Lower the taxes of the richest to revitalize the country. This credo made the political success of American leader Ronald Reagan and Britain's Margaret Thatcher. Determined to apply the recipes of "Maggie" to the letter, Prime Minister Liz Truss thought she had, with this emblematic measure of the "mini-budget" presented on September 23 by her Chancellor of the Exchequer, Kwasi Kwarteng, a winning formula, able to restore "growth" to a United Kingdom weakened by inflation and threatened by recession.
But wishful thinking and economic policy do not mix. Historic fall of the pound, soaring rates, emergency rescue by the Bank of England: Truss was brutally repudiated by markets fearing a historic budgetary skid. Targeted by murderous editorials from the conservative press and a threat of revolt, his government backpedaled, this Monday, October 3, on the ultra-controversial proposal in favor of wealthy taxpayers.
However, many in his party warned that such measures would cause a catastrophic chain reaction in times of rising prices, starting with Truss' rival for the succession to Boris Johnson, Rishi Sunak.
For the Thatcher "fan" - who forgot that the Iron Lady was defending budgetary orthodoxy - there is now an urgent need to limit economic and political damage: the YouGov institute gives around thirty points of advance to the Labor opposition, carefully refocused by its leader Keir Starmer after the radicalism of the Corbyn years.