The Labour Party has surged to an astonishing 33-point lead over the Tories, according to new polling.
The YouGov poll, carried out on Wednesday and Thursday, put Labour on 54% (+9) compared to the Conservatives’ 21% (-7).
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The Times, which commissioned the poll, said it is believed to be the largest poll lead enjoyed by any party with any pollster since the late 1990s.
It follows a successful Labour conference in Liverpool and, more importantly, market turmoil and public outcry following Kwasi Kwarteng’s mini-budget last Friday.
The poll also shows the gap between the Lib Dems in third (7%) and the Tories is smaller than between Labour and the Conservatives.
With reports of unease among Tory MPs after the market chaos of recent days, some have called for an urgent change of course from the prime minister.
Julian Smith, a former Cabinet minister, urged the government to “take responsibility” for the crisis.
“The government must scrap 45p, take responsibility for the link between last Friday and the impact on people’s mortgages and make clear that it will do everything possible to stabilise markets and protect public services,” he tweeted.
Former science minister George Freeman called on the Cabinet to meet and agree a “Plan B”.
“The economic package of borrowing & tax cuts announced last week clearly can’t command market or voter confidence,” he said on Twitter.
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Truss and Kwasi Kwarteng have insisted their £45 billion package of tax cuts is the “right plan” to get the economy moving despite chaos on the financial markets and fears of rocketing mortgage bills.
In their first public comments since the pound hit a record low on Monday, neither the prime minister nor the chancellor commented directly on the turmoil created by his mini-budget.
During a round of BBC local radio interviews, Truss said the government had to take “urgent action” to kick-start the economy and protect consumers from rising energy costs.
And during a visit to an engine plant in Darlington, Kwarteng said the package he announced in the Commons on Friday was “absolutely essential” if the economy was to generate the revenues needed to fund public services.
Austerity is to be revived to tackle the economic crisis critics says was caused by a splurge on tax cuts in the government’s mini-budget.
HuffPost UK understands Chris Philp, chancellor Kwasi Kwarteng’s deputy in the Treasury, will write to Cabinet ministers to urge them to make efficiency savings in their departments’ existing budgets to help balance the public finances.
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It marks a significant change in direction since, in 2018, then prime minister Theresa May declared the government’s programme of austerity – started by her predecessor David Cameron eight years earlier – was “over”.
It also signals Liz Truss’s government will not row back from a massive £45 billion tax cut funded by government borrowing.
Chris Philp, Chief secretary to the Treasury, to write to all Secretaries of State telling them to identify efficiencies and reprioritise departmental spending plans.
Treasury source insists that even with 10% inflation, departmental spending is still growing in real terms.
It came as the Bank of England has launched an emergency UK government bond-buying programme to prevent borrowing costs from spiralling out of control.
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It was the latest shock move after the pound briefly slumped to an all-time low, triggering fears of sharp interest rate rises to save the currency.
The Bank’s extraordinary intervention, responding directly to the government’s tax-cutting strategy, will pile further pressure on Truss and Kwarteng to defend a vision for the economy that has spooked markets and shocked most mainstream economists.
While the pound hit an all-time record low of 1.03 against the US dollar on Monday, the yield on 10-year gilts – which is a proxy for the effective interest rate on public borrowing – has also soared by the most in a five-day period since 1976, according to experts.
Truss and Kwarteng have stayed publicly silent since the weekend, with only financial secretary to the Treasury Andrew Griffith sent out to the media on Wednesday.
He insisted the government was sticking to the plan set out by Kwarteng in the Commons on Friday.
“What the chancellor and I are focused on is delivering that economic growth plan,” he said in a pooled clip for broadcasters.
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“We think they are the right plans because those plans make our economy competitive.”
A Treasury minister has denied the government’s mini-budget has caused an economic meltdown, as a senior figure in government finally spoke publicly about the market turmoil.
With prime minister Liz Truss and chancellor Kwasi Kwartengsilent on the tumbling pound and interest rate fears in recent days, financial secretary Andrew Griffith was presented to the media to answer questions on their behalf.
