“In office but not in power”, headlines the Daily Mail on Tuesday. “Humiliated,” writes the left-wing tabloid The Mirror.
Monday’s tearing up of tax cuts promised by newly appointed Finance Minister Jeremy Hunt has brought some semblance of calm to financial markets.
The International Monetary Fund (IMF) on Tuesday welcomed announcements that “demonstrate” the “commitment (of the British government) to budgetary discipline and help to better align fiscal and monetary policies in the fight against inflation”.
But, on the political level, Liz Truss comes out of the episode with her authority in tatters, forced to apply a policy which she until recently rejected, unpopular as rarely has a British leader been and openly contested by part of his majority after only six weeks in office.
“It is difficult to conceive of a more serious political and economic crisis”, judges the conservative newspaper the Daily Telegraph, which wonders if its majority, in bad shape after 12 years in power, is “ready to give it respite”.
– Popularity at half mast –
After three days of silence during which Jeremy Hunt appeared as the man in charge, Liz Truss admitted Monday evening on the BBC to have made “mistakes”.
The conservative Prime Minister promised to “fix” them, saying she was “sorry”, and assured that she wanted to remain in office to lead the campaign for the next legislative elections scheduled for two years from now, despite disastrous polls against the Labor opposition.
According to the YouGov institute, one in ten Britons have a favorable opinion of the Prime Minister. This percentage only climbs to 20% among Conservative Party voters.
And 55% of the members of this political formation believe that Liz Truss should resign, 38% wishing on the contrary that she remain in her post. A third would like Boris Johnson to return to power.
The presentation at the end of September of plans for massive tax cuts and colossal support to deal with energy bills had raised fears of a slippage in the public accounts.
The pound had fallen to a historic low and long-term government borrowing rates had soared. The Bank of England had to intervene to prevent the situation from degenerating into a financial crisis.
Although a certain calm has returned, investors remain nervous: after a strong rebound on Monday, the pound fell slightly again on Tuesday, while public debt rates rose. And the British, already faced with a historic drop in their purchasing power, are already paying for the pot with more expensive mortgages and pension funds managing their weakened pensions.
– “Untenable position” –
“So much harm has already been done,” criticized Rachel Reeves, Labour’s finance manager, saying an apology is not enough. The leader of this party Keir Starmer judged that the government now had “no economic policy” after having “demolished” its projects announced at the end of September.
But, in the immediate future, Liz Truss will have to win the confidence of her own party, where calls for the resignation have multiplied. A first major political test awaits him on Wednesday with his weekly question-and-answer session in Parliament.
“His position is untenable,” said MP Charles Walker. This situation “can only be corrected” with “a new Prime Minister”.
Liz Truss having refused to resign and with no obvious replacement, it is not easy for the Tories to oust her. Ben Wallace, the defense minister who is seen as a potential successor, and new finance minister Jeremy Hunt have said they are not interested.
– “His own funeral” –
Monday was like a way of the cross for Liz Truss.
Jeremy Hunt has announced that he is abandoning “almost all” of the budgetary measures announced by his predecessor.
Liz Truss then sent Minister Penny Mordaunt, responsible for relations with Parliament, to respond to the opposition in the House of Commons. Then she sat, silent, her face closed, in Westminster.
“It was excruciating to watch,” writes the Times. “Liz Truss was like a mourner at her own funeral”, for the Sun.
