Jack Semple, Secretary of EAMA (of which MTA is a member) has compiled a review of the political events of a week in which the UK has seen political turmoil, and uncertainty over government policies and personalities. These notes look at some the of key events and personalities from the perspective of the machinery and component supply chain.
In this review, as well as covering the resignation of Mr Johnson as leader of the Conservative party, he looks at the implications of the appointment of Nadim Zahawi as Chancellor of the Exchequer, the return to government (as Secretary of State at the Department for Levelling Up, Housing and Communities – DLUHC) of Greg Clark and the various changes in junior ministerial roles at BEIS and the Department for Education.
Mr Clark was the driving force behind the government’s Industrial Strategy – indeed, it was under his tenure that the title of the Department was changed to include this phrase – so his return, albeit in a different department will create an interesting dynamic in Cabinet with his successor at BEIS, Kwasi Kwarteng, having pointedly dropped the Industrial Strategy, describing it as “a pudding without a theme”.
The attached paper also looks at various policy differences that emerged during the turmoil this week. Most notably this highlighted a clear difference in approach between Mr Johnson and Mr Sunak with the PM wanting to cut taxes and increase spending against the wishes of his Chancellor; the OBR concluded the day after the resignation of Mr Sunak that the economy could not afford tax cuts.
The paper concludes with a look at the implications for business confidence
You can download the note below and find some key links at:
- Rishi Sunak’s resignation letter and the Prime Ministers response
- https://twitter.com/GeorgeFreemanMP/status/1544929459286966272?s=20&t=pYzWNiqp239-lO0N9OFZ3g
- https://obr.uk/overview-of-the-july-2022-fiscal-risks-and-sustainability/
https://www.gov.uk/government/news/ministerial-appointments-july-2022