The constitutional causes and consequences of the Truss-Kwarteng budget crisis

Within weeks, Liz Truss’s premiership was plunged into economic and political turmoil due to Kwasi Kwarteng’s ‘mini budget’. But this crisis, suggests Meg Russell, has distinctly constitutional roots. Building on Boris Johnson’s legacy, Truss chose to sideline expert officials and regulators, and shut out her own MPs. The consequences that have since befallen her are a compelling advertisement for respecting – and rebuilding – appropriate constitutional checks and balances.

The Conservative Party conference, indeed the entirety of Liz Truss’s new premiership, has been severely destabilised by the market reaction to Chancellor Kwasi Kwarteng’s ‘mini budget’. Far from securing Truss her desired reputation for acting on the energy crisis and boosting the economy, and a positive bounce in the polls, Kwarteng’s 23 September ‘fiscal event’ saw the pound plunge, lenders withdraw mortgage products, and Labour achieve record poll leads. Faced with a mass rebellion by Conservative MPs, Kwarteng performed a U-turn on abolition of the top rate of income tax, while other parts of the package may face further such trouble ahead.

Fiscal policy is well beyond the usual scope of the Constitution Unit blog, or of this author. But the extent to which the unforced economic and political crisis built on foundations of poor constitutional and governance practice is striking. Boris Johnson played fast and loose with many constitutional norms, and Liz Truss seems quickly to have followed suit. But her now catastrophic position – with some Conservative MPs calling for the Prime Minister’s removal after less than a month in the job – demonstrates just how shortsighted and dangerous such behaviour can be.

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The UK’s constitutional norms and standards took a severe battering under Johnson: Labour should pledge to restore the system

There is no guarantee that the Johnson government’s dismal record on safeguarding our democracy will be improved upon by the new Prime Minister, Liz Truss. This creates big opportunities for Labour to offer a real alternative by restoring integrity and accountability to politics, writes Meg Russell.

Concerns about honesty and integrity and the erosion of constitutional norms were central to Boris Johnson’s dramatic downfall. The new Prime Minister’s attitudes in this area remain largely untested – though the omens during this summer’s leadership contest were not good. Meanwhile, public opinion research suggests that voters really care about these questions. That presents significant opportunities for Labour.

The charge sheet against Johnson was remarkably long. The journalist Peter Oborne, formerly political editor of the Spectator and a Telegraph columnist, dedicated both a website and a book to chronicling Johnson’s uneasy relationship with the truth. This trait was well known before he assumed the premiership and to an extent ‘priced in’. But the difficulties under his leadership went far wider, covering multiple aspects of integrity in politics and respect for the essential rules and norms that underpin UK democracy. This often put him at odds with regulators and non-political figures holding responsibility for maintaining the system, as well as with senior figures in his own party.

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Constitutional standards matter: the new Prime Minister must not forget that voters care about the honesty and integrity of their leaders

Tomorrow, it is expected that the UK will have a new Prime Minister. Whoever is appointed will have a number of high priority issues competing for their attention. Peter Riddell argues that constitutional standards should be near the top of the new PM’s to do list. He calls for a new Independent Adviser on Ministers’ Interests to be appointed, and warns against interfering with the Privileges Committee investigation into Boris Johnson.

The new Prime Minister is going to have such a large in tray of urgent decisions that there is a danger that the ethical and constitutional issues that largely brought down Boris Johnson will be neglected. There is an even worse risk that the wrong lessons will be learned from these events and that the future standards regime will be weaker than before, particularly over the Independent Adviser on Ministers’ Interests.

During the regional hustings meetings of the past few weeks, there have been hardly any references to the controversies over standards that so dramatically undermined Johnson’s position among Conservative MPs. As striking, and worrying, have been the recurrent attacks by Liz Truss’s supporters on unelected advisers and regulators, whether the civil service, the Bank of England, City and business regulators, or ethical watchdogs. In particular, while Rishi Sunak has said that he would quickly appoint a new Independent Adviser to fill the vacancy left by the resignation of Lord (Christopher) Geidt in mid-June, Truss has been more equivocal.

Truss has so far refused to commit to appointing an ethics adviser, arguing that she personally has ‘always acted with integrity’ and understands the difference between right and wrong. She has said that ‘one of the problems we have got in this country in the way we approach things is that we have numerous advisers and independent bodies, and rules and regulations’. While she would ‘ensure the correct apparatus is in place so that people are able to whistle-blow’, she believes that ‘ethics and responsibility cannot be out-sourced to an adviser’.

This view confuses the roles of advisers/regulators and ministers. In the case of the Independent Adviser, there is no outsourcing of ethics and responsibility. What the Adviser is being asked to do is to establish the facts about whether the Ministerial Code has been broken, while an elected politician, in this case the Prime Minister, decides whether a minister should be punished and what form any sanction should take. In that sense the Prime Minister is the guardian of the final judgement on ethics and responsibility. And there is now general agreement that there should be a range of sanctions, and not just resignation.

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Rebuilding constitutional standards: five questions for the next Conservative leader

Boris Johnson yesterday fired the starting gun on a Conservative leadership race which should make the winner Prime Minister. Meg Russell, Alan Renwick and Robert Hazell pose five key questions which Conservative MPs and others are encouraged to ask the party leadership candidates, based on recent public, parliamentary and expert concerns.

Boris Johnson’s premiership has been marked by ever-growing concerns about the maintenance of various constitutional standards, which in recent days have reached fever pitch. These were echoed repeatedly in ministerial resignation statements and calls for him to go. Recent opinion polls meanwhile show strong public support for constitutional standards of integrity and accountability.

Conservative MPs now have an opportunity to choose among candidates to take Johnson’s place, which also creates an important constitutional responsibility. A high priority when picking the next Conservative leader should be to restore the standards essential to UK democracy, in order both to rebuild integrity in politics, and to work towards rebuilding public trust.

This blogpost sets out five key questions for Conservative leadership candidates, reflecting concerns raised by the public, independent expert organisations, and MPs themselves. Conservative MPs and others are encouraged to prioritise these questions, and raise them with the candidates when the party is making its choice.

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