London Daily

Focus on the big picture.
Friday, Aug 29, 2025

Rivals to succeed Boris Johnson blasted for 'fantasy' economic plans

Rivals to succeed Boris Johnson blasted for 'fantasy' economic plans

Britain's leading politicians have been accused of coming up with "pure fantasy" solutions to the country's problems, amid the worst cost-of-living crisis in decades.

At the same time, the government has been denounced as "missing in action", distracted by the Conservative Party's leadership race to determine who will replace Boris Johnson.

The outgoing prime minister's office confirmed on Monday that he had begun a week's holiday, his second break in a fortnight. Downing Street said last week that it would be up to "the future prime minister" to take new measures.

Liz Truss and Rishi Sunak, the two remaining contenders to succeed Johnson, have been concentrating on winning over party members who are voting this month for the new leader.

It comes at a time when the economy is facing a prolonged recession and UK inflation is the highest in the G7, hitting a 40-year high this summer. In July it rose to 9.4%, and the Bank of England expects it to hit double figures come October when household energy bills are due to rise again.

Paul Johnson, Director of the Institute for Fiscal Studies, is unimpressed with the economic plans of both Tory leadership rivals, as well as those of the Labour opposition.

"We (economists) tend to look at difficult things like costs and benefits, trade-offs, pros and cons. Our political leaders seem less and less willing to acknowledge that such trade-offs even exist. Apparently, we can have our cake and eat it," he wrote in an article published on Monday.

Truss, the foreign secretary, has said she prefers tax cuts to "handouts", and has not committed to increasing direct payments to consumers.

Sunak, the former chancellor (finance minister), has backed "urgent help" to enable people to pay bills, without giving specifics. "Failure to do this would push millions, including many pensioners, into a state of destitution," he said on Saturday.

Earlier this year he approved a £400 (€475) payment to offset fuel bills that all households will get this autumn. He opposes immediate tax cuts but has vowed to slash the basic rate of income tax by 20% by 2029.

"We’ve had a shower of cakeism recently. Both the 2019 Labour and Conservative manifestos were stuffed full of it," said Paul Johnson of the IFS. "Both Conservative leadership contenders are guilty of it. They seem to think they can promise tax cuts without any hint that this might matter for the quality of public services or the level of borrowing and debt."


Paul Johnson also criticised Britain's opposition Labour leader, after he called on Monday for the energy price cap to be frozen.

"Keir Starmer has now suggested that we “suspend” the energy price cap. In other words, find £30 billion-plus (€35.6 billion) to subsidise energy bills," he wrote.

"The fact remains that if we want to buy gas on the world market then we will have to pay a lot more for it than we have been used to. We are competing for that gas in a world in which demand is rising faster than supply. That’s why the price is rising."

However, Johnson acknowledged that "Labour has gone much further than Conservative leadership contenders" in giving details of how to pay for its plans. Starmer said his party, if in power, would extend a windfall tax on oil and gas companies in the North Sea to raise £8.1 billion (€9.6 billion).

Analysts Cornwall Insight have predicted that a typical annual household energy bill could reach the equivalent of €5,000 in January. The energy consultancy Auxilione has suggested that the figure could approach €6,000 in the first half of 2023.

Early last week, Scotland's First Minister Nicola Sturgeon, called for a meeting of the UK's four nations' leaders to develop an urgent plan. "The current Westminster paralysis can’t go on," she tweeted.

Martin Lewis, a consumer champion who runs the popular Money Saving Expert website, warned that "we are facing a potential national financial cataclysm", with millions unable to heat their homes this winter.

Meanwhile the UK's former Labour Prime Minister Gordon Brown, who was in power during the 2008 global financial crisis, called for Boris Johnson, Truss and Sunak to get together and draw up an emergency budget in preparation for a “financial time bomb” in October.

“It’s not just that they’re asleep at the wheel — there’s nobody at the wheel at the moment,” he told broadcaster ITV.

Last Thursday Boris Johnson and senior ministers held inconclusive talks with energy companies amid mounting pressure to help consumers.

Afterwards, the outgoing leader insisted that "significant fiscal decisions" must be left to his successor. Later, he sought to ease concern.

"What we're doing in addition is trying to make sure that by October, by January, there is further support and what the government will be doing, whoever is the prime minister, is making sure there is extra cash to help people," he said.

The winner of the Conservative leadership race — who will also become the next prime minister — is due to be announced on September 5.

Newsletter

Related Articles

0:00
0:00
Close
UK Bank Shares Dive Over Potential Tax on Sector
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
×