The risks of an adverse market reaction were obvious in advance of Kwarteng’s statement, and a wise Chancellor would have taken heed of it. Unfortunately, the Permanent Secretary had been dismissed and he ploughed on apparently oblivious to the risks.
Free market reforms need to be bold and implemented rapidly if they are to have the best chance of being a proven success by the next General Election.
He will need to outline clearly his fiscal principles, so the market understands the commitment to fiscal discipline through reducing the ratio of debt to GDP.
But there are truths in life – for example, that a stich in time saves nine, beggars can’t be choosers…and that you can’t spend more than your earn. His premiership ends with record spending and taxes.
At present, we are languishing in the polls. However, if we keep their reputation for being good on the economy, then the public may decide to give us another chance.
People need a sense of hope and optimism about their prospects. And one of the best ways for the new Prime Minister to deliver that credibly is indeed to show how they will grow the innovations which will make life better.
The first of a series of five articles on ConservativeHome this week about the main challenges that await the new Prime Minister.
The global rebound in 2021 was 6.1 per cen,t and this year the IMF expects global growth of 3.2 per cent followed by 2.9 per cent next. These forecasts may prove optimistic.
At the very least, we need an Office for Economic Growth, as proposed by both Kemi Badenoch in her leadership bid and the former Treasury minister, Lord Agnew.
Households value pharmacies even more after the pandemic – and people want to see more banks after so many have closed.
A focus on growth is essential to stave off the foreboding economic headwinds that the next occupant of Number 10 will face.
A structural weakness in her campaign is that she is telling party members what they want to hear – rather than preparing them for the hard times that Britain faces.
There is a political storm raging but becalmed in the eye of the storm is the economy. A tale of two halves, this is a result of both global forces and self-inflicted woes.
The two candidates have less than ten days to bring to the campaign her conviction that sticking with the status quo simply won’t do.
The Government should be more worried about the balance of payments deficit than about the government deficit. We cannot rely on the goodwill of foreigners. We need to start to close the gap and reduce our demands on foreign currency markets.