{"id":11840,"date":"2022-09-26T10:00:55","date_gmt":"2022-09-26T14:00:55","guid":{"rendered":"https:\/\/blogs.shu.edu\/thediplomaticenvoy\/?p=11840"},"modified":"2022-10-10T11:05:06","modified_gmt":"2022-10-10T15:05:06","slug":"liz-truss-daring-and-determined","status":"publish","type":"post","link":"https:\/\/blogs.shu.edu\/thediplomaticenvoy\/2022\/09\/26\/liz-truss-daring-and-determined\/","title":{"rendered":"Liz Truss: Daring and Determined"},"content":{"rendered":"<p><b>Andrea Gonzalez<\/b><b><br \/>\n<\/b><b><i>Digital Editor<\/i><\/b><\/p>\n<p><span style=\"font-weight: 400\">Liz Truss, the UK&#8217;s new Prime Minister, faces many economic problems and political divides. The conservative PM will have to confront Boris Johnson&#8217;s legacy, high inflation, a fraying National Health Service (NHS), and an energy crisis threatening households and businesses. More than 60 million Britons depend on Liz Truss&#8217;s ability to guide the country through these challenges. She has an enormous task ahead, especially with her party&#8217;s image in peril, and only two years to turn the tide.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Britain&#8217;s current economic predicament is exacerbated by the fact that inflation comes from two sources \u2013 tripling energy prices undermining the standard of living and wage increases requiring companies to raise their prices on products and services. Inflation is currently at 9.9 percent, and some economists predict it may reach 15 percent in the next 12 months, the highest since 1980, reports\u00a0<\/span><a href=\"https:\/\/www.channel4.com\/news\/inflation-falls-for-first-time-in-almost-a-year-but-remains-high\"><span style=\"font-weight: 400\">Channel 4 News<\/span><\/a><span style=\"font-weight: 400\">. Additionally, she will be tied up by a wave of public service strikes. The NHS faces labor shortages, leaving almost 1,000 patients waiting over 12 hours in accident-and-emergency departments, reports\u00a0<\/span><a href=\"https:\/\/www.economist.com\/leaders\/2022\/09\/07\/can-liz-truss-fix-britain?utm_medium=cpc.adword.pd&amp;utm_source=google&amp;utm_campaign=a.22brand_pmax&amp;utm_content=conversion.direct-response.anonymous&amp;gclid=CjwKCAjwg5uZBhATEiwAhhRLHpG5BXKFqHO_oYiMNZCEDkpvKV3zsO8jP7u8-aKjkv5KTjNFtNHmWhoCVq4QAvD_BwE&amp;gclsrc=aw.ds\"><span style=\"font-weight: 400\">The Economist<\/span><\/a><span style=\"font-weight: 400\">.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Another challenge Truss must face is the Russian energy crisis. According to\u00a0<\/span><a href=\"https:\/\/www.bbc.com\/news\/uk-scotland-62840335\"><span style=\"font-weight: 400\">BBC<\/span><\/a> <span style=\"font-weight: 400\">News<\/span><span style=\"font-weight: 400\">, Truss will cap household energy bills at \u00a32,500 per year, which the government claims will \u201cspark economic growth and curb inflation by as much as 5%.\u201d Under a new \u201cenergy supply task force,\u201d the UK will negotiate new contracts and reduce its dependency on Russian natural gas by allowing fracking where locally supported and building more nuclear power plants, reports\u00a0<\/span><a href=\"https:\/\/www.washingtonpost.com\/politics\/uks-truss-to-announce-plan-to-tame-soaring-energy-bills\/2022\/09\/08\/253abfb0-2f4e-11ed-bcc6-0874b26ae296_story.html\"><span style=\"font-weight: 400\">The Washington Post<\/span><\/a><span style=\"font-weight: 400\">. Additional fracking is not allowed under Britain\u2019s legally binding commitment to achieve net-zero carbon emissions, which Truss supports, but the current energy situation requires the government to pivot to other energy sources to get Britons through the winter months.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Truss&#8217;s practical approach to solving a crisis must follow free-market principles and monetary policy. The PM is against the Bank of England&#8217;s decision to raise interest rates by half a point. She claims the Bank has been producing fairytale forecasts and will review its independent mandate to ensure it is on par with other central banks and can effectively control inflation, reports\u00a0<\/span><a href=\"https:\/\/www.cnbc.com\/2022\/08\/31\/liz-truss-wants-to-review-the-bank-of-englands-mandate.html\"><span style=\"font-weight: 400\">CNBC<\/span><\/a><span style=\"font-weight: 400\">. The Bank&#8217;s