Liz Truss’s Successor Will Have to Reinforce Flagging Productivity Levels
Liz Truss’s Successor Will Have to Reinforce Flagging Productivity Levels
The humiliating resignation of British Prime Minister Liz Truss This week may have supplied a momentary pause to concerns faced by the British during months of government faltering amid worsening macroeconomic conditions, but it is hardly a panacea that dents the economy. After a disastrous performance in office that thwarted a promise to keep the Conservative Party house in order, Truss stepped down 45 days after entering Downing Street, the shortest time ever since a The British PM has served. The truce was the culmination of the government’s failure. “Mini Budget” of 23 September, in which he and his former chancellor, Kwasi Quarteng, displayed a breath-taking lack of sensitivity to market fragility and announced a £45 billion no-tax cut. The crisis resulting from that event should have come as no surprise to anyone: rising bond yields necessitated emergency intervention in the bond market by the Bank of England, undoubtedly thwarting the central bank’s efforts to control rising inflation. Is. Mr. Kwarteng. firingWhat Ms Truss did, despite supporting her in formulating her voiceless policy proposals, hardly helped, as the crisis escalated, causing the pound to depreciate against the dollar and raising mortgage rates, causing the UK The people had financial difficulties.
Britain recently lost its position as the fifth largest economy in the world to India. at a perilous moment in the global political economy, when Russia’s invasion of Ukraine As natural gas flows into Europe and the UK have been halted, causing alarming increases in domestic bills in these countries, the Conservative Party needs to ensure that a competent prime minister and cabinet is quickly installed and put to work . Public mood has turned darker at this point: recent polling shows that the Labor Party is set to return to power if a general election is held, even though such an event is unlikely until January 2025. can see the revolving door at 10 Downing Street Former Chancellor Rishi Sunak becomes third PM within a year or, ominously, Boris Johnson is said to be in the running again Despite the defeat after the partygate scandal. Whoever heads the government, the immediate task will be to restore damaged ties with Europe to restore trade links, and resolve supply-side bottlenecks, and to rework immigration policies so that flagged productivity levels. to be strengthened again. UK economy. If the Tories don’t become a party capable of the nimble, spontaneous policymaking needed to lift Britain’s economy out of this quagmire, perhaps British voters will decide to bring in their political opposition to get the job done.