Tag: Liz Truss

  • Sunak to face first prime minister’s questions in British parliament

    Sunak to face first prime minister’s questions in British parliament

    Rishi Sunak will face his first Commons appearance in London as prime minister on Wednesday, as he begins the gruelling task of uniting his party and restoring Britain’s economic credibility.

    The new prime minister will square off against Sir Keir Starmer later, fresh from appointing a new Cabinet that he hopes will bring a measure of political stability to the country.

    It comes after another momentous day in British politics that saw Mr Sunak cull nearly a dozen of Ms Truss’s top-tier ministers, such as Jacob Rees-Mogg, while reviving the careers of a host of big names, including Suella Braverman, Dominic Raab and Michael Gove.

    Prime Minister’s Questions on Wednesday will be the first test of how unified the party is behind its new leader, after Mr Sunak used his first public address on Tuesday to brace the country for “difficult decisions” as he criticised much of the legacy left behind by Liz Truss’s brief tenure.

    “Some mistakes were made. Not born of ill will or bad intentions quite the opposite in fact. But mistakes nonetheless,’’ he said.

    “I have been elected as leader of my party and your Prime Minister in part to fix them and that work begins immediately.’’

    Volodymyr Zelensky and Joe Biden were among the first world leaders Mr Sunak spoke to on Tuesday evening, as he told the Ukrainian president that the UK’s support for the war-torn country would be as “strong as ever under his premiership’’.

    He also made time to speak with Scottish First Minister Nicola Sturgeon and Welsh First Minister Mark Drakeford in a stark contrast with Truss.

    It is expected that the first meeting of Mr Sunak’s new-look Cabinet could come as soon as Wednesday morning, in what would amount to a gathering of Sunak allies, former Truss backers and figures too from the right-wing of the party.

  • BREAKING: Rishi Sunak becomes UK’s new Prime Minister

    BREAKING: Rishi Sunak becomes UK’s new Prime Minister

    Rishi Sunak has been elected as the new leader of the Conservative Party and will now be named the UK prime minister.

    Sunak was announced as the new leader of the UK in a tweet on the Conservatives Twitter handle on Monday.

    He will become the UK’s first British Asian PM and at 42, the youngest in more than a century.

    Details to follow…

  • Lessons from the Liz Truss Event – By Dakuku Peterside

    Lessons from the Liz Truss Event – By Dakuku Peterside

    “All politics is local” is a popular refrain. However, we cannot deny the interconnected nature of politics. The game of politics is governed by some common unwritten rules which reign supreme in most societies, no matter the form of democracy they practice. Like a mathematical equation, there are a few constants in politics – the political sovereignty of the people, which, whenever subverted there will always be consequences; the interest of the elite ; incompetence in public life has a price; the economy and welfare of the people are crucial to stability. All these factors played critical roles in the fall of the shortest prime ministership of one of the world’s most mature democracies. In the downfall of Liz Truss, are there any lessons for a developing democracy such as Nigeria that practices a presidential system of government as distinct from a parliamentary system with its unique nature and peculiar party processes? Here are five lessons and how each of them affects Nigerian political leaders.

    First, confidence in the government is a no-brainer. Through a popular franchise, the people repose great confidence in their leaders to govern them using the state’s commonwealth. This confidence has a quotient level that is acceptable in all democracies – and immediately it goes below a particular psychological level of acceptance by the people – it elicits a total call for either an immediate change of government using democratic means available or voting out of the government in the next election.
    Liz Truss lost the confidence of the people. This is evident in her prime ministership having the worst opinion poll rating of any recent UK prime minister. Also, she lost the confidence of her colleagues in the cabinet, parliament, and party to the extent that she had no option but to resign from office. Her resignation is an indication of the power of the people in a democracy. The people give and take power anytime they lose confidence in their government. In Liz Truss’s case,
    parliamentary system allows for fast response unlike the presidential where leadership change is more tedious.

