London Daily

Focus on the big picture.
Monday, Jul 14, 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
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
×