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It came as the Bank of England has launched an emergency UK government bond-buying programme to prevent borrowing costs from spiralling out of control, and followed the International Monetary Fund urging the UK to reverse a massive £45 billion tax cut funded by government borrowing.
On Wednesday, Griffith was asked by Ed Conway of Sky News if the government took responsibility for “the storm in the financial markets” since last Friday’s “fiscal event”.
In response, Griffith said: “No, we both know we’re seeing the same impact of Putin’s war cascading through things like the cost of energy, some of the supply side implications of that. And that’s impacting every major economy. Every major economy you are seeing interest rates going up as well. Every major economy is dealing with exactly these same issues.”
Griffith welcomed the “timely” intervention by the Bank of England in the markets, adding: “What the chancellor and I are focused on is delivering that economic growth plan.”
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Treasury financial secretary, Andrew Griffith says the current economic issues are being experienced in “every major economy” due to Putin’s war, not the mini budget.
While the Tories are denying a self-inflicted wound, some are happy to blame others.
Tory peer Daniel Hannan was mocked after he blamed the economic on the prospect of Keir Starmer becoming prime minister.
He said a Labour victory at the next election would lead to “higher taxes, higher spending, and a weaker economy”.
Meanwhile Andrew Lilico, a right-wing economist supportive of the tax cuts, hit out at the IMF as a “left-wing body” after its rare criticism of a developed country as the lender of last resort highlighted the negative impact of the tax cuts.
The scale of the crisis in the markets has led to unease in some quarters of the Tory party, while Labour has joined calls for parliament, currently on a conference recess, to be recalled.
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“The government has clearly lost control of the economy,” Keir Starmer told reporters in Liverpool.
It is a highly unusual move that will see the Bank buying long-term government debt to tackle a surge in the cost of borrowing, which it said risked “contagion” to households and businesses.
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The announcement has prompted calls for the prime minister to address the public about her decisions.
Truss has not spoken publicly in the six days since her government announced the biggest tax cuts for 50 years.
Government sources say there are no plans for Liz Truss to comment publicly today on the turmoil in financial markets
One Twitter user said: “Genuinely where the hell is Liz Truss? You’d of thought at least a written statement would of gone out by now to someone in the press to calm things down at least surely?”
GB News presenter Isabel Webster Tweeted: “Where is Liz Truss?”
“What the government needs to do now is recall parliament and abandon this budget.”
– Labour leader Keir Starmer
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Comedian David Baddiel added: “Where *is* Liz Truss? We appear to be in a crisis. Normally, in that situation, a country’s leader says…*something*. Even if it’s keep calm and carry on.”
Former Blue Peter presenter Simon Thomas added: “Whilst the economy burns like a skip fire, has anyone seen or heard from Liz Truss? She was highly visible during her leadership tour; but now she is leader, where the hell is she?!
“Where is her leadership? Cooling off in Boris’s fridge? To remain quiet is a dereliction of duty.”
It comes as Labour, the Lib Dems and SNP all called for parliament to be recalled amid the “rapidly deteriorating economic crisis”.
Labour leader Keir Starmer told Sky News: “The government has clearly lost control of the economy.
“What the government needs to do now is recall parliament and abandon this budget.”
UK in grip of rapidly deteriorating economic crisis. Emergency intervention by @bankofengland to reduce damage of UK gov own policies extraordinary. Commons should be immediately recalled (where even is PM?) & as at least an initial symbol of sense, top tax rate abolition dumped
Lib Dem leader Ed Davey said Truss had 24 hours to fix the “economic disaster” and added: “Every hour the prime minister and chancellor hide from this economic nightmare increases the chances of interest rates spiralling out of control and people losing their homes.”
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There are mounting concerns about a mortgage crisis as the Bank prepares to hike interest rates.
Lenders have withdrawn dozens of products as they struggle to adjust to the expectations of higher costs.
The Labour Party has also called on the chancellor to make an “urgent statement” on how he is going to fix the “crisis that he has made”.
The International Monetary Fund has made a stunning intervention over the state of the UK economy after the Tory mini-budget caused financial turmoil.
