Fṛm Đ Obzrvr: Liz Truss’s disastrous ‘fiscal event’

Liz Truss and her chancellor, Kwasi Kwarteng, have delivered a financial package straight out of the Singapore-on-Thames fantasy of right-wing Tory Brexiters. Photograph: WPA/Getty Images
Liz Trus n hr ćanslr, Qāzi Qarteñ, hv dlivrd a fînanśl pacij stret ǎt v ɖ Snġpor-on-Tmz fanṭsi v rît-wñ Tori Brexitrz. Foṭgraf: WPA/Geti Iṃjz

Ɖ Obzrvr vy on Liz Trus’z dzastṛs ‘fiscl ivnt’

(Transcription of an editorial published in the Observer on 25 September 2022)

Ɖs wz a brezn gambl ɖt cn onli damij Britn’z fyćr

Súnde 25 Sptmbr 2022

Ɖ  frst mejr fiscl inṭvnśn bî a ny prîm̦inistr hz śrli nvr bn grītd wɖ sć wîdspred dsden. Les ɖn ʈri wīcs intu Liz Trus’z premịrśp, hr ny ćanslr, Qāzi Qarteñ, anǎnst ɖ bigist program v taxcuts in haf a snć̣ri, wn ɖt wl beṇfit ɖ vri wlʈiist ẃl adñ tnz v biłnz t ɖ naśnl dét. Ɖ marcitriax́n wz instnteńs: ɖ pǎnd dropt t its lǒist levl agnst ɖ dolr sins 1985. Ɖ “groʈplan” wz rubiśt bî ʈnctancs sć az ɖ Insttyt fr Fiscl Studiz. Bac-bnć Cnsrṿtivz lambastd ɖ plan az “ic̣nomicli dybịs”. N Lari Sumrz, ɖ formr YS Treẓ́risecṛtri, akzd ɖ YC v bhevñ lîc an “imrjñ marcit trnñ intu a submrjñ marcit”.

Ɖoz r jst vrdicts on ɖ substns v Frîde’z rmarcbl anǎnsmnts. Ɖ YC icoṇmi z suḟrñ az a rzult v ɖ globl eṇjiprîs śoc n a deced v pur prodctivtigroʈ, md wrs bî irectñ hyj barịrz t tred wɖ ɖ YY. Ɖz srcmstansz r mcñ evrwn purr, wɖ ptiklrli deḷtirịs consiqnsz fr lo-incm hǎsholdz wɖ ćildṛn, ppl wɖ dis’biḷtiz n pur pnśnrz. Ẃt z despṛtli nīdd z rjnt s’port tarġtd at ɖ hardist-hit hǎsholdz, plus ɖ invstmnt in scilz, infṛstrucćr n biznisfînans t rībaḷns ɖ icoṇmi awe fṛm groʈ best on cnsymrspendñ, fyld bî rîzñ hǎsprîsz, n twdz biznis invstmnt n xports.

Instd, Qarteñ hz anǎnst a set v taxcuts ɖt ćanl hyj genz t ɖ vri rićist n a scatrgun plan fr dīreğletñ ɖ icoṇmi. Dspt ɖ fact ɖt ɖs z a hyjli sgnificnt fiscl inṭvnśn, h hz privntd ɖ indipndnt Ofis fr Bujit Rsponsbiḷti fṛm pṛdysñ its ǒn fōrcasts, implōẓbli clemñ hiz meźrz wl pt ɖ YC on a paʈ t trend groʈ v 2.5%. Bt – qac īc̣nomics asd – ɖr z no plōẓbl ʈiyri v ćenj ɖt lincs Qarteñ’z taxcuts t sć boynt groʈ. Ɖe wl mc s purr az ɖ détbrdn b’lūnz.

Ɖ taxcuts wl hv teṛbl consiqnsz fr levlz v iniqoḷti n poṿti in Britn. Īvn bfr ɖ eṇjiprîs crîsis, lo-incm hǎsholdz fest a grim rec̣nñ: a deced v cuts t taxcredits bî Cnsrṿtiv ćanslrz, ẃć peid fr taxcuts dispṛporśṇtli beṇfitñ ɖ mor aflụnt, hz ript opn ɖ fînanśl seftinet so importnt fr lo-peid peṛnts t cīp ćildṛn ǎt v poṿti. Hǎsholdz in rsit v yṇvrsl credit wl b olmst £1,500 a yir wrs of fṛm Octobr az a rzult v infleśn n rîzñ eṇjiprîsz. Ɖ Reẓluśnfǎndeśn hz fōrcast ɖt, tecñ intu acǎnt yesṭde’z anǎnsmnts, anɖr 700,000 ćildṛn wl b livñ in poṿti in tū yirz’ tîm, wɖ consiqnsz fr ɖer edyceśn, hlʈ n implômnt fr ɖ rest v ɖer lîvz.

