Some senior executives in business have weighed in to criticise Kwasi Kwarteng’s tax-cutting plans, which have also been picked apart by the currency and bond markets in recent days.
Never one for taking a backwards step Michael O’Leary, the boss of Ryanair Holdings PLC (LSE:RYA) described the fiscal plan as “nuts”, adding that the mini-Budget could potentially bankrupt the UK economy in the coming years.
Speaking in Dublin, O’Leary said: “I think what they have done in the UK is nuts. You can’t have an energy guarantee that runs for two years. It’s completely uncosted.”
“I think they could bankrupt the UK economy in the next two years.”
O’Leary wasn’t alone, Sir Martin Sorrell, chairman of S4 Capital PLC (LSE:SFOR), said conservative members had made a mistake by electing Liz Truss as prime minister instead of former chancellor Rishi Sunak.
The ad boss told Bloomberg: "Sunak was the adult in the room and forecast all this. It's like a CEO and CFO reducing revenues and increasing costs without a plan.”
"In this case, the shareholders will vote in two years, unfortunately."
Former BT Group PLC (LSE:BT.A) chairman Mike Rake said there was "grave concern that this policy is in danger of further damaging our reputation and our economy."
Earlier, the International Monetary Fund (IMF) also launched a stinging judgment to add to the pressure on those in number 10 and 11 Downing Street, with the kind of intervention usually reserved for an emerging economy facing a current account crisis.
As well as “closely monitoring recent economic developments in the UK”, the IMF said it was engaged “with the authorities.”
“Given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture” the Washington-based fund said.