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      Truss Takes a Bold Economic Gamble. Will It Sink Her Government?

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      Three weeks into her term, Prime Minister Liz Truss’s financial plans have thrown the markets and Britain’s currency into chaos and put her future in peril.LONDON — Prime Minister Liz Truss of Britain campaigned as a tax cutter and champion of supply-side economics, and she won the race to replace her scandal-scarred predecessor, Boris Johnson. Now she has delivered that free-market agenda, and it may sink her government.Four days after Ms. Truss’s tax cuts and deregulatory plans stunned financial markets and threw the British pound into a tailspin, the prime minister’s political future looks increasingly precarious as well.Her Conservative Party is gripped by anxiety, with a new poll showing that the opposition Labour Party has taken a 17 percentage point lead over the Tories. It’s a treacherous place for a prime minister in only her third week on the job.Labour is seizing the moment to present itself as the party of fiscal responsibility. With some experts predicting the pound could tumble to parity with the dollar, economists and political analysts said the uncertainty over Britain’s economic path would continue to hang over the markets and Ms. Truss’s government.“It’s entirely possible she could be replaced before the next election,” said Tim Bale, a professor of politics at Queen Mary University of London, who is an expert on the Conservative Party. “It would be very, very difficult to conduct a full-blown leadership contest again, but I wouldn’t rule anything out.”That Ms. Truss should find herself in this predicament so soon after taking office attests to both the radical nature and awkward timing of her proposals. Cutting taxes at a time of near-double-digit inflation, when central banks in London and elsewhere are raising interest rates, was always going to mark Britain as an economic outlier.But the government compounded the shock last Friday when the chancellor of the Exchequer, Kwasi Kwarteng, unexpectedly announced that the government would also abolish the top income tax rate of 45 percent applied to those earning more than 150,000 pounds, or about $164,000, a year.And Mr. Kwarteng did not submit the package to the scrutiny a government budget normally receives, deepening fears that the tax cuts, without corresponding spending cuts, will blow a hole in Britain’s public finances.Cutting taxes at a time of near-double-digit inflation, when central banks in London and worldwide are raising interest rates, has made Britain an economic outlier.Carl Court/Getty ImagesOn Tuesday, the pound stabilized briefly against the dollar, as did 10-year rates on British government bonds, though both began to gyrate later in the day after a senior official at the Bank of England signaled an aggressive rise in interest rates.The International Monetary Fund, which bailed out Britain in 1976, added to the deepening sense of anxiety when it urged the British government to reconsider the tax cuts. In a statement, it said the cuts would exacerbate inequality and lead to fiscal policy and monetary policy working at “cross purposes.”Rising Inflation in BritainInflation Slows Slightly: Consumer prices are still rising at about the fastest pace in 40 years, despite a small drop to 9.9 percent in August.Interest Rates: On Sept. 22, the Bank of England raised its key rate by another half a percentage point, to 2.25 percent, as it tries to keep high inflation from becoming embedded in the nation’s economy.Energy Bills to Soar: Gas and electric charges for most British households are set to rise 80 percent this fall, further squeezing consumers and stoking inflation.Investor Worries: The financial markets have been grumbling with unease about Britain’s economic outlook. The government plan to freeze energy bills and cut taxes is not easing concerns.Already, the specter of higher interest rates was causing the housing market to seize up. Two major British mortgage lenders announced that they would stop offering new loans because of the market volatility. Higher rates will hurt hundreds of thousands of homeowners who need to refinance fixed-term mortgages — property owners, analysts noted, who are the bedrock of the Conservative Party.“It’s not like the U.S., where people are on 30-year mortgages,” said Jonathan Portes, a professor of economics and public policy at King’s College London.An estimated 63 percent of mortgage holders have either floating rate mortgages or loans that will expire in the next two years. And the steep decline of the pound means that interest rates will have to rise even further than they would have merely to curb inflation.Ms. Truss, he said, could have taken a more cautious approach: rolling out the supply-side measures first, like plans to untangle Britain’s cumbersome residential planning rules and build more housing, which are hurdles to economic growth. Then, when inflationary pressures had eased, the government could have cut taxes.But that was never in the cards, Professor Portes said, because Ms. Truss and Mr. Kwarteng are free-market evangelists who ardently believe that cutting taxes will reignite growth, and because they have little more than two years to turn around the economy before they face voters in a general election.