I’m not sure how much I ever bought the old adage that 90 per cent of success is about showing up. But when you are the prime minister, you have sacked your chancellor of 38 days and his replacement has just gone on television to repudiate your mini-budget and entire governing philosophy, showing up to answer an Urgent Question in the House of Commons seems like rather a big deal.
Alas, Leader of the House Penny Mordaunt – who came within eight votes of pipping Liz Truss to the membership stage of the Conservative Party leadership election – responded for the government.
It is of course not unheard of for prime ministers or secretaries of state to send their deputies to answer questions in the House of Commons. But this might have been one for the boss to do, if for no other reason than to deny the floor to Mordaunt, who rhetorically did a pretty decent impression of Boris Johnson in attacking Keir Starmer on lockdown, Brexit and Jeremy Corbyn.
Rewinding for a moment, the day began with a bang. By tradition, the
Commons does not sit before 2.30pm on a Monday, as MPs saunter back to London from their constituencies. But Jeremy Hunt felt he could not wait that long to reassure the markets. It is useful to remember at points that this is not standard practice for a G7 country.
What the chancellor said went further than many expected. He confirmed not only the corporation and higher rate income tax U-turns, but ditched the cut to the basic rate and announced that the energy price support package would be reviewed before next April. Expect a replacement that is more targeted or less generous. Or both. (Read this for what the review means for household bills.)
Hunt also reiterated that spending cuts efficiencies would have to be found. For more on that, you should check out this report published today by the Institute for Government. TL;DR – there is no fat left to cut, and after more than a decade of austerity, Brexit uncertainty and a pandemic, public services are in far worse shape than they were in 2010.
Taking a step back, the strangest part of the mini-budget must be that, energy support aside, no one asked for it and more to the point, no one got what they wanted. The financial markets who buy gilts wanted a safe asset – instead, they got something risky. Conservative MPs wanted popular policies – instead, they were asked to vote for tax cuts for the wealthiest. And the public wanted something that would make them better off – instead, they got higher mortgage repayments.
Truss loyalists continue to blame the global economic situation. And interest rates are rising around the world. But this does not explain why the bond market gyrates wildly in Britain every time the chancellor makes a statement.
The political and economic fallout has converged. While the tax cuts have been largely junked, those higher borrowing costs will stay with us for longer. And that is difficult to spin, whoever leads the Conservative Party.
In the comment pages, at last some good news – Rob Rinder is in heaven listening to the ‘lost’ Desert Island Discs recordings. Chief Theatre Critic Nick Curtis says London theatre is officially back as looks forward to the ES Theatre Awards. While Business Editor Jonathan Prynn says Jeremy Hunt has buried the era of Johnsonian boosterism.
And finally, bookmark this one. Eating simply is no sin, but settling for mediocre food absolutely is. Clare Finney on London’s best restaurants for fussy eaters.
