Great Britain low incomes, a financial crisis and a new PM to solve the problems

Governments are expected to protect the people and act on their behalf to make the best of the environment and the world around them.

To have a government, a lot of money has to be invested. Government leaders are expected to do a lot of work for the good of the country, in return for which, of course, a reasonable or fair wage may be paid. But one should not overdo it and the monthly bets should be in proportion to the work done.

A young conservative minister may take the helm of a country in chaos.

Great Britain, like the other countries around her, is facing an energy crisis and inflation, which is testing its people very hard. After Liz Truss seemed to help the country into even more trouble, eyes are now on the first young person of colour to be allowed to take the Conservative helm.

Rishi Sunak having become the youngest prime minister of Great Britain, must protect people facing a cost-of-living crisis, campaigners warned as the new Prime Minister hinted at cuts today.

In his first speech as PM, Mr Sunak vowed to place

“economic stability and confidence at the heart of this government’s agenda,”

after the financial chaos triggered by his predecessor Liz Truss.

He promised not to leave future generations

“with a debt to settle that we were too weak to pay ourselves.”

And he warned that there will be

“difficult decisions to come.”

Everyone should realise that in these times, when Europe is facing a war, certain energy companies are taking advantage of this to boost their profits, while other companies are forced to raise prices to survive.

In view of the financial problems that will affect both the population and the country as a whole, the prime minister will have to take measures here and there that will not appear very popular.

At the beginning of this month Kwasi Kwarteng was being forced to plug a £60bn hole in the public finances with steep spending cuts or a tax raid, the Institute for Fiscal Studies had warned amid a fresh surge in government borrowing costs.

The Institute for Fiscal Studies (IFS) said deep austerity measures will be needed to stabilise debt in the medium term as it forecast a £1,500 hit to households from surging interest rates. The IFS and Citi’s “Green Budget” estimates that £62bn of fiscal tightening will be needed to stabilise debt as a share of national income in 2026-27 – a huge sum that would imply the return of austerity and is equivalent to adding 9.5p to the base rate of income tax.

Paul Johnson, director of the IFS, warned at the beginning of this month, that

“spending cuts of this scale would be extraordinarily hard to achieve” as “there is not a lot of fat to cut”.

He said:

“If you are going to say you are going to balance the books with significant spending cuts, you really do, to be credible, have to be clear what those cuts are going to be. It may require something rather different about the scale and the scope of the state.”

Ms Truss could give no assurances and now that Rishi Sunak has taken over her job, the country can only hope that he will.

The PM’s message he gave in his inauguration speech implies that tax rises and spending cuts are almost certainly on the way as Mr Sunak looks to fill an estimated £40 billion black hole in public finances while trying to reassure financial markets.

Following his address, Joseph Rowntree Foundation senior policy adviser Iain Porter said:

“Families on low incomes desperately need stability and certainty, as they try to afford the essentials, pay their rent and keep food on the table.

“Rishi Sunak personally pledged to go ahead with the usual uprating of benefits in line with inflation, and Chancellor Jeremy Hunt promised last week that he would take action to protect the most vulnerable and to act with compassion.

For the British, they will now look out whether this government, cobbled together without calling a general election, will be able to provide solutions that will satisfy the majority. The new government has to make an end to the chaos Mr Johnson has created and must come to prove there still exist conservatives who are honest and who find it important to make done with liars and cheats we have seen from the period before Brexit until Partygate scandal. This new government must also show it is as serious about protecting its citizens from harm as well as about calming the markets.

In terms of medical care too, this government will have to do a lot of cleaning up. Former PM Boris Johnson had previously also claimed to want to strengthen the NHS, but did not make enough work of that.

In June the 42-year-old Shadow Chancellor of the Exchequer Rachel Reeves, who joined the Labour Party at 16, had already said it makes no sense to increase taxes on working people in the middle of a cost-of-living crisis. She warned that the public needs much more than the Conservatives’ “sticking plaster approach” to the public finances. She  stepped in for Keir Starmer to respond to Rishi Sunak’s Budget speech after the Labour leader tested positive for Covid. Trying to pick holes in an incredibly dense package of tax and spending measures that had been announced, widely considered to be one of the toughest tasks in frontline politics.
A trained economist, she is also an amateur historian, will doubtless have been aware of the parallels of Gordon Brown who similarly shot to prominence when he stood in at the last minute for John Smith, the then-Shadow Chancellor who was recuperating from a heart attack, to cross swords with Nigel Lawson.