“This is ‘shock and awe,’” he said. “Truss, Kwarteng, and the people around them think they had to act quickly. The longer they wait, the more the resistance will build up.”Kwasi Kwarteng, Britain’s chancellor of the Exchequer, announced tax cuts that some fear will blow a hole in Britain’s public finances.Clodagh Kilcoyne/ReutersDuring the campaign, Ms. Truss modeled herself on Margaret Thatcher, who also announced a series of free-market measures after taking office as prime minister and endured a turbulent couple of years. Unlike Ms. Truss, though, Thatcher worried about curbing inflation and shoring up public finances; she even raised some taxes during a recession in 1981 before reducing them in later years.But Thatcher came in after an election victory over an exhausted Labour government, which gave her more time to weather the downturn and for her deregulatory measures to take effect. She also got a lift after Britain vanquished Argentina in the Falklands War in 1982, which uncorked a surge of patriotism.“Thatcher was thinking in 1979 that I only need to give voters something they like by 1982,” said Charles Moore, a former editor of The Daily Telegraph who wrote a three-volume biography of the former prime minister. “Liz Truss hasn’t got this amount of time.”The better analogy to Ms. Truss, he said, is Ronald Reagan, with his emphasis on tax cuts and other supply-side policies, as well as his relative lack of concern for their effect on public deficits. Like Thatcher, Reagan weathered a recession before the United States began growing again in 1983. And like her, he had a cushion before he had to face voters.Ms. Truss, by contrast, has taken office after 12 years of Conservative-led governments, and three years into Mr. Johnson’s tenure. She will have to call an election by the beginning of 2025, at the latest. The Labour Party, which had been divided by Brexit and internal disputes, has been galvanized by the new government’s chaotic start, in particular Mr. Kwarteng’s plan to cut the top tax rate, which has allowed Labour to stake out a clear contrast on issues of economic equity.Speaking at the party’s annual conference in Liverpool on Tuesday, the Labour leader, Keir Starmer, declared that the Conservatives “say they do not believe in redistribution. But they do — from the poor to the rich.”Keir Starmer’s Labour Party is seizing the moment to present itself as the party of fiscal responsibility.Henry Nicholls/ReutersLabour’s lead of 17 percentage points in a new poll by the market research firm, YouGov, is the largest advantage it has had over the Conservatives in two decades. The Tories won the support of just 28 percent of those surveyed, raising questions about its ability to hold on to its existing seats, according to Professor Bale.That forbidding political landscape only adds to the challenge facing Ms. Truss. For the tax cuts to have one of their desired effects — which is to encourage businesses to invest more — economists said companies would need some reassurance that the policy is not going to be reversed by a new government in two years.“This is a very inexperienced government swinging for the fences in a situation where Labour is the strong favorite in the next election, if they don’t swing too far left,” said Kenneth S. Rogoff, a professor of economics at Harvard. “If one believes that the tax cuts are going to be reversed under Labour, and that there is a high chance of a Labour government, why would they influence long-term investment?”Britain, Professor Rogoff said, was also rowing against much greater forces in the global economy. After years of low inflation and extremely low interest rates, the flood of public spending because of the coronavirus pandemic has brought back the scourge of inflation and a shift toward higher rates.“The verdict will almost certainly be that governments borrowed too much and should have raised taxes on the wealthy more,” he said.In the short term, Ms. Truss is likely to find herself increasingly at odds with the Bank of England. The bank was already expected to raise rates at its next meeting in November. On Tuesday, its chief economist, Huw Pill, said the government’s new fiscal policies would require a “significant monetary policy response.”Adam S. Posen, an American economist who once served on the Bank of England’s monetary policy committee, said, “The government’s policies are not only outrageously irresponsible, but they don’t seem to understand that the bank has to respond to these policies by raising interest rates a lot.”The Bank of England, like many other banks worldwide, is expected to raise rates at its meeting next month.Andy Rain/EPA, via ShutterstockMr. Posen, who is the president of the Peterson Institute of International Economics, likened Britain’s loss of credibility in the markets to that of Britain and other European countries in the 1970s and Latin American countries in the 1980s. The best course, he said, would be for the government to reverse its fiscal policy, though he said Ms. Truss and Mr. Kwarteng seemed “willfully committed to it.”Certainly, they have given no