Editorial 1: The Budget Statement Was Not Unfunded
Kwarteng’s fiscal statement was unusual. Kwarteng understood that national debt would increase but seemed unbothered by that fact. When questioned about this, Kwarteng dismissed it as an issue of little consequence. Effectively Kwarteng was dismissing the previous 12 years pre-occupation with the size of the national debt. It was politically naive to do this without realising the political forces that he was taking on. The high-priests of the national debt, the Bank of England, Office of Budget Responsibility and the Institute for Fiscal Studies, made clear their outrage.
Editorial 2: An Unconvincing Labour Party
Labour are prepared to talk in generalities about creating a society where those who work hard will succeed but when pressed for policy details they become uncomfortable. A primary preoccupation with Labour is appearing fiscally responsible and being concerned with the size of the national debt.
This creates a major logical problem for Labour since any policy that they commit to will result in an increase in the size of the national debt. All government spending automatically increases the size of the national debt. That debt can only be reduced by taxation. But Labour does not want to be seen as the party of higher taxes. And so they are constantly limited in what they will be able to achieve.