Industry reacts to Truss stance on tax cuts amid bleak outlook for sterling

Doubts over impacts

New prime minister Liz Truss is set to face significant economic challenges in her premiership as she succeeds Boris Johnson and enters Downing Street, with commentators highlighting that the pound remains increasingly vulnerable in the face of runaway inflation and rising interest rates.

Preventing the pound from sliding should be high on the Prime Minister's agenda, according to head of UK equities at Lazard Asset Management Alan Custis, who said this would likely only be achieved through maintaining the Bank of England's independence on monetary policy. Liz Truss stirred controversy during her campaign for leadership after she made comments proposing divergence away from "business-as-usual economic strategy," including a review into the powers held by the central bank. She pivoted on the issue on Sunday (4 September), claiming she was a "great believer" in an autono...