Weekend News Review
The Telegraph: Healey ‘left £49bn black hole in Britain’s finances’ Labour will have to raise taxes by £1,700 per household per year to pay for unfunded Budget promises, says Badenoch.
Comment: While the near £50bn black hole headline may at first appear unsettling, it is apparently the case that our new Chancellor was kind enough not to add to the near £70bn in tax rises Labour have already given us. Indeed, it was (if you look closely) only around a £20bn in extra tax this time around. While one would expect the Leader of the Opposition to highlight how much taxes may yet have to rise, it may be that we should merely rejoice that (probably ahead of a General Election in December?) they have not done so this time around.
The Times / Sunday Times: Liz Truss is bonkers (but she makes one good point). Her 49-day long premiership was a disaster. Who was to blame? In her new polemic, Bank Job, she points to the ‘unsackable’ men at the Bank of England.
Comment: It is perhaps a shame that even though the former Prime Minister has had four years to get her story right, the real reason that she had to resign was actually the same reason her predecessor Margaret Thatcher had to: we have a centre – left Establishment. If you do not tow the line you are out, even if you have won three general elections in a row. On this basis Ms Truss was lucky to be PM in the first place, and even to last 49 days. It must be galling though that as Kemi Badenoch has underlined, this (left leaning) Labour government has perhaps as much or even more unfunded Budget promises, and no one’s head is rolling.
The Times / Sunday Times: Britain’s future is in the EU, says Rachel Reeves. The former chancellor insists Brexit has made the UK ‘poorer, weaker and less secure’.
Comment: Presumably this headline is as much to do with Ms Reeves reported new career on the after-dinner speech circuit, or any circuit that pays, as any strong political sense. However, despite the journalist Andrew Neil underlining in recent days that growth in this country since the pandemic has beaten both France and Germany, the idea that Brexit has been a disaster remains for many. One wonders what percentage growth we would have had if we had not left the EU? 3%, 5% a year?
Reuters: German ministers vow tough response to Frankfurt riots and looting. Frankfurt police arrest 54 people aged 13 to 29 after overnight unrest. Rioters damage 17 Frankfurt shops and loot five, Hesse interior minister says. Police deploy 1,300 officers and more than 100 are injured in clashes.
Comment: Perhaps unlike the recent example of the French authorities, the powers that be in Germany have been rather more specific in terms of where the blame lies. That said, it still seems strange that Gen Z, who one would not expect could hurt a fly, as long as they have a secure supply of Chai Lattes, are capable of such widespread damage, if not the looting which has also appeared again. It would seem that there is an irony in that governments have traditionally given handouts to prevent civil unrest, and now even this strategy is not working
The Observer: Prince William apologises to duchy tenants after furious backlash over estate selloff. The Duke of Cornwall is to offer new valuations of farms and homes on his land in Devon.
Comment: Last week it was suggested that there may have been an ulterior motive behind the sickly-sweet appearance of the heir to the throne on the Graham Norton Show. Apparently, someone confused our Will, with the artist formerly known as Prince, as revealed in an anecdote on the chat show. This was quite amusing, at least initially. However, His Royal Highness’s issue with his tenants / serfs, was mentioned by cynics as a reason for the timing of his PR friendly performance. It would appear that despite his best attempts at Estuary English, the common touch may need to be polished still further.
The Sun: “Labour minister sparks MORE Budget fury after claiming bosses are not 'working people' Chief Secretary to the Treasury Emma Reynolds insisted employers did not count because they were “companies” – reigniting a bitter row over Labour’s tax promises.”
Comment: One can ask AI when working class become just “working” people and it would appear that the best answer comes from the Blair era onward – late 1990s. However, the problem with shedding the class bias which is certainly not PC, is that it removes the true meaning of what Labour means in its “working” label. As we know, even Prince William is a “working” person, but he is certainly not working class. There have no doubt been minimal higher taxes on working class people under Labour, and no doubt a few benefits hikes as well. However, the controversy may have to move on as the real issue now is providing welfare to non-working people of whatever class, and the extent to which this guarantees they will vote Labour in forthcoming General Elections.
The Telegraph: Poundland collapse could trigger 30,000 job losses, founder warns. Steve Smith says total would be boosted by closure’s effect on suppliers.
Comment: There are some businesses that are surprisingly successful, some that are lucky and others not so much. For instance, is Lush really a winner? However, Poundland sounded like an inspired concept. Perhaps the damage here has been the effect on inflation eroding the value of the Pound, as well as the concept not exactly being difficult to copy?
The Times / Sunday Times: Peter Hargreaves agrees to meet HMRC as it calls in billionaires. The taxman has compiled a list of Britain’s 200 wealthiest people in a campaign to raise an additional £500m.
Comment: HMRC is already above the law, and can make up rules and regulations as it goes along. For millionaires and billionaires to effectively be reporting themselves to the Headmaster’s study, appears as ridiculous as it appears painful, and yet another reason for those who have not already left the country to do so. One wonders why HMRC does not just set up a bank so that it knows our earnings and at least saves us the cost of employing an accountant?
The Telegraph: “Britain’s banks have wasted millions of pounds after John Healey reversed plans to cut the annual cash Isa allowance. It is understood that high street lenders spent significant sums preparing for the threshold to be cut from £20,000 to £12,000, including on marketing and technology. A senior source at one high street bank said they had spent in excess of £10m on the changes.”
Comment: This is the kind of headline that offers the reader immense schadenfreude until of course the realisation sinks in that any costs borne by the banks are passed onto customers, and then some. It would of course be too much for the government to compensate the banks, especially as they have just raised their tax levels (temporarily) to offset some of the unfunded giveaways to the rest of us.