    In the Nigerian context, loss of confidence as a political paradigm may not have quick implications as it did in the UK due to our system of government, but we may still need to consider it thoroughly. Although the typical Nigerian leader cares less about winning and keeping citizens’ confidence beyond election seasons, such insensitivity is costly in most cases. For instance, the insensitivity of Goodluck Jonathan’s administration to the mass abduction of Chibok girls contributed to the loss of confidence of the people in that government which eventually led to its downfall. Therefore, losing faith and trust in their government inevitably leads to a loss of political power.

    Second, worldwide, the litmus test for a government’s popularity and acceptance by the people is the state of the economy. The state of the economy affects voters’ choices and citizens reactions to leaders. Whenever economic decisions go badly, politics react. The cost-of- living crises in the UK occasioned by rising Inflation and uncontrollable rising energy costs put the Brits on edge, and they want a government that will tackle these problems immediately. Unfortunately, Liz Truss’s economic policies could not inspire the confidence of the people and the market that she and her cabinet were in the right direction to solving the problem.

    It is significant to note that the pressure came on her even when she had not implemented the policy in the first instance. The general perception is that the tax cut for the rich, social welfare cut, interest rates increase, and other typical conservative economic policies will not work and should not even be tested. The collapse of Liz Truss’s economic policies at birth signalled the lame-duck nature of her government. The desperate reaction of the market saw the pound tumble to its lowest level against the USD in over four decades and the near collapse of the London stock market. This spook reaction by the market indicates a lack of confidence in the government and it is interesting that it directly correlates with the collapse of the government, pointing to a more significant link between the market and politics in recent times.

    Similarly, though there is low level of economic enlightenment in Nigeria but economic hardship prevalent today has heightened citizens’ political awareness and may affect the choice of Nigerian
    voters in 2023. Unemployment, high-interest rate, Inflation – If not checked, Nigerians will react soon. 10% Inflation was what sent Truss packing, whereas we are dealing with 20%. The pervading sense of hopelessness and economic quagmire has created an anti-establishment and anti- orthodoxy movement in the political space .

    Third, there is a limit to citizens’ tolerance of leaders’ excuses and incompetence. The Truss team were deemed incompetent. And when they made bad decisions, people did not trust them to continue handling the country’s governance. It is obvious that she did not cause the problems she inherited, and many externalities are shaping the rise of economic issues in the UK chief among them are post covid 19 economic downturn, the Russian/Ukraine conflict in Europe, and the high cost of energy that elicited high Inflation both in the UK and all over the world.

    However, although aware of these external influences, UK citizens refuse to accept any excuse from Liz Truss for not handling the crisis well. Any future Conservative Prime Ministers will have their job cut out to stem the tide of economic woes and win the people’s confidence. The UK people are okay with changing prime ministers, like tenancy of Airbnb, until they get a Prime Minister that is fit for purpose.
    Conversely, Nigerians’ tolerance level to excuses is higher than that of the Brits. However, it has limits too, and the general election in 2023 is an opportunity to test that limit. Most Nigerians are tired of excuses and blame from one quarter to another, in tackling insecurity, mismanagement, Inflation, corruption among other issues . It is disheartening to note that floods happened in several places in Nigeria, and we lost 600 persons, 1.5m persons were displaced, and 2.5m people need humanitarian assistance. There has yet to be a definitive action from the government. But Joe Biden, in the case of Hurricane Ian, Florida, visited the location with the wife , reassured Americans , mobilized the military for emergency rescue services , announced federal aid, literarily relocated the government seat to Florida, and declared a state of emergency. Barometer of compassion which government shows in Nigeria is low.

    Fourth, the winner takes all mentality in politics is counterproductive. Liz Truss appointed her cabinet from her close allies and inner circle, and this phenomenon limited the pool of competent persons she could choose. In governance, inclusiveness is sine quo non especially as a tool to manage diversity . The quality of governance is a function of the quality of people in government. There is a need to always go for competence, even if the competent person is not a close associate or party member. This cost Liz Truss her premiership.

