THE TORY party’s putrefaction continued yesterday with Prime Minister Liz Truss’ sacking of her ‘great friend’, Chancellor Kwasi Kwarteng, followed by a four-minute statement from Downing Street at 2.30pm.
‘I want a country where people can get good jobs, new businesses can set up and families can afford an even better life,’ she began.
‘That’s why from day one I have been ambitious for growth. Since the 2008 financial crisis, the potential of this country has been held back by persistently weak growth.
‘I want to deliver a low tax, high wage, high growth economy. It’s what I was elected by my party to do. That mission remains.
‘People across this country rightly want stability. That’s why we acted to support businesses and households with their energy costs this winter.
‘But it is clear that parts of our mini-budget went further and faster than markets were expecting. So the way we are delivering our mission right now has to change.
‘We need to act now to reassure the markets of our fiscal discipline.
‘I have therefore decided to keep the increase in corporation tax that was planned by the previous government.’
This is a spectacular U-turn and a nod to her rival Rishi Sunak, whose policy it was, and which she had denounced.
‘This will raise £18bn per year,’ she continued.
‘It will act as a downpayment on our full medium term fiscal plan which will be accompanied by a full-term forecast from the independent OBR.
‘We will do whatever is necessary to ensure that debt is falling as a share of the economy in the medium term.
‘We will control the size of the state to ensure that taxpayers’ money is always well spent. Our public sector will become more efficient to deliver world-class services for the British people.
‘And spending will grow less rapidly than previously planned.
‘I met the former chancellor earlier today. I was incredibly sorry to lose him. He is a great friend and he shares my vision to set this great country on the path to growth.
‘Today, I have asked Jeremy Hunt to become the new Chancellor. He is one of the most experienced and widely respected of ministers and parliamentarians and he shares my ambitions and convictions for our country.’
She concluded: ‘I want to be honest. This is a difficult moment but we will get through this storm and we will deliver the strong and sustained growth that can transform the prosperity of our country for generations to come.’
Shadow secretary of State for Work and Pensions, Jon Ashworth, responded to her speech saying ‘This is a government in meltdown.
‘People are facing a rise in mortgages because of Liz Truss.’