indication that they plan to back down. On Tuesday, Mr. Kwarteng told bankers and asset managers that he was confident the government’s plan would work.After the turmoil that led to Mr. Johnson’s ouster in July, and the protracted contest to replace him, few in the Conservative Party have the stomach to move against Ms. Truss now. But analysts note that the new prime minister has a shallow reservoir of support among lawmakers. Barely a third of them voted for her in the final ballot against her primary opponent, Rishi Sunak, and she won the subsequent vote among party members by a closer margin than expected.Taking note of the new YouGov poll, Huw Merriman, a Conservative lawmaker, may have spoken for many of his colleagues when he said on Twitter, “Those of us who backed Rishi Sunak lost the contest, but this poll suggests that the victor is losing our voters with policies we warned against.”“For the good of our country, and the livelihoods of everyone in our country,” he added, “I still hope to be proven wrong.” More

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      Truss Forms a Cabinet Diverse in Background but Not in Ideology

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      Britain’s new prime minister, Liz Truss, has recruited cabinet members from diverse backgrounds, though her inner circle retains a hard Conservative edge.LONDON — One attended Britain’s most famous private high-school, Eton College, another is a top-drawer lawyer, and the third holds a senior rank as an Army reservist. The résumés of those handed the three top cabinet posts by Britain’s new prime minister, Liz Truss, are typical of generations of high-achievers in her ruling Conservative Party.What is different is that none of the three are white.In choosing her top team, Ms. Truss has created a strikingly diverse cabinet. The country also has its first female deputy prime minister.“What is extraordinary is the pace of change, how this is already normal, and this isn’t contentious,” said Sunder Katwala, the director of British Future, a research institute that focuses on immigration, integration, race and identity. “There aren’t people going around saying ‘give us our country back.’”Still, Ms. Truss’s inner circle, while progressive in its ethnic makeup, also has a hard ideological edge, which critics say makes it unlikely to pursue policy friendlier to Britain’s minority population, or for refugees arriving on the country’s shores.Indeed, some argue that the diversity among cabinet ministers gives Ms. Truss the cover to pursue even more radical approaches, such as a plan to send some asylum seekers to Rwanda — a policy now the responsibility of Suella Braverman, the new home secretary, whose father came to Britain from Kenya in 1968.Suella Braverman, the new home secretary, leaving the first cabinet meeting.Tolga Akmen/EPA, via Shutterstock“There’s a difference that makes no difference, and a change that leads to no change,” said Kehinde Andrews, a professor of Black studies at Birmingham City University, citing as one example the Conservatives’ immigration policy and the Rwanda plan.“The fact is that you should judge it on the policy,” he said, “and the government’s track record is horrendous.”Ms. Braverman’s legal background — she is a barrister — is relevant to her new position because the government is fighting a battle in court with opponents who have stalled the Rwanda flights. She has already established herself as a hard-liner and has called for Britain to limit the influence of the European convention on human rights, which protects basic human rights and which was written into domestic British law in 1998.The chancellor of the Exchequer, Kwasi Kwarteng, shares Ms. Truss’s faith in free markets, desire to cut taxes and approach to deregulation. His parents, an economist and a lawyer, came to Britain from Ghana as students in the 1960s. Cerebral and self-confident, Mr. Kwarteng attended Eton College and then won a place at Cambridge University, where he excelled academically.The new foreign secretary is James Cleverly, whose mother came to the Britain from Sierra Leone, and who rose to the rank of lieutenant colonel as an Army reservist. He is perhaps the least ideological of the three, though like the other two, he was a strong proponent of Brexit.The new foreign secretary, James Cleverly, on Wednesday. Ms. Truss held the position before she became the prime minister.Tolga Akmen/EPA, via ShutterstockCritics point out that, unlike the overwhelming majority of Britons, Mr. Kwarteng, Ms. Braverman and Mr. Cleverly were all educated at private schools (albeit sometimes with financial aid, as in Mr. Kwarteng’s case) — proof that social class, rather than race or gender, is perhaps the more telling dividing line in British politics.For all that, Ms. Truss’s appointments put Britain indisputably ahead of many other European countries in the diversity of its political elite. On Wednesday, Ms. Truss used her first appearance in Parliament to point out that she is the third female Conservative prime minister, while the opposition Labour Party has never elected a woman as leader.