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mile Magazine – United Kingdom: “No one in the Conservative Party listens to what Liz Truss says”

mile Magazine – United Kingdom: “No one in the Conservative Party listens to what Liz Truss says”
mile Magazine – United Kingdom: “No one in the Conservative Party listens to what Liz Truss says”

 


The main problem with the Truss budget was the massive unfunded tax cuts in that sense, the budget was more Reaganite than Thatcherite, alongside support for the energy bill, with no road map for paying back borrowed money, and no end point in view for politics. . This would have cost between 60 and 100 billion.

It could have reassured markets by announcing a small surcharge on energy prices, of around 0.1 pence per kWh on all electricity, to be applied when prices fall below a certain level and up to until the debt is repaid. This would have shown the markets that Truss was serious about not increasing its long-term borrowing.

What she also could have done was save the tax cuts for the next budget, in consultation with think tanks and officials, and instead engage in the much harder (but more fruitful) work. supply-side reform, including simplification of planning. This would have had two effects: firstly, it would have shown that his government was serious about tackling the problems facing the country, and secondly, it would also have boosted economic growth, which would mean that the cuts taxes would have become more affordable. Finally, Truss should have consulted more widely with his cabinet colleagues and the parliamentary party to test policies. However, her closed approach of trusting only a small core of her government and advisors has worked against her.

How might the clash between pro-growth, pro-deregulation, nation-state-centric Conservative thinking and trade-sceptical, environmentalist, inclusive, pro-immigration agendas evolve in the UK in the medium term ?

This situation will increase when the Conservatives are in opposition and the Labor government introduces a series of more progressive measures. The next Conservative leader will be right-wing, but he will be able to bring the competence and seriousness that Truss and Sunak lack. The Conservatives will look at the Reform UK polls and want to win back some of those voters.

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