    In Nigeria, we have institutionalised mediocrity for reasons of party loyalty and other sentiments . PDP (1999-2015) and APC (2015- date) chose mostly party members, some with no capacity to envision or execute credible policies. A good mix of party men, competent persons from other parties and nonaligned capable persons is needed to stir Nigeria out of the doldrums. After the 2023 general elections, Nigerians expect the leaders to assemble the best hands to manage the economy. People want results that will impact their lives positively, and only an assemblage of the most competent hands can deliver results.

    Fifth, Liz Truss’s loss of power demonstrates the importance people place on leaders articulating clear, realistic, and workable policies that inspires confidence and belief in the government’s capacity to deliver. Any bogus policies that will not solve the myriad of issues faced by the people are quickly noticed, analysed, and criticised by the media, the people, the market, and other stakeholders. In Liz Truss’s case, the system did not even allow her to implement her policies because the system did not have faith in her policies.

    In Nigeria today, we have a bourgeoning intelligent populace and a virile media that critically analyse policies and government projects. Social media have democratised political debates and consciousness, especially among the youth, with a concomitant increase in political participation not seen in a generation. Therefore, leaders, should come up with policies that are sustainable and possibly do a dry run of scenarios before activating such policies . Truss got it wrong and paid for it .
    The era of religious, ethnic, and primordial sentiments influencing voting is fast fading . Just as in Liz Truss Britain, let the competition of ideas in the common public sphere be the bases of voting choice. Let us have the best ideas and people who put them out in the 2023 elections.

    Overall , Nigeria politicians and leaders owe Nigerians clarity of vision and policy , probity and accountability if they do not want to suffer Liz Truss’s fate. They should articulate sustainable and fit-for-purpose policies to develop Nigeria without overpromising whilst bearing in mind the economic realities and the state of national finance when making promises. They should clearly understand our local and national problems and convince the voters how they will solve them. This is the time for Issue-based politics and not trash. Nigerians, like the Brits, are prepared to give the fate of Liz Truss to any leader or politician that wants to sell us “Trussonomics” in 2023.

  • Boris Johnson, Rishi Sunak lead race to be UK’s next prime minister

    Boris Johnson, Rishi Sunak lead race to be UK’s next prime minister

    Boris Johnson and Rishi Sunak on Friday were leading the potential contenders to replace British Prime Minister Liz Truss with candidates canvassing support to become Conservative Party leader in a fast-tracked contest.

    After Truss quit on Thursday, ending her six weeks in power, those who want to replace her were trying to find the 100 votes from Conservative lawmakers needed to run in a contest that the party hoped would reset its ailing fortunes.

    With the Conservatives all but facing a wipeout in the next national election, according to opinion polls, the race is on to become the fifth British premiere in six years.

    The winner would be announced on either Monday or Friday next week.

    In what would be an extraordinary comeback, Johnson, who was ousted by lawmakers just over three months ago, was running high up the ranks alongside Sunak to be crowned the next prime minister.

    “I think he’s got that proven track record to turn around things. He can turn it around again. And I’m sure my colleagues hear that message loud and clear,” Conservative lawmaker Paul Bristow said of Johnson on LBC radio.

    “Boris Johnson can win the next general election,” he said.

    Johnson, who left office comparing himself to a Roman dictator brought into power twice to fend off crises, might face difficulty in reaching the 100 votes after his three-year tenure was blighted by scandals and allegations of misconduct.

    One of his former advisers, who no longer spoke  to Johnson and requested not to be identified, said he was unlikely to reach the target, haven alienated dozens of Conservatives during his scandal-ridden tenure.

    The Financial Times newspaper, which called for a new election, said a Boris comeback would be “farcical”.

    Will Walden, who also previously worked for Johnson, said the former prime minister was returning from holiday and was taking soundings.

    “The country needs a grown-up, serious leader. Boris had his chance, let’s move on. I suspect that is not what the Tory party will do, they may well re-elect him,” he told the BBC.

    Business minister Jacob Rees-Mogg said he was backing Boris, tweeting his support with the hashtag ‘#Borisorbust’.

    The contest began on Thursday, hours after Truss stood in front of her Downing Street office to say she could not go on.