In the group’s first public reaction to Britain’s growing crisis, the IMF said on Tuesday that it would urge the UK to “re-evaluate” a massive £45 billion tax cut funded by government borrowing as it does “not recommend large and untargeted fiscal packages” given soaring inflation across the world.
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It went on to warn the measures will likely increase inequality, and urged more action to hep those affected by the energy crisis and rising cost of living.
What is the IMF? Why do their comments matter?
The Washington DC-based “lender of last resort” has helped bail-out struggling nation states around the world for more than 70 years.
It is extremely rare for the organisation to intervene in a developed country’s economic policy. Britain was forced to apply for an IMF loan of nearly $4 billion during the 1976 financial crisis, with negotiators for the group insisting on deep cuts in public expenditure at the time.
IMF officials have warned repeatedly in recent months of the need to carefully calibrate fiscal and monetary policy as central bankers raise interest rates across the globe to get inflation under control.
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Against a backdrop of the pandemic, Russia’s invasion of Ukraine and rising global interest rates, the organisation’s lending has hit a hit a record high at $14billion, the FT reported. Zambia and Sri Lanka, which both defaulted in the pandemic, are currently negotiating IMF bailouts as part of efforts to restructure debts.
What is it responding to?
The IMF comments followed the Tories unveiling a controversial mini-budget on Friday that was designed to reboot growth – a move that saw the pound slump to a record low against the dollar by Monday.
The sell-off of sterling, as well as jitters across the financial markets, has led to fears the Bank of England is certain to raise interest rates dramatically to save the currency, which in turn is likely to spell bad news for homeowners.
Chancellor Kwasi Kwarteng responded by saying he would set out medium-term debt-cutting plans on November 23, alongside forecasts from the independent Office for Budget Responsibility of the full scale of government borrowing.
What did the IMF say?
In response to a query from Reuters after the British pound hit an all-time low amid spiking market concerns, the IMF spokesperson said: “We are closely monitoring recent economic developments in the UK and are engaged with the authorities.
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“Given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy.”
The IMF understands that Britain’s “sizable fiscal package” was intended to help residents deal with higher energy prices and to boost growth via tax cuts and supply measures, but such measures could put fiscal policy at cross purposes with monetary policy, the spokesperson said.
Kwarteng’s fresh budget would provide an “early opportunity for the UK government to consider ways to provide support that is more targeted and re-evaluate the tax measures, especially those that benefit high-income earners”, the spokesperson added.
What has the reaction been?
The BBC’s economics editor Faisal Islam: “The IMF telling a G7 member and major shareholder to ‘re-evaluate’ their signature economic policy because it ‘does not recommend’ such packages and will ‘increase inequality’… suggests profound international concern in finance ministries about a global impact of UK crisis.”
This the IMF telling a G7 member and major shareholder to “reevaluate” their signature economic policy because it “does not recommend” such packages and will “increase inequality”… suggests profound international concern in finance ministries about a global impact of UK crisis
This from IMF is humiliating for Kwarteng and Truss: “Given elevated inflation pressures in many countries, including UK, we do not recommend large untargeted fiscal packages at this juncture, as it is important fiscal policy does not work at cross purposes to monetary policy”.
An economist and former interest rate-setter has hit out at the government’s “raging incompetence” as he questioned whether Liz Truss and Kwasi Kwarteng would survive the economic turmoil created by their mini-budget.
David “Danny” Blanchflower, who sat on the Bank of England’s monetary policy committee for three years, said the prime minister and chancellor’s “credibility is completely trashed” within days of taking office.
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His outspoken comments followed the Tories unveiling a massive £45 billion tax cut funded by government borrowing on Friday – a move that saw the pound slump to a record low against the dollar by Monday.
The sell-off of sterling, as well as jitters across the financial markets, has led to fears the Bank is certain to raise interest rates dramatically to save the currency, which in turn is likely to spell bad news for homeowners.
Appearing on the Sarah-Jane Mee Show on Sky News, Blanchflower referenced Kwarteng’s plan to explain how he will get debt falling in a medium term fiscal plan to be published on November 23, as he said the uncosted government plans mean Truss and the chancellor “just don’t look credible”.
