ConsUmer confIdence has slUmped. Is the Doom And Gloom laboUr Is sellIng sappIng all enthUsIasm for the brItIsh economy . The governments crItIcs say, It Is tIme for a new message . Reform say they wIll transform the party to pUt NIgel Farage In nUmber 10. Its a bIg pledge for a party wIth fIve mps. How are they goIng to do It . Good EvenIng And Welcome to newsnIght the home of InsIght and IntevIews. On oUr panel tonIght, The PromInent LaboUr Donor and champIon of Green Energy dale vInce, the former BrexIt Party mep, now talk presenter, alex phIllIps. And the Uk DIrector of more In common lUke tryl. For weeks now the government has been tellIng Us the coUntrys fInances are In a rIght old mess. Prepare yoUrself for some paIn, saId the PrIme MInIster. Well, It seems the coUntry has taken hIm at hIs word. ConsUmer sentIment, whIch powers the economy, has dropped lIke a stone In september. We are less wIllIng to spend, whIch means small and medIUm sIzed bUsInesses are not InvestIng eIther. Even the PrIme MInIster annoUnced today he woUld not be bUyIng any new clothes for dIfferent reasons mohamed El ErIan Is the chIef economIc advIser to the Asset Manager AllIanz and presIdent of qUeens college cambrIdge. Why Is ConsUmer SentIment are so closely tracked by economIsts . It measUres oUr wIllIngness to do somethIng so whether yoU spend as a fUnctIon of are yoU able and wIllIng to spend . If yoU wIllIngness goes down then yoU wIll not spend even thoUgh yoU are able to and that Is a concern people have. It Is thoUgh yoU are able to and that Is a concern people have. Concern people have. It Is obvIoUs to Everybody Concern people have. It Is obvIoUs to everybody that concern people have. It Is obvIoUs to everybody that If concern people have. It Is obvIoUs to everybody that If People Concern people have. It Is obvIoUs to everybody that If people are. Concern people have. It Is obvIoUs| to everybody that If people are not spendIng then yoU cannot grow the economy, so has LaboUrs Message backfIred . It economy, so has LaboUrs Message backfIred ... backfIred . It Is Important to realIse that backfIred . It Is Important to realIse that laboUr backfIred . It Is Important to realIse that laboUr Is backfIred . It Is Important to realIse that laboUr Is beIng | backfIred . It Is Important to realIse that laboUr Is beIng honest In what It Is sayIng, dead honest. And It Is beIng caUtIoUs and how It thInks aboUt Its fIscal prospects. So It Is IronIc that It Is beIng blamed for UndermInIng the economy. The problem Is not the messagIng as mUch as that It Is not beIng accompanIed by a coUple of thIngs. If yoU are goIng to tell someone yoUre goIng on a fIckle joUrney, sell the DestInatIon And DontjUst focUs on the joUrney. And If yoU focUs on the joUrney. And If yoU focUs on the joUrney, dont do It In a pIecemeal manner, do not annoUnce one measUre here and another there are, bUt In a package so people Understand how they are beIng treated holIstIcally to The Problem wIth the gIven occasIon Is not honesty, not caUtIon, It Is too pIecemeal and lacks the overall framIng of Orwe PIecemeal and lacks the overall framIng of or we are goIng to and why we are goIng throUgh thIs dIffIcUlt tIme. It why we are goIng throUgh thIs dIffIcUlt tIme. Why we are goIng throUgh thIs dIffIcUlt tIme. It Is becaUse the destInatIon dIffIcUlt tIme. It Is becaUse the destInatIon Is dIffIcUlt tIme. It Is becaUse the destInatIon Is better. DIffIcUlt tIme. It Is becaUse the destInatIon Is better. Is dIffIcUlt tIme. It Is becaUse the destInatIon Is better. Is a dIffIcUlt tIme. It Is becaUse the | destInatIon Is better. Is a dIrect lInk between the way the message has been sold and the downtUrn we have seenIn been sold and the downtUrn we have seen In ConsUmer SentIment thIs month . ~.... month . AccordIng to the people who do these sUrveys, month . AccordIng to the people who do these sUrveys, they month . AccordIng to the people who do these sUrveys, they say month . AccordIng to the people who do these sUrveys, they say the month . AccordIng to the people who do these sUrveys, they say the maIn | do these sUrveys, they say the maIn reason why we have seen the Shock Drop to levels last seen last janUary, we have raIsed all of the games In one month, Is becaUse of the notIon of a paInfUl bUdget and when they hear that they thInk of two thIngs, hIgher taxes and more aUsterIty on the SpendIng SIde and that makes people more caUtIoUs so yoU have to explaIn that we wIll haveIt yoU have to explaIn that we wIll have It paInfUl bUt wIth a pUrpose. The same way Gordon Brown In 97 explaIned that we are prUdent wIth the pUrpose. And the pUrpose Is a better oUtcome In terms of more InclUsIve growth and more dUrable growth that Is sUstaInable. The treasUry MInIsterjames MUrray dId gIve a response to thIs today. Let Us lIsten to what the Government PosItIon Is on thIs. And I thInk everyone across BrItaIn KnowsjUst how bad the InherItance was, and obvIoUsly, sInce we got Into offIce, weve had It confIrmed that thIngs are even worse than we thoUght. We have a 22 bIllIon black hole, the spendIng pressUres we are goIng to have to address In the bUdget. YoU speak to FocUs GroUps a lot. Has laboUr ever done the Fear Factor . There Is a rIsk they mIght have, what there Is a rIsk they mIght have, what Is there Is a rIsk they mIght have, what Is strIkIng wIth conversatIons from what Is strIkIng wIth conversatIons from the what Is strIkIng wIth conversatIons from the pUblIc In recent weeks as people from the pUblIc In recent weeks as pe0ple say from the pUblIc In recent weeks as people say thIngs lIke I am genUIne read aboUt people say thIngs lIke I am genUIne read aboUt what she wIll say In october read aboUt what she wIll say In october and someone last nIght saId I am scared october and someone last nIght saId I am scared aboUt It as well. One thIng I am scared aboUt It as well. One thIng yoU I am scared aboUt It as well. One thIng yoU have to remember Is for the pUblIc thIng yoU have to remember Is for the pUblIc thIs Is not the fIrst tIme the pUblIc thIs Is not the fIrst tIme that the pUblIc thIs Is not the fIrst tIme that they have been told they have to tIme that they have been told they have to make dIffIcUlt decIsIons. They have to make dIffIcUlt decIsIons. They basIcally have been hearIng that message sInce 2008. After the fInancIal that message sInce 2008. After the fInancIal crash, then after brexIt and after fInancIal crash, then after brexIt and after the pandemIc and yoU are gettIng and after the pandemIc and yoU are gettIng It and after the pandemIc and yoU are gettIng It agaIn now and what they need to gettIng It agaIn now and what they need to hear, they do not want boosterIsm, they know thIngs are dIffIcUlt boosterIsm, they know thIngs are dIffIcUlt bUt they need to hear that there dIffIcUlt bUt they need to hear that there wIll dIffIcUlt bUt they need to hear that there wIll be toUgh decIsIons bUt at there wIll be toUgh decIsIons bUt at The End there wIll be toUgh decIsIons bUt at The End of there wIll be toUgh decIsIons bUt at The End of It thIngs are goIng to be hetter~ The End of It thIngs are goIng to be better. That Is what the rhetorIc has messed, It Is all of the Gloom And None has messed, It Is all of the Gloom And None of the, what does It look lIke on and none of the, what does It look lIke on the and none of the, what does It look lIke on the other sIde . What does brItaIn lIke on the other sIde . What does brItaIn look lIke . In mIssIng that they are brItaIn look lIke . In mIssIng that they are rIskIng InstIllIng thIs mode they are rIskIng InstIllIng thIs mode of they are rIskIng InstIllIng thIs Mode Of BrItaIn beIng horrIble and that Is Mode Of BrItaIn beIng horrIble and that Is dangeroUs. The}r mode of brItaIn beIng horrIble and that Is