Tag: Richard Graham

  • Rishi Sunak picks his way through budget minefield

    Rishi Sunak picks his way through budget minefield

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    LONDON — “Better than the last guy” might not be quite the tagline every world leader hopes for. It could yet be Rishi Sunak’s winning formula.

    The British prime minister, swept into office late last year by wave after wave of Tory psychodrama, has cleared several major hurdles in the space of the past month. His success has even sparked a shocking rumor in Westminster that — whisper it — he might actually be quite good at his job. 

    That was the murmur among hopeful Conservative MPs ahead of this week’s U.K. budget, anyway — many of them buoyed by the PM’s recent moves on two long-running sources of angst in Westminster.

    First came an apparent resolution to the intractable problem of post-Brexit trade arrangements in Northern Ireland. Sunak’s so-called Windsor Framework deal with Brussels landed to near-universal acclaim.

    A week later, Sunak unveiled hard-hitting legislation to clamp down on illegal migration to the U.K., coupled with an expensive deal with France to increase patrols across the English Channel. Tory MPs were delighted. The Illegal Migration Bill sailed through parliament Monday night without a single vote of rebellion.

    Then came Wednesday’s annual budget announcement, with Sunak hoping to complete an improbable hat trick. 

    It started well, with Chancellor Jeremy Hunt making the big reveal that the U.K. is no longer expected to enter recession this year, as had been widely predicted.

    But a series of jaw-droppers in the budget small print show the scale of the challenge ahead. 

    The U.K.’s overall tax take remains sky-high by historic standards — an ominous bone of contention for skeptical Tory MPs and right-wing newspapers alike. Meanwhile, millions of Britons’ living standards continue to fall, thanks to high fuel bills and raging inflation. U.K. growth forecasts remain sluggish for years to come.

    “He’s chalking up some wins,” observed one former party adviser grimly, “because he’s going to need them.”

    Workmanlike’

    Among all but the bitterest of Sunak’s Tory opponents, there is a palpable sense of relief about the way he has approached his premiership so far.

    “It doesn’t mean everything will suddenly turn to gold,” said Conservative MP Richard Graham, a longtime Sunak-backer. “But like Ben Stokes and England’s cricket team, his quiet self-confidence may change what the same team believes is possible.” 

    Nicky Morgan, a Conservative peer and former Treasury minister, praised a “workmanlike” budget that would reassure voters and the party there was a “firm hand on the tiller” after the “turmoil” of the preceding year with two prime ministers stepping down, Boris Johnson and then Liz Truss.

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    UK Chancellor Jeremy Hunt meets children during a visit to Busy Bees Battersea Nursery in south London after delivering his Budget earlier in the day | Stefan Rousseau/POOL/AFP via Getty Images

    Most of Wednesday’s biggest announcements, including an extra £4 billion for childcare and a decision to lift the cap on pensions allowances, were either trailed or leaked in advance. This may have made for a predictable budget speech, but as Morgan put it: “I think that’s probably what businesses and the public need at the moment.”

    An ex-minister who did not originally support Sunak for leader said that the general tone of the budget, together with the Northern Ireland deal and small boats legislation, meant that “increasingly it’s hard for hostile voices to pin real failure on Rishi.”

    Others, however, fear key announcements could yet unravel. An expensive change to pension taxes was instantly savaged by critics as a “giveaway for the 1 percent.” Headline-grabbing back-to-work programs and an expansion of free childcare will take years to kick in.

    Hiking corporation tax was the “biggest mistake of the budget,” Truss ally and former Cabinet minister Jacob Rees-Mogg complained.

    Doing the hard yards

    Observers note that in the wake of the rolling chaos under Truss and Johnson, the bar for a successful government has been lowered.

    “[Sunak] could stand at the podium and soil himself, and he’d be doing a better job than his predecessors,” noted one business group lobbyist on Wednesday evening, having watched budget day unfold.

    But even Sunak’s fiercest critics praise his work rate and attention to detail, in sharp contrast to Johnson. Most accept — grudgingly — he has set up an effective Downing Street operation.

    Having returned from his Paris summit last Friday evening, the PM kicked off budget week with a whirlwind trip to the west coast of California to launch a defense pact with the U.S. and Australia, arranging a bank bailout along the way. He landed back in the U.K. less than 24 hours before Hunt unveiled the annual spending plan.

    “It turns out working like an absolute maniac and being forensic is quite useful,” one of his ministers said. 

    Another Tory MP added: “He’s got the brainpower and will do the hours. He’s not good at barnstorming politics or old school dividing lines — but he is good for the politics we have right now.”

    There has also been a clear effort to run a tighter ship behind the scenes at No. 10. One veteran of Johnson’s Downing Street said the atmosphere seemed “calm” in comparison.

