Conservative PM Liz Truss and her Chancellor have shown the new administration’s intent very clearly in their first mini-budget.
Whilst many on low pay struggle with the cost of living, they have given massive tax cuts to high earners and allowed the people who crashed the banking sector in 2008 to be given unlimited bonuses.
The tax changes and the reversal of the NI rise will benefit someone on £25k by £279 a year. It will benefit someone on £100,000 by £1,500 a year. Someone on £1m will save a whopping £55,200.
International economists have shown no confidence in the Conservative strategy as the value of the pound has plummeted.
This will lead to higher import prices and further fuel inflation.
The Bank of England has already raised interest rates to try to control inflation and will do so again, raising mortgage rates.
A two per cent rise in mortgage rates would add £2,000 a year to a £100k mortgage, leaving homeowners much worse off. Moreover, interest rate rises will increase the cost of massive Government borrowing.
Liz Truss promised to kick-start the economy. What she has done is kicked it off a very high cliff.
Cllr Tony Fisher, Liberal Democrat, West End, Strensall
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