Keep calm and carry on… for most…

The UK election results this morning are putting a smile on Nigel Farage’s face. A by-election win for Reform in Runcorn (by 6 votes), winning the mayoralty in Greater Lincolnshire and a slew of council seats to come.

This portrait of Nigel Farage in the National Portrait Gallery says it all… for now…

Labour is on the back foot, but they held on to the mayoralties in North Tyneside, the West of England and Doncaster. They should not panic over the success of Reform any more than the main parties might have done when the LibDems surged in by-elections. It has been a grim first year for the Government. A misjudged first budget, economic headwinds everywhere leaving little money to improve public services, all exacerbated by Trump’s tariffs have provided a terrible backdrop to these elections.

However, whilst this blog predicts further success for Reform, they are close to peaking, loathed by a large majority of the electorate. Labour, despite the uninspiring but broadly competent leadership of Keir Starmer, is close to bottoming.

We are, as the Greens put it, in a period when most votes are being more evenly split between five parties. This will lead to erratic and dramatic election results, but Labour is still in the strongest position by far to win the next general election. Excitable journalists should remember there is still four years to go.

The party who should panic is the Tory Party. It has totally lost its way, stands for nothing and speaks to nobody. Its audience has drifted and is drifting off to the LibDems to the Left and Reform to the Right.

There is a clear conclusion from these results.  Kemi Badenoch is not up to the job. Fearful of the Right, she shamefully pursues culture wars when there are much more important issues to address and define her party.  Why are Tories Tories? It is the economy stupid. Small government, taxes extracted from the public with real justification or not at all. It is the Party of aspiration not prejudice.

Running after Reform’s agenda has been and will continue to be a disaster, take note, Robert Jenrick. The Conservative Party probably needs James Cleverly as leader to buy itself some time, but to do what? To get back to first principles, not letting others to define it. It is that simple but do the Tories have the understanding or the appetite to do this? There is no evidence so far, and until the Tories wake up and release themselves from their obsession with Reform, they have no future.

Republicans cower to Trump; they will suffer the consequences in the end…

Donald Trump once said: ‘I could stand in the middle of Fifth Avenue and shoot somebody, and I still wouldn’t lose any (Republican activist) voters, OK?’

Economically, Trump has done just that. Tariffs everywhere. The end of globalisation as we know it. A potential worldwide recession, higher inflation, the breakdown of traditional Western alliances. It is all in the melting pot, and the President of the United States doesn’t care. He is bulletproof, so to speak.

A President out of control…

He has always been in favour of tariffs, taking out advertisements back in the 80s supporting the concept, combining it with disgust at paying to defend countries he deemed could afford to protect themselves. He may have a point on the latter issue, but American defence companies have made a fortune in the process.

Nobody can say they didn’t know what they were electing with Trump. Except… there are no policy analyses in presidential elections. None of his views were ever really tested in debate. For example, the economic jingoism of tariffs resonates with ordinary Republican activists/voters and many others besides but not the realities/practicalities. Such rashness would always be tested in a UK General Election campaign. Just ask Theresa May and her 2017 social care proposals.

Professional Republican politicians, Reaganites if you like, who were brought up believing in free-trade, NATO, and Western democratic values have been swept aside by far-right, isolationist MAGA activists who have taken over the GOP and terrified them into silence.

Cowardice prevails. Janan Ganash of the FT at my company’s annual investment seminar back in November warned Trump, with no re-election pressures, would be unleashed. There seems to be no checks and balances amongst Republicans, professional or otherwise on his actions.

Trump today means what he says. Tariffs, Greenland, the Panama Canal, a bromance with Putin, a third term. He is serious about them all.

Republicans created this monster or, rather, failed to stop him. Whether it be a global recession or a carve up of Ukraine just to start with, they will own the grim consequences of a president who is out of control.