    There are tentative signs that voters are starting to notice.

    James Johnson, who ran a recent poll by JL Partners which showed Sunak’s personal ratings are on the up, said the PM’s growing reputation as a “fixer” seems to be behind his recent rally, and that the biggest increase on his polling scorecard was on his ability to “get things done.” 

    It remains to be seen if this will shift the dial on the Tory Party’s own disastrous ratings, however, which languish some 25 points behind the opposition Labour Party. “Voters have clearly lost trust in the Tories,” Johnson said. “But if government can deliver … I would expect it to feed through.”

    Anthony Browne, a Tory MP elected in 2019, expressed hope that Sunak had begun “changing the narrative” which in turn “could restore our right to be heard.”

    Trouble ahead?

    Sunak will be well aware that plenty of recent budgets — not least Truss’ spectacular failure last September — have unraveled in the 72 hours after being announced.

    And while expanding free childcare, incentivizing business investment and ending the lifetime pensions allowance were all crowd-pleasers for his own MPs, they were not enough to conceal worrying subheadings.

    The tax take is predicted to reach a post-war high of 37.7 percent in the next five years, while disposable incomes are hit by fiscal drag pulling 3.2 million people into higher tax bands. Right-wing Tories are not impressed.

    Ranil Jayawardena, founder of the Conservative Growth Group of backbench MPs, described it in a statement as “an effective income tax rise,” which will be “a concern to many.”

    Net migration is set to rise to 245,000 a year by 2026-27, and will add more people to the labor force than all the measures intended to make it a “back to work” budget, according to the Whitehall’s fiscal watchdog, the Office for Budget Responsibility (OBR). The message is not one Conservative MPs want to hear.

    Already singled out by Labour’s Keir Starmer as a “huge giveaway to the wealthiest,” scrapping the lifetime allowance on pensions will cost £835 million a year by 2027-28 while benefiting less than 4 percent of workers. Conservative MPs reply that NHS doctors are one of the main groups to benefit. 

    Perhaps most worrying of all, the government’s own budget expects living standards to fall by 6 percent this year and next — less than the 7 percent fall predicted in November but still the largest two-year fall since records began in the 1950s.

    There are some problems that can’t be solved by pulling an all-nighter. Ironically for Sunak, whose career was made in the Treasury, his may prove to be the state of the U.K. economy. 

    Rosa Prince, Stefan Boscia and Dan Bloom contributed reporting.



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    ( With inputs from : www.politico.eu )

  • Rishi Sunak is haunted by ghosts of prime ministers past

    Rishi Sunak is haunted by ghosts of prime ministers past

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    britain politics 23013

    LONDON — “Back to her old self again” was how one erstwhile colleague described Liz Truss, who made her return to the U.K.’s front pages at the weekend. 

    That’s exactly what Rishi Sunak and his allies were afraid of. 

    Truss, who spent 49 turbulent days in No. 10 Downing Street last year, is back. After a respectful period of 13 weeks’ silence, the U.K.’s shortest-serving prime minister exploded back onto the scene with a 4,000-word essay in the Sunday Telegraph complaining that her radical economic agenda was never given a “realistic chance.”

    In her first interview since stepping down, broadcast Monday evening, she expanded on this, saying she encountered “system resistance” to her plans as PM and did not get “the level of political support required” to change prevailing attitudes.

    While the reception for Truss’s relaunch has not been exactly rapturous — with much of the grumbling coming from within her own party — it still presents a genuine headache for her successor, Sunak, who must now deal with not one but two unruly former prime ministers jostling from the sidelines. 

    Boris Johnson is also out of a job, but is never far from the headlines. Recent engagements with the U.S. media and high-profile excursions to Kyiv have ensured his strident views on the situation in Ukraine remain well-aired, even as he racks up hundreds of thousands in fees from private speaking engagements around the world.

    Wasting no time

    Truss and Johnson have, typically, both opted for swifter and more vocal returns to frontline politics than many of their forerunners in the role. 

    “Most post-war prime ministers have been relatively lucky with their predecessors,” says Tim Bale, professor of politics at Queen Mary, University of London. “They have tended to follow the lead of [interwar Conservative PM] Stanley Baldwin, who in 1937 promised: ‘Once I leave, I leave. I am not going to speak to the man on the bridge, and I am not going to spit on the deck.’”

    Such an approach has never been universal. Ted Heath, PM from 1970-74, made no secret of his disdain for his successor as Tory leader Margaret Thatcher. Thatcher in turn “behaved appallingly” — in Bale’s words — to John Major, who replaced her in Downing Street in 1990 after she was forced from office.

    But more recent Tory PMs have kept a respectful distance.

    David Cameron quit parliament entirely after losing the EU referendum in 2016, and waited three years before publishing a memoir — reportedly in order to avoid “rocking the boat” during the ongoing Brexit negotiations. 

