The Leadership contest to date has been unedifying. Rishi Sunak and Liz Truss running an almost scorched earth policy as they critique each other’s policy offerings. Neither may get a role in each other’s Cabinet, least of all Sunak who will probably leave politics if he loses or at least take a back seat.
Who is the real Thatcherite and does it matter?
It makes you wonder what the Tory Government has been doing for the past 12 years to face such internal criticism and why such an improvement of approach is needed? Sunak has participated in a Johnson Cabinet with all its populism and lack of integrity for nearly three years. Truss longer, and whilst she has less problem with Johnson, has trashed her government’s economic policies.
The main divide is economics but a crucial, more subtle one, is culture. We will come back to that later. But in terms of tax and spend, each candidate claims to be an heir to Thatcher. Really? One doubts Thatcher, for all her loathing of the EU, would have actually taken the economic risk of leaving it, and she always stood for sound money, raising taxes in her early years to protect the nation’s finances.
Both now believe in Brexit, but Liz Truss also supports £30 billion of unfunded tax cuts to drive growth. There is no evidence this would work. Conventional wisdom suggests it will drive up inflation and interest rates, negating any benefits such extra expenditure might bring. But apparently conventional wisdom is now confined to ‘Group or Treasury think’. Sunak, a more conventional Tory, wants inflation down before tax cuts and places himself as careful with the nation’s finances. Now that is more Thatcherite!
The problem for Sunak is that the Tory membership is not listening. One suspects they find him too slick, too rich and ultimately a Johnson knifer. His performance in the BBC debate on Monday was uncharacteristically aggressive, the impression being he feels he has nothing to lose. Truss, on the other hand, is going for growth come what may. She wants those tax cuts, a 20% reduction in crime (how?), Rwanda, the destruction of the Northern Ireland Protocol and a more aggressive approach to the EU generally. All this tunes in culturally with the narrow voting audience she is aiming for. In addition, one only needs to look at mooted Cabinet picks generally to know Sunak is a centrist Tory whilst Truss, playing to the Right, will continue fighting Johnson’s culture wars whether deep down she believes in them or not.
Truss is likely to win and the Tories will march further to the Right into unchartered waters under her leadership, vacating what little of the centre-right ground they might once have held. The problem for the next General Election (unlikely to be before July 2023 boundary changes which theoretically give the Tories a further 13 seats) is that Truss is no Johnsonian communicator and starts with only 32% of her colleagues supporting her. Her approach to governing may not hold enough Red Wall seats and will almost certainly lose her more seats in the South. The Labour and LibDem leaders are consequently very happy…
The only way Truss’s march on No.10 may get interrupted is if there is a ‘blow-up’ during the campaign. Intriguingly, the electorate of Tory members are allowed to change their postal vote on-line later in the contest if they wish to. Someone is hedging their bets somewhere…
All this is a reminder that Party members of all persuasions are generally not at their wisest in choosing their leaders. Surely, for the Tories, when in office, only MPs should pick who should be Prime Minister leaving a wider vote for those relatively rare periods of Opposition. The public, today, is entitled to feel disenfranchised by a Tory membership which sometimes isn’t in tune even with Tory voters.
The Conservative Party’s summer is likely to be long, hot and unpleasant. Time to leave the country and go on holiday. An EU country seems a suitable destination…
Happy August!