Mnẃl, it z ɖ rićist hu stand t gen most fṛm last wīc’s anǎnsmnts, includñ ɖ scrapñ v ɖ 45% taxret n ɖ cap on bancrz’ boṇsz. Ppl wɖ incmz v les ɖn £155,000 wl pe mor incmtax fṛm nxt Epril; ɖoz on mor ɖn ɖs wl gen, ofn sbstanṣ́li: smwn wɖ an ańl incm v mor ɖn £1m wl b mor ɖn £40,000 a yir betr of. Hǎsholdz in ɖ top 5% v wlʈdistṛbyśn wl gen, on aṿrij, mor ɖn £8,000 a yir az a rzult v Qarteñ’z ćenjz; ɖoz in ɖ purist 10% gt nʈñ. Ɖt wd iqet t pṛvîdñ s’port v £2,000 fr evri hǎshold amñ ɖ purist 20%, ẃć wd d far mor t būst groʈ gvn ɖt ɖ wlʈi r mor lîcli t sev ɖ rwordz ɖe gen. Az a rzult v Qarteñ’z fiscl lūṣnñ, ɖ Banc v Ñgḷnd z olmst srtn t hîc inṭrestrets īvn frɖr in ɖ cmñ wīcs, inflictñ frɖr pen on ɖoz wɖ morġjz or in dét. N, ẃn ɖ promist groʈ felz t mtirịlîz, ɖs z lîcli t pś ministrz twdz cutñ public-srvis bujits frɖr, īvn az NHS n scūl fînansz r olrdi undr svir stren.

Ɖr z no deṃcratic mandet fr ɖs pacij: Trus hz nvr wún a jenṛl ilex́n n ɖ meźrz marc a hyj śift fṛm ɖ 2019 maṇfesto. Bt ɖ Qarteñ pacij z ɖ oft hopt-fr desṭneśn v ɖ hard-rît Tori flanc. Fr ɖm, Brexit wz olwz a mīnz t an end: t slaś taxz n reğleśnz t a dgri ɖt ivedd īvn Marġrit Ʈaćr. Bt ɖr z nʈñ Cnsrṿtiv abt gvñ uņesṣri handǎts t ɖ rić n brḍnñ ɖoz in ɖer 20z n 30z wɖ ɖ cost v fînansñ ɖ xtrordnri rîz in ɖ naśnl dét fr ɖ rest v ɖer wrcñlivz. No cuntri hz s’xesḟli aćivd groʈ ʈru ɖz mīnz. Ɖ “Snġpor-on-Tmz” fanṭsi v Cnsrṿtiv Brexitrz z jst ɖt: Snġpor z a tîni, oʈoṛterịn sitistet ɖt spendz a gret dīl on its hîli activ industrịl poḷsi. Wn acdemic studi v 18 OICD icoṇmiz faund ɖt taxcuts d nʈñ fr groʈ n instd incris incm iniqoḷti.

Trus n Qarteñ’z îdịlojicl aproć criets a sgnificnt ćans fr Lebr t śo it hz an oltrṇtiv ic̣nomic viźn fr Britn at its particonfṛns ɖs wīc. Cir Starmr hz sd ɖt Lebr wd invst in mcñ Britn slf-sfiśnt in ilectriṣti bî 2030, bî būstñ rnywbl sorsz v eṇji, n ɖt z xacli ɖ bold ʈncñ ɖ cuntri nīdz. Bt ɖ teṛbl truʈ z ɖt huevr winz ɖ nxt ilex́n wl inherit wn v ɖ wrst-evr ic̣nomic ǎtlŭcs az a product v Trus’z brezn, îdịlojicl xperimnt. It wl cost ɖ cuntri dir.

Instroduction to Ñspel

25/09/2022

Comments welcomed

This site uses Akismet to reduce spam. Learn how your comment data is processed.