U-turn if you want to? How the Tories spent two months going backwards
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Version 0 of 1. Rarely have so many major political decisions been reversed. Here are Liz Truss and Rishi Sunak’s changes of heart Such has been the political chaos over the last two months that it has felt as if there hasn’t been a single week without a major government U-turn. There is a good reason for that – there hasn’t been. Since the start of September, the Truss and Sunak administrations have so far averaged well over one significant U-turn a week. Here are some of the most notable reversals: Truss Energy price guarantee Having said that “handouts” are not the answer to cost of living issues, Liz Truss promptly changed her tune by announcing a massive scheme to curb energy bills for two years. 45p tax rate Abolishing the top rate of tax was the main rabbit out of the hat in the now infamous mini-budget. As the subsequent turmoil began to unfold, it was the first measure ditched by Truss. Medium-term fiscal plan Despite repeated reassurances that the government’s full economic plans would not be revealed until late in November, it was then hastily moved forward as markets continued to panic. Corporation tax With a crisis escalating and her chancellor Kwasi Kwarteng sacked, Truss also abandoned her plan to stop corporation tax rising from 19% to 25% – another key pledge in her leadership campaign. Windfall tax Having said she opposed the imposition of windfall taxes on energy firms, Truss announced a de facto windfall tax on energy firms – but only those generating low-carbon electricity. The move came after they benefited from high wholesale power prices. National insurance The Tory manifesto pledged to raise cash for the NHS and social care through a levy – effectively an increase in national insurance. Truss U-turned on this by sticking by her leadership pledge of reversing the rise. Mini-budget In one of the most astonishing reversals in British political history, new chancellor Jeremy Hunt effectively ditched the entire mini-budget, or what was left of it. Promised income tax cuts were gone. The energy price guarantee was cut back. Sunak Jerusalem embassy Truss signalled she was ready to follow Donald Trump’s lead by moving the UK’s embassy in Israel to Jerusalem from Tel Aviv. Sunak has now abandoned those plans. Northern Powerhouse rail Truss vowed to plough ahead with a new high-speed line connecting northern England, including a Bradford stop and eventually spanning the width of the country. However, Sunak and his team now want something much smaller. Sizewell C The first U-turn came when a government insider suggested that plans to build a new nuclear power plant in Suffolk could be delayed or scrapped. Yet there was a U-turn on the U-turn, as Downing Street later confirmed it would go ahead. Cop27 Having signalled he was not attending the meeting with world leaders, Sunak changed his mind and said that, actually, he wanted to galvanise the talks. He changed his mind after it was revealed Boris Johnson was attending the summit. Autumn statement Exactly when the government will reveal its economic plans in full has been subject to an extraordinary litany of U-turns, the latest being to delay it again until mid-November. Online harms bill The long-promised and very delayed bill designed to improve online safety is still going through, but plans to deal with language that is “legal but harmful” are being dropped. Northern Ireland elections Having signalled that it would order fresh elections in Northern Ireland to end the political paralysis there, it has now said that there will not be an election before Christmas to avoid further political turmoil. |