BEST FOR BRITAIN'S WEEKEND WIRE
Dear John
An unexpectedly short working week still managed to
produce a flurry of activity from all corners of
Westminster.
Mini budget, mega
bluster
Today, Chancellor of the Exchequer
Kwasi Kwarteng presented the Government’s fabled ‘growth plan’ to the
House of Commons in an event christened the ‘mini budget’ which
conveniently means no requirement to involve the Office for Budget Responsibility for
scrutiny.
Amid interest rates rising to
2.25% and the pound sinking ever-closer to parity with the US dollar
at $1.10, the measures epitomise just how strongly the Chancellor and
Prime Minister have thrown their lot in with trickle-down economics
and with making the rich richer: The 45p levy on earnings over
£150,000 will be scrapped alongside an end to the cap on bankers’ bonuses. They will also
scrap the intended corporation tax increase (yes, the one that would
apply to companies like Amazon).
Not content to dole out treats
to the highest income brackets, the Chancellor also made sure to name
whom he has identified as the culprits behind Britain’s economic
malaise: part-time workers on benefits. Choosing to ignore the fact that such part-time workers are
predominantly single parents, disabled people and unpaid carers, he
announced sweeping cuts to their benefits should they
choose not to shirk the responsibilities that allow them to work only
part-time and take on more hours. At last, the downtrodden financiers
have a lifeline, while the fat cats of the working poor will pay
up.
These financial measures,
according to the Government, are meant to attract top talent to the UK
and stimulate investment and wealth creation. The markets, however,
seem to have missed the memo: Within minutes of Kwarteng’s mini-budget
going public, sterling crashed even further to its lowest level since 1985.
Hitting the ground
running
Soon after the Queen’s funeral, Liz
Truss headed straight to New York for the UN General Assembly, an annual forum enabling UN states to
convene for multilateral discussions on a range of key global
issues.
Truss’s visit also marked a
significant opportunity for her first crucial bilaterals with key
allies, including French President Emmanuel Macron, who Liz Truss
bizarrely decided to cast as a potential enemy last month.
It turns out Macron was
pretty gracious despite Truss’s offending
remarks, and he made clear
earlier this week that he was happy to ‘move on’ from what Truss had
said. Truss also followed suit and decided she wanted a ‘constructive’
relationship with France - something we still think it’s weird a
British Prime Minister actually has to say.
Managing
expectations
A key bilateral of Truss’s trip to
New York was her meeting with US President Joe Biden. Ahead of the
meeting, Truss and her team had already issued warnings that a
trade deal with the US was unlikely to happen anytime
soon.
The realism, likely induced by
Biden’s clear disapproval of the UK Government’s threats to renege on the Northern Ireland
Protocol, has nevertheless
offered room for optimism, with Truss deciding that the UK’s priority
isn’t really a trade deal with the US anyway, and is instead accession to the CPTPP, a trans-pacific trading partnership made
up on 11 countries including Canada, Australia and Singapore. UK
Government officials have also tried to highlight trade deals with individual US states as examples of
progress - although Best for Britain was told at a recent UK Trade and Business Commission
session that trade deals
with individual US states weren’t really trade deals at
all.
Trickle-down
tension
Another key difference that emerged
between the two leaders was their attitude towards the
economy.
Around the same time that Liz
Truss was signalling that they would lift the cap on Banker bonuses
and implement tax cuts for the wealthy, Joe Biden tweeted that he was ‘sick and tired’
of trickle-down economics - the theory that concentrating wealth for
those at the top will ‘trickle-down’ to those at the bottom,
benefiting everyone.
This clearly makes UK economic
policy something of an outlier OR look a little retro - but it looks
like Truss has no plans for plain sailing when it comes to our friends
across the Atlantic.
The lady doth protest too
much?
Chilling news emerged that a
peaceful anti-Bolsonaro protestor was handcuffed outside the Brazilian
embassy by members of the
Met Police in London at the start of the week.
