A Very British Coup - The Puppetmasters Reveal Themselves

 

Chancellor Hunt has just nixed Kwarteng's budget, whilst the FX and Gilt markets approve it may not be such a joyful occassion for mere humans.

Amongst others Hunt has:

-time limted the energy bailout to 6 months, 

-abandoned the reduction in income tax, 

-reintroduced the hated IR35 reforms, 

-scrapped the freeze on alcohol duties and 

-promised wide ranging spending cuts.

This of course is what the media and the markets, IMF etc have been pushing for.

Clearly Truss's days, and indeed the Tory Party's days, in office are limited (days/weeks/months....who knows?).

As such Labour and their suppoorters, not unreasonably, are champing at the bit to take power. However, they should bear this in mind, as and when they take office they will face exactly the same problems that Truss faces eg:

- global inflation

- gobal rising interest rates

- the war in Ukraine

- energy and food shortages

- hysterical media that looks to destroy whoever is in power etc.

As such, constrained by the markets and bullied by the media, the room for maneuver will be very limited. 

Like it or not UK interest rates are on an upward trajectory, and there will be spending cuts (whovere is in power). Labour will need to explain this to its supporters (who have yet to understand who really runs the country).