Barely a month after taking office in the United Kingdom, Prime Minister Liz Truss is in trouble. A disastrous budget announcement has left the economy in shambles, with members of his Conservative Party expressing dissatisfaction and the government’s approval ratings plummeting. The truss may have led to the smallest premiership in post-war British history. Mint breaks down Britain’s political crisis:
what happened?
Truss took office after defeating Rishi Sunak in a long and bitter fight for the leadership of the Conservative Party. Commentators remarked that Truss’s victory margin, while considerable, was less than that of the previous leaders. The crisis began when the finance minister and Truss’s close aide Kwasi Kvarteng unveiled his long-awaited mini-budget. It promised big tax cuts, as well as proposed spending billions to support families who have shot up energy bills because of the war in Ukraine. The plan was almost universally banned by experts for being financially unfeasible, and a market crisis began to unfold. Investors dumped British government bonds, the pound fell and the Bank of England had to step in to stabilize the situation. The truce had to issue a humiliating reversal of government policy.
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What have been the results?
It has been a disaster for Truss. His approval ratings have dropped drastically and most polls indicate that the opposition Labor Party will win a landslide victory in the general elections set for 2024. Even among his own party, which prides itself on its stable management of the economy, major questions remain around his political ability to continue as leader.
The precarious position of the truce was made clear during the recently concluded Conservative Party convention. The response to his speech was lukewarm. Senior members of the government, including those in the cabinet, believe that after 12 years in office, there is little spirit left for a protracted fight in the Conservative Party.
what will happen now?
The Conservative Party has some good options. It may contend with the truce despite serious doubts in the party about her ability to lead. With the next elections slated for 2024, some are hopeful that she may be able to turn things around. These supporters seem to be in the minority among the Members of Parliament.
Another option is to remove the truss from the lead. While this may appeal to some members of the party, it is likely to raise concerns among the British public that the ruling Conservative Party has lost its way. Notably, former Prime Minister Boris Johnson and former Chancellor of the Exchequer Rishi Sunak stayed away from the disastrous Conservative Party convention of the truce.
What can a truss do to protect itself?
Truss has tried to reassure his party and the country. They claim that easy access to housing, childcare and fast broadband remain major concerns for them. He has also promised lower taxes and adherence to his party’s long-standing belief in a small state.
She also hopes that her energy price range will prove popular among households. If the coming winter proves to be cold and inflation remains high, the truce will face a more popular backlash.
She is also looking at a free trade agreement with India, which is due to be signed this month, to restore her bad reputation as an able economic manager.
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