“It is quite extraordinary, is it not” Ms. Truss said, “that there does not seem to be the ability in the Labour party to find a female leader, or indeed a leader who does not come from north London?” — a reference to Keir Starmer, the party leader, and his predecessor, Jeremy Corbyn, both of whom represent parliamentary constituencies in same part of the capital.In fact, the diversity of the cabinet can be traced to a former prime minister, David Cameron, who, after becoming party leader in 2005, altered the selection process for potential Conservative lawmakers. That effectively forced local parties to choose parliamentary candidates from lists with a bigger proportion of female, Black and minority ethnic backgrounds.“Look what’s happened to the Conservative Party,” Mr. Cameron said in an interview with The New York Times in 2019. “It used to be people like me: white, posh, male, rural southerners. It has now got a gender balance. It’s every people from every Black and minority ethnic group in the country.”David Cameron, the former prime minister of Britain, in 2019.Mary Turner for The New York TimesMr. Cameron rejected the contention that the ethnic and racial diversity masked a lack of class diversity. Among those he named to his cabinet, he noted in the interview, was Sajid Javid, whose Pakistani immigrant father drove a bus.“The fact that the old fusty Conservative Party is managing to produce people like that says a lot,” he said.Britain’s first Black cabinet minister, Paul Boateng, was appointed in 2002, but until recently there was little change at the highest reaches of government. When in 2010 a member of the House of Lords, Sayeeda Warsi, was appointed to the cabinet she was the first British politician of South Asian heritage to take up such a position. It was another four years before an elected lawmaker of South Asian heritage, Mr. Javid, joined the cabinet.In part, the gains in government by people of color reflect social change and advances through education. On average, ethnic minority pupils have outperformed white Britons at school in recent years. In every year from 2007 to 2021, white pupils had the lowest entry rate into higher education.“Cameron’s effective intervention catalyzed and sped up some that was happening in Britain,” said Mr. Katwala of British Future. He added, “In Britain we are a generation ahead of most other western European countries.”Yet critics note that the greater ethnic and gender diversity has not changed the policies of successive Conservative governments, which have grown increasingly hard-line on immigration and often embraced tax cuts and other economic policies that tend to favor wealthy people.Ms. Truss has acknowledged that her most notable tax cut proposal — a reversal of last April’s increase in national insurance rates — would disproportionately benefit those with higher incomes, since they pay the most taxes.“To look at everything through the lens of redistribution, I believe, is wrong,” Ms. Truss said to the BBC last Sunday, in what some noted was a full-throated defense of “trickle-down” economics. “What I’m about is about growing the economy and growing the economy benefits everybody.”Ms. Truss facing questions on Wednesday in a photograph released by Parliament.Jessica Taylor/UK Parliament/EPA, via ShutterstockProfessor Andrews, from Birmingham City University, said the Conservatives were practicing a particularly cynical form of identity politics by promoting the diversity among its senior leaders, while also advancing retrograde policies.Mr. Katwala argued that diversity at the top of politics doesn’t do anything automatically, but can shift attitudes by providing role models and “makes a difference in what your expectations are at a societal level.” The example he cited was that of Britain’s first female prime minister, Margaret Thatcher, who came to power in 1979.“I don’t think she had a policy agenda that was good for women or any ambition to promote women,” Mr. Katwala said. “Yet when Liz Truss was at school she saw that there was a woman in Downing Street.” More

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      Sunak Takes the Lead to Replace Johnson as U.K. Prime Minister

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      The former chancellor of the Exchequer led a pack of candidates after the first round, while an obscure trade minister surprised in second place.LONDON — Rishi Sunak, a former chancellor of the Exchequer, stayed at the front of the pack of candidates vying to replace Prime Minister Boris Johnson of Britain after the first round of the Conservative Party’s leadership contest on Tuesday.But Penny Mordaunt, a relatively little-known junior trade minister, finished a strong second in the vote among Conservative lawmakers. And she has opened a commanding lead among the party’s rank-and-file members, according to a new poll, which suggested she could soon supplant Mr. Sunak as the favorite.In the secret vote, more akin to a papal conclave than a national plebiscite, 357 Conservative lawmakers cast ballots to elect their next leader, who will become the fourth prime minister of Britain in six years.Six candidates remained in the race after the first round. Two were eliminated for failing to clear the minimum threshold of support from 30 members of Parliament, including Nadhim Zahawi, who replaced Mr. Sunak