Posts Tagged ‘energy prices’

It is the economy, stupid – but Labour needs a story of economic change

12/08/2022, 11:07:17 PM

by Jonathan Todd

Remember when the war on woke was going to keep the Tories in government till 2030s?

We used to hear more of this claim, a year or so ago. Lee Anderson was banning himself from watching the England men’s team nearly win the Euros. Tortoise was profiling anti-woke, power couple Munira Mirza and Dougie Smith. Brexit was an identity issue and others – such as, Anderson thought, taking the knee – would be stoked to retain the 2019 Tory coalition.

Since then, the economic challenges of Brexit (ask a trucker or holidaymaker queueing at Dover if Brexit is an identity issue) and the longer-term economic impacts of Covid-19 have crystallised.

Vaccine rollout powered a Tory victory in the Hartlepool byelection in May 2021 and a post-lockdown household spending surge. Meeting this demand has not always been easy. Long Covid diminished the UK workforce and global supply chains cannot be smoothly switched off and on – especially with China persisting with a damaging zero-Covid strategy.

These problems have been turbocharged by the war in Ukraine and associated energy sanctions on Russia – rapidly increasing UK inflation, now forecast to hit 13% during 2022.

Getting on top of the cost-of-living crisis – inflation outstripping wage growth, reducing the ability of households to afford their way of life – requires a restructuring of the UK economy much bigger than Tory imaginations.

Tax cuts and fracking is how putative PM Liz Truss says she will reduce energy bills. It is not much of an answer. Gordon Brown has some better ideas.

Truss has been critical of the Bank of England. The Bank is responsible for controlling inflation – but monetary policy in the UK is inadequate to seismic events in China and Ukraine.

Being a political teacher with a skill for explanation and making sense of complex issues is an essential qualification of successful PMs, according to Steve Richards’ engaging book on recent holders of this office.

(more…)

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