The last straw: tax cuts to save Sunak
"Danger increases courage", wrote Shakespeare. Months before the general election, the poet's quote seems to fit the British Prime Minister perfectly. "These are dangerous times for Rishi Sunak," said political scientist Mark Garnett. Because the problems facing the Conservative head of government are immense: up to 30 points behind in the polls, defeat in court and an increasingly clear rift in his Conservative Party.
In what is probably his last attempt to turn the tide, Sunak had his finance minister Jeremy Hunt announce the first tax cuts in years.
For many commentators this looks like the courage of desperation. "Let's face it: tax cuts are about the least Sunak can do to win over a demoralized party and disgruntled voters," commented the Politico portal. Garnett also emphasized that lower taxes were the only remaining glue of the Tory party. According to experts, the fact that the social security contribution rate is now to fall, among other things, is above all an early election gift worth billions.
Just a few weeks ago, Finance Minister Hunt had ruled out tax cuts. Now he is promising the economy a great deal of support - and the industry association CBI has praised this. However, the retail sector reacted with disappointment and the opposition Labour Party emphasized that the tax burden for consumers was still higher than at the previous election in 2019. For the right-wing Tory party, on the other hand, the steps do not go far enough. Ultimately, only part of what the government had previously taken away would be given back, wrote Conservative economist Julian Jessop.
A historic election debacle looms
The exact date of the parliamentary election has not yet been set, but it is likely to take place in 2024. In all polls, Sunak's Tories are almost hopelessly behind Labour's Social Democrats. A historic debacle is looming. The "Autumn Budget for Growth" announced by his Chancellor of the Exchequer in Parliament in London is likely to be Sunak's last straw. There have been several failed restarts recently, Scarlett Maguire from the opinion research company JL Partners told the Telegraph newspaper.
Sunak's self-presentation at the Tory party meeting as the "candidate of change"? After 13 years of Conservative government, quickly exposed as untrustworthy. His legislative proposals from the pompous "King's Speech"? Offered hardly any new momentum. The cabinet reshuffle with the surprise return of former Prime Minister David Cameron as Foreign Secretary? Rather, it prompted astonished questions as to whether Sunak did not trust any Tory MP with the important post.
The Conservatives lacked a clear sense of the direction they wanted to take and what they wanted to stand for, said Maguire. Sunak's zigzag course is not helping. At first, he seemed to be moving closer and closer to the arch-conservative Home Secretary Suella Braverman. When Braverman then went too far in her criticism and Sunak had to throw her out, he opted for much more moderate politicians with returnee Cameron and ex-Foreign Secretary James Cleverly as the new Home Secretary.
Frustrated Tories not in line
Criticism of the head of government has also been growing within the Conservative Party for weeks. The rifts in the party are enormous. The sacked Home Secretary Braverman has written an incendiary letter to Sunak, and parts of the right wing are barely concealing their anger against the Prime Minister. But there is also the threat of a revolt from the moderates if Sunak does indeed revoke international human rights agreements in order to push through his controversial migration policy.
Many Tories are frustrated and fear for their seats. "The whole party gives the impression of small children when they are long past their bedtime: very tired and grumpy," one MP told Politico. Expert Garnett from Lancaster University emphasized in an interview with Deutsche Presse-Agentur: "In these circumstances, Sunak's best protection against internal critics is that they cannot afford to change their leader for a third time in one term."
According to observers, only one of the measures announced by Finance Minister Hunt could help: freezing the alcohol tax until August and not increasing it again. After all, you can only drink your way through this situation.
- The financial situation of the household under the current economic policy is a significant concern for many Tories, with some believing that Rishi Sunak's tax cuts are necessary to save his position as Prime Minister.
- Jeremy Hunt, the finance minister, had initially ruled out tax cuts, but under the pressure of the Conservative Party's dissent and Sunak's dire poll numbers, he announced significant tax cuts as part of the 'Autumn Budget for Growth'.
- Critics argue that the tax cuts announced by Hunt are merely an attempt to appease disgruntled Conservatives and demoralized voters, while others claim that lower taxes are the only remaining glue holding the Tory party together.
- In light of the mounting internal criticism and Jeremy Hunt's tax cut announcement, political analyst Mark Garnett speculates that Sunak's best protection against internal critics is the fear of changeing leaders in the midst of the election campaign.
- Despite the tax cuts and the Conservative Party's efforts to present a unified front, the opposition Labour Party emphasizes that the tax burden for consumers remains significantly higher compared to the 2019 election.
Source: www.dpa.com
