Sunday 2 October 2022

Failing to read the room

In short, Truss's Government has reduced taxes for the richest in society, and is proposing in paying for that by reducing services.

To say this is not popular is somewhat of an understatement.

And yet, she blames it on poor communication as to why "the markets" took against it so.

No, the reason the markets took fright was that the plan, if that's what to call it, is all unfunded.

Being someone who audits management systems and management decisions, I can say this makes no sense whatsoever.

The OBR are going to produce a forecast by Friday this week, and present it to Truss, who will then sit on it for six weeks. I really don't think that is going to calm things down.

Labour is currently enjoying a poll lead of something between 25 and 33%, and those numbers have held in many polls in the past few days.

Not surprisingly, many Tory MPs are in something of a panic, and when it was suggested to Truss today that as this is a new policy from those carried out by Johnson, so that on one had actually voted for these, Triss was confused. But it is true, the tax-cutting plans were kept secret even during the campaign for the Tory Leadership. So not even the 80,000 or so members who did vote for her, voted for these uncosted tax cuts.

Cutting taxes for the richest 5%, while the rest of us saw energy bill almost double at midnight on Friday.

Even if bills are capped, the £65 billion spent on propping the pound up by the BoE mean interest rates will rise sharply soon, and so mortgage rates will to. So, instead of not being able to pay for heating and lighting, people will be evicted instead when they can't make either the mortgage or rent payments.

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