The prime minister is facing the shambles of her government agenda.
(Photo: Reuters)
London History repeats itself. Sometimes anyway. When former British Prime Minister John Major fired his Chancellor of the Exchequer Norman Lamont in 1993 after his country’s humiliating exit from the European Exchange Rate Mechanism (ERM), the ousted man left behind a quip that describes not only the then but also the current government in London quite well: “We give the impression of being in office but not in power.”
Liz Truss is still Prime Minister of Great Britain, but she has long since lost power. Under massive pressure from the financial markets, she has dismissed her friend and like-minded Chancellor, Kwasi Kwarteng, and appointed her former political rival Jeremy Hunt as his successor, making him the most powerful politician in the United Kingdom.
Politically, Truss would not survive a quarrel with her new treasurer; she is only head of government in name. Politically, she is a “dead woman walking”. The British “Daily Mail” has already speculated that Truss could be deposed this week and reported a planned vote of no confidence.
Within 24 hours, the new finance minister tore apart his prime minister’s economic policy agenda, known as “Trussonomics”, the heart of her government. “Growth with tax cuts on credit” turned into an austerity course with spending cuts and tax increases overnight. Great Britain is also facing severe cuts in social benefits, which Truss had ruled out in parliament a few days ago.
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The Prime Minister herself had to announce that the top tax rate would not be lowered and that corporate taxes would be increased. Hunt now also wants to cut government spending and does not rule out further tax increases. The income tax relief announced by Truss and Kwarteng for April 2023 is reportedly already up for grabs.
The prime minister is facing the shambles of her government agenda.
(Photo: AP)
However, more than just Truss’ failed mission of economically liberal jihadists. Their rebellion against the laws of economic gravity was basically the last failed attempt by the Brexit fanatics to let the leaden exit from the EU lead to the golden epoch of a “Global Britain”.
The island kingdom is slowly emerging from a surreal political hypnosis that the Tories have been using to fool the country since the 2016 Brexit referendum. Their battle cry “Take back control” is likely to get stuck in the throats of Brexit supporters at the latest after the international financial markets have reprimanded them. Britain needs a fresh start. New elections would be the best way out of the misery.
More: New UK Treasury Secretary: ‘Government wanted too much too quickly’