Article from MK leader Cllr Dick Cole, which was first published in this week’s Cornish Guardian.
The next General Election is not due for another two years, though many commentators are predicting that the recent “mini-budget” was the moment that the Conservatives lost this future contest. Not a surprising perspective, when you consider the political upheavals of the last couple of weeks.
The much-vaunted “economic competence” of the Tories has collapsed, with their “fiscal event” causing the pound to fall to its lowest-ever level against the US dollar and forcing a £65 billion intervention from the Bank of England to calm markets. There was panic in pension funds, while there have also been massive hikes in mortgage payments as a direct result of the increase in interest rates, with hundreds of (less expensive) mortgage products getting withdrawn.
Even though the Prime Minister and the Chancellor have cancelled the removal of the 45p tax-rate for high-earners, it has been well documented that the richest in society will still gain 40-times more from the other proposed tax-cuts than the less-well-off.
The Office of Budget Responsibility has yet to comment on the shift in government policy, but it is anticipated that it will detail a £60 billion shortfall in the state’s finances. It is shameful that, in the middle of a cost of living crisis, the leadership of the present government has chosen to bring forward unfunded tax-cuts that will principally benefit the wealthy.
It is also expected that this will lead to cuts in public expenditure and possibly welfare payments, which will obviously impact adversely on the less-well-off. The Prime Minister’s team is even refusing to confirm that they will increase benefits in-line with inflation as pledged by her immediate predecessor at Number 10.
And it is low-income and middle income households which will also suffer from the combined impact of the rising cost of energy, food and other essential commodities, higher mortgage payments, the real-terms reduction in benefits and cuts in public services.
Linked to this, numerous statements at last week’s Conservative Party were extremely crass and detached from the lives of ordinary people. In their keynote addresses at Birmingham, the Chancellor insensitively said that his plans had caused “a little turbulence” while the Prime Minister noted “stormy days.” Those benefitting most from the tax-cuts will be OK, but I am not so sure about everyone else.
Party Chairman Jake Berry meanwhile said that when the energy bills arrive, people “can either cut their consumption” or “get a higher salary or higher wages.” He added: “Go out there and get that new job.” What simplistic nonsense, and what an insult to everyone struggling to make ends meet in low-wage Cornwall.