as chancellor after he resigned last week in a move that set the stage for Mr. Johnson’s downfall.It was the first of multiple rounds of party ballots this week, designed to whittle the sprawling field down to two finalists. They will spend a hectic summer wooing the party’s membership — a larger, though still limited group — which will elect Mr. Johnson’s replacement in early September.The quirky nature of the process has already produced some surprises: While Mr. Sunak was expected to be the front-runner, and won a respectable 88 votes, Ms. Mordaunt’s 67 votes placed her within striking distance of him. Liz Truss, the foreign secretary, emerged as the third top-tier candidate, with 50 votes.Penny Mordaunt, a trade minister, finished a surprising second in the vote among Conservative lawmakers.Tolga Akmen/EPA, via ShutterstockIn a poll conducted by the market research firm YouGov, Ms. Mordaunt, a paratrooper’s daughter who serves in the Royal Naval Reserve, holds a wide lead among members over Mr. Sunak, Ms. Truss and all other candidates.Two younger female candidates — Kemi Badenoch, with 40 votes, and Suella Braverman, with 32 — got through, keeping their hopes alive but raising the prospect that the hard-line Brexiteer vote may coalesce behind Ms. Truss.Tom Tugendhat, the chairman of Parliament’s Foreign Affairs committee, who is running as an outsider, also survived into the second round, with 37 votes.Jeremy Hunt, a former foreign secretary who unsuccessfully challenged Mr. Johnson for leader in 2019, came in last with 18 votes. Mr. Tugendhat would hope to pick up some votes in later rounds from the centrist Mr. Hunt.Mr. Zahawi, with just 25 votes, was perhaps the day’s biggest disappointment. He had been a rising star in the party, propelled by his energetic management of the government’s rollout of coronavirus vaccines last year.The remaining six conservative leadership candidates are, clockwise from top left, Liz Truss, Rishi Sunak, Penny Mordaunt, Kemi Badenoch, Suella Braverman and Tom Tugendhat.Agence France-Presse — Getty ImagesBut critics faulted him for acting erratically last week, first accepting a plum post from Mr. Johnson, then calling on him to resign only a day later. There were also questions about Mr. Zahawi’s business dealings, which led him to complain that he was the victim of a smear campaign.In the early days of the campaign, with so many candidates jostling for attention, the debates have been scattered and not particularly substantive. Much of the action involved horse-trading between candidates, with rising competitors eager to win over the votes of those who dropped out.To complicate the picture further, Mr. Johnson suggested that the process of replacing him could move more quickly if the second-ranked candidate bowed out after the initial rounds and the leader was elected by acclamation.Downing Street later said that if the winner was chosen on Sept. 5, which is the timetable set out by the party committee running the election, Mr. Johnson would deliver his formal resignation to Queen Elizabeth II the following day.Appearing at one of his last sessions of Prime Minister’s Questions, Mr. Johnson said he was “leaving with my head held high,” despite a drumbeat of scandals that eventually turned his party and his cabinet against him.In a sign that his rivals are already beginning to turn the page on him, the leader of the opposition Labour Party, Keir Starmer, devoted most of his questions to pressing Mr. Johnson for his views on people who have non-domicile tax status in Britain.That status is claimed by the wife of Mr. Sunak, Akshata Murty, whose father is the Indian technology billionaire Narayana Murthy. Mr. Starmer signaled that Labour would make the wealth of Mr. Sunak and his wife the centerpiece of its attack on him if he emerges as the next Tory leader.Mr. Johnson has declined to endorse any of the candidates, saying that to do so might hurt their chances. But in a lively exchange with Mr. Starmer, he predicted that any one of them would be able to “wipe the floor” with the Labour leader, whom he lampooned as “Captain Crash-a-Roony Snooze Fest.” More

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      As Boris Johnson Stumbles, Labour Struggles to Offer a Clear Message

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      Out of power for 12 years, Britain’s Labour Party has made some gains, but its message hasn’t won back the rust belt regions that abandoned it in the last election.LONDON — When Boris Johnson hit energy companies with a windfall tax last week as a way of providing more aid for struggling consumers, it was a bittersweet moment for the opposition Labour Party, which had been promoting just such a plan for months.For once, Labour could claim to have won “the battle of ideas.” But at a stroke, Mr. Johnson had co-opted the party’s marquee policy and claimed the credit.This might have been a moment of opportunity for Labour. Mr. Johnson’s leadership has been in jeopardy because of a scandal over illicit lockdown-busting parties in Downing Street — missteps highlighted by a civil servant’s report last week that said senior leadership “must bear responsibility” for the failure to follow the rules.But some political analysts