The world is keeping tabs on London as it entered into a fresh political uproar following the resignation of Conservative Party Leader, Liz Truss, who became the first “shortest” served prime minister in the history of Britain.
Frankly, the United Kingdom has been at the crossroads of political instability since Brexit.
The European Union’s political elite and the mainstream media blamed “Brexit for U.K. political ‘insanity’” while sections of the world press, political pundits, and strategists view the contemporary political turmoil as a “disgrace” and raise questions such as “how Britain could have fallen so far, so fast?”
From the TV talk shows to the front pages of the world’s major broadcast and print media outlets, anchors and analysts are posing a single question with varying wording: Can the new prime minister, Rishi Sunak, handle with the domestic crisis?
The YouGov poll showed that “63% of people are fed up with the current administration and believe the Premier should call an early general election.”
The question is whether early general elections are possible in Britain. While I am writing this article, there is a petition saying, “call for general elections as soon as possible to end the chaos of the current government.”
However, the chances for an early general election are “slim” because there are no signs of Tories returning to power. In the same vein, The Washington Post columnist Adam Taylor puts it, “Britain’s next general election is scheduled for early 2025. Although Parliament can call an early election, the huge majority still enjoyed by the Conservatives means that no early vote could get by without substantial support from them.”
Whatever, on a positive note, Truss’s resignation despite her earlier avowal, “I’m a fighter, not a quitter,” sends a strong message to those politicians in faraway places in the world, where “resignation” is not cherished even though how big is the failure and how much damage it may cause to the country.
At this moment, according to the Forbes article, “The U.K. economy is broken.” Given the current geopolitical settings and emerging economic challenges, the biggest and most urgent test ahead for the new British primer would definitely be the economy.
Several leading financial experts and economists have warned the “U.K. economy to enter recession until summer 2023,” meaning an estimated “shrink around 0.2% each quarter from October” that may possibly “trigger a plunge into recession.” Further predictions, as The Guardian has revealed, would include: The “cost of living crisis appeared to hit hotels, restaurants, and the leisure industry” and “mortgage costs are soaring, leaving families worrying about making ends meet. The borrowing cost is up. Living standards down.”
At present, all eyes are on British politics now. What’s next for global businesses? Especially what will happen to small businesses across the U.K.?
For numerous analysts, the political tumult in Britain has a sizeable share in economic shrinkage, while several financial specialists hold dissimilar views about the U.K. economy. Harvard University Professor Jason Furman assumes that the “inflation problem will get better before it gets worse.”
I recall long discussions on British politics and economy with my former Ph.D. supervisor, Diamond Jubilee Professor Keith Layboun. I still remember some of his great ideas that seem very relevant in contemporary times, so I approached him to take his views on the current political situation.
Professor Laybourn believed that “The simple reason for the chaos in Britain is the commitment by a Conservative government to a policy of neoliberalism (capitalism) in which business is seen to be the creator of growth and that its success and rewards will trickle down to the rest of the economy.”
I further probed into the matter as to where the problem lies, and he replied: “The problem is that the neo-liberal policies do not want state ownership, reduced taxes, regulation, trade unions, and democracy. Of course, the inflation in fuel prices and the cost of living are factors motivating industrial conflict.”
As we stretched our conversation on politics, professor Laybourn unfolded several aspects of British politics, especially talked about the impact of the current political fiasco and said, “Even though Truss’s economic policies of inequality have been removed neoliberalism remains to impose more cuts in benefits and real wages. Hence, there are increasing numbers of strikes.”
Everyone holds different views of the same events, but the communal concern is a stable economy, so one may hope that the next British Prime Minster would be talented enough to turn the ship around in these tough times. Let’s hope for the best to happen when the world is facing crises from food shortages to rising prices of everyday commodities.
