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Mr. Kwarteng is fired as finance minister of UK, Jeremy Hunt takes his place. There is an actual increase of the corporation tax with this U turn by Liz Truss, the UK prime minister. The Conservative party now rallies behind Truss. 

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After turmoil in UK markets and awkward greeting for the UK prime minister Liz Truss.

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Keir Starmer of Labour in the first parliament QA after Mr. Sunak assumes office as Conservative's PM following Liz Truss. Keir Starmer asks about Conservatives out of touch with working people and families across the UK and false promises of leveling up the North of England.

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For UK's 5.5 million small businesses soaring energy costs is the pressing issue if they are to continue operating in 2022, says his BBC report. Liz Truss needs to act fast say small business owners.

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Liz Truss, new UK prime minister, says higher energy costs will not be passed on to bill payers and households.

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The former UK Home Secretary for Tories under Sunak and Truss, Suella Braverman, joins the Reform UK party and appears at Reform UK event with Nigel Farage. She says the Conservatives saying they would have UK withdraw from ECHR (European Convention for Human Rights), which makes it difficult to conduct a rational commonsense policy on migrants because it was poorly designed or ECHR writers lost their way on common sense, is a lie. For example there is no ECHR type rules for migrants entering China or India or any major country in the world, one that says nations have to take in migrants from anywhere in the world, and provide benefits costing billions of dollars that cannot go into services for the local population. And where migrants can pose a risk for women hesitant to go out in their own neighborhoods- something chancellor Merz of Germany has spoken about recently after incidents in Germany. ECHR has somehow got it wrong.  Labour and Conservatives have pondered this but not acted quickly enough in becoming trapped in a cultural guilt for the colonial era, when ordinary Britons simply want to get on with their lives in their neighborhoods as they did before migrants, and as did their parents and grandparents in Britain. For most of British history colonial policy was decided by a small upper class and the India Office, colonies policy by the Colonial Office, and the lives of working people in Manchester's cotton mills went on with no connection with the Empire. A fact even India's Mohandas Gandhiji quickly recognized and grasped, and whose support Gandhi sought against the India Office of the Empire. ...

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Without Penny Mordaunt who is strong at the grassroots of the Tory party, the contest in the UK Tory party will come down to a contest between Rishi Sunak and Liz Truss, which will do no service for the Tories and no good for the country, says this editorial in The Guardian. But first Ms. Mordaunt has to pass the tests of the others allying against her, says The Guardian. The Guardian view is the the Tory party is incapable of uniting behind a leader, much less unite the country.

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In his farewell speech Boris Johnson, with true British resilient spirit,  says "I will be giving fervent support to Liz Truss and her government every step of the way." Johnson likened his transfer of power to Ms Truss to a relay race. "The baton will be handed over," saying it "unexpectedly turned into a relay race, they changed the rules halfway through." But he expressed no feelings of regret, having come to terms with the arrangement in his own way. More likely Johnson is without saying it still determining the policies and direction of the government, perhaps more so now with Liz Truss and his loyalists the only persons in the cabinet and running the British government. Johnson addressed people's fears about the energy price increases- "the UK would continue to have the strength to give people cash they need to get through this energy crisis that is caused by Putin's vicious war."  He listed his government's achievements- the response to Covid. Some of this is forgotten as the UK not the EU leadership was first to move forward with vaccination plans. Johnson put his government's faith in the vaccine invented at Oxford University and committed early while the EU languished under Merkel and her protege Ursula Von der Leyen. The EU fell behind in providing vaccine leadership as Britain forged ahead early, giving hope to the rest of the world's population including India that adopted the Oxford vaccine. Johnson likened his role to the missions to the planets- "Let me say I am now like one of those booster rockets that has fulfilled its function and I will be re-entering the atmosphere and splashing down invisibly into some remote and obscure corner of the Pacific." Johnson has taken the situation in a truly British way without any rancor and gracefully. With Liz Truss in charge he even gets a break after the difficult period handling the once in a century pandemic, handing over to a younger member of his group, and yet deciding on many of the policies and guiding the government for the term it was elected for to 2024. History will look at him favorably for his handling of the pandemic and vaccination, and for his instincts about the Ukraine war and Britain's unwavering support, and now in guiding Truss to provide Britain with strong support for the cost of living crisis caused by the war. His failings stem partly from his exuberance and optimistic spirit, but nowhere near detract from these achievements. ...

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This report in The Times take a look at the work Liz Truss has done as International Trade Secretary and now Foreign Secretary. Truss does not want Britain to become economically dependent on China. More than Johnson Truss is a UK Atlanticist who wants the UK to work with the US and the EU to build a western world that is entirely independent of China. Looking at her work and experience it would appear that Truss is the most underestimated of the candidates for prime minister, much more so than Sunak. She can be strident and aggressive but she has gone through a process of thinking and studying before that with a willingness to try new ideas. She come from an intellectual  family and one that was active in left wing activism. She studied at a comprehensive school in Leeds before going to Merton College Oxford  to study philosophy, economics and politics, and was willing to change her thinking when persuaded about a different course of action to get better results. She also gained the knowledge she needs to do her own thinking with experience first hand as Chief Secretary at Treasury, Secretary of International Trade, and as Foreign Secretary, getting trade deals with Australia and negotiating with other countries. Cameron, May, Johnson lacked this kind of knowledge and experience. And Sunak also falls way short of this kind of knowledge acquired and experience handling international assignments key to Britain's advancement after Brexit. ...