dangeroUs. That Is dangeroUs. They have not annoUnced that Is dangeroUs. They have not annoUnced an that Is dangeroUs. They have not annoUnced an end that Is dangeroUs. They have not annoUnced an end to that Is dangeroUs. They have not annoUnced an end to the that Is dangeroUs. They have not annoUnced an end to the wInterl that Is dangeroUs. They have not annoUnced an end to the wInter fUel payment, they have annoUnced. That wIll have an effect on DIsposable Income . That wIll have an effect on dIsosable Income . ~ ,.. DIsposable Income . AbsolUtely and focUs groUns DIsposable Income . AbsolUtely and FocUs GroUps wIll DIsposable Income . AbsolUtely and FocUs GroUps wIll cIte DIsposable Income . AbsolUtely and FocUs GroUps wIll cIte that, DIsposable Income . AbsolUtely and FocUs GroUps wIll cIte that, the FocUs GroUps wIll cIte that, the StUff FocUs groUps wIll cIte that, the stUff they saId was easy that they start wIth stUff they saId was easy that they start wIth Is takIng money from pensIoners, what does a really bad stUff In pensIoners, what does a really bad stUff In the pensIoners, what does a really bad stUff In the BUdget Look lIke . I woUld stUff In the BUdget Look lIke . I woUld agree, they made a bIg mIstake annoUncIng woUld agree, they made a bIg mIstake annoUncIng that as a stand alone measUre annoUncIng that as a stand alone measUre becaUse that has become the defInIng measUre becaUse that has become the defInIng annoUncement of thIs government, takIng away the wInter fUel allowance. Government, takIng away the wInter fUelallowance. If government, takIng away the wInter fUel allowance. If they had done that wrapped Up In the bUdget then thIngs that wrapped Up In the bUdget then thIngs mIght be better. As mohammed sa s, OU ThIngs mIght be better. As mohammed says. YoU have thIngs mIght be better. As mohammed says. YoU have to thIngs mIght be better. As mohammed says, yoU have to look thIngs mIght be better. As mohammed says, yoU have to look at thIngs mIght be better. As mohammed says, yoU have to look at the says, yoU have to look at the context In whIch they are operatIng and we fInd oUt today that natIonal debt Is 100 of economIc oUtpUt, the hIghest level sInce the 1960s and we have spent 6 bIllIon last Month ServIcIng Debt payments. If yoU extrapolate that over the year at the same Interest rate, bUt has 40 of what we spend on health. It Is a bIg amoUnt. Do yoU accept that there does have to be thIs paIn for the longer term gaIns . I does have to be thIs paIn for the longerterm gaIns . Longerterm gaIns . I am a Broadcaster Longerterm gaIns . I am a Broadcaster And Longerterm gaIns . I am a Broadcaster And PolItIcIan L Longerterm gaIns . I am a I Broadcaster And PolItIcIan bUt longerterm gaIns . I am a Broadcaster And PolItIcIan bUt what I Broadcaster And PolItIcIan bUt what I woUld Broadcaster And PolItIcIan bUt what I woUld say Broadcaster And PolItIcIan bUt what I woUld say Is Broadcaster And PolItIcIan bUt what I woUld say Is my Broadcaster And PolItIcIan bUt what I woUld say Is my basIc I woUld say Is my basIc UnderstandIng I woUld say Is my basIc UnderstandIng of I woUld say Is my basIc UnderstandIng of economIcs as It I woUld say Is my basIc UnderstandIng of economIcs as It Is a Debttogdp UnderstandIng of economIcs as It Is a debt to Gdp RatIo UnderstandIng of economIcs as It Is a debt to gdp RatIo And UnderstandIng of economIcs as It Is a Debt To Gdp RatIo and that UnderstandIng of economIcs as It Is a Debt To Gdp RatIo and that doesl a Debt To Gdp RatIo and that does not oUt a Debt To Gdp RatIo and that does not pUt Us a Debt To Gdp RatIo and that does not pUt Us at a Debt To Gdp RatIo and that does not pUt Us at the a Debt To Gdp RatIo and that does not pUt Us at the bottom a Debt To Gdp RatIo and that does not pUt Us at the bottom of a Debt To Gdp RatIo and that does not pUt Us at the bottom of the. Not pUt Us at the bottom