CHANCELLOR Hunt, and Prime Minister Sunak are set to dump the whole historic crisis of out-of-date and senile British capitalism onto the backs of the working class.
Treasury officials have told the BBC that the PM and his ‘Iron’ chancellor are facing ‘sobering’ decisions on huge spending cuts and tax rises, and are locked in discussions with the international bankers that have the power to destroy the UK government; as they did the late and unlamented government for a few weeks of Liz Truss, the darling of the Daily Telegraph and the right wing when they brought her government to its knees in a few days.
In a meeting on Thursday, Treasury officials told the PM that economic growth is forecast to be considerably lower than the last independent forecast – meaning that they intend to cast the working class and the middle class into a ‘black hole’ of slashed wages and pensions and ever rising prices, using the war in Ukraine as a tool.
A part of the master plan to save British capitalism is to be announced on November 17th!
The Treasury would not put a figure on how much the chancellor and prime minister will need to find in the budget next month, but the BBC has been told it may begin with the figure of £50bn.
Multiple sources said the amount of money the government needed to raise through spending cuts and tax rises was also more than just this current ‘hole’ in its finances.
This, they said, was because the government needed some ‘headroom’ beyond just getting their existing debt down, in case the economy does not grow as much as expected, and in fact nosedives.
The crux is that the savage spending cuts and tax rises in this budget will further shatter any near future economic growth.
While government borrowing costs have fallen somewhat in recent days, officials warned Hunt and Sunak that borrowing costs will grow as global interest rates also rise, pointing out that the interest rate – or yield – on 10-year UK government debt is just over 10 basis points higher than before the mini-budget.
The PM and chancellor have already agreed that to ensure the package is credible to financial markets, there must also be a buffer – which means a much bigger ‘repair job’ than was previously expected.
A Treasury source said: ‘Markets have calmed somewhat, but the picture is still bleak. Britain is facing an economic crisis with a massive fiscal black hole to fill. People should not underestimate the scale of this challenge, or how tough the decisions will have to be. We’ve seen what happens when governments ignore this reality.’
Last month, sterling fell to a record low against the dollar as government borrowing costs rose in the aftermath of then-Chancellor Kwasi Kwarteng’s mini-budget. The financial markets plunged into turmoil when Kwarteng announced major tax cuts without detailing how they would be paid for.
But the cost of government borrowing has since fallen back to the level it was at before the mini-budget. The pound also rallied after Sunak became prime minister, and as the dollar fell.
In Sunak’s first speech as prime minister on Tuesday, he said he would ‘fix’ the mistakes made during his predecessor’s time in office.
The PM said he would place ‘economic stability and confidence at the heart’ of his government’s agenda, and promised to show compassion while making ‘difficult decisions’, in the way that a vet puts down his favourite dog.
The truth of the matter is that the world-wide capitalist crisis is deepening as the imperialist powers pour billions into Ukraine to try and weaken Russia – a tactic that has already caused worldwide inflation and seen, all of a sudden, millions of workers in the EU, the UK and the USA going hungry and fearing the cold, and the future their children face.
In fact the government is rushing through legislation to allow it to ban and jail and fine rail strikers. Such legislation will be modified to include all strikes and strikers, as the only way to make a profit.
The truth is that capitalism is reaching the end of the road and needs to be removed from the face of the earth by socialist revolutions of the working class!
