There is no starker difference in how the two parties are judged on economic policy than in the past two weeks. Liz Truss.
A staggering amount of state spending to ease the energy crisis and enable tax cuts has been announced in total. Omarta So far we have no idea how much the proposal will cost UK taxpayers.
A Labor shadow minister said in an interview this week in a leadership contest with Rishi Sunak how he would fund his own energy crisis package, although it would have cost him just £15bn. , he at least £10 billion came from debt.
“We would have been crucified for that,” observed the shadow minister.
of commercial energy package Announced on Wednesday, it also did not provide details about the expected costs of discounts on wholesale electricity prices for public sector organizations, including businesses, charities and schools.
The entire package is a press release from the department and video Business secretary Jacob Reese Mogg posted on Twitter.
In the House, there is no statement that Reese-Mogg can be questioned. Members of Parliament are taking their time to make new oaths to the King, although they are under no obligation to do so. There was no ministerial meeting to approve the proposal this week – the truss is in new york at the United Nations General Assembly.
Parliament will only have a chance to discuss the proposal this Friday, when Kwasi Quarteng is expected to announce new tax cuts including national insurance, cancel a proposed corporate tax hike and cut stamp duty. ing. Only then will Kwarteng finally have to address all costs.
But no one will officially mark his homework on the cost of tax cuts and energy freezes at this week’s “fiscal event,” which is effectively a sub-budget.
Kwarteng refused to ask the Office of Budget Responsibility to produce a forecast, despite the strong language of Mel Stride, chairman of the Tory Treasury Select Committee, who intervened and urged him to reconsider. OBR chairman Richard Hughes said he was ready to provide projections to Stride, but the Treasury Department refused.
We rely solely on external forecasts by think tanks, financial firms and lobby groups to know what the entire spending package will cost.
Projections are spectacular: £30bn to £50bn tax cuts and government intervention freeze consumer energy prices Businesses could cost over £100bn, with some projections at £150bn. This is a generous short-term fix that doesn’t address long-term issues.
Little is said about the exit strategy and what happens when the 6-month cap on support is gone. Businesses will wonder if they have access to support for their most vulnerable people.
Labour MPs can complain all they want about the Tories “doing politics on easy mode”, but there are also major pitfalls to this approach. The ambiguity of the proposal could make markets nervous, and there is a risk that over-borrowing could lead to an inflationary spiral. Truss is all-in on economic growth, but if it doesn’t deliver, it has little choice but to cut spending.
Truss began his term at Downing Street in one of the toughest weeks a prime minister could face. But she now has many benefits. She was able to seize her moment as a brooding politician this winter with a huge spending package to protect her people, even if it was a dire global event. A chance to avoid a recession and lower fuel prices. Helps keep inflation down.
These factors should see the prime minister’s approval ratings rise in the coming weeks, especially if he pulls off a successful Conservative meeting. If that doesn’t happen, the Tories begin to wonder if there is anything that can save them.
https://www.theguardian.com/politics/2022/sep/21/liz-truss-energy-package-cost-taxpayer The cost to taxpayers of Truss’ £100bn energy package has escaped scrutiny.Liz Truss