    Sunak, the former Goldman Sachs analyst who became finance minister just as the COVID-19 pandemic arrived in Europe and was runner-up to Truss in the previous leadership contest this summer, was a favourite with bookmakers, followed by Johnson.

    Running in third was Penny Mordaunt, a former defence minister popular with party members. None had formally declared their candidacy.

  • UK Labour Party calls for general election after Truss’ resignation ‘to avoid chaos’

    UK Labour Party calls for general election after Truss’ resignation ‘to avoid chaos’

    The leader of the UK Labour party, Keir Starmer, on Thursday, called for a general election after outgoing UK Prime Minister Liz Truss announced her resignation amid an economic crisis caused by what he described as the “chaos” of the Conservative Party.

    “This cannot continue. Britain deserves better. Britain cannot afford the chaos of the Conservatives anymore.

    “We need a general election now,” Starmer told the lower house of the UK parliament as broadcast by Sky News.

    The official added that the crisis at Downing Street caused economic instability throughout the country which forced its people to overpay for bills, rent, and mortgage.

    Earlier in October, Truss promised to reduce public debt amid a flurry of criticism over the government’s new plan to support the economy, which included large-scale tax cuts.

    After the plan’s announcement, the yield on five-year UK government bonds rose to its highest level since 2008, at 4.6 per cent, which meant a decrease in demand for debt securities.

    Consequently, sterling fell to an all-time low of $1.054 per pound.

    In late September, a YouGov poll showed that the Conservatives’ rating dropped to 21 per cent, while the support of the Labour Party reached 33 per cent, the highest figure since the late 1990s.

    The next general election in the UK is scheduled to be held no later than January 2025.

  • [Watch] New UK Prime Minister, Liz Truss resigns

    [Watch] New UK Prime Minister, Liz Truss resigns

    Liz Truss has resigned as UK prime minister drawing to a dramatic close 44 days in office.

    She said in a statement outside Downing Street., “We set out a vision for a low-tax, high-growth economy that would take advantage of Brexit.”

    “I recognize though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party. I have therefore spoken to His Majesty the King to announce that I am resigning as leader of the Conservative Party.”.

    See Video below:

     

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    A post shared by Media/News Company (@thenewsgurung)


    Details to follow….

  • As UK’s Truss fights for her job, new finance minister warns of tough decisions

    As UK’s Truss fights for her job, new finance minister warns of tough decisions

    Britain’s new finance minister Jeremy Hunt said on Saturday that some taxes would go up and tough spending decisions were needed.

    His remark signals further reversals from Prime Minister Liz Truss as she battles to keep her job just over a month into her term.

    In an attempt to appease financial markets that have been in turmoil for three weeks, Truss fired Kwasi Kwarteng as her chancellor of the exchequer on Friday and scrapped parts of their controversial economic package.

    With opinion poll ratings dire for both the ruling Conservative Party and the prime minister personally, and many of her own lawmakers asking, not if, but how Truss should be removed, she has turned to Hunt to help salvage her premiership less than 40 days after taking office.

    “We will have some very difficult decisions ahead,” Hunt said as he toured TV and radio studios to give a blunt assessment of the situation the country faced, saying Truss and Kwarteng had made mistakes.

    “The thing that people want, the markets want, the country needs now, is stability. No chancellor can control the markets,” Hunt said.

    “But what I can do is show that we can pay for our tax and spending plans and that is going to need some very difficult decisions on both spending and tax,” he added.

    Truss won the leadership contest to replace Boris Johnson on a platform of big tax cuts to stimulate growth, which Kwarteng duly announced last month.

    “But the absence of any details of how the cuts would be funded sent the markets into meltdown.

    She has now ditched plans to cut tax for high earners, and said a levy on business would increase, abandoning her proposal to keep it at current levels. But it is not clear if that has gone far enough to satisfy investors.

    Hunt is due to announce the government’s medium-term budget plans on Oct. 31, in what will be a key test of its ability to show it can restore its economic policy credibility. He said further changes to Truss’s plans were possible.

