on record, driven by soaring debt interest payments.

Truss said Andy Burnham is "on the same page as these bureaucrats" — blaming a Blairite establishment for strangling growth.

MoreLBC‘Get rid of the Bank of England Act’ urges Liz Truss - as Britain’s shortest-serving PM warns upcoming Budget will continue British ‘doom loop’Financial TimesFirstFT: UK weighs smaller fiscal buffer to curb tax risesFinancial TimesTreasury open to smaller fiscal headroom to reduce UK tax risesEvening StandardFears grow of tax rises on London as Chancellor hit with £3.5bn Budget finances blow
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