Devolved nations demand urgent meeting with chancellor as Tory top team doubles down on plan to cut spending

SKY News ^ | October 1, 2022 | By Philip Whiteside

[Oldeconomybuyer]

The devolved governments of the UK want an urgent meeting with Chancellor Kwasi Kwarteng to discuss immediate action to reverse the damaging effects of the mini-budget.

In a joint letter, the finance ministers of Wales, Scotland and Northern Ireland are warning that the government's spending plans are a "huge gamble" that will mean another decade of austerity.

It comes as one of Liz Truss's closest political allies doubled down on the government's economic policy, with warnings that major cuts in public spending are to come.

Levelling Up Secretary Simon Clarke, who is among the prime minister's inner circle, told The Times that the British people need to expect significant cuts in public spending, because for too long the West has been living in a "fool's paradise".

Following on from Chancellor Kwasi Kwarteng's tax-cutting mini-budget, he said the government needs to make sure the "extremely large" state is in "full alignment with a lower tax economy".

[FarCenter]

But Mr Clarke told The Times: "Western Europe is just living in a fool's paradise whereby we can be ever less productive relative to our peers, and yet still enjoy a very large welfare state and persist in thinking that the two are somehow compatible over the medium to long term.

"They're not. We need to address that... if we want those strong public services then we are going to have to pay for them.

"It is important that we look at a state which is extremely large, and look at how we can make sure that it is in full alignment with a lower tax economy."

The destruction of the Nord Stream pipelines will mark the end of multi-party free market capitalist states in Europe.

European nations will have to shift to a wartime economy, with critical industries nationalized or equivalently regulated, rationing of consumer goods, and single-party governments of national salvation to keep order.

[OttawaFreeper]

Interesting to read the references to Thatcher, who for helping bring the U.K. back to some sort of sanity was rewarded with being forced out by slow motion socialist Tories.

[cranked]

The de-industrialization of Europe continues.

[Ouderkirk]

that will mean another decade of austerity.

Government austerity is a good thing. A government flush with cash is bad.

[Theoria]

I fully expect the UK to have a Lehman moment soon. Part of the breakdown, would be to for Truss to resign, and get more confidence into the markets.

[Lurker]

“ European nations will have to shift to a wartime economy, with critical industries nationalized or equivalently regulated, rationing of consumer goods, and single-party governments of national salvation to keep order.”

Sort of like the 1930s then.

That ended well.

L

[The Free Engineer]

Britain needs to adopt as a nation the laws and regulations and general economic freedom which made pre-handover Hong Kong so successful.

A government take over of everything is building in stagnation of the economy.

[jdsteel]

Oh yes, less government spending and lower taxes is certainly a recipe for disaster.

What a-holes. The UK needs to keep a stiff upper lip and carry on with their plan.

[PapaBear3625]

Interesting to read the references to Thatcher, who for helping bring the U.K. back to some sort of sanity was rewarded with being forced out by slow motion socialist Tories.

The same thing happened to Churchill after Germany was defeated. He was out in 1945.

[cowboyusa]

8t I’d unfair that England does not have it’s pown Parliment.

[cowboyusa]

It's unfair that England doesn't have it's own Parliament.