Simon Clarke, the levelling up minister and a key Liz Truss ally, has told the Times that the market chaos that followed the government’s tax cutting mini-budget would pass and warned that Britain should prepare for a new age of austerity.

He also said the prime minister was “enjoying having the chance” to enact policies that “she believes is right”.

Despite the turmoil in financial markets, Clarke said that Truss was “astonishingly resilient” and urged the government to channel the spirit of Margaret Thatcher to push ahead with their vision.

If I was to describe one word for Liz at the moment, it is purposeful. She knew – and this was certainly something we discussed during the summer – that this would not be a comfortable process.

Clarke added that for too long western countries have lived in a “fool’s paradise” and there would be cuts to government spending to ensure “full alignment with a lower-tax economy”.

My big concern in politics is that western Europe is just living in a fool’s paradise whereby we can be ever less productive relative to our peers, and yet still enjoy a very large welfare state and persist in thinking that the two are somehow compatible over the medium to long term. They’re not. We need to address that precisely because in the end, if we want those strong public services then we are going to have to pay for them. I think it is important that we look at a state which is extremely large, and look at how we can make sure that it is in full alignment with a lower tax economy.

Source: The Guardian

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