middle income earners will be paying more tax and will feel the squeeze, even more than they are already. how can businesses grow if the people they rely on to spend have less money because they are paying more in tax? do you have about the direction the autumn budget went on? we learned eight weeks ago if you try to catch everybody s taxes and i hope it stimulates growth, that will backfire. if you do the opposite and do not have reasons for firms to investment you risk the recession being long there. the government needs to encourage firms to invest in the growth that pans next year. how? , . ., , . ., in the growth that pans next year. how? , .., , . ., ., ., how? they could be changing that tax s stem to how? they could be changing that tax system to make how? they could be changing that tax system to make sure how? they could be changing that tax system to make sure firms how? they could be changing that tax system to make sure firms that - system to make sure firms that inv
and the market freaked out. he s going to have to come up with tax increases and spending cuts that are going to be politically difficult because it s tough right now in the uk. you ve got inflation as you ve got here, but a huge energy shock, people s cost of living has soared. living standards are tumbling. in that environment, he has to raise taxes and cut spending, and he has to find a way to get the economy going again. the uk, this was another cover we did last week. we called it welcome to britney, because uk is looking more like italy. our italian leaders didn t like the comparison. it s becoming the uk, a politically unstable, slow growing economy. we have had no productivity growth for a long time. we need to find the reforms that get the economy going again and that s going to be very hard for him because it involves things like building reform, planning reform. infrastructure, all the things which would be easy to do if you could spend a lot of money.
seen to be exercising this duty, this responsibility, the separation of the role of the monarch from the political establishment, to appoint an invite somebody to become prime minister. . ~ an invite somebody to become prime minister. ., ,, , ., , . , minister. thank you very much. let s talk about the minister. thank you very much. let s talk about the hard minister. thank you very much. let s talk about the hard political- talk about the hard political realities that are facing the new prime minister when he takes office later this morning. the economy, of course, is the critical one, after that badly received budget by the former chancellor who liz truss promptly sacked, replaced with jeremy hunt, who in effect collapsed the economic policy that liz truss had won the conservative leadership election on, a big push for growth, tax cuts funded by extended borrowing and some kind of supply side changes which were thought to include speeding up things like planning reform in the u
of a symptom of the low growth than a cause. in terms of the prospects for growth, growth is hard. growth requires painful reforms, it would be wonderful if the process will getting infrastructure projects through would be easily bet, it would be wonderful if there could be some planning reform, those things are difficult and the question now is, does the liz truss administration have political credibility, does it have the ability to push those harder truly growth boosting things through? i am sce tical. growth boosting things through? i am sceptical- and growth boosting things through? i am sceptical. and in growth boosting things through? i am sceptical. and in terms of where inflation goes, there was a lot of discussion about the bank of england and the government pulling in different directions with the bank of england s remit to try to keep inflation at 2%, whereas it is just under 10% currently. and the measure
wants milk and honey coming out of the taps. i mean, everybody wants the economy to grow. what i m asking you is why people watching at home this morning can look at what s happened at total chaos in the last few weeks, the prime minister again and again changing her mind about things. why should they now be able to trust what she or what you are saying to them? because she s listened, she s changed. she s been willing to do that most difficult thing in politics, which is to change tack. and there s a second reason as well. you say it s milk and honey to talk about wanting economic growth. well, what we re going to do is to show notjust what we want, but how we re going to get there. the start of that will be the difficult decisions we take a fortnight on monday that show that we can fund everything we want and that we re doing what we can to keep interest rate rises low. but the second half of that will be the broader economic growth plans. the practical things that conservatives unde