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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Prime Minister Liz Truss and the short, unhappy fate of the ‘takeover leader’

Following her appointment as Prime Minister yesterday, Liz Truss has become the third Prime Minister in a row to take office directly as a result of a party leadership election. Ben Worthy explains that taking office in the middle of a parliament has historically not gone well for the incoming Prime Minister, with none of the last three ‘takeover Prime Ministers’ able to complete a full parliamentary term in office.

There are two routes to becoming Prime Minister in the UK. You can either win a general election or triumph in a party leadership election to become head of the largest parliamentary party when a predecessor leaves. As section 2.18 of the Cabinet Manual puts it:

Where a Prime Minister chooses to resign from his or her individual position at a time when his or her administration has an overall majority in the House of Commons, it is for the party or parties in government to identify who can be chosen as the successor.

Prime Minister Liz Truss is a ‘takeover’ leader, securing the post via the second route rather than the first. Remarkably, she will be the fifteenth takeover since 1916 and the second woman appointed mid-term since 2016.

There are some downsides to being a takeover. As the table below shows, takeovers’ time in office tends to be relatively brief. UK prime ministers in the last 100 years have lasted an average of just over five years, equivalent to the maximum length of one parliamentary term. Takeover tenure was considerably shorter at just over 3.6 years, compared with an average of 6.6 years for those who came to office following a general election. The longest takeover premiership was that of John Major, which lasted seven years, and the shortest was Andrew Bonar Law’s seven months (due to ill health).

The most recent takeovers are bywords for difficult, if not failed, premierships. Major (1990–1997), Gordon Brown (2007–2010) and the successive takeovers of Theresa May (2016–2019) and Boris Johnson (2019–2022) stand out as dysfunctional and struggling leaders. All led deeply divided parties and their names are linked to deep crises, whether economic (the Winter of Discontent or Black Wednesday), political (Maastricht or Brexit) or global (COVID-19).

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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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What Happens if Boris Johnson loses the confidence of his Cabinet, or his MPs?

Boris Johnson’s time in Downing Street appears to be in its final days, but how it will end remains unclear. Robert Hazell examines the possibilities. How long will a leadership election take? Could there be a caretaker Prime Minister? What happens if Johnson tries to call a snap general election?

If Boris Johnson loses a confidence vote among Conservative MPs, he is not able to stand again. Any other Conservative MP can then stand for the party leadership. How long it will take for the party to elect a new leader will depend on the number of candidates standing, and whether the vote goes to a second stage ballot of all party members.  Party rules prescribe that Conservative MPs vote initially in a series of ballots to select two candidates, who then go forward to a postal ballot of all party members for the final decision. In 2005 it took two months for David Cameron to be elected leader, defeating David Davis in the postal ballot. In 2019 it took six and a half weeks for Boris Johnson to be elected, defeating Jeremy Hunt. It therefore seems unlikely that we will know who is the new Conservative leader (and Prime Minister) until September. But when Cameron announced his resignation in June 2016, it took just 17 days for Theresa May to emerge as the new leader, because Andrea Leadsom stood down as the second candidate in the postal ballot.

Time is being finally called on Boris Johnson’s premiership.  The initial trickle of ministerial resignations has become a steady stream; a delegation of Cabinet ministers has reportedly called on him to resign; if he doesn’t take the hint, the 1922 Committee seems likely to hold an early second confidence vote in his leadership.   But what will happen if he does resign, or if he loses the confidence of a majority of Conservative MPs?  How long might it take for the Conservative party to elect a new leader, and how will the country be governed in the meantime?

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Why a central role for party members in leadership elections is bad for parliamentary democracy

meg_russell_2000x2500.jpgThe Labour Party is currently engaged in picking a new leader. In recent years greater and greater powers have been given to party members in such elections, at the cost of parliamentarians. Meg Russell argues that these changes have destabilised the dynamics of parliamentary democracy, weakening essential lines of accountability. She suggests that there is a need to properly review these effects. In the meantime she proposes some short-term solutions for Labour.

Labour’s leadership election is underway, with a final decision due after a ballot of party members and affiliated supporters on 4 April. Currently, four candidates are pursuing nominations from constituency parties and affiliated organisations, following an initial round of nominations by Labour MPs (and MEPs). Under Labour’s present system, the party’s MPs have relatively little control over the outcome – serving solely as ‘gatekeepers’ to the ballot. As occurred in 2015, a leader could hence emerge who has little Parliamentary Labour Party (PLP) support. This arrangement departs significantly from the original basis for choosing UK party leaders, and is unusual internationally. It has potentially destabilising effects on the whole political system, given parliament’s centrality. This post argues that, in the short-term, pledges from Labour candidates could avoid the worst potential effects on the party.

The history of leadership election rules

Traditionally, MPs chose the UK’s party leaders. Labour was the first party to diverge from this, under pressure from left-wing activists in the 1970s. Believing that MPs were prone to pick overly-centrist leaders, the Campaign for Labour Party Democracy pressed for local party and trade union involvement. This led to adoption of the so-called ‘electoral college’ in 1981, giving equal weight in the final outcome to 3 groups – MPs, constituency parties and affiliated organisations – though MPs controlled the initial nominations. That system survived largely intact for decades without upset. Crucially, the final ballot outcome was consistent with MPs’ own preferences for the elections of Neil Kinnock in 1983, John Smith in 1992 and Tony Blair in 1994 (while Gordon Brown’s 2007 succession was uncontested). Cracks began showing in 2010, when Ed Miliband was elected despite his brother David having greater support from both MPs and party members. To avoid future splits in the electoral college Ed Miliband abolished it – giving the final say to members, ‘registered supporters’ and affiliated members who all participate on an equal basis. This system elected Jeremy Corbyn in 2015 – despite his limited backing in the PLP – and is being repeated (with minor modifications) now.

The Conservative Party changed its rules more slowly, and retained more safeguards. Famously, Conservatives used to pick their leader through a system of informal ‘soundings’ in the parliamentary party, with formal elections not introduced until 1965. Thereafter, the leader continued being chosen by Conservative MPs, until William Hague’s reforms following the party’s 1997 defeat. The new system echoed Labour’s, by including the wider membership, but retained stronger parliamentary party control. Candidates are whittled down to two (if necessary) through successive MP ballots, with the choice between them being put to the wider membership. This system remains unchanged, and was most recently deployed in 2019 when Boris Johnson beat Jeremy Hunt. Notably, in both 2003 and 2016 the parliamentary party chose a leader (Michael Howard and Theresa May, respectively) without a member ballot, after other potential candidates withdrew.

Member ballots and parliamentary accountability

Inclusion of the wider party membership inclusion in selecting leaders has weakened traditional lines of accountability, as illustrated most starkly by Jeremy Corbyn’s leadership. Although MPs (very narrowly) put Corbyn on the ballot in 2015 it was always clear that he had only minority support within the PLP. A vote of no-confidence in June 2016 made this explicit, when 172 Labour MPs (81%) voted against him, and only 40 in favour. This sparked a fresh leadership contest, which Corbyn comfortably won – leaving the PLP to coexist with a leader that it plainly did not support. Continue reading