The images of the handcuffed
woman (who was released without charge) were then used by Bolsonaro
supporters to smear the Brazilian left and to suggest that the UK is
similarly right-leaning
Being lauded by Bolsonaro’s
supporters is not a good look for the Met, particularly after concerns
were raised over their treatment of peaceful anti-monarchy protestors
over the past weeks.
Peaceful protest - and the
right to freedom of assembly and expression - are part of the
European Convention on Human
Rights, which the UK
adheres to (for now). Of course, after the Police, Crime, Sentencing
and Courts Act became law earlier this year, anyone being ‘noisy’ or
causing ‘unease’ can now be criminalised.
Reform on the
horizon?
Next week, a Best for Britain
contingent will be heading to Labour Conference, where a motion on electoral reform looks likely to be debated.
While at last year’s
conference, 80% of constituency party delegates voted in favour of
proportional representation, the motion was defeated by affiliates,
including some of Britain’s biggest unions.
This year, the landscape is
looking rather different. Three of the biggest five Labour-linked
unions - Unite, Unison and the Communication Workers Union - have
openly embraced proportional representation, meaning that the chance
of a motion being debated and passed is quite high.
Conference motions aren’t
binding, but should there be majority support for an embrace of
proportional representation at conference next week, the pressure will
be on for Starmer and team to include electoral reform in their next
election manifesto. Should they win, this xxxxxx of minority rule in
Britain could soon be relegated to the dustbin of history.
With the UK being one of only
two countries in Europe still using First Past the Post for national
elections (the other is Belarus), and with the Tories using their
disproportionate power to misrule for more than a decade, Best for
Britain have been undertaking a major campaign over the summer to
convince people to back reform. Check it out here.
Watch this space for more
detail next week!
Social Attitudes survey
insights
This week saw the release of the newest British Social Attitudes survey.
The most eye-catching revelation was a 52% majority of citizens in favour of
tax hikes to fund increases in health, education, and benefits
spending, including 46% of Conservative voters and 61% of Labour
supporters.
The survey showed a welcome decline in nativist thinking about British identity,
with just 17% of those surveyed believing being born in Britain is
important for being ‘truly’ British and a meagre 13% believing British
ancestry is important. It also indicated that more than double the
number of respondents believe migrants have enriched Britain’s economy
and cultural life than believe they have damaged them.
Inclusive attitudes toward
LGBT+ people also continue to grow. 73% of respondents either welcomed the
past decades’ social progress for gay people or believed it needs to
go further, with 64% expressing the same beliefs about gains made by
transgender Britons.
What the
frack?
This week, in a U-turn from the 2019 Conservative manifesto, the Government officially
lifted the ban on fracking.
Facing widespread backlash as well as uncertainty over whether fracking in the UK would even
be economically viable, the Prime Minister pledged to only implement
the practices where there was local consent.
That is, until Thursday, when
reports emerged that she was considering labelling potential fracking sites as
‘nationally important infrastructure’ to bypass local opposition.
Then, after repeatedly downplaying the practice’s earthquake risks, Business
Secretary Jacob Rees-Mogg made the case for fracking in the House
chamber. The result is better seen than described.
After bizarrely claiming that fracking opponents were funded by Vladimir Putin and
calling their concern over fracking’s well-documented risks “Ludditery”,
Rees-Mogg faced a raft of anger from his own party.
Tory MP for Fylde Mark Menzies took umbrage at his latter comment,
charging that “There’s nothing Luddite about the people of Lancashire
or Fylde.” East Yorkshire’s Greg Knight was also excoriating in his response
asserting that “the safety of
the public is not a currency in which some of us choose to
speculate.”
That will be all from us this
week. Enjoy the calm before the Conference, and catch us in Liverpool
in the coming days!
Best wishes,
Tommy Gillespie
Press Officer, Best for Britain
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