UK Prime Minister Johnson Invokes 'Daechurism'... Promises Tax Cuts in First Speech After Voting

"Tax cuts must be implemented before it's too late"
Also mentions 'right to buy' privatizing rental housing

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] UK Prime Minister Boris Johnson invoked 'Thatcherism' in his first speech after the confidence vote, mentioning tax cuts and reductions in national fiscal projects.

According to Bloomberg on the 9th (local time), Johnson gave a speech in Blackpool, northern England, stating, "It is time for the government to stop spending and reduce taxes and regulations," adding, "We cannot simply escape from inflationary pressures."

He barely retained his position as prime minister in the Conservative Party's confidence vote in the House of Commons on the 7th, receiving 211 votes (59%) in favor and 148 votes (41%) against. The report noted that he "nodded to the demands of the 41% opposition," emphasizing that tax cuts must be implemented before it is too late. With the UK's tax burden expected to be the highest since the 1950s, many ruling Conservative MPs have pointed out that high levels of government spending do not align with the party's low-tax ideology and are increasing the cost of living.

In his speech, Johnson summoned Thatcherism, the British-style neoliberalism advocated by former Conservative Prime Minister Margaret Thatcher, a symbol of the Conservative Party. He stressed, "The best way the government can help is simply to get out of the way." Thatcherism is summarized by welfare cuts, deregulation, and privatization of public enterprises.

In particular, he mentioned the 'right to buy,' a flagship policy of former Prime Minister Thatcher, expressing his intention to promote it. Introduced in 1980, this policy allowed Thatcher to sell a significant portion of government-owned rental housing to the private sector by granting tenants the right to purchase their homes.

Additionally, Johnson warned about wage increases, stating, "We must be careful not to exacerbate inflationary pressures," and pointed out, "Raising wages in line with soaring prices alone cannot change the rise in living costs." He emphasized, "The only solution to the whirlpool of wage and price increases is to curb them with higher interest rates and higher prices." He also questioned the value of trade tariffs on items not produced in the UK, such as olives and bananas.

Meanwhile, Bloomberg analyzed that it is uncertain whether Johnson's remarks will be realized. The expansion of the right to buy has been halted several times in the past due to disagreements with the Treasury, which holds rental housing.

This content was produced with the assistance of AI translation services.