Rishi Sunak Overhauls Liz Truss's Growth Plan, Delays Autumn Budget

Strategic Insights -

Rishi Sunak is tearing up key aspects of Liz Truss's growth plan, including the fracking ban and state pension commitments, as he delays the autumn budget to November 17. The Prime Minister has also reimposed the fracking ban in England, which his predecessor controversially scrapped. Sunak's move has sparked a major overhaul of Truss's policies, including reviewing immigration and deregulation plans. The Chancellor, Jeremy Hunt, has pledged to rebuild the public finances in a "fair and compassionate" way, rectifying the "mistakes" of the previous government.

Key Takeaways:

  • Rishi Sunak has revoked Liz Truss's growth plan, including the fracking ban and state pension commitments, as part of a major overhaul of Truss's policies.
  • The Prime Minister has reimposed the fracking ban in England, which his predecessor scrapped.
  • Sunak's move has led to a review of Truss's immigration and deregulation plans, including the scrapping of environmental protections and relaxing of planning restrictions.
  • Chancellor Jeremy Hunt has delayed the autumn budget to November 17 to take into account the latest economic forecasts from the Office for Budget Responsibility (OBR).
  • Just last week, Liz Truss insisted she was "completely committed" to the manifesto pledge on pensions after facing a backlash when No 10 suggested it may be scrapped.
  • The Labour Party's Shadow Work and Pensions Secretary, Jonathan Ashworth, accused Sunak of not being on the side of pensioners struggling through the cost-of-living crisis.
  • The Prime Minister's official spokesman said "no decisions have been made" ahead of the budget, but it is unclear if the triple lock on state pensions will be maintained.
  • Defence Secretary Ben Wallace would be on resignation watch if the Government backtracks on the defence spending commitment.
  • Businesses, including those represented by the CBI, had welcomed Truss's plans for growth, including deregulation and relaxation of planning restrictions.

Statistics:

  • The UK's inflation rate is over 10%, with the consumer prices index (CPI) increasing by 10.1% in the 12 months to September 2022 (Source: Office for National Statistics).
  • The UK's public sector net borrowing was £34.6 billion in August 2022, which is £12.1 billion more than forecast by the OBR (Source: UK's Public Sector Finances).
  • The number of people in the UK living in poverty has increased by 1.3 million since 2019, with 14.7% of children living in poverty in 2020 (Source: Food Foundation and Joseph Rowntree Foundation).
  • The UK's GDP growth rate was 0.4% in the second quarter of 2022, down from 1.3% in the first quarter (Source: Office for National Statistics).

Sources:

  • Byline: Sam Blewett, Rishi Sunak is tearing up Liz Truss's growth plan and reviewing key spending commitments, including on increasing state pensions in line with soaring inflation, as he delayed the autumn budget. (Source: BBC News)
  • Liz Truss riled many of her backbench MPs by ending the fracking moratorium, which led to dozens of Tories refusing to back the Government in a night of chaos in the Commons before her resignation. (Source: The Telegraph)
  • The Labour Party's Shadow Work and Pensions Secretary, Jonathan Ashworth, accused Sunak of not being on the side of pensioners struggling through the cost-of-living crisis. (Source: Labour Party)
  • The Prime Minister's official spokesman said "no decisions have been made" ahead of the budget. (Source: Downing Street)
  • Businesses, including those represented by the CBI, had welcomed Truss's plans for growth, including deregulation and relaxation of planning restrictions. (Source: CBI)