As CPC22 draws to a close, let’s look at how Truss has ruined the chance she had.
Well, that could have aged better. Just under a month ago, I wrote an article about how Liz Truss’ appointment as Conservative Party leader gave me some hope. Unfortunately, regardless of what I think, the events of the last week have made the public view of Truss decidedly clear. It isn’t looking good.
It pains me to do this: to go back on everything I said to such an extent. But, then again, it wouldn’t be the first Tory U-turn of the last week. In truth, Truss has had a difficult start, to say the least. Nobody is saying that being appointed on a Tuesday by the Queen, and then making a speech on the subsequent Thursday, mourning the loss of the woman who officially handed over power, is easy. What people are rightly saying, is that she’s yet to do anything all that great, or at least anything good enough to counter her (often sizeable) mistakes.
But let’s go back to the start. The introduction of the energy bill price cap, saving the average UK household £1000/year, cannot be said to be a bad bit of work. What we can call bad is the means of funding it. Liz came straight out with what I had feared she would ever since the start of the leadership race: something I touched on in the not-so-well-matured article. Truss plans to cut taxes (a good idea at any time other than this— the trick is in the timing, Liz, don’t get carried away), thus decreasing the amount of money her colleagues at the treasury have to play with, but doesn’t seem to be planning to the cap profits of energy companies in the UK, or anything else to actually tackle, if you will, the cost of energy bills. Capping what people pay towards that is different. So, in short, Liz, you are going to be paying off the rest, aren’t you?
She doesn’t need to answer. Of course she is. Sunak warned members of this, and of the impending B-Word, long ago. I hinted at this, but deep down hoped she’d never go through with it as blatantly as she has. And, on the topic of B-Words (other than “bloody-hell-not-another-Tory-leader-ruining-election-hopes”), we come nicely on to borrowing. Yes, the inevitable consequence of paying for stuff when you don’t have the money, obvious to anyone with functioning neurons half a mile away.
So, what have got? A cap that we’ll have to pay for in the future and a shedload of debt. What’s next, Liz, have a think? Oh, that’s right isn’t it, the biggest tax-cutting package in 50 years. Cracking work, eh, Kwasi?
I might be being harsh, especially given that, in normal times, I’d be rolling in fits of joy with a Tory government doing what a Tory government should. But what a Tory government is also supposed to do, is be a symbol of fiscal stability: a government that deals with the money, prevents overspending, and lowers taxes when the time is right. What Truss has done, is read those last few lines, and think to herself, “Hmm. Yes. Sod it!”.
So we now have a package that will, on the positive, save the average earner £400/year and the average household £1000/year, so that’s £1400 for Mr and Mrs Average, as well as the £400 deduction from energy bills, and that is all superb. It is truly brilliant and I mean that.
But what isn’t is putting probably something in the region of £120 billion on Britain’s credit card in the next two years, moving forward in debt with a fluctuating pound, and leaving it to future governments and generations if all goes awry.
Now that is the absolute least Conservative thing to do. It is positively Labour inspired (the GE 2019 Corbyn manifesto is still going strong is it not, Ms Truss?) but we shouldn’t be surprised, Liz is formerly a LibDem activist. And a radical one if you watch some of her old speeches.
But at least we’ll all get lots of British Cheddar and Chinese Pork. Every cloud and all that…
