The Foreign Secretary will have to spend more to help with energy bills and finance tax cuts. As borrowing becomes more expensive, this will require either spending cuts, tax rises, or both.
Sunak has failed to learn from 2020. Gone is his boldness, replaced by dull platitudes and a weak response to national emergencies like soaring energy bills and the housing crisis.
“The Treasury Finance Ministry view of the world isn’t about structural reform to increase the productive capacity of the economy.”
We see evident now in the Tory Party, my party, a strange mix of complacency, entitlement, fear and exhaustion.
Above all, to what extent will he present a clear plan and message? My starter for ten is “help hard-working people and go for more growth”.
The Government seems to have no plan to communicate as cost of living woes multiply. Here’s a first stab at one.
The Government’s approach is unlikely to bring out the best from those upon whom it depends to get things done.
The shock-absorber is a looser fiscal policy. Although the budget deficit is higher than one would like, the good news is that it is falling sharply.
But bearing the stamp of approval from the Iron Lady and her first Chancellor does not stop them from being a fundamentally bad idea.
As Bright Blue’s new report outlines, we can use tax as a tool to help reach a wide set of economic, social, and environmental goals.
They are not against rich politicians, as long as any success is earned fairly. The Chancellor’s greater vulnerability is the cost-of-living crisis.
In addition to the broad question about the Chancellor’s political judgement, I think he faces three specific problems.
His Spring Statement was a missed opportunity despite some welcome measures – and further measures may be unveiled during the months ahead.
My instinct last week was that he tried too hard to please the Tory press. Nothing’s that’s happened since has suggested otherwise.
The first of a series of five articles on ConservativeHome this week about the main challenges that await the new Prime Minister.