Liz Truss is Britains new Prime Minister, The election of a new leader in place of Boris Johnson in the internal election of the Conservative Party was overwhelming.
The formal transfer of power from Boris Johnson to the truss will take place this Tuesday in the presence of Queen Elizabeth II, In his first message after the campaign, Truss reaffirms that reduction in taxes will be their priority to boost the national economy, but made it clear that they would take the necessary measures to help with energy prices that doubled in early October. We believe in freedom, low taxes, and personal responsibility to deal with life. I campaigned as a conservative. And Ill rule as a conservative. Im going to tackle the energy crisis, on both bills. which households receive and in long-term problems of energy supply, Truss said.
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The truce plan in a week should go into detail for the issue that keeps the British awake: the tariffs that await them in the weeks before the harsh British winter. According to The Times and Daily Telegraph, Truss is analyzing the possibility of a price freeze, a proposal made weeks ago by Labor and rejected by conservatives at the time and until this weekend. Social pressure and new price increases this morning in the United Kingdom and the European Union following the Russian announcement to close the Nord Stream 1 gas pipeline are forcing a change in direction in mono-thematic proposals for a truce. Taxes for corporations and the wealthy) as a solution to all socio-economic problems.
In an interview published this morning by the Financial Times, The truces almost certain finance minister, ultra-neoliberal Quasi Quarteng, indicated that he understood the need to take decisive action on electricity and gas bills. And they will do so by adopting responsible fiscal policies (British public debt has risen from 60 to 90% of GDP since the pandemic). There is speculation at the moment that they will seek a moratorium on rates for the most neglected sectors, without knowing what will happen to the middle class and small and medium-sized companies that have been sunk by the rise in prices.
The social environment doesnt make much difference. In recent months, workers in transport, mail, waste pickers, telecom, Amazon and call centers have gone on strike. In the coming weeks, nurses from the National Health Service and the education sector will vote to decide whether to join this wave of strikes.
And its not just about energy rates. Inflation exceeded 10% and according to analysts, will reach 18% next year. Wage arrears and freezing in some sectors of the conservative government of the past 12 years has slashed purchasing power to its lowest level in decades. The unified term that has been used for the current situation is the cost of living crisis. But in the context of industry, for example, pay cuts have been made. I feel like the Conservatives dont know whats going on, Sharon Graham, general secretary of one of Unites most powerful British unions, told The Guardian. A sign of the times, during a solidarity visit with Felixstow Dock Strikers Statements were made.
Trusss economic program and the promises he made (tax cuts of 27 billion, increased defense and health budgets, fiscal balances, etc.) concern the Tories themselves. David Davis, a former minister in Theresa Mays government, told the Financial Times that conservative principles are at stake. Liz Truss has to think carefully about what shes going to do. The worst outcome of your economic program could be that tax cuts become a dirty word by applying them at the wrong time, Davis said.
Paul Johnson, director of the Institute for Independent Financial Studies, went ahead. What he proposes may not only force us to increase credit in a significant way in the short run, but it will further add to inflationary pressures. He is right that the economic growth of the last 15 years has been disastrous. But taxes Cutting in is not a growth strategy, Johnson said.
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