Why Kwarteng’s next fiscal event will have to be brought forward
Spectator (UK)Dec 23, 2022
The Facts
During a news conference on Friday after the sacking of chancellor Kwasi Kwarteng, UK PM Liz Truss reversed plans to scrap a rise in corporation tax from 19% to 25% in a bid to "reassure the markets."
In her speech, Truss stated that she would not resign, saying, "I am absolutely determined to see through what I have promised," and reaffirmed that a "low tax, high wage, high growth economy" was a goal that "remains."
The Spin
Left narrative
Truss was never going to make a good PM, and it's now too late for her to be just an ordinarily bad one. Her lackluster speech saw her avoid responsibility and refuse to apologize, likely losing what little support she had left. It's clear that time's up for the self-serving Conservative party, which has demolished its credibility completely.
Right narrative
The antigrowth coalition has wrongly, albeit successfully, pointed its finger at the government for the current — and worldwide — economic turmoil, and Truss has foolishly submitted to its pressure. Rather than sticking with the government's original agenda, the embattled PM has embarrassingly backpedaled — a futile and dangerous move that won't see a recovering economy. U-turns on tax cuts aren't the answer.
