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Fiscal Event Marks Major Shift In Conservative Gov'ts Policy Stance


Politically the fiscal event just concluded by Chancellor Kwasi Kwarteng in the House of Commons marks the largest shift in the policy stance of the Conservative party in a generation.

  • An economic agenda built around tax cuts, with many of them focused on higher earners, would not have been thinkable under former PM David Cameron and his Chancellor George Osborne's 'austerity' policies, nor Boris Johnson's 'leveling-up' agenda. The former of which focused on lowering gov't spending, while the latter was centered on boosting investment and infrastructure projects in the north of England.
  • Bloomberg reports that the cost of the package will be GBP161bn over five years.
  • The overt shift to a low-tax stance from the Conservatives could be seen as a risk to the party's seats in the north, where many voters were viewed to have been swayed to vote Conservative for the first time ever by former PM Johnson's lavish spending promises.
  • Opinion polling continues to show the Conservatives trailing the main opposition centre-left Labour Party by around 8-10% nationwide. On these figures, a Labour majority gov't or Labour-led coalition would be the most likely outcome of a general election.

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