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How much room is there to raise interest rates. Patrick Minford of the University of Cardiff says a lot more. At the rate of 9-10% inflation in Britain more interest rate increases are likely. Minford is advising Liz Truss who is candidate for prime minister. Minford's main ideas are- Get interest rates back up to what was considered normal in previous decades- 5-7% for mortgage rates is what it used to be. At that rate it protects people's savings something that did not happen in the last 2 decades of ultra low rates worsening the wealth gap for Britons in different classes. Cutting taxes is about providing the economy a boost as rates go up. It is not about huge cuts, just modest cuts like the 30 billion pound cuts proposed by Truss. Minford is not talking about low taxes. He is simply talking about having taxes at levels that will promote growth- "the key to growth is not having high taxes. We're not talking about cutting them, just talking about not having them at catastrophic levels." Here is what Liz Truss is proposing- Reverse the recent rise in national insurance. Scrap the increase in corporation tax. About this plan Minford says- "If we raise corporation tax we will kill off growth." Minford dismisses concerns about borrowing. " It's crazy to begin to try to drop the debt to GDP ratio 5 minutes after Covid." With higher rates Minford also think there will be fewer "zombie" companies eating up the nation's capital, while protecting the savings of hard working ordinary people in Britain which hasn't happened in the last two decades of ridiculously low rates, worsening wealth gaps in British society. Minford calls Sunak's policies "puerile" and too much beholden to Treasury thinking. Liz Truss says Sunak's policies are for Brexit in name only, not taking advantage of Brexit to rid Britain of cautious policy that does not capitalize fully on cutting the bureaucratic and regulatory burden to get growth, and trade that favors Britain. ...

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This report in The Times cites David Stockman, Reagan's budget director, saying afterwards that the Reagan tax cuts were a Trojan horse for getting tax cuts to the rich. The Reagan cuts says The Times did not work and led to huge deficits. Liz Truss's new budget with tax cuts is seen as a policy failure at a time of cost of living crisis for most people in the UK.

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Is the UK government committed to keeping the triple lock on pensions that help pensioners, retirees, keep up with the cost of living. Liz Truss the UK prime minister waffles on this issue by first saying yes, then no, then yes. The US just announced social security payments to retirees will increase by 8.6% in 2023. The triple lock is a way of saying that pensions will be increased each year by the maximum of inflation or average earnings, and more than 2.5%. With inflation at over 10% UK pensions would be increased similar to the US, slightly higher by 10%. This is critical to meet needs of older Britons or Americans, and similar policies are being followed in France, Germany and other EU countries. Housing costs are rising very rapidly. This leaves less for food and heating. This means some older Britons or Americans are missing meals. In Britain a TUC report shows one of seven Britons missing meals because of income not keeping up with the cost of living crisis, which is now number one on people's minds.  ...

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The Brexit issues and Tory leaders talking to their supporters has and effect on French British relations. Macron comments on UK Foreign Secretary and likely prime minister Liz Truss's recent remarks that "the jury is out" on whether the French president Macron was "friend or foe." Macron says "its not good to lose your bearings too much." He says in answering the same question "I would not hesitate for a second. France is a friend of the British people." It all goes to show how British relations with France have been affected under the Conservatives party.

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Gerard Baker in the WSJ says there is a dizzying collapse in the quality of leadership in  Britain and also in the US and other countries of Europe.  we are led by too many inferior people, he says. Liz Truss, Johnson and Sunak in Britain are examples of this, he says. They lack the experience and the capabilities needed. This is also true of Meloni in Italy, Macron in France and Merkel in Germany, ineffectiveness of Obama and Trump in some ways in the US.

Yet he says there is another problem for Brexiters in Britain and for Trump Republicans in the US. This is one of the abject chaos that emerges from trying to reconcile the desire for strong government and government support of working class supporters and the tradition of lower taxes and no deficit spending in the Conservative and Republican parties. This is he says a warning for the Republicans from what he sees happening in Britain with Truss, Johnson and Sunak after Brexit.

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Liz Truss decides to appoint only loyalists to her cabinet after a leadership contest for the Tory party. Kwasi Kwarteng as chancellor, Susana Braverman as Home Secretary, and James Cleverly as Foreign Secretary. All conservatives lining up for positions in the new government were told in no uncertain terms not to criticize a plan first suggested by the Labour party to freeze energy bills at the current level. This could cost 100 billion pounds. Kwasi Kwarteng, Truss's nominee for finance minister says there will be need for some fiscal loosening. Under the 100 billion pound plan to help households with bills the energy bills would be frozen at current level of 1975 pounds per year. Under the plan, commercial banks would deposit money in a state backed fund, which suppliers could then draw on to freeze customer's bills. The government would pay this back over 10-15 years through taxation or a surcharge on bills. By making such quick moves to help households Truss would be putting Britons in a position similar to that in France where energy prices have been capped and Germany where cash payments help households cope with higher energy bills.  ...