of the class not pUt Us at the bottom of the class wIth not pUt Us at the bottom of the class wIth sImIlar not pUt Us at the bottom of the class wIth sImIlar coUntrIes. Not pUt Us at the bottom of the. Class wIth sImIlar coUntrIes. And the Government Class wIth sImIlar coUntrIes. And the government mUst class wIth sImIlar coUntrIes. And the government mUst decIde class wIth sImIlar coUntrIes. And I the government mUst decIde then whether the government mUst decIde then whether the the government mUst decIde then whether the roUte the government mUst decIde then whether the roUte they the government mUst decIde then whether the roUte they take the government mUst decIde then whether the roUte they take Is whether the roUte they take Is taxatIon whether the roUte they take Is taxatIon and whether the roUte they take Is taxatIon and aUsterIty, whether the roUte they take Isl TaxatIon and aUsterIty, whether whether the roUte they take Is I taxatIon and aUsterIty, whether If there taxatIon and aUsterIty, whether If there Is taxatIon and aUsterIty, whether If there Is any taxatIon and aUsterIty, whether If there Is any Space TaxatIon and aUsterIty, whether If there Is any space to taxatIon and aUsterIty, whether If there Is any space to borrow taxatIon and aUsterIty, whether If| there Is any space to borrow more and whIch there Is any space to borrow more and whIch one there Is any space to borrow more and whIch one wIll there Is any space to borrow more and whIch one wIll grow there Is any space to borrow more and whIch one wIll grow the there Is any space to borrow more I and whIch one wIll grow the economy wIthIn and whIch one wIll grow the economy wIthIn the and whIch one wIll grow the economy wIthIn the cIrcUmstances and whIch one wIll grow the economy wIthIn the cIrcUmstances yoU and whIch one wIll grow the economy wIthIn the cIrcUmstances yoU are I and whIch one wIll grow the economy wIthIn the cIrcUmstances yoU are In. I wIthIn the cIrcUmstances yoU are In. We overheated wIthIn the cIrcUmstances yoU are In. We overheated the wIthIn the cIrcUmstances yoU are In. We overheated the economy wIthIn the cIrcUmstances yoU are In. We overheated the Economy DUrIngl we overheated the economy dUrIng covId, we overheated the economy dUrIng covId, we we overheated the economy dUrIng covId, we shUt we overheated the economy dUrIng covId, we shUt down we overheated the economy dUrIng covId, we shUt down the we overheated the economy dUrIng covId, we shUt down the economy. We overheated the economy dUrIng I covId, we shUt down the economy and we had covId, we shUt down the economy and we had to covId, we shUt down the economy and we had to prInt covId, we shUt down the economy and we had to prInt lots covId, we shUt down the economy and we had to prInt lots of covId, we shUt down the economy and we had to prInt lots of money covId, we shUt down the economy and we had to prInt lots of money and I we had to prInt lots of money and that Is we had to prInt lots of money and that Is the we had to prInt lots of money and that Is the sItUatIon we had to prInt lots of money and that Is the sItUatIon we we had to prInt lots of money and that Is the sItUatIon we are we had to prInt lots of money and that Is the sItUatIon we are In I we had to prInt lots of money and that Is the sItUatIon we are In as I that Is the sItUatIon we are In as well that Is the sItUatIon we are In as well as that Is the sItUatIon we are In as well as hUge that Is the sItUatIon we are In as well as hUge amoUnts that Is the sItUatIon we are In as well as hUge amoUnts of that Is the sItUatIon we are In asl well as hUge amoUnts of InflatIon caUsed well as hUge amoUnts of InflatIon caUsed lry well as hUge amoUnts of InflatIon caUsed by the well as hUge amoUnts of InflatIon caUsed by the energy well as hUge amoUnts of InflatIon caUsed by the energy crIsIs. I well as hUge amoUnts of InflatIon I caUsed by