The U-turn came, and it felt all but inevitable. This morning, Chancellor Kwasi Kwarteng announced that the proposed 45p tax cut — one of the centrepieces of his mini-Budget — was to be reversed.
A tax cut for the highest paid for by borrowed money, with public spending cuts and potential benefit freezes on the way, was dominating headlines and threatened to spark a Tory rebellion. The question is, what comes next?
The negative response to last month’s fiscal event — which saw sterling fall, borrowing costs rise and an emergency Bank of England intervention — was sparked not by a single policy but by fears that the Government lacked a plan to get debt on a sustainable footing. The muted market response this morning demonstrates that more must be done to rebuild fiscal credibility.
That will require the publication of the latest Office for Budget Responsibility figures and restatement of the commitment to the principles of sound money. Fortunately, there is an opportunity to do so in short order. Kwarteng will address the Tory conference today, while Liz Truss will do so on Wednesday. Both must set out a positive economic agenda that calms the markets, persuades Conservative backbenchers and reassures the public.
One U-turn need not derail an entire agenda. The Prime Minister and Chancellor want us to know that they “get it”. Now is the chance to show it.
Our inclusive capital
“When a man is tired of London, he is tired of life; for there is in London all that life can afford,” wrote Samuel Johnson. Trouble is, thanks to the rising cost of housing, travel and other basic necessities, many cannot afford the price.
The capital risks turning into an “exclusive enclave of elites” with the best jobs and greatest prospects going to those from the most privileged backgrounds, Lee Elliot Major, professor of social mobility at the University of Exeter, has warned.
Speaking at the City of London Corporation’s school conference today, he called for a city-wide commission to be set up to ensure fair access in to work. This would include targets for more working-class people becoming managers and business leaders, more apprenticeships and fairer rents for younger workers.
The stress of the metropolis and the crush of the early morning Central line remain a small price to pay to live in the greatest city in the world. But we must do more to ensure London remains a place where residents can actually afford to live and that everyone, no matter their postcode, has a fair crack of the whip.
A true home of art
Right now there are not just one, but two, big blockbuster art exhibitions in the capital.
Lucian Freud at the National is already bringing in the crowds, and more are sure to come on Friday evenings when the gallery is inviting visitors to pay what they can. The next treat in store is the opening on Wednesday of the Cézanne exhibition at Tate Modern. Our critic has given it five stars, simply because this is the biggest Cézanne show we’re likely to see in decades.
London’s galleries are a never-ending source of delight in a hectic world; let’s make the most of them.