She thinks the Labour Party spend a lot of time having arguments with each other, rather than reaching out to the country. she says

We think that we’re here to save people from the Tories, rather than trying to understand why people vote Conservative.’

She believes the recent changes to how Labour selects MPs and leaders should help.

‘Keir has done a really good job in showing that we’ve changed – if you look at some of our flagship policies on business rates, on a victim’s law and so on. Look at the Shadow Cabinet. It is totally different.’

With the PM switch, the Labour Party will also have to start proving that it can put aside all the bickering among Conservative members and get serious about truly standing up for ordinary citizens.

It is now up to Mr Sunak to also prove that conservatives really can have an eye and ear for the working man or the man of the street.

Unison general secretary Christina McAnea called on Mr Sunak to improve workers’ pay to meet this aim.

She said:

“If Rishi Sunak really wants the NHS to become stronger, it must be given the resources needed to tackle the growing workforce crisis.

“That starts with giving health employees a second pay rise to stop experienced staff from heading for the door.

Along all sides in the English medical community, we hear and see alarm signals, which the previous government did not seem to hear or perceive enough. For that government, it will be a serious matter not to delay any longer, but to act before winter sets in.

“Unless the government acts soon, a strike across the NHS looks increasingly likely this winter.”

we hear from union voices.

Labour leader Sir Keir Starmer said Mr Sunak will be a “weak” PM who will always have to put the interests of the Tory Party first.

He said the former chancellor

“will not deliver for working people.”

But if we look at the figures the party would achieve if there were elections in Britain now, the party will still have to do a lot more work and come to the people, more than the last two prime ministers did. Otherwise, like the Belgian Christian People’s Party CVP, which was once the largest political party of Flanders, until it was overtaken by the New Flemish Alliance (N-VA) in the 2010s, they will end up like the CD&V, a very small party that few still believe in.

With Sunak previously raising the overall tax burden to its highest level since just after the Second World War and repudiating George Osborne’s era of austerity with increased spending in every government department, many had suggested the Chancellor had not merely parked his tanks on Labour’s lawn but driven straight into the Opposition’s front room.

Addressing the shadow cabinet, Sir Keir said:

“Rishi Sunak stabbed Boris Johnson in the back when he thought he could get his job.

“And in the same way, he will now try and disown the Tory record of recent years and recent months and pretend that he is a new broom.

Though for the Labour leader people should not forget that Sunak

“ was also the chancellor who left Britain facing the lowest growth of any developed country, the highest inflation and millions of people worried about their bills.

After the mess left behind by the Conservatives, the new Tory leader will have to come clean.

“And now he plans to make working people pay the price for the Tories crashing the economy.”

warned Sir Keir.

Mr Sunak reappointed Mr Hunt to the role of chancellor as he assigned his own government.

James Cleverly was kept on as foreign secretary and Ben Wallace as defence secretary. Dominic Raab was handed back his former roles under Mr Johnson of deputy prime minister and justice secretary.

Suella Braverman was reappointed home secretary less than a week after she was out of Ms Truss’s government over a ministerial code breach.

And the most recent home secretary Grant Shapps was given the role of business secretary.

In her brief exit speech, Ms Truss said that the nation continues to

“battle through a storm,”

but defended her disastrous economic policies, making no apologies for her mini-budget, and said she believes

“brighter days lie ahead.”

We may hope so for the British people, who now largely realise the consequences of their wrong choice for Brexit, but are now hit even more in their moneybelt by the consequences of the war in Ukraine.

 

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Additional reading

  1. A new opportunity for regained stability in Britain
  2. Will Sunak rebuild green agenda torn up by Truss?

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Related

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About Marcus Ampe

Retired dancer, choreographer, choreologist Founder of the Dance impresario office and archive: Danscontact-Dansarchief plus the Association for Bible scholars, the Lifestyle magazines "Stepping Toes" and "From Guestwriters" and creator of the site "Messiah for all". - Gepensioneerd danser, choreograaf, choreoloog. Stichter van Danscontact-Dansarchief plus van de Vereniging voor Bijbelvorsers, de Lifestyle magazines "Stepping Toes" en "From Guestwriters" en maker van de site "Messiah for all".
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1 Response to Great Britain low incomes, a financial crisis and a new PM to solve the problems

  1. Pingback:  Societies can only progress if the people within them are brought along – Some View on the World

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