Are the markets scared of Liz Truss?

Look at the chart for interest rate expectations in isolation, and you might come to the conclusion that Rishi Sunak is right about Liz Truss’s fiscal policies. In June, markets were expecting rates to peak at around 3.5 per cent next year; now they are expecting them to reach close to 4.5 per cent. Moreover, as Truss’s victory came to be seen as inevitable, the FTSE 100 plunged from 7,550 on 19 August to 7,230 this morning – a fall of 4.2 per cent. The pound has fallen from $1.22 on 10 August to $1.15 now. Markets could be forgiven some apprehension But hang on a minute. Markets have been

Kate Andrews

Ten graphs that Liz Truss can’t ignore

The new Prime Minister’s honeymoon starts and ends today. Once Liz Truss formally enters Downing Street tomorrow she will be under pressure to tackle the enormous economic crises facing the country, with very little time to announce her policy plans. Truss herself has pledged to reveal her plan for rising energy bills within the first week of her premiership, and her plans to slash tax within the first month. While at the forefront of political discussion, these are but a few of the emergencies that the government must grapple with in the weeks and months ahead. Below are ten graphs that the Truss administration can’t ignore if she and her government

The desperate demonisation of Liz Truss

We’re being asked to credit Liz Truss with a lot of unlikely things now that’s she almost certainly on course for No. 10 – that she’s a snazzy, relaxed media performer; that she can solve the eruption of problems caused by decades of cross-party can-kicking in a few weeks; that she has Churchillian resolve and Thatcherite implacability. But just recently a new claim is surfacing, very much not coming from her ‘people’, which is the hardest to swallow of all – that she is a fascist. Of course, the boggle-eyed have said this about pretty much every Conservative leader – pretty much every Conservative – in living memory, but I’ve noticed

Gove says Truss’s plans are a ‘holiday from reality’

Is the Tory leadership race already over? That’s the narrative among Conservative MPs with two weeks of the leadership contest to go. The Sunak camp dispute this version of events – and tonight they have an endorsement which works in their favour. After several Tory MPs switched their allegiance from Rishi Sunak to Liz Truss, this evening Michael Gove has endorsed the former Chancellor. Writing for the Times, the former Minister for the Cabinet Office has argued Truss’s plans for immediate tax cuts are a ‘holiday from reality’ that would put ‘the stock options of FTSE 100 executives’ before the poorest. He says that Sunak is best placed to prioritise

The Tories abandon fiscal conservatism at their peril

And then there were two. Rishi Sunak and Liz Truss now go to the membership. There’s much talk today about how brutal this contest will be. Penny Mordaunt’s supporters were arguing this morning that people should vote for her to avoid pitting these two against each other. But that would be false comfort. The argument between Liz Truss and Rishi Sunak is one that the Tory party needs to have. Fiscal responsibility has been the Tories’ anchor for years On one side stands Sunak, who I have known for many years. He cleaves to the old Thatcherite position that the first thing to do is to get inflation under control. He believes

The Conservative party has ceased to be serious

I’m not sure that the Conservative party wants to win elections. Tom Tugendhat was knocked out of the leadership contest on Monday, and Liz Truss is now the bookies’ favourite to be the next Prime Minister. Any party that thinks the latter beats the former cannot say it is serious. There are several reasons for Conservatives to ignore me on this topic. First, I’m not a Conservative. Second, Tugendhat and I are friends. Third, I take a view of party politics that seems to be utterly out of fashion these days. That view is that politics works better when parties try to win the other side’s votes. When Conservatives pursue