The new era of austerity

It’s the Chancellor who will deliver next week’s Autumn Statement, but every-one knows it will have been ghost-written by Rishi Sunak. When Jeremy Hunt ran for party leader, his own proposal was to take corporation tax from 19 per cent to 15 per cent. Now, he wishes to raise it to 25 per cent. When Hunt speaks next week, we should imagine Sunak’s voice.

Liz Truss spooked the markets by combining unexpected tax cuts with a spending splurge bigger than Sunak’s furlough scheme: a £10 billion-a-month subsidy on energy prices, going even to the richest. This was a shock, sprung on markets at a time when interest rates were rising globally. About two-thirds of the interest rate rises that emerged under Truss would probably have happened anyway, but politically this is irrelevant. Her timing was so spectacularly bad that she – and the Tories – will now be blamed for all of it.