    “Giving certainty over public finances, how we’re going to pay for every penny that we get through the tax and spending decisions we make, those are very, very important ways that I can give certainty and help create the stability,” he said.

    He cautioned spending would not rise by as much as people would like and all government departments were going to have to find more efficiencies than they were planning.

    “Some taxes will not be cut as quickly as people want, and some taxes will go up. So it’s going to be difficult,” he said, adding that he would sit down with Treasury officials on Saturday before meeting Truss on Sunday to go through the plans.

    Kwarteng’s Sept. 23 fiscal statement prompted a backlash in financial markets that was so ferocious the Bank of England (BoE) had to intervene to prevent pension funds being caught up in the chaos as borrowing costs surged.

    Hunt, an experienced minister and viewed by many in his party as a safe pair of hands, said he agreed with Truss’s fundamental strategy of kickstarting economic growth, adding that their approach had not worked.

    “There were some mistakes made in the last few weeks.

    “That’s why I’m sitting here. It was a mistake to cut the top rate of tax at a period when we’re asking everyone to make sacrifices,” he said.

    It was also a mistake, Hunt said, to “fly blind” and produce the tax plans without allowing the independent fiscal watchdog, the Office for Budget Responsibility, to check the figures.

    The fact that Hunt is Britain’s fourth finance minister in four months is testament to a political crisis that has gripped Britain since Johnson was ousted following a series of scandals.

    Hunt said Truss should be judged at an election and on her performance over the next 18 months – not the last 18 days.

    However, she might not get that chance. During the leadership contest, Truss won support from less than a third of Conservative lawmakers and has appointed her backers since taking office – alienating those who support her rivals.

    The appointment of Hunt, who ran to be leader himself and then backed her main rival ex-finance minister Rishi Sunak, has been seen as a sign of her reaching out, but the move did little to placate some of her party critics.

    “It’s over for her,” one such Conservative lawmakers told Reuters after Friday’s events.

    The next key test will come on Monday, when the British government bond market functions for the first time without the emergency buying support provided by the BoE since Sept. 28.

    Gilt prices plunged late on Friday after Truss’s announcement.

    Newspapers said Truss’s position was in jeopardy, but with no appetite in the party or country for another leadership election, it was unclear how she could be replaced.

    “Even Liz Truss’s most loyal allies, viewing the matter through the most rose-tinted glasses available, must now wonder how she can survive,” the Daily Mail tabloid, which had previously given Truss strong support, said in its editorial.

    “Yet what is the alternative?”

  • UK’s PM fires new finance minister Kwasi Kwarteng

    UK’s PM fires new finance minister Kwasi Kwarteng

    BRITISH Prime Minister Liz Truss on Friday fired Finance Minister Kwasi Kwarteng after less than six weeks in the role, amid mounting political pressure and the government’s controversial growth plan.

    His sack comes barely a day after he admitted in an interview with The Telegraph, that he had faced a “baptism of fire” in the job but vowed to fight on, saying: “I really enjoy the Treasury.”

    The British-born Ghanaian was appointed Chancellor of the Exchequer on September 6, 2022 and he swiftly announced a set of economic policies named “The Growth Plan 2022” in what the Treasury described as a “fiscal event”; this was dubbed a “mini-budget” by the media.

    The Growth Plan 2022 which promised large tax cuts for the wealthy, had triggered major backlash both from the public and the markets in recent weeks.

    “It is clear that parts of our mini-budget went further and faster than the markets were expecting,” Truss said in a brief press conference.

    The Prime Minister had vowed to enact sweeping tax cuts if she was voted into power, ignoring concerns that this would further fuel inflation and the mini-budget included tax cuts that would mostly benefit the wealthiest Britons along with other tax cuts, while also attempting to subsidize spiraling energy costs for households and businesses.

    If implemented, the policy would have significantly increased government borrowing, a prediction that spooked markets in late September and caused the pound to crash, forcing the government to climb down and scrap the planned tax cut for high earners.

    In his resignation letter, Kwarteng admitted that the “economic environment” had rapidly changed since the announcement of his mini-budget but reiterated his opposition to “high taxation” which he says “must still change” to ensure economic growth.

