New UK Prime Minister
Liz Truss has become the Prime Minister of Great Britain and has already appointed the most diverse cabinet in British history, and I would suggest it amounts to the most diverse cabinet anywhere in the world…
The governing Conservative Party thus stakes its claim to advancing all citizens, regardless of background. There is not a single white male in any great office of state and the Chief Whip is a woman too. Those cabinet ministers also — perhaps shockingly after the somewhat limp leftist lurch of British government for a generation — hold pro-market small state convictions:
Prime Minister: Liz Truss
Chancellor of the Exchequer: Kwasi Kwarteng
Foreign Secretary: James Cleverly
Home Secretary Suella Braverman
Thus, Truss enters office with an interesting contrast to the ‘liberal’ misogyny os opposition parties in the UK, the primary example being the Labour Party which has never been run by anything except white guys, let alone a minority figure, or a woman, not even somebody identifying as a woman…
However, this is not about the politics of the situation but rather the dynamics of the new government.
In Liz Truss, the obituaries were already in last week — she has zero chance of winning an election and indeed faces so many challenges that she will be a short-lived disaster as a PM.
Let me say I think this is all codswallop. Utter tripe.
Truss has a chance to lead a remarkable outbreak of British government — something the allegedly Conservative governments overseen by Cameron, may entirely failed at and BoJo managed for barely a few days when he signed the Brexit agreement.
Faced with a freefalling Pound, an energy crisis, rampant inflation, ongoing acrimony with the EU which refuses to accept Brexit or behave honourably with the integrity of the UK as a sovereign nation (notwithstanding an EU collapse risk), a massive migration problem (also arguably a byproduct of Franco-EU duplicity), striking workers aplenty, a civil service and particularly health service of unparalleled cost cum incompetence and of course the ongoing Russian invasion of Ukraine… Gosh, that’s just for starters.
Given this lengthy list of problems and a (one has to say metropolitan, misogynist) mindset which once again glories in prejudging a perma-decline of Britain…we might be back in 1976 when the IMF bailed Britain out and James Callaghan honourably but incompetently stuck fingers in a dam resembling a Swiss cheese while waiting for Mrs Thatcher to form a proper government… So, it’s fair to say right now, things can look bleak.
However — and I appreciate thinking outside the box is not a natural exchange parish process dynamic — it represents a perfect storm for Liz Truss as PM., provided she is bold and takes action (aka that “outbreak of government” which was broadly absent for years ex-10 Downing Street).
For those proclaiming a great opposition victory, it must be said looking beyond the plethora of polls today, the electoral maths for the Labour Party is ghastly. After total abject incompetence masquerading as the BoJo regime in most areas, they are barely 10 points ahead. The Labour leader is incapable, and the party divided with a wodge of striking public sector workers challenging the opposition leadership as much as the government. (Electing noisy anti-semitists to the governing party body on the 50th anniversary of the Munich Olympics atrocities may not strike voters that this is a balanced coherent party set for government). Likewise, the Scottish government is creaking at the seams. Thus, the Conservatives might eke out another seat or two in Scotland but — remember — the Tories have an 80 seat majority and thus a lot of incumbency heading into the next election. That majority will reduce at the next polls in 2 years, but Mrs Thatcher governed with 30ish seats in her first term and did some pretty rad stuff.
Hitting the ground running with for instance a frack for freedom policy could mark a serious change to government. Truss in the weekend media was talking about pie growth, not the redistributive rabbit warren down which Cameron/May/Johnson ended up getting lost. Exiting Gini coefficient BDSM is a great start to actually undoing the toxic EU issues which need to be dealt with rapidly across the UK economy to help push growth. Likewise, a strong hand with the EU will be key and there are of course many areas where Truss needs to be not merely governing and in charge and showing vision in leadership. Yip there will be mistakes, simply because there needs to be a ‘slasher government’ and that means some good plans/projects get cast aside which will create howls of dissent — qv niche stories of “how will PM Truss deal with LGBT issues”…to which the answer on this and many other topics is likely ‘not at all for a couple of years at least’ and that’s nothing to do with the issues, just that her government needs to govern with a laser focus with finance energy, plus law & order aforethought.
Expect fireworks imminently and a lot of very angry British establishment types. This is a battle for the soul of Britain away from the disastrous period post Thatcher and into what could yet prove a very exciting new era for the independent UK, albeit with the added challenge of surviving and thriving in the face of perhaps a Euro currency break-up, almost certainly a Eurozone sovereign wealth crisis mark 2 and much more besides…
For all the choppy waters ahead, I am optimistic about Liz Truss and delighted to see Britain led by its third woman PM. Let’s hope PM Truss will emulate the first — brilliant — British female PM and lead the country… Plus it’s magnificent to see such diversity in her cabinet (which is a tribute to the modernisation wave inspired by David Cameron in the Conservative Party before here).
Bottom Line: Don’t write the UK off yet, tempting as it may seem.
This article was first published for Exchange Invest Subscribers, if you want to understand the business of bourses: Subscribe to our Daily newsletter and start with a 30 day trial or register for our “Forever Free” weekend newsletter, and don’t forget to watch our IPO-VID live streams.