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He added: “So the question is, if you if you’re the chancellor of the exchequer and what you’ve done is you’ve stood up and you crashed the markets – you’ve crashed the bond market, you’ve crashed the foreign exchange market, the stock market dropped, the housing market’s in trouble – and you created a giant recession as the Bank of England has to raise rates … your credibility is completely trashed.
“And what’s the prime minister going to say – well, at the moment she appears to be hiding – but the questions journalists like you and (Sky News journalists) Ian King and Ed Conway and others are going ask is, what are you going to do, it’s all completely failed, hasn’t it? They told you it was going to fail, and it has now, what are you going to do?
“And obviously the question then is, politically, is she going to survive the month? Does she get to – and does he get to – this statement in two months time, because presumably politically they’ve created a disaster. And there’s even an issue: could you get to get this through the House of Commons? Unclear.
“I have never seen anything like this. I’ve been an economist for 50 years. I went through the great recession, and I have never seen such a raging incompetence ever.”
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After two days of big changes, the pound settled down on Tuesday, trading at around 1.08 dollars for most of the day, deviating only briefly with a two cent drop.
London’s top stock index, the FTSE 100, was also subdued for most of the day.
The FTSE closed the day down 0.5% on Tuesday afternoon while gilt yields, reflecting the cost of government borrowing, rose 1.6%, more than a quarter higher than just a week ago.
But with some analysts predicting the base rate – currently standing at 2.25% – will have to rise to as high as 6% next year, some lenders began withdrawing some mortgages amid uncertainty over how far they will rise.
A Conservative peer and former chief Brexit negotiator has said he doesn’t think “anything has gone wrong” after a day of turmoil on the markets which saw the pound briefly slump to an all-time low.
Lord David Frost described the dramatic events since Friday’s mini-budget as “unwarranted” and an “over-reaction” as the Bank of England moved to assure investors it “will not hesitate” to raise interest rates to prop up the value of sterling.
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Chancellor Kwasi Kwarteng’s £45 billion package of tax cuts has prompted a run on the currency that has caused wider fears about the state of the economy.
But Lord Frost, speaking on BBC Radio 4’s PM programme as Kwarteng avoided a public statement, appeared relaxed about the pummelling of the pound.
He said: “Well I don’t think anything has gone wrong actually. Liz Truss promised change, a different economic approach to get us back to growth and away from stagnation and that means a number of things have got to happen.
“Yes, rates have got to go up to get inflation under control, we’re going to have to have lower taxes and fiscal support to get people through this period, we’re going to have lots of structural reform as the chancellor said today and we need to hold down spending in the medium term and that’s coming in November.
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“So I think what we’ve seen in the last few days is (a) unwarranted and a over-reaction approach to some elements of that, you’ve got to look at the total package which is taking the country on a different direction to get us out of stagnation and get us back to growth.”
Such was the market turmoil on Monday there was growing speculation in financial markets that the Bank would make an emergency interest rate rise after it hiked rates only last week to 2.25% from 1.75%.
Instead, with the pound fragile and bond prices still tumbling, Kwarteng issued a statement just before the British stock market closed to say he would set out medium-term debt-cutting plans on November 23, alongside forecasts from the independent Office for Budget Responsibility of the full scale of government borrowing.
The central bank welcomed “the commitment to sustainable economic growth” from Kwarteng and the independent scrutiny that the OBR growth and borrowing forecasts would bring.
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Meanwhile, banks and building societies are withdrawing some of their mortgages from sale.
Three lenders – Halifax, Virgin Money and Skipton Building Society – have so far withdrawn some of their products amid the uncertainty, according to reports.
While she has sought to distance herself from the comparison, there is one thing she does share with her late predecessor: she has taken over as prime minister at a time when Britain’s economy is crumbling and its workforce is more mutinous than ever.
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Angered by an inflation rate of 9.9 per cent that is outstripping stagnant wages, trade unions are organising en masse for industrial action that threatens to take Britain back to the turmoil of the 1970s.
One by one, they are rejecting the government’s single-digit pay offers and organising strike ballots. Collectively, they have said “enough is enough”.
