Just as Emperor Nero fiddled as Rome burnt down – we have a Chancellor who has gone “missing in action” as hard-working British families are facing the dire consequences of his mismanagement of the country’s finances.
Increase in money supply (M2) leads inevitably to inflation – and his abandonment of all fiscally conservative policies in 2020 and 2021 (with billions wasted and billions stolen) has led directly to inflation hitting 10% – which in turn has increased the cost-of-living challenges that our people are facing.
Massive growth in public debt – that he advocated and signed off on – has led to rising interest re-payment costs – additional billions being ploughed into dysfunctional public services – is throwing good money after bad – along with the hundreds of millions stolen by fraud in his badly planned and disastrously executed “socialist” schemes.
He seems to have forgotten that public services are paid for by the private sector and not vice versa – and without a thriving private sector – the economy will continue to tank.
The solutions whilst painful – have to be faced – or Sunak single handed will bring Britain into a long (and not short) recession – and blaming “greedy workers” – the Russia / Ukraine war are all fairy tales that will not deceive the British people for long.
Inflation must be squeezed down or the cycle of higher borrowing costs (that we are facing), need for higher salaries (private and public sector), increased cost of production will spiral out of control. Whilst it can not be tackled in one swoop – the Bank of England must counter Sunak’s inflationary policies by raising interest rates – we suggest by an immediate 1 and a quarter % – to 2 ½%
This interest rate move will (unfortunately) reduce economic growth and consumer spending BUT will reduce inflation and will appreciate our exchange rate (making energy imports cheaper)
Green taxes – must either be ELIMINATED (which we would support) – or held to a maximum £159 per £1,277 energy bill. Presently as energy prices rise – so does this green stealth tax – and the VAT revenues alongside it. As Britain suffers – the Treasury smiles!
Fuel duty should be abandoned – and the stealth tax of 52.95 pence per litre should ONLY be considered for re-introduction – once petrol forecourt prices drop below £1 a litre. This policy would finally focus the Exchequer on ensuring wholesale prices are accurately passed onto the consumer – rather than prices go up – but never go down.
The above will at least soften the pain for the majority – the hard-working families of Britain – and reduce the cost-of-living crisis.
On the other side – “Big State” spending must also be reversed – and as an immediate first step,
Suspension of Overseas Aid for the remainder of the fiscal year
Rejection of any further Prime Minister promises to Ukraine (after this last £1 Billion promise this week) for the remainder of the fiscal year
We need to return to a low tax, highly motivated people – and not Sunak’s socialism by the back door