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The Guardian follows key speeches and developments at the Labour party conference in Liverpool. This comes as the Labour party leads the Conservatives in the MRP poll by 12 points 45 percentage points to 33 points. Labour is favored in its approach to the cost of living crisis and climate change. Keir Starmer is steadily closing the credibility gap created by previous Labour administrations on policy for families and workers and conviction which has given Boris Johnson and Liz Truss an advantage in the past. Mr. Biden has faced and overcome a similar problem created by Democratic administrations in the past of a lack of conviction to help families and workers in the US.

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With British Foreign Secretary Liz Truss present during a visit to New Delhi, India's Foreign Minister S. Jaishankar says the western talk of sanctions "looks like a campaign." 

"If you look at the major buyers of Russian oil and gas you will find most of them are in Europe. We ourselves get the bulk of our energy supplies from the Middle East, about 8% of our oil from the US in the past, maybe less than 1 percent from Russia,"  said Jaishankar. He said in March Europe had bought 15% more oil from Russia than the month before. And he does not see this changing in coming months.

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About what sort of a leader Liz Truss will be the BBC's Nicholas Watt says it will be someone who cares, and will find a way to support the public with the cost of living crisis. Reports in the Guardian show she is likely to set up the freezing of energy bills at the current level of 1975 pounds with a 100 billion pound plan. That plan would involve commercial banks depositing cash in a state backed fund that would be repaid over 10-15 years. Of all the qualities seen in Truss the most is her adaptability and a sense of going with the groups that cares deeply about things. This is one reason why she supported the Brexiteers. A quality she shares with Boris Johnson is her affability, a sense of genuine concern for people, that has helped someone who was a Liberal Democrat, and had parents who were pro-Labor, and who was in Remain, easily act as someone who was always a Tory Brexiteer. One thing she brings from her father who is a Math professor is her passion for math says Watt, saying also that anyone going to 10 Downing Street to interview her needs to be ready for a tricky maths challenge. ...

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Can Britain take it, more Tory austerity cuts? Mark Landler in the NYT calls it one of the most austere budgets ever imposed on Britain, a country already in recession. Prime minister Sunak and finance minister Jeremy Hunt introduce a budget that will cut government programs saving 30 billion pounds and higher taxes of 25 billion pounds or $29.7 billion. This will mean a drop of 7% in disposable incomes of people in Britain over 2 years. After a series of missteps first under Boris Johnson and then briefly under Liz Truss, the Tory government of Rishi Sunak concentrates on budgetary constraints ignoring the promises made for growth and improving infrastructure, leveling up of regions, that were made by a series of Conservative governments. It lacks broad support as this government was not elected with this mandate. Boris Johnson won the election with traditional Labour support for leveling up, growth and infrastructure. None of this is happening. Also cut are budgets for the defense ministry, foreign aid and aid to cultural institutions in London. ...

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Liz Truss's 45 days in office as British prime minister is the shortest of any leader in British history. William Henry Harrison in 1847 was US president for 32 days, before he died of pneumonia. George Canning was  prime minister for 119 days before dying of tuberculosis. Alec Douglas-Home for 363 days more recently when he was replaced by Labour's Harold Wilson.  Douglas-Home in 1964 was seen as out of touch with Britain as an aristocrat in the House of Lords. Harold Wilson of Labour asked at the time how he could lead Britain for the technological revolution needed when he was "a scion (descendent)  of an effete (overrefined and ineffectual) establishment." Truss was seen as out of touch with post covid  Britain with one of seven people missing a meal in Britain and a cost of living crisis for most Britons when she announced a mini budget that did not provide assistance to struggling working families, as other Euroepan leaders were doing and instead cut taxes for higher income people. Douglas-Home abolished resale price maintenance program that prevented sharp price increases by food producers. He lost the 1964 election to Labour's Harold Wilson. Labour under Keir Starmer is in the same position today as it was in 1964 under Harold Wilson as it looks at the decline of the Conservatives. ...

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This article in The Times says UK business has already moved to ESG, the idea that business is also about environment, social and governance, ahead of Thatcherite era cabinet ministers Rishi Sunak, Priti Patel, Liz Truss and Dominic Raab. This was evident during the Tory conference in Manchester.  Boris Johnson is moving in line with voters and ahead of his ministers who are aware of the changes in the conservatives appeal to voters. Johnson is not attached to any preconceived idea of what the Tories are about. His only concern is to be where voters are and think like the voters, this is where he is happy being. Voters in Britain today think business is more than being about profits. New polling by the Social Market Foundation shows changing attitudes in the Conservative party and its supporters. In 2016 48% of Conservative voters thought it was important to remove regulations and rules for business. In 2021 this has fallen to 27%. Today economic fairness is a big concern. Inequality was a concern for 15% of Tory voters, today it is 28%, higher than Tories concern about removing regulations. Business leaders have also moved on after the Brexit referendum and see the need for meeting a social purpose. Some business leaders think the Thatcherite thinking of some cabinet ministers is "decades out of date." ...