Their resistance sets the scene for a new front in the divisive culture wars in which unions fear Truss will attempt to “crush the enemy within” by bringing in a series of measures that will hamper their ability to take industrial action.
Kwasi Kwarteng, Truss’s new chancellor, confirmed this week the government will bring forward legislation making it harder to go on strike.
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“What we have is a government that seems to be struggling to come up with answers to the cost of living crisis,” says Tim Sharp, senior policy officer for employment rights at the Trades Union Congress (TUC).
“It appears that some in government would like to distract from that with a culture war against the unions.
“We had a leadership contest in which the candidates had to appeal to some of their more ideological members and that’s why we’ve seen the pledges in terms of anti-union action.”
Which unions are striking?
The RMT and Aslef rail unions, the Communication Workers Union (CWU) representing Royal Mail workers and barristers under the Criminal Bar Association (CBA) have all been on strike over pay and working conditions in recent weeks.
Dockhands represented by Unite have also been striking at the port of Felixstowe and are set to do so again in September, in the shadow of the Labour Party conference in Liverpool.
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The National Education Union (NEU), the largest education union in the UK that represents teachers, lecturers and support staff, will open its online preliminary ballot for strike on September 24, before a formal ballot takes place in November.
The Royal College of Nursing (RCN), whose members include half a million nurses, midwives, nursing support workers and students, opened a postal ballot for strike action on September 15 that will close on October 13.
If enough members vote for industrial action, it will be the first time in the union’s history that its members in England and Wales go on strike.
The British Medical Association (BMA) has also said it will ballot junior doctor members in England for industrial action if the government fails to restore pay to 2008/09 levels by the end of this month.
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The public needs to be prepared for the havoc such strikes could wreak on their daily lives.
“Every school in the country is going to be shut bringing total chaos,” one union source says. “Tens of thousands of hospital appointments are going to be cancelled.
“This is the price you pay for a Tory government that has slashed public services.”
The tools in Truss’s arsenal
If Truss is looking at how she might limit trade union rights, David Cameron’s Trade Union Act of 2016 might provide some inspiration.
Billed at the time as some of the most “regressive” anti-union legislation in the world, the law brought in measures such as higher thresholds for success in industrial ballots.
It also increased the notice period unions must give to employers ahead of any strike action from one week to two weeks.
In an ordinary union, there must be a 50 per cent turnout for an industrial ballot in order for their results to be legally valid. A simple majority has to vote in favour of strike action for it to go ahead.
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But for workers who deliver “important” public services, not only does the 50 per cent turnout have to be met, the support of 40 per cent of all eligible members must also be attained for the strike action to be legal.
Unions fear that Truss could use a new law to bring in thresholds that are so high that they could make strikes nigh on impossible.
They anticipate that she could also widen the definition of what counts as a public service to include bus drivers and tube drivers, for example, to apply the 40 per cent threshold.
“If she goes in this direction there will be new laws — that’s a fact,” says one union source.
“She’s got a parliamentary majority. You’re not going to stop her legislating.
“If the Tories use an act of parliament to redefine what defines a public service, at a stroke they would cover huge sections of private industry.
“They can make it even more difficult for unions to get through the thresholds. These laws are already the most stringent of anywhere in Europe.”
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A new law to guarantee a minimum level of service on “vital national infrastructure” was a key pledge to come out of the leadership campaign, as was a tax on the strike benefit members receive when they don’t go into work.
Truss also suggested brining in a cooling-off period so that unions can no longer strike as many times as they like in the six-month period after a ballot.
Tim Sharp says the effect of Truss’s plans could be that they make union disputes harder to resolve.
“The industrial action we’ve had has been grassroots driven,” he tells HuffPost UK.
“They risk making industrial disputes harder to resolve. You often see a day of strikes here and there, but if a union is being limited in how often it can take industrial action, then what you could see is longer periods of strike action.”
Another union insider agrees: “If Truss thinks she’s going to shut down the unions she’s got another thing coming.
“She will just create so much anger it increases turnout in the many union ballots currently going on.”
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Workers of the world unite
In the unions, Truss has found herself an opponent that will not go down without a fight.
