5 days ago
Tories will ‘never again' repeat Truss mini-Budget chaos, says Stride
The Conservatives will 'never again' repeat the catastrophe of Liz Truss's mini-Budget, the shadow chancellor will vow on Thursday.
In a major speech, Sir Mel Stride will pledge that the Tories will not trade economic stability in return for shallow promises and fantasy economics.
And he will accuse both Labour and Reform UK of 'abandoning' the idea of fiscal responsibility.
The speech comes amid concern that the Tory leadership is failing to come up with policies to inspire voters, with the party now polling in fourth place behind Reform, Labour and the Liberal Democrats.
Ms Truss was forced out of office in seven weeks in 2022 after her mini-Budget caused a run on the markets because the tax cuts and extra spending it contained were not properly funded.
Addressing the legacy of that mini-Budget, Sir Mel will say: 'For a few weeks, we put at risk the very stability which Conservatives had always said must be carefully protected.
'The credibility of the UK's economic framework was undermined by spending billions on subsidising energy bills, and tax cuts, with no proper plan for how this would be paid for.
'As a Conservative, of course I want taxes to be as low as possible. But that must be achieved responsibly through fiscal discipline.'
The shadow chancellor will say that although the party acted swiftly to restore stability after Ms Truss resigned, rebuilding trust would take time and honesty.
'The damage to our credibility is not so easily undone,' he will say. 'That will take time. And it also requires contrition.
'So let me be plain: never again will the Conservative Party undermine fiscal credibility by making promises we cannot afford.'
Sir Mel will acknowledge that both Labour and the Tories have failed to free Britain from the spectre of economic stagnation.
'For our party to find a path back to regaining trust, we must show that we are serious about listening to people and creating a better future underpinned by a credible plan,' he will say.
He will argue, however, that the answer is not the 'populism' of Nigel Farage and Reform, which he likened to the 'magic money tree' economics of Jeremy Corbyn.
'Populists in particular claim there are easy answers to our problems, telling voters what they want to hear without any credible plan for how they might deliver,' Sir Mel will say.
'Take Reform. Their economic prescription is pure populism. It doubles down on the 'magic money tree' we thought had been banished with Jeremy Corbyn.
'They would plough ahead with huge additional welfare spending, as well as tax cuts, with no plan for how to pay for any of it. We must be radical in our prospectus, but that must be grounded in the principles of stability and responsibility.'
The shadow chancellor will also accuse Labour of 'abandoning' fiscal responsibility and economic stability.
'At the spending review next week, we can expect her [Rachel Reeves] to trumpet all of the additional projects and programmes she is funding – without mentioning the fact it is all being paid for from borrowing,' he will say.
Sir Mel will unveil two core policies for the next Conservative government: 'stability and fiscal responsibility', including control of spending and the reform of welfare and public services, as well as 'a bold rewiring of the British economy' to unleash growth and productivity.
He will add: 'When other parties are descending into a race to the bottom on economic credibility and responsibility, the Conservative Party is needed now perhaps more than ever.
'But to win that fight we will need thoughtfulness. We will need to take our time if we are to forge a credible plan that delivers for the people of our country. Over the next four years our party will do just that.'
