‘It’s not conservative’: Gove’s verdict on Liz Truss’s economic plan

It was right of the Prime Minister to acknowledge that the fiscal event (the mini Budget) needs to be revisited. There needs to be a recognition of mistakes. But it’s still the case, on the basis of what the Prime Minister said this morning, that there is an inadequate realisation at the top of government at the scale of change required.

So, yes: the energy package was the most important thing in the fiscal event. But 35 per cent of the additional money that we are borrowing is not to cut energy costs; it is for unfunded tax cuts. I’m profoundly concerned about that because there are two major things that are problematic with the fiscal event. The first is the sheer risk of using borrowed money to fund tax cuts. That is not conservative.

And the second thing is the decision to cut the 45 pence rate (on high earners) and indeed to also change the law that governs how bankers are paid in the City of London.