With the election of Liz Truss as Britain’s next prime minister, the Conservative Party has a new leader and it is clear that she will try to excite the party and win over Conservative voters. But with the economy in a rut, it will be difficult to win a fifth straight general election, and the party is unlikely to do so until 2025. Truss may find some goodwill from reducing taxes and protecting consumers from sky-high energy prices.
Truss has been a front-runner for weeks and served as environment secretary under David Cameron, foreign secretary under Boris Johnson, and justice secretary under Theresa May. She will become Britain’s third female prime minister in six years and follow in the footsteps of Margaret Thatcher. But she will also inherit a difficult economic crisis.
Truss was a member of the center-left Liberal Democrats at Oxford University. In 1994, she called for the overthrow of the monarchy. She joined the Conservative Party in 1996. She has defended her political positions as youthful indiscretions. But one critic has called her “worse” than Johnson.
Truss’s biggest challenges are the looming recession, labor unrest, and soaring household energy bills. In addition, she faces a possible collision with the European Union and new legislation affecting trade rules in Northern Ireland. But she has made it clear that she will fight for Britain’s interests in the region.
While Truss has the power to call a general election, she must assess whether the economy is likely to improve or worsen before calling an election. If Truss does call for an election, voters will have a new chance to choose their new leader in 2025.
She is Britain’s third woman prime minister since Margaret Thatcher
Elizabeth Truss, Britain’s new prime minister, is committed to tackling the spiraling cost of living crisis. She says the country will be able to weather the economic storm. But many are skeptical. Here’s what we know so far.
Truss has been a front-runner for the position for several weeks. She previously served as environment secretary under David Cameron, justice secretary under Theresa May, and foreign secretary under Boris Johnson. As a woman, Truss has drawn comparisons to Margaret Thatcher, a strong leader who is revered across the globe. But unlike her political rival, Truss is coming from relatively humble beginnings.
The first female prime minister of the United Kingdom, Margaret Thatcher, served for eleven years and 208 days. Her policies led to growing inequality and privatization. Thatcher died at the age of 87. Truss’s policies and political philosophy were modelled on those of Thatcher, which led to criticism that she is a ‘copycat’. Her comments on trans women have not instilled confidence in those groups that have faced discrimination.
She has a hardline Brexit stance
Liz Truss is a born-again Brexiteer. She believes that Brexit is the best option for the UK, despite the disruption that it will inevitably bring to the country. She first rose to prominence as the UK’s International Trade Secretary in Johnson’s government, and later became the Foreign Secretary. In her current role, she is overseeing the UK’s portfolio with the European Union.
However, the UK has only a short time before it must respond to a legal action brought by the EU over its failure to fully implement the Northern Ireland Protocol. This is a clause in the withdrawal agreement that allows for unilateral measures if renegotiation is not possible. But the risk is that such a move could backfire.
Moreover, Truss must convince the British public that her energy plan is working. Among other things, inflation has skyrocketed and there are fears of blackouts this winter. As a result, many households are forced to make difficult choices between heating their homes or feeding their families. In addition, Brexit has disrupted supply chains and driven up consumer costs.
Truss is the third woman in British history to become prime minister. Truss’s appointment fills the gap left by Boris Johnson’s resignation. The new government will have to face multiple crises – high energy prices, long hospital waiting lists, and a seemingly endless wave of labor strikes. In addition to all this, Truss will face the looming next general election due in December 2024.
Another problem Truss faces is that she may not have the political space to act in a bold manner on the EU front – she may lack domestic political capital to make a decision. This could further strain UK-EU relations and lead to new issues.
She plans to freeze household bills
The government is planning to introduce a freeze in household energy bills on Thursday, along with tax cuts and plans to clear the backlog at the NHS. However, it is not clear how long the freeze will be in place. Some reports say it will last two years while others claim it will be only four months. It may be enough time for energy prices to start rising again, but the freeze is unlikely to bring the UK out of crisis immediately.
Despite the uncertainty surrounding the proposals, the government has promised to make an announcement on the freeze on the first week. Nicola Sturgeon and Sadiq Khan have both urged Truss to freeze household bills. However, the Institute for Fiscal Studies has said such a move is a terrible idea.
The freeze may last until 2024. This measure could also affect small and medium-sized businesses. However, there are no details about how the package would affect large companies. While Liz Truss won the race for the top job, Labour leader Sir Keir Starmer said there was no reason not to freeze household bills. Despite the opposition party’s strong reaction, the government has been working on the package for weeks, and is expected to announce it on Thursday.
Among other measures, Liz Truss plans to freeze household bills. This measure is unlikely to have much impact on inflation, and it may even have a beneficial impact on small businesses. In addition to helping households, this plan would help thousands of small businesses that are struggling with high energy bills.
She wants to add 10% to national debt
During the election campaign, Truss was one of the few prime ministerial hopefuls who publicly advocated adding 10% to the national debt in order to bring the UK out of crisis. The UK has been experiencing inflation of more than 10% annually, with rising food and energy prices leading to inflation exceeding 10% for the first time in 40 years. The Bank of England estimates that inflation will rise to 13.3% in October, and predicts a prolonged recession by the end of this year.
The government has a choice of economic policies, and Truss has said that she would change the mandate of the Bank of England. Since 1997, the Bank of England has controlled interest rates in the UK. Gordon Brown gave it this power, but Truss has said she would be less respectful of Bank of England independence.
Truss has not explained the plan in detail, but she has pledged to scrap the planned increase in corporation tax (currently at 19%). She also promises to cut tax burdens for carers and create “low-tax, low-regulation zones”. She also wants to increase defence spending to three percent of GDP by 2030 and move more money into social care. She has also promised to introduce an emergency budget soon after she takes office.
The Conservative Party has a distinct disadvantage in this election, as its members are not representative of the British public. The party’s grassroots members are largely wealthy, white, male and older. Most of them own their own homes. Many of them are close to retirement, so the priorities of Truss’ party are different from those of working-age voters.
