London Daily

Focus on the big picture.
Sunday, Dec 14, 2025

With the UK economy in freefall, Rishi Sunak clings to a fracturing Tory coalition

With the UK economy in freefall, Rishi Sunak clings to a fracturing Tory coalition

The UK prime minister has delayed the worst of his spending cuts to try to keep new Tory voters on side.

It had been billed as Austerity 2.0.

But the £55 billion package of tax rises and spending cuts unveiled by U.K. Prime Minister Rishi Sunak and Chancellor Jeremy Hunt on Thursday tried to delay the pain where possible, for as long as they could.

In a sense the pair had little choice — Brits are already facing the biggest drop in living standards on record next year as inflation, energy bills and borrowing costs soar. Hunt said Thursday evening that by delaying the worst of the cuts beyond the next election — currently expected in 2024 — he aimed to “make sure this recession is shallower, and hurts people less.”

Taxes will still rise quickly, on businesses and individuals.

But by finding extra billions for the National Health Service, schools and key government departments in the short-term, and by hiking pensions, welfare and the minimum wage in line with sky-high inflation, Hunt and Sunak hope to give themselves a fighting chance of keeping a disparate and unhappy collection of Tory voters on side.

“It suggests they are not willing to completely abandon any hope of holding together their electoral coalition,” said Rachel Wolf, director of public opinion consultancy Public First, and co-author of the 2019 Conservative Party manifesto.

Loosely summarized, the election-winning strategy pulled off by Boris Johnson — and masterminded by his former top aide Dominic Cummings — in 2019 was to retain traditional Conservative strongholds in the South while also attracting millions of first-time Tory voters in more deprived areas in the North and Midlands.

Members of Sunak’s failed leadership campaign over the summer noted grimly that he played far better among the former group, drawing crowds in the affluent shires and southern towns.

But with Thursday’s autumn statement, Sunak showed he still aspires to keep the whole of Johnson’s coalition in place. As Wolf put it: “The new Conservative voters are very, very dependent on public services, and it was a big part of what they voted for.”

Sunak had already signaled his intention to return to the winning Johnson formula of 2019 following the radical, short-lived tenure of his predecessor Liz Truss.

“I will deliver on its promise,” Sunak said of the 2019 manifesto, in his first speech outside No. 10 Downing Street. “A stronger NHS. Better schools. Safer streets.”

He also recommitted to “leveling up” — Johnson’s somewhat amorphous domestic offer, aimed at tackling deeply ingrained regional inequality through targeted investment and new infrastructure.

Adam Hawksbee, director of the center-right Onward think tank, insisted the government could still deliver tangible improvements for deprived communities, such as tackling anti-social behavior and cleaning up graffiti, even as other spending cuts bite. “Rishi’s going to have to do that if he wants to keep those new 2019 voters,” he said.

Hawksbee added that by reappointing Michael Gove as leveling up secretary and hiring Onward’s previous director, Will Tanner, Sunak had built a team at No. 10 that is “really serious about delivering this agenda.”


Delaying the pain


It was not a foregone conclusion that Sunak would do so.

As chancellor, he often acted as a brake on Johnson’s more expensive ambitions, and many had expected Thursday’s statement to include immediate spending cuts reminiscent of the “austerity” era under David Cameron and George Osborne.

Instead, the anticipated cuts were delayed until the mid-2020s, when public spending increases will be limited to 1 percent, down from a planned 3.7 percent.

But even where public services are not cut, they will be squeezed.

“The demand for those services is substantial,” said Ben Zaranko of the Institute for Fiscal Studies, a respected economic think tank, “and in some cases has been increased by the pandemic and the cost-of-living crisis. At the same time what the government is asking for, from the NHS and the justice system — none of that is being scaled back.”

This has its own electoral implications. Strained public services combined with higher energy prices, inflation and mortgage rates will hit millions of people hard over the next two years. Tories fear the blame is likely to be laid at the government’s feet.

A somber briefing by the Office for Budget Responsibility (OBR) published alongside Thursday’s statement predicted average living standards for U.K. citizens will fall 7 per cent over the two financial years, wiping out the previous eight years’ growth.

“The problem is going to be that everything feels worse,” Wolf said “There may be more money in the NHS, but people can’t get an ambulance, and they can’t see their GP and people feel like crime is going up.”

Similarly, flagship offerings to the so-called “Red Wall” of Northern voters may have been retained, but look unlikely to deliver in full. Promises of new rail infrastructure between Northern cities have been steadily watered down. A commitment to continue with the current round of “leveling up” funding came without mention of once-expected subsequent rounds of cash.

Whitehall insiders concede that Gove’s 12 “missions” for leveling up now appear unreachable, following an internal review requested by No. 10.


In search of Sunakism


With the grand Johnsonian vision unlikely ever to be delivered given the disastrous economic climate, some Tory MPs question what Sunak really has to offer beyond a basic air of competence and a certain PR sheen.

Certainly the nature of the summer leadership contest, which effectively became a battle between Sunak and Truss over sound money and lower taxes, left little space for Sunak to set out a wider agenda.

Those who know him well insist he has a broad powerful vision for the U.K.’s economic future — but accept it has yet to register with voters at all.

“Innovation policy has been a key part of what he considers to be his ideology,” said Dom Hallas, executive director of startup lobby group Coadec, who worked closely with Sunak when he was chancellor. “He comes back to it time and again.”

Hallas also noted his youthful tech-savvy, adding: “People mock the fact he wears a hoodie, but he is in his early 40s, he was born in the 1980s … I work with people who dress like that. He inhabits that realm. He isn’t in the stuffy world some people in politics are in. It filters through to his vibe.”

Jimmy McLoughlin, a former Downing Street adviser and friend of Sunak, also attested to his “deep understanding of where industry and the economy is heading, and where the opportunities for growth are.”

But he too acknowledged that while Sunak is “one of the most recognised politicians of the last 20 years, largely because of the very pragmatic response to the pandemic … less is known about what drives him.”

Other Tory figures remain unconvinced. “There’s nothing more to him than meets the eye,” a former party aide said. “He’ll have a short-lived bounce for not being Liz Truss, followed by a year and a half of being hated for the mess we’re in.”

And a former minister under Johnson added: “He is for basic economic competence and good governance, so your path to electoral success is ‘we didn’t screw it up that much’. It’s not that compelling. And it means the coalition is intensely fragile.”

Having tried almost everything apart from boring competence over recent years, the Tory Party may not have much of a choice.

Newsletter

Related Articles

0:00
0:00
Close
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
×