There has been no better demonstration of chaos within the British Government than that displayed recently. On 20th October, Liz Truss resigned as Prime Minister after merely 45 days in office, leaving a legacy of poorly planned economic policy and repeated U-turns.
I dare venture further: her failing policies are not only due to incompetence but also the failing ideology of right-wing thought.
Truss’ election to party leader was a last-minute affair. Rishi Sunak was favoured to be the next party leader after the departure of Boris Johnson, and that sentiment prevailed until videos surfaced of him promising to take money from “deprived urban areas” to richer areas in the country.
Meanwhile, Truss’ campaign promoted messages of a "low-tax, high-wage" economy. Exactly how this would be achieved, no one knows. Other parts of her campaign promoted the reduction of multiple regulations including a mandate on the building of new homes and reviewing the ban on fracking.
I dare venture further: her failing policies are not only due to incompetence but also the failing ideology of right-wing thought.
The most disastrous highlight of her premiership was the infamous ‘mini-budget’, championed by Chancellor Kwasi Kwarteng and herself. The budget set out a series of disastrous policies intended to reduce taxes on the rich, bringing extra wealth down through the economy. The tax cuts amounted to roughly £45Bn, which would have been unfunded.
The budget sent financial markets into a frenzy, crashing the Pound and forcing an unprecedented bond buyback programme by the Bank of England. Despite intensive U-turns on the policies set out, the damage remains done.
Truss’ economic policies cannot be discussed without mentioning the Institute of Economic Affairs. The IEA is a right-wing think tank based in London. They promote “free market” ideas and aim to find solutions to economic problems through “low tax” and “low regulation”. It is worth noting that they do not reveal their donors. Truss was well regarded by the institute, with the ‘mini-budget’ implementing similar economic thought to the British economy.
As has been seen in recent weeks, these policies failed. They had no positive effect on markets and failed at stimulating economic growth.
This mode of economic thinking should not continue. The country now faces an unprecedented crisis in the cost of living crisis. Undoubtedly, the prices of goods will increase whilst wages stay stagnant. Support systems must be in place to help the least financially able and ensure the country survives the crisis.
Free market and deregulated thinking do not allow for this. It removes money from essential services in favour of tax cuts and ‘trickle-down’ economics.
Truss, nor her predecessors, have had much regard for the British People. Their economic ideas have repeatedly failed and left the country broken. With four months without a functioning government, another Tory leader will undoubtedly continue policies of austerity and struggle to unite an incredibly divided party. It is time for the British People to choose.
