Back to Thatcher


um the mouth of the new prime minister Liz Truss played a triumphant smile as she listened to her Chancellor of the Exchequer spell out new economic and fiscal policies in the House of Commons on Friday. Kwasi Kwarteng not only announced the biggest tax cuts since the early 1970s (an estimated €60 billion), he did it with gusto.

The more indignant the calls from the opposition benches became, the more happily Kwarteng emphasized that they were "not ashamed" to stimulate growth again. For far too long one had “engaged in redistribution debates”. Now is the time to "unleash the power of the private sector" - time for a "new era".

the labor party was not enthusiastic about this return to the early phase of neoliberalism. Rachel Reeves accused Kwarteng of making the bankers better and fattening the energy companies—but presenting the bill to the workers when the debt he wants to raise has to be repaid at a time when interest rates are rising. At the same time, she sarcastically congratulated him on "recognition of twelve years of economic failure".

"It's either brilliant or stupid"

In fact, Kwarteng's budget speech resembled in parts a reckoning with the previous Tory governments, at least a comprehensive correction. the under Boris Johnson The increase in insurance premiums that he had introduced was withdrawn, as was his plan to raise corporate taxes.



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