    “It is important now as we move forward to emphasise your government’s commitment to fiscal discipline. The Medium-Term Fiscal Plan is crucial to this end, and I look forward to supporting you and my successor to achieve that from the backbenches,” he said.

    Kwarteng’s exit and Truss’ policy u-turns raises questions about her own future as prime minister, amid growing signs of rebellion inside her party. According to the BBC, several senior members of the Conservative Party are planning to publicly urge Truss to resign.

    The report notes that many of these senior lawmakers include former cabinet ministers who believe Kwarteng was simply carrying out Truss’ policies and therefore she should be the one who should have stepped down.

    The British pound slumped further to $1.12, down 0.4%, after news of Kwarteng’s exit became public and conservative lawmaker Jeremy Hunt has been appointed as the country’s fourth chancellor in a tumultuous year for the party.

  • Why I was asked to resign – Britain’s Finance Minister

    Why I was asked to resign – Britain’s Finance Minister

    British Finance Minister, Kwasi Kwarteng was asked to resign by Prime Minister Liz Truss as chancellor of the exchequer on Friday.

    In a statement shared via his verified Twitter hand, Kwarteng tweeted that this was to emphasise Truss government’s commitment to fiscal discipline.

    “You have asked me to stand aside as your Chancellor. I have accepted. When you asked me to serve as your Chancellor, I did so in full knowledge that the situation we faced was incredibly difficult, with rising global interest rates and energy prices.

    “However, your vision of optimism, growth and change was right. As I have said many times in the past weeks, following the status quo was simply not an option. For too long this country has been dogged by low growth rates and high taxation – that must still change if this country is to succeed.

    “The economic environment has changed rapidly since we set out the Growth Plan on 23 September. In response, together with the Bank of England and excellent officials at the Treasury we have responded to those events, and I commend my officials for their dedication.

    “It is important now as we move forward to emphasise your government’s commitment to fiscal discipline. The Medium-Term Fiscal Plan is crucial to this end, and I look forward to supporting you and my successor to achieve that from the backbenchers.

    “We have been colleagues and friends for many years. In that time, I have seen your dedication
    and determination. I believe your vision is the right one. It has been an honour to serve as your
    first Chancellor. Your success is this country’s success and I wish you well”.

  • What King Charles III told UK PM, Truss about Queen’s death

    What King Charles III told UK PM, Truss about Queen’s death

    King Charles III, 73, met with newly elected UK Prime Minister Liz Truss at Buckingham Palace in London Friday, marking their first formal meeting in their new roles.

    “It’s very kind of you to come in. I know how you’ve been busy, to say the least,” King Charles told the new premier with a laugh.

    On a more sombre note, he said that the outpouring of sympathies following his mother’s death meant so much.

    “It’s been so touching, this afternoon, when we arrived,” he said of the tributes he and his wife Camilla, Queen Consort, found in London.

    “All those people had come to give their condolences and put flowers… it’s the moment I’ve been dreading, as I know a lot of people have,” he continued, alluding to Her Majesty’s death. “But we’ll try to keep everything going.”

    Truss, 47, met Queen Elizabeth at Balmoral Castle at on Tuesday, following her election as leader of the Conservative Party.

    She became the 15th – and final – prime minister appointed by the Queen.

    The audience was historic, as it marked the first time in the Queen’s record-breaking 70-year reign that she did not meet a new premier in England.

    The Queen had been experiencing episodic mobility issues, and a source told PEOPLE the appointment was hosted at Balmoral for certainty of schedules.

    Charles and his wife, now known as Camilla, Queen Consort, had traveled to Queen Elizabeth’s side in the Scottish Highlands after Buckingham Palace announced that her doctors were ”concerned” for Her Majesty’s health Thursday.

    Charles had been in Scotland the day before, carrying out engagements.

    There, the senior royals joined by Princess Anne, Prince William, Prince Andrew, Prince Edward, his wife, Sophie, Countess of Wessex, and Prince Harry, who is in Europe this week with wife Meghan Markle for a series of charity visits.