The Guardian view on a Tory U-turn: the problem goes beyond tax
The public has lost faith with the Conservatives as a governing party that can deal with the cost of living crisis. That is why the Tories are in freefall in the opinion polls. Kwasi Kwarteng’s humiliating U-turn over plans to scrap the additional rate of income tax, which is 45% on pay over £150,000, will do little to restore confidence in Liz Truss’s team. The move will only sour the public mood and deepen doubts that the Tories can manage the economy – and steady wobbling household finances.
Mr Kwarteng’s speech to the Tory party conference had two audiences: the first was in the hall; the second was watching on television. In talking about “sound money” he conceded that his gung ho mini-budget was anything but sound. Blaming EU laws for holding the country back might receive a cheer from seated activists, but it will be met with yawns from the electorate. However, it was Mr Kwarteng’s blithe dismissal of the row generated by the 45% tax plan as “a little turbulence” that revealed how out of touch he is with the national mood. The jibe was nothing less than an affront to the millions of people already facing spiralling mortgage costs and rising rents.
The traditional wisdom is that an incoming government with an ambitious programme had better get the bulk of it through quickly as its popular mandate rapidly disappears. Ms Truss’s problem is that she has no wider mandate. No one can underestimate the ability of the government to blow itself up. Mr Kwarteng is a liability who ought to be dumped for the country’s sake. But Ms Truss has tied her fortunes, for the moment, to her chancellor’s. A more ruthless prime minister would have cut Mr Kwarteng adrift last week. The longer the pair remain lashed together, the longer the
Read more on theguardian.com
