The relentless negative news flow for the Tories continues, a YouGov poll has the Tories polling at their lowest with the firm since Rishi became leader, with only 21% of people intending to vote for Tory in the next General Election. The new figures give Labour a 23 point lead of 44%, which would result in a 400 seat Labour majority in the next election if the polls translate to reality. This follows the cabinet reshuffle, the Rwanda plan being ruled unlawful and a revolt from the Tory right triggering turbulence for the party. Surely “things can only get better”…

Wikipedia economist Rachel Reeves has just told pool cameras that interest rate rises, which began in December 2021, are somehow the direct consequence of Liz Truss’s mini-Budget. A mini-Budget produced a full ten months later.

“Liz Truss’s mini-budget last year set in motion the economic turmoil and the increases in interest rates that we’ve experienced here in the UK.”

Truss, when not busy time travelling back to 2021, is also apparently responsible for the US economy as well. Today the US Federal Reserve held their interest rate range at 5.25%-5.5%. Guido will save Rachel the Googling and tell her 5.5 is a bigger number than 5.25. Asked about this on camera, Reeves simply ignored the question and talked about growth. A topic which has landed her in hot water before…

Liz Truss has written a scathing public letter to Rishi Sunak this afternoon, slamming Downing Street’s decision to invite China to the government’s AI summit next week. She’s demanding he immediately rescind the offer…

“Dear Prime Minister,

I was deeply disturbed to learn that the Government intends welcoming to next week’s AI summit representatives of the same Chinese state that has used and abused technology to aid its oppression of millions and attacks on freedom and democracy.

The regime in Beijing has a fundamentally different attitude to the West about AI, seeing it as a means of state control and a tool for national security.

These and other concerns were a significant factor in the decision by the now Deputy Prime Minister in 2020, when he was Digital Secretary, to remove all Huawei equipment from the UK’s 5G networks. That was the correct call then and should have informed decisions about invitations to the Bletchley Park summit.

In any case, no reasonable person expects China to abide by anything agreed at this kind of summit, given their cavalier attitude to international law.

I am therefore requesting that you reconsider the invitation you have extended to China to next week’s summit.”

China are hardly going to great efforts to hide their espionage. Just months ago, Chris Cash was accused of spying for Beijing while still holding a parliamentary pass. Now we’re rolling out the red carpet for them…

A packed house in the Trafford Suite at Tory Conference this afternoon, as Liz Truss made her one and only fringe appearance to beat the drum for tax cuts and sweeping planning reforms. Flanked by Ranil Jayawardena, Priti Patel, and Jacob Rees-Mogg… and with Nigel Farage sat front row in his first Tory conference appearance since the 80’s.

Truss opened by calling on Chancellor Jeremy Hunt (whom she appointed) to bring corporation tax back down to 19%, just an hour before he delivers his main stage address. She also got a big round of applause for demanding massive deregulation to build 500,000 new homes every year. Cutting corporation tax would be nice, although she was Prime Minister when Hunt announced he’d hike it last year. At the time, she claimed it was justified because it would “raise £18 billion a year”, despite previously campaigning against it. Now she appears to have changed her mind again. At least she was right the first time…

Ranil, Mogg, and Priti gave similar rallying calls. Liam Halligan, hosting, won the biggest cheer of the lot when he introduced himself as a GB News host. Rees-Mogg and Farage beamed from the front row…

Last night the BBC aired the final part of its “State of Chaos” series on the government collapse last year, with a focus on the infamous Truss-Kwarteng mini-Budget. It was a mostly routine BBC affair: conventional production values, a few decent soundbites from former advisers… and a sense viewers were being instructed to shake their heads solemnly at the Tories.  This morning, however, Trussites across the Commons and Lords are on the offensive…

Multiple MPs have blasted the BBC for ” regurgitating the Labour Party lines” and “ignoring” the role of the Bank of England in the last ten years. Craig Mackinlay told Guido this morning:

“When is anyone going to ask the Bank of England about their decision to fix interest rates at artificially low levels and the effective printing of £900bn of new money over the last ten years?  […] We have structural weaknesses within increasingly powerful and untouchable economic bodies yet in the simplistic BBC world all look to a political fall guy (or girl) to blame.”

Greg Smith added:

“I know it’s compelling viewing to tell these sorts of stories, but BBC viewers and license fee payers deserve something a little more in depth. The Bank of England chose to become the world’s first central bank to engage in quantitative tightening – selling government debt back into the market – just days before the mini budget, and it decided not to raise interest rates as decisively as the US Federal Reserve […] It’s a shame this isn’t being looked at by the BBC.”

Pauline Latham, meanwhile, fumed that there was “very little mention of the Bank of England’s record in failing to raise interest rates as decisively as in the US“, while a Tory peer tells Guido this morning “I hope the BBC can apply just as much rigour and enthusiasm to telling the story about the Bank of England’s record, as Laura does about the role of politicians.” One particular moment that’s agitated the Tory benches is this absolute howler from ex-Foreign Office Permanent Secretary Simon McDonald… 

The “British system” was able to “deal with” Prime Ministers who were “out of sympathy” with the public. According to whom? Simon McDonald? The same Simon McDonald who told his own Civil Servants he’d voted remain…

Shadow Chancellor Rachel Reeves has announced Labour would give the Office for Budget Responsibility even greater oversight of the Treasury if elected, with Ministers legally bound to consult the OBR overlords before every single major fiscal event. Supposedly this is to prevent the OBR being “gagged” by Ministers who dare to do things they disagree with…

Reeves also revealed major tax and spend policies would be announced in November, with only mild tinkering in spring. She’s convinced this is a good idea, even though it obviously means the government won’t be as nimble in responding to unpredictable events:

“This is good international practice, that you set a date for the budget and you stick with it. “And to have a budget in the autumn rather than just a few days or weeks before the new financial year gives businesses, gives families, a chance to plan for any changes in taxation, for example, so that’s good international practice.”

Guido has already covered the ideological bent of the OBR; it is stuffed to the gills with Resolution Foundation types who hate Brexit and love taxes. One member of their advisory panel even claimed Soviet planning was beneficial in some countries. They are hardly going to beat the drum for pro-growth policies, even if Sir Keir pretends he’s more free market than the IEA nowadays…

Liz Truss has immediately fired back:

“It beggars belief that Labour think Britain’s problems will be solved by bigger government and even more powers for quangos. Hard-working people and businesses – freed from overbearing regulation, tax, and debt – are going to get Britain growing again, not more bureaucrats in London.”

Right on that one…