Galloping inflation, social growl, post-Brexit measures … The former foreign minister of the United Kingdom, a convinced liberal, will have to face a new social, economic and political situation.
by
No one, not even among the supports of Liz Truss, is illusing on the mandate that awaits the future Prime Minister of the United Kingdom: it will be very complicated. At the head of a conservative party worn by twelve years in power and by the scandals of the Johnson era, the former Minister of Foreign Affairs, a liberal convinced multiplying the references to Margaret Thatcher, will face a social, economic situation and unprecedented politics.
In October, British annual energy bills will jump by 80 % (to more than 3,500 sterling pounds, or 4,000 euros) and could reach the frightening sum of 6,000 pounds Sterling, early 2023. With a Inflation at 10.1 % over a year in July, which risks climbing to 22 % in a few months (according to Banque Goldman Sachs), the British purchasing power will fall in historical proportions: according to the think tank tank Resolution Foundation, household disposable income could fall from 10 % by the end of 2023, and the number of people living in extreme poverty, unable to provide for their basic needs, could reach 3 million.
foot change
The strikes followed one another all summer: among railway workers, postal workers, lawyers, dockers … Unions warned that they were going to intensify if Liz Truss did not take immediate measures to help houses The most fragile to overcome winter. Labor and Liberal Democrats advocate a freezing of energy bills. Armed with its ultra -liberal software, persistent in its promises of all -out tax cuts, Liz Truss resisted all summer, rejecting the principle of direct aid to households.
But, since the end of August, pressed by her own camp, she has started a change of foot, announcing a rescue plan whose details should be known in the coming days. According to the British media, the manager plans to freeze the energy prices for individuals, as part of this plan, the amount of which could reach several tens of billions of pounds sterling, of magnitude similar to that decided to save jobs during the pandemic.
where Liz Truss will find the money to finance this plan, if she does not give up her promise of massive tax cuts-which would represent a shortfall estimated at 30 billion pounds sterling for The British state? By increasing public debt, most likely. How will the markets react, when the cost of the debt continues to increase with the general rise in rates? Rishi Sunak, his unhappy competitor to the replacement of Mr. Johnson, alerted to the inflationary danger linked to this tax policy.
You have 55.91% of this article to read. The continuation is reserved for subscribers.