Sharon Graham, the boss of the Unite union, tells HuffPost UK there will be a “prolonged and fierce resistance to Truss attacking workers’ rights”.
“If Liz Truss thinks we have just been sitting waiting for her anti-trade union laws, she’s wrong,” she says.
“We’re ready. If she puts up the thresholds for legal strike action we’ll employ more organisers to get the vote out. If she taxes strike pay, we’ll take more money from the strike fund to hold the real value of strike pay.
“And if she tries to gag trade unions we’ll find ways to speak out more and more.”
And in a swipe at Truss’s own result in the Tory leadership contest Graham says: “Right now if workers plan strike action 50 per of those who can vote in the strike ballot must vote for the strike to be legal.
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“It’s a bit rich for Liz Truss to be upping the figures in new laws. In her election for leader she only got 47 per cent of Tory members who were entitled to vote.
“If the Tory Party was bound by the same restraints as the unions Truss would not have made the grade for leader. You could not make it up.”
RMT general secretary Mick Lynch said workers could be forced to take “unlawful industrial action” if the government makes it impossible for legal strikes to take place.
He told Sky News: “We’re fast getting to a situation where we’re going to have laws that are as oppressive as those that exist in Russia and China and back in Poland before Solidarnosc came along and took unlawful industrial action to break free of the oppression of the old Soviet bloc an the communist regime.”
The TUC is already preparing its campaign to appeal to the public when the battle begins.
National rallies will take place in Westminster and there will be a tour of town halls, a national day of action and a lobby of parliament.
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The message members have been told to stick to is that Truss plans’ “threaten the right to strike” and are an attempt to distract the public from the burgeoning cost of living crisis.
And crucially, there is the edict to “stay calm: they want us to blow our tops, don’t give them the satisfaction”.
Failing that, the government could find itself in court.
In a sign of the resistance to come, 11trade unions launched legal action against the government on Tuesday over government plans to replace striking workers with agency staff.
They claim the government has broken the Employment Agencies Act 1973 by failing to consult them on the changes and is violating “fundamental trade union rights” protected by Article 11 of the European Convention on Human Rights.
No pain, no gain
For Truss, a protracted battle with the unions could help her forge her reputation with voters, for whom she remains largely unknown.
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According to pollster James Johnson, the co- founder of JL Partners, Truss could win plaudits from the public from sticking to what she thinks is right.
“I don’t think it’s a politically calculated move, I think it comes from a genuine frustration within government,” he says.
“What pays off for Liz Truss is that if they are pursuing what they think is right, even if it doesn’t go down well, that may have a long term effect in popularity in showing that there is a steeliness and sense of inner conviction — and that is what the public do crave.”
By taking such a firm line, she also sets a contrast in voters’ minds between herself and Labour leader Keir Starmer, whom the public still perceive as weak on strikes.
“There are negative views about Starmer because of his position on strike — at first he seemed to back people going out, then he didn’t,” Johnson explains.
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“It reinforces that view that he doesn’t stand for anything, and that is fine if the other leading party is seen like that — but if we get that contrast developing between Truss and Starmer, then he could be in trouble.”
The jury is out on whether Truss can recapture the status of a conviction politician — or whether the turmoil that ensues is so great that it would cancel any benefit that came from taking a stand.
A cabinet minister and close Liz Truss ally has argued that the Conservatives have not had a “clear run” in power over the last decade.
Appearing on ITV’s Peston programme, levelling up secretary Simon Clarke, a former top Treasury minister, said that no Conservative government “has had a clear run at events over the entire course of the last decade, it has been one crisis after another”.
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Critics pointed to the fall-out from the Brexit referendum – which saw off two Tory prime ministers – as at least one self-inflicted crisis, and how tackling big events is the nature of governance.
Other disruption since the Tories came to power in 2010 includes the Cameron-Osborne austerity programme, the Covid-19 pandemic and Russia’s invasion of Ukraine.
His comment appeared to be a justification for moving to an “unashamedly pro-growth policy” under the Truss premiership.
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Clarke added: “What Liz is saying is that we need to accept that we may not get back to normal, that if you like, that the world is in an extraordinary state of affairs at the moment and that being so, that we just need to press on and govern, frankly, as we want to be remembered – as a government that makes things better for people.
