Like the pound sterling, it's my view that our new Prime Minister Liz Truss has been drastically undervalued in the last few weeks. The narrative most of the media would have you believe, is that this little lady is out of her depth, with her vision for a low tax high growth economy out of kilter with reality.
She's been cast as a leader half her party don't like, with rumours Sunak supporters, who won't bury the hatchet, will have her out by Christmas.
Even Keir Starmer, the cervix free leader of the opposition – the most mediocre and uninspiring labour leader for decades, is measuring up red curtains for Number 10.
Within the media, all of the hatred and vitriol put on Boris, some of which was self-inflicted but not all, is now being heaped upon Liz Truss. Get Boris out, has been replaced with get Liz out. The kind of people saying she must go, tells me she must stay. Most commentators and some in her own party, would have you believe her position is not recoverable, as the Tories lag behind in the polls. But not so fast. Good news folks. It seems the our Chancellor was on to something in his mini budget after all.
The International Monetary Fund (IMF) has said Kwasi Kwarteng's tax cutting mini-Budget will help Britain to be the fastest growing major economy this year. They say UK expansion will be top of the G7.
Prime Minister Liz Truss delivers her keynote speech at the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Wednesday October 5, 2022. Jacob King
They do flag inflation as a stubborn problem that won’t go away any time soon, but the plan to go for growth already looks to be bearing fruit. Following the kicking they gave the budget two weeks ago, they’ve now conceded and I quote: “the fiscal package is expected to lift growth somewhat above the forecast in the near term”.
Plus the cost of wholesale energy prices continues to tumble, as countries look beyond Russia for oil and gas, which means government support for household energy bills will likely cost considerably less than the £60 billion originally earmarked. Meanwhile, nominal UK wage growth was stronger than expected in the three months to August. And unemployment is down in the same period too – it’s now 3.5% - another historic low. But the good news extends beyond the economy. It’s being reported behind the scenes that Liz Truss, the most experienced member of the cabinet before she became PM, has accelerated efforts to amicably resolve the Northern Ireland protocol, which divides our country down the middle, and to tackle illegal migrant crossings in the channel, which are a humanitarian, economic and national security disaster.
Margaret Thatcher famously stated - 'if you want something said, ask a man. If you want it done ask a woman'.
And it's my view Liz Truss will rise above the party squabbles as thatcher did in the early 80s, with the Tory wets who sought to thwart her important reforms.
Liz Truss, like the pound, has been drastically undervalued in the last few weeks, says Mark Dolan GB News
She’s no great performer, but judge her actions not her words. Actions we saw when she stood up to Putin leading the foreign office, and actions we saw in the trade department, when she negotiated all of those deals – she will roll her sleeves up, she will get down to work. And she will get things done.
The mini budget was a failure of political and economic communication, but not of policy. Take my word for it, that budget is going to age better then Sophia Loren. As I said just two weeks ago, backed up by the architect of Trussonomics, Professor Patrick Minford on this very show, those bold tax cuts will likely help Britain avoid a deep recession, as countries like America and Germany sink further into the red. As the economist Julian Jessop points out, projections for Germany from their very own Deutschebank right now are dire, with Britain avoiding recession and Germany going the other way, with a potential contraction of 3 or 4% in their economy.
But we are the sick man of Europe are we? Do me a favour? Bounceback Britain here we come, thanks to a courageous budget, a bold policy platform, and at last a prime minister with a pair of balls. If Liz Truss sorts the economy, sorts the migrant crossings, resolves the Northern Ireland protocol and taps into the potential of Brexit, for example signing that massive trade deal with India, and with more to come, she will reverse that poll lead. Labour’s current popularity is in fact a headache for Keir Starmer as voters will now scrutinise all of his actions and all of his policies. And it's my view that with expensive state run projects like a national energy company, pumping taxpayers billions into flaky renewables, I don't believe Labour or Starmer will stand up to scrutiny.
The markets don't know it yet, her party don't know it yet, and the public don't know it yet. But if I were you, I'd buy a few shares in Liz Truss. If she keeps with her vision and stands her ground, she’ll prove everyone wrong and she’ll go from zero to hero. They say week is a long time in politics. Five minutes is a long time in politics these days. So she’s got time. And Liz Truss loves a hard hat doesn’t she?
Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng during a visit to a construction site for a medical innovation campus in Birmingham. Stefan Rousseau
Very fetching. Well she’s got two years to don that hard hat, and fix Britain.
Liz the builder. Can she fix it? Liz the builder. Yes she can.