    And while Theresa May became an occasional liberal-centrist thorn in Boris Johnson’s side, she did so only after a series of careful, low-profile contributions in the House of Commons on subjects close to her heart, such as domestic abuse and rail services in her hometown of Maidenhead.

    “You might expect to see former prime ministers be a tad more circumspect in the way they re-enter the political debate,” says Paul Harrison, former press secretary to May. “But then she [Truss] wasn’t a conventional prime minister in any sense of the word, so perhaps we shouldn’t be surprised that she’s done something very unconventional.”

    Truss’s rapid refresh has not met with rave reviews.

    Paul Goodman, editor of influential grassroots website ConservativeHome, writes that “rather than concede, move on, and focus on the future, she denies, digs in and reimagines the past,” while Tory MP Richard Graham told Times Radio that Truss’ time in office “was a period that [people] would rather not really remember too clearly.”

    One long-serving Conservative MP said “she only had herself to blame for her demise, and we are still clearing up some of the mess.” Another appraised her latest intervention simply with an exploding-head emoji.

    Trussites forever

    But despite Tory appeals for calm, the refusal of Truss and Johnson to lie low remains a serious worry for the man eventually chosen to lead the party after Truss crashed and burned and Johnson thought better of trying to stage a comeback.

    Between them, the two ex-PMs have the ability to highlight two of Sunak’s big weaknesses. 

    While Truss may never live down the disastrous “mini-budget” of last September which sent the U.K. economy off the rails, her wider policy agenda still has a hold over a number of Conservative MPs who believe they have no hope of winning the election without it. 

    This was the rationale behind the formation last month of the Conservative Growth Group, a caucus of MPs who will carry the torch for the low-tax, deregulatory approach to government favored by Truss and who continue to complain Sunak has little imagination when it comes to supply-side reforms. 

    Simon Clarke, who was a Cabinet minister under Truss, insisted “she has thought long and hard” about why her approach failed and “posed important questions” about how the U.K. models economic growth in her Telegraph piece.

    Other Conservatives have been advocating a reappraisal of the actions of the Bank of England in the period surrounding the mini-budget, arguing that Truss was unfairly blamed for a collapse in the bond market.

    But Harrison doubts whether she may be the best advocate for the causes she represents. “There’s a question about whether it actually best serves her interests in pushing back against a strong prevailing understanding of what happened so soon after leaving office.”

    Johnson, meanwhile — to his fans, at least — continues to symbolize the star quality and ballot box appeal which they fear Sunak lacks. 

    One government aide who has worked with both men said Johnson’s strength lay in his “undeniable charisma” and persuasive power, while Sunak, more prosaically, “was all about hard work.”

    These apparent deficiencies feed into a fear among Sunak’s MPs that he is governing too tentatively and, as one ally put it recently, needs to rip off the “cashmere jumper.”

    It’s been posited that British prime ministers swing back and forth between “jocks” and “nerds” — and nothing is more likely to underline Sunak’s nerdiness than a pair of recently-deposed jocks refusing to shut up. 

    Trouble ahead 

    Unluckily for Sunak, there are at least three big-ticket items coming up which will provide ample ground on which his nemeses can cause trouble. 

    One is the forthcoming budget — the government’s annual public spending plan, due March 15. Truss and Johnson are unlikely to get personally involved, but Truss loyalists will make a nuisance of themselves if Sunak’s approach is judged to offer the paucity of answers on growth they already fear.

    Before that, Truss is expected to make her first public appearance outside the U.K. with a speech on Taiwan which could turn up the heat on Sunak over his approach to relations with China. 

    One person close to her confirmed China would be “a big thing” for her, and is expected to be a theme of her future parliamentary interventions.

    Then there is the small matter of the Northern Ireland protocol, the thorniest unresolved aspect of the Brexit deal with Brussels where tortured negotiations appear to be reaching an endgame.

    Sunak has been sitting with a draft version of a technical deal since last week, according to several people with knowledge of the matter, and is now girding his loins for the unenviable task of trying to get a compromise agreement past both his own party and hardline Northern Irish unionists.

    A Whitehall official working on the protocol said Johnson “absolutely” had the power to detonate that process, and that “he should never be underestimated as an agent of chaos.”

    One option touted by onlookers is for Sunak to attempt to assemble the former prime ministers and ask them to stand behind him on a matter of such huge national and international significance. But as things stand such a get-together is difficult to picture.

    At the heart of Johnson and Truss’ actions seems to be an essential disquiet over the explosive manner of their departures.

    They appear fated to follow in Thatcher’s footsteps, as Bale puts it — “not caring how much trouble they cause Sunak, because in their view, he should never have taken over from them in the first place.”



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    ( With inputs from : www.politico.eu )