Sunak and Truss: both are bereft of real ideas to tackle inflation

Neither Rishi Sunak nor Liz Truss have the ideas needed to tackle the current financial crisis and inflation. Both are completely aware of the others failings as was demonstrated in this weeks TV debate. As Truss pointed out, Sunak’s policies are likely to lead to inflation and as Sunak pointed out, Truss’s policies to scrap tax rises will increase borrowing and interfere with Britain’s ambition to reach Carbon Net Zero pledges and targets which could also possibly to lead to increased mortgage rates in the long term. Neither of these candidates for the role of Britain’s next Prime Minister are equipped  to deal with the crisis of inflation  and do what is necessary to tackle this issue.  Sunak and Truss: both are bereft of real ideas to tackle inflation. So what’s  to be done?

There has never been a stronger case to re-nationalise the Utilities

The escalation in the costs of fuel is driving inflationary prices. To tackle inflation the government  must tackle the cost of fuel (fuel here means both the prices at the pumps and the costs of gas and electricity). All these factors are driving inflation and the costs of goods and services. There has never been a stronger case than now to re-nationalise the utilities. This is something that neither Rishi Sunak nor Liz Truss are willing to consider, their proposed methods simply skirt the real issue without addressing it directly. Their methods could possibly drive us into a recession or by cutting taxes lead to increase public borrowing: neither strategy addresses the real problem which lies with the fact that we have a profit seeking utilities sector in the UK. Neither Sunak nor Truss could  summon up the courage and ruthlessness needed to bring the utilities into line: it simply isn’t available to the short sighted Tory administration. There is not a creative and logical thinker amongst them and certainly non with the courage enough needed to suggest reversing Thatcher’s inept privatisations and doctrine dating back to the 1980’s. Also it means accepting that privatisation of these utilities back in 1980’s was a mistake and a recipe for disaster.

Set a Price Cap for the Utilities with no further Price Rises to be passed on to the Consumer

So what should be done by a responsible government? Firstly the government should now be dictating to the utilities about how much is a reasonable price for consumers to be paying for fuel ( gas, electricity and gas included). The next opportunity to do this would be forthcoming rises expected in October. The government should say that there would be no expected rise in prices in October: an immediate Price Freeze. No further increases. This will force the companies running these utilities to deliver at today’s already inflated prices. It is now immoral for these companies to be seeking to get profit from these utilities under the present circumstances. Any prices rises will have to be absorbed through the companies inflated profits. If these companies are unwilling to do this then the answer is that they simply relinquish their privileges and their licenses to deliver these services and they  surrender their assets to the government to continue to deliver these services at the Price Capped prices. Hence re-nationalisation of the companies unwilling to relinquish their profits ( for the good of the public).

Any companies unwilling to operate under the prices set by the government ( not some toothless watchdog quango) will be immediately taken back into government ownership indefinitely. This solution does 2 things to address inflation directly and also generates income for the government to deal with fiscal debts without the need to risk recession in the economy or to more borrow money increasing long term debt. It makes sure inflation cannot continue to rise because it addresses the cause of the inflation. This is something that neither Sunak nor Truss could come up with because this type of creative thinking simply isn’t in the arsenal of any Conservative in government.

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