Liz Truss and Kwasi Kwarteng are the kind of politicians who chase headlines.
And in the process they have driven the value of the pound off a cliff. They thought they could quickly win over Tory backbench MPs and the right-wing London press by slashing taxes for the richest in society.
It didn’t matter that their fantasy economic strategy was based solely on the UK Government’s ability to borrow billions of pounds to pay for it. The financial markets took one glance at Kwarteng’s plans and simply recoiled in horror.
At a stroke, the cost of borrowing has skyrocketed – right at the moment the Chancellor was looking for more cash. The markets – like most people – simply don’t trust this Conservative Government when it comes to the economy.
Nicola Sturgeon was right when she angrily denounced the Tory tax cuts for the richest yesterday. The First Minister has given her strongest indication yet that her government will not follow Kwarteng’s lead.
That would mean top-rate taxpayers in Scotland would shell out more than their neighbours in England. It’s not an ideal situation. But given the current state of the economy, it’s the only realistic option.
Public services need to be paid for. Ken Clarke, a former Conservative chancellor, has dismissed the idea that tax cuts lead to economic growth as nonsense.
He correctly pointed out that if it was true, then every government would do it. Truss and Kwarteng are showing that they are out of their depth.
We need a general election before they cause even more damage.
Build ships here
Building ships for the Royal Navy is not just a tradition, it is an essential strategic mission for shipyards around the British coast.
The record of yards like Govan and Roysth in building and delivering sophisticated warships, like the two aircraft carriers, is tribute to the skills of the workforce. Labour’s commitment to make sure that the three fleet support ships to resupply the warships are also built in British yards is a welcome promise from a government in waiting.
Shamefully, the Tories had put these vessels out to international tender without a thought for the drumbeat of work that keeps shipyards in this country going between warship orders. A £1.5billion contract for defence vessels should never go beyond UK shores.
That is common sense for job creation and national security.
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