Show me the money
Kite flying is a favourite pastime of our political lords and masters. Managing expectations ahead of events is a key part of the process.
So I take with a pinch of salt claims that the Chancellor has to find £50 billion of savings to fill the black hole in his finances, or that government departments face cuts of 10-15%.
But having said that the hole is still massive and the cuts necessary very painful and what no one seems to know is where did all the money go?
A few weeks ago there was tens of billions available for help with fuel bills, and £47 billion for tax cuts, all borrowed; with more to follow.
Now the finances are in such a terrible state only a new wave of austerity can possibly reassure the markets.
True the government’s cost of borrowing has risen and the markets now need constant reassurance that the Tory party can be trusted. But even so there is a huge gap between what Rishi Sunak as Chancellor was telling us, compared to Rishi Sunak as PM.
Maybe what has really happened is that the markets have taught both Liz Truss and Rishi Sunak a lesson.
Income projections based on fantasy growth is not real money.
Rishi Sunak has been very lucky because he was out of power for the short period when this became evident. But I suspect it would have become evident at some point.
The fiscal gap is so large because it was always there, it is just that Liz Truss was stupid enough to demonstrate the fact to the markets.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media