think Labour should focus less on the “partygate” scandal and more on outlining a clear agenda to British voters, who face rising inflation and a possible recession.Prime Minister Boris Johnson outside 10 Downing Street in London. His leadership has been in jeopardy because of illicit lockdown-busting parties held there.Dominic Lipinski/Press Association, via Associated PressNow out of power for 12 years, Labour has lost the last four general elections, including a thrashing in 2019 when Jeremy Corbyn, a left-winger and the party’s leader at the time, was crushed by Mr. Johnson’s Conservatives.John McTernan, a political strategist and onetime aide to then-Prime Minister Tony Blair, said that while Labour had made a decent recovery under the current leader, Keir Starmer, it had not yet “closed the deal” with the electorate.“It looks like modest progress because it is modest progress” said Mr. McTernan, while adding that it was still a “massive rebalancing” after the 2019 defeat.He praised the advances made under Mr. Starmer, but said the party still had work to do if it hoped to install a Labour government in place of the Tories. “This is the year the tempo has to pick up,” he said.And while the Conservatives lost badly in recent local elections, Labour has made only limited progress, with smaller parties doing well.Mr. Starmer suffered a setback recently when the police reopened an investigation into whether he, too, broke coronavirus rules. He promptly promised that he would resign if he were fined by the police — in contrast to Mr. Johnson, who suffered that fate in April but refused to quit.But whatever Mr. Starmer’s future, the Labour Party has yet to draft a convincing message to win back rust belt regions that abandoned it in the last election and that — judging by the local election results — remain to be convinced.A polling station this month in Wandsworth, England. While the Conservatives lost badly in recent local elections, Labour has made only limited progress, with smaller parties doing well.Andrew Testa for The New York TimesIn the 2019 general election, parts of England that for decades had voted for Labour switched en masse to the Conservatives, allowing Mr. Johnson to recast the political map just as Donald J. Trump did in the United States in 2016.Since then, Mr. Starmer has junked much of Mr. Corbyn’s socialist agenda, posed frequently alongside the British flag to illustrate his patriotism, taken a tough line against Russia’s invasion of Ukraine and become the first Labour leader in more than a decade to visit NATO.But the party has yet to define itself with a clear new vision to British voters, and Mr. Starmer, a former chief prosecutor, has little of the charisma that distinguishes leaders in the mold of Mr. Trump and Mr. Johnson.Even he accepts that Labour is not yet in a solid, election-winning position.“I always said the first thing we needed to do was to recognize that if you lose badly, you don’t blame the electorate, you change your party,” Mr. Starmer said in an interview this year after meeting with voters at a town-hall meeting at Burnley College in northwestern England. “We have spent the best part of two years doing that heavy lifting, that hard work.”A supermarket in London. Prime Minister Boris Johnson promised a new and more generous package of aid worth billions of dollars to help all British households.Tolga Akmen/EPA, via ShutterstockYet Labour’s task is huge.In 2019, the Conservatives captured areas like Burnley, in Britain’s postindustrial “red wall,” and Labour polled poorly in Scotland, once another heartland, losing out to the Scottish National Party. Looming changes to electoral boundaries are likely to favor the Conservatives in the next general election, which must take place by the end of 2024 but that many expect next year.So Labour is hosting a series of town-hall meetings where uncommitted voters are asked what would lure them back to the party.After the gathering in Burnley, Lisa Nandy, a senior member of the Labour Party, reflected on the project to mend what she called “a breakdown in trust” between Labour and its traditional voters.“It broke my heart in 2019 when I watched communities where I grew up and that I call home turning blue for the first time in history,” said Ms. Nandy, referring to the campaign color used by the Conservatives. She represents Wigan, another former industrial town, speaks for Labour on how to spread prosperity to areas outside England’s prosperous southeast, and knows that her party has work to do.People at the meeting in Burnley liked the idea of cutting energy bills by placing a windfall tax on the profits of oil and gas firms, said Ms. Nandy, speaking before the government announced the plan. Yet few at this time knew this was one of Labour’s main policy proposals.