“And clearly as secretary of state for levelling up, my focus is on life chances, and on spreading opportunity. I’m delighted that we’re moving to an unashamedly pro-growth policy.”
Clarke also admitted the government’s economic policy is not “risk-free” as he said that the Tories wanted to go back to the growth rates seen before the financial crash in 2008, when Labour was in power.
At the the mini-budget on Friday, chancellor Kwasi Kwarteng is expected to put into practice many of the tax-cutting promises made by Truss during the Tory leadership campaign.
As well as reversing the hike in national insurance contributions and scrapping a planned increase in corporation tax, which Truss has promised, it has been reported he will cut stamp duty in a further attempt to drive growth.
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Levelling up secretary Simon Clarke: “No Conservative government has had a clear run at events over the entire course of the last decade, it has been one crisis after another.”
It’s fascinating how the default setting of UK politics (including from Simon Clarke, a Leaver!) is to talk about 2016 as a point of crisis. https://t.co/3ve7yQAm80
Complete opposite was true before Covid (in 2020). They wanted Brexit debate and, meanwhile, we had access to some of the cheapest credit in history…and we built virtually nothing.
The 2010s will be remembered for appallingly poor governance – likely without precedent. https://t.co/0aEBBrwRNi
On plans to lift the cap on bankers’ bonuses while millions feel the squeeze of the cost-of-living crisis, Clarke also said this would help level up “because there would be more revenue for the exchequer”.
US president Joe Biden has told Liz Truss the UK is “our closest ally in the world”, despite sharp disagreements between the leaders of the two countries.
Ahead of a one-to-one meeting at the United Nations General Assembly in New York, Biden and the new UK prime ministers spoke to reporters before sitting down to talks centring on the Russian invasion of Ukraine and the energy crisis it has provoked.
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Though Biden’s words were reassuring, the president told Truss he is “looking forward to hearing what’s on your mind” about the row over the Northern Ireland Protocol, which prevents a hard border on the island of Ireland, underlining tensions over post-Brexit arrangements.
The prime minister sought to reassure the US president by telling him how she would be explaining how the Good Friday Agreement that brought peace to the island would be upheld.
Biden and Truss were meeting after the president sent a tweet just as the PM was discussing her economic policy, which said he was “sick and tired of trickle-down economics”.
“It has never worked,” he said.
The comments underlined the differences between the two leaders’ stances after Truss made clear her economic agenda had the trickle-down theory – tax cuts for the wealthy and corporations will benefit everyone – at its heart.
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The prime minister’s official spokesman said it was “ludicrous” to suggest Biden was criticising UK policy, arguing each country is facing different economic challenges.
The prime minister is pushing ahead with the controversial Northern Ireland Protocol Bill which the EU and other critics say will breach international law by suspending elements of the agreement.
There have also been suggestions she could unilaterally trigger Article 16 of the protocol, to override parts of the agreement brokered as part of the Brexit divorce deal.
In opening marks at the top of their meeting, the US president told Truss: “We are both committed to protecting the Good Friday Agreement of Northern Ireland.
“And I’m looking forward to hearing what’s on your mind.”
He congratulated her on becoming prime minister, adding: “I look forward to working closely with you. You’re our closest ally in the world and there’s a lot we can continue to do together.”
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Truss told the president the UK and the US are “steadfast allies” as she thanked him for his support following the death of the Queen.
“Of course I’m looking forward to discussing the Belfast Good Friday Agreement and how we make sure that’s upheld into the future,” she added.
Biden said their “full agenda” for the meeting includes Ukraine’s defence against Vladimir Putin’s invasion, China and preventing Iran from obtaining nuclear weapons.
“We also want to talk about energy, which understandably is of significant consequence to all of Europe and the United Kingdom in particular,” he added.
US national security adviser Jake Sullivan made it clear Biden would discuss the protocol “in some detail” with Truss.
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Sullivan told reporters the president “will encourage the UK and the European Union to work out an effective outcome that ensures there is no threat to the fundamental principles of the Good Friday Agreement”.