the energy crIsIs. PIckIng Up caUsed by the energy crIsIs. PIckIng Up on caUsed by the energy crIsIs. PIckIng Up on the caUsed by the energy crIsIs. PIckIng Up on the other caUsed by the energy crIsIs. PIckIng Up on the other poInt, caUsed by the energy crIsIs. PIckIng Up on the other poInt, rhetorIc, I Up on the other poInt, rhetorIc, thIs was Up on the other poInt, rhetorIc, thIs was the Up on the other poInt, rhetorIc, thIs was the party Up on the other poInt, rhetorIc, thIs was the party that Up on the other poInt, rhetorIc, thIs was the party that spoke I Up on the other poInt, rhetorIc, I thIs was the party that spoke before the ElectIon thIs was the party that spoke before the ElectIon aboUt thIs was the party that spoke before the ElectIon aboUt growth. ThIs was the party that spoke before the ElectIon aboUt growth. ThIs I thIs was the party that spoke before the ElectIon aboUt growth. ThIs Is I the ElectIon aboUt growth. ThIs Is what the ElectIon aboUt growth. ThIs Is what partIes the ElectIon aboUt growth. ThIs Is what partIes were the ElectIon aboUt growth. ThIs Is what partIes were tradIng the ElectIon aboUt growth. ThIs Is what partIes were tradIng and I the ElectIon aboUt growth. ThIs Is what partIes were tradIng and In. The ElectIon aboUt growth. ThIs Is I what partIes were tradIng and In the snap ElectIon what partIes were tradIng and In the snap ElectIon CampaIgn what partIes were tradIng and In the snap ElectIon CampaIgn so what partIes were tradIng and In the snap ElectIon CampaIgn so we what partIes were tradIng and In the snap ElectIon CampaIgn so we do I what partIes were tradIng and In theI snap ElectIon CampaIgn so we do not have tIme snap ElectIon CampaIgn so we do not have tIme to snap ElectIon CampaIgn so we do not have tIme to scrUtInIse snap ElectIon CampaIgn so we do not have tIme to scrUtInIse or snap ElectIon CampaIgn so we do not have tIme to scrUtInIse or formUlate I have tIme to scrUtInIse or formUlate anythIng have tIme to scrUtInIse or formUlate anythIng bUt have tIme to scrUtInIse or formUlate anythIng bUt a have tIme to scrUtInIse or formUlate anythIng bUt a threadbare have tIme to scrUtInIse or formUlate | anythIng bUt a Threadbare ManIfesto and what anythIng bUt a Threadbare ManIfesto and what we anythIng bUt a Threadbare ManIfesto and what we have anythIng bUt a Threadbare ManIfesto and what we have seen anythIng bUt a Threadbare ManIfesto and what we have seen sInce anythIng bUt a Threadbare ManIfesto and what we have seen sInce Is anythIng bUt a Threadbare ManIfesto and what we have seen sInce Is a I anythIng bUt a Threadbare ManIfesto and what we have seen sInce Is a lot of polIcIes and what we have seen sInce Is a lot of polIcIes know and what we have seen sInce Is a lot of polIcIes know when and what we have seen sInce Is a lot of polIcIes know when yoU and what we have seen sInce Is a lot of polIcIes know when yoU were I of polIcIes know when yoU were comIng of polIcIes know when yoU were comIng hUge of polIcIes know when yoU were comIng. HUge sUrprIses. Of polIcIes know when yoU were comIng. HUge sUrprIses. I of polIcIes know when yoU were comIng. HUge sUrprIses. Iwantj of polIcIes know when yoU were I comIng. HUge sUrprIses. I want to pIck Up comIng. HUge sUrprIses. I want to pIck Up on comIng. HUge sUrprIses. I want to pIck Up on thIs comIng. HUge sUrprIses. I want to pIck Up on thIs Idea comIng. HUge sUrprIses. I want to pIck Up on thIs Idea that comIng. HUge sUrprIses. I want to pIck Up on thIs Idea that people I comIng. HUge sUrprIses. I want to. PIck Up on thIs Idea that people are scared, pIck Up on thIs Idea that people are scared, I pIck Up on thIs Idea that people are scared, IthInk pIck Up on thIs Idea that people are scared, I thInk they pIck Up on thIs Idea that people are scared, I thInk they are. PIck Up on thIs Idea that people are scared, I thInk they are. There I pIck Up on thIs Idea t