“The question is, why don’t they know this is what we have been saying?” Ms. Nandy lamented earlier this year, referring to voters.The reason, she thinks, is that politicians spend too much time in London and too little “on people’s own territory having conversations with them about things that matter to them.”Labour is also reaching out to a business community whose ties to the government have been strained over Brexit rules that pile mounds of extra red tape onto many exporters. At a digital meeting with businesses in the Midlands, Seema Malhotra, who speaks for Labour on business and industrial issues, heard a litany of problems, including customs bureaucracy, inflation, rising energy and wage costs, and supply-chain difficulties.Labour Party signs in Bradford, England.Mary Turner for The New York Times“I don’t think anyone is expecting full policy across the board until the time of the next election,” she said. “A lot of what we need to do is about rebuilding our relationship with the country and setting out our values, and people need to get to know the Labour Party again.”“Whilst people are prepared to listen to Labour again, we cannot be complacent,” she added. “Many people have yet to feel that we have fully moved on from the past enough to now trust us. We have work to do on continuing to demonstrate that our party has changed.”Some analysts argue that what Labour really needs is a sharper message.“I know so many progressives who think that politics is like a football game: If you have a 10-point plan on health and your opponents only have a five-point plan you win 10 to 5,” Mr. McTernan said. “You don’t.”Instead, he added, “You have to say: ‘This is Britain’s big challenge. Labour is the answer. Here’s why and here’s how.’”To succeed, the party needs to convince people like Ged Ennis, the director of a renewable energy company that equipped Burnley College with solar panels. He has voted for Labour and the Conservatives over the years, but opted for the centrist Liberal Democrats in 2019.Mr. Ennis said he had been convinced that Labour was keen to listen but confessed to having a hazy picture of Mr. Starmer’s politics. “I think what he needs to do is to be brave and to be really clear about what he wants to deliver,” he said. More

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      Labour Leader, Keir Starmer, Struggles to Emerge From Boris Johnson’s Shadow

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      Competent but low on charisma, Keir Starmer has yet to give British voters a clear reason to support the main opposition party, critics say.LONDON — If Prime Minister Boris Johnson went to one extreme with his pithy 2019 election slogan — “get Brexit done” — the leader of the opposition Labour Party, Keir Starmer, has gone to the other.Ahead of Labour’s annual conference, which began this weekend, Mr. Starmer penned a policy statement designed to showcase his beliefs that ran to more than 11,000 words. Despite that novella-like length, it is unlikely to compete with the best-sellers.Serious, competent but lacking charisma, Mr. Starmer is a mirror image of Mr. Johnson, a polarizing politician renowned for phrasemaking and showmanship rather than steadiness or a firm grip on policy.Yet when Mr. Starmer speaks to Labour members in the English seaside city of Brighton this week, he badly needs some pizazz — both to raise his profile and to explain the agenda of a party that suffered a crushing election defeat in 2019 under its previous, left-wing leader, Jeremy Corbyn.“If you put Keir Starmer and Boris Johnson together they would be the ideal politician,” said Steven Fielding, a professor of political history at Nottingham University. But after a lackluster year, Professor Fielding said, Mr. Starmer “has got to communicate his sense of purpose and what the point of the Labour Party is under his leadership in post-Covid Britain.”“It’s an existential question he has to ask himself, to answer and then communicate,” Professor Fielding said.No one doubts the intelligence, seriousness or competence of Mr. Starmer, a former chief prosecutor who worked his way from a modest start in life to the highest echelons of the legal establishment.Critics say Mr. Starmer has failed to make his presence felt in a way that enhances Labour’s public standing.Justin Tallis/Agence France-Presse — Getty ImagesBut some think he is not savvy enough politically, while others accuse him of picking internal fights to underscore his opposition to the Corbynite left. Those include a dispute over changes to the voting system for future party leadership contests that would probably have stopped a left-winger from getting the top job again. That plan caused sufficient anger within the party that Mr. Starmer was forced to put forward a watered-down version instead.Yet the more telling complaint is that he has simply failed to make his presence felt in a way that showcases the party’s positions or enhances its standing with the public. Nor, critics say, has he exploited Mr. Johnson’s numerous setbacks.Elected last year following Labour’s catastrophic 2019 defeat, Mr. Starmer has spent much of his leadership detoxifying a party whose image was marred by persistent infighting over allegations of anti-Semitism. That culminated in the suspension of Mr. Corbyn, who remains excluded from Labour’s parliamentary group.That focus on interparty turmoil, along with the 80-seat majority that Mr. Johnson’s conservatives enjoy, has relegated Labour to the role of an onlooker in Parliament — so much so that Mr. Johnson brazenly broke a vow and raised taxes this month without fear that Mr. Starmer and his colleagues could do much to take advantage of it