leadership, like others, believed inflation would be transitory. However, the PM is expected to employ a massive bailout for homes and businesses by gradually cutting taxes from 25 percent to 19 percent. Although the PM cannot save the UK under these circumstances, her pragmatism could keep the island afloat until the storm passes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Although members of Truss&#8217;s cabinet, including Chancellor of the Exchequer Kwasi Kwarteng, believe that radically shrinking the government will boost economic growth, they also understand that leaving the current situation to correct itself would put the economy in freefall. According to\u00a0<\/span><a href=\"https:\/\/www.independent.co.uk\/news\/uk\/politics\/kwasi-kwarteng-tax-cuts-corporation-national-insurance-b2169475.html\"><span style=\"font-weight: 400\">The<\/span><\/a><span style=\"font-weight: 400\">\u00a0<\/span><a href=\"https:\/\/www.independent.co.uk\/news\/uk\/politics\/kwasi-kwarteng-tax-cuts-corporation-national-insurance-b2169475.html\"><span style=\"font-weight: 400\">Independent<\/span><\/a><span style=\"font-weight: 400\">, the Chancellor&#8217;s upcoming mini-budget will cut taxes by \u00a330 billion, easing the cost of living. Under Truss\u2019s and Kwarteng&#8217;s leadership, the UK is expected to incorporate new low-regulation investment zones, remove levies on fuel bills, and backtrack business regulations to increase investment.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Liz Truss\u2019s experience leading a political party is limited, and her list of promises will be difficult to keep, but underestimating her is a mistake that cost Rishi Sunak and his supporters the race for party leadership. During the campaign, Truss came out on top as the more convincing candidate, defending unpopular economic policies because of their potential for increasing productivity in the long term. Truss has been compared to former PM Margaret Thatcher, known for her pro-business policies and undying desire to unify the country\u2014 a spirit that the UK needs now. In her previous position as Foreign Secretary, she secured the release of two British nationals detained in Iran, something her two predecessors failed to accomplish. Despite the precarious energy situation, Truss also maintains that the UK will not accept Russia&#8217;s attempt to dismantle democracy in Ukraine.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Truss\u2019s commitment to Britons is unflinching and undeniable. The news of Queen Elizabeth II&#8217;s passing put a temporary stop to the UK&#8217;s underlying economic and political issues. Only two days after meeting the Queen, Downing Street entered a mourning period putting all government activity on hold. However, the next few weeks will be critical in releasing policy before the party conference in October. If Truss focuses on slashing taxes and increasing aid, she will sink England&#8217;s economic credibility, but if she mobilizes all her ministers, the Bank, and unlocks capital, she will be remembered as a radical leader who delivered for her citizens.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Liz Truss, the UK&#8217;s new Prime Minister, faces many economic problems and political divides. The conservative PM will have to confront Boris Johnson&#8217;s legacy, high inflation, a fraying National Health Service (NHS), and an energy crisis threatening households and businesses.<\/p>\n","protected":false},"author":5150,"featured_media":11846,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2383,7,387],"tags":[410,619,2376,2385,2386],"class_list":["post-11840","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-september-2022","category-opinion","category-europe","tag-united-kingdom","tag-economy","tag-liz-truss","tag-inflation","tag-monetary-policy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Liz Truss: Daring and Determined - The Diplomatic Envoy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.shu.edu\/thediplomaticenvoy\/2022\/09\/26\/liz-truss-daring-and-determined\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Liz Truss: Daring and Determined - The Diplomatic Envoy\" \/>\n<meta property=\"og:description\" content=\"Liz Truss, the UK&#039;s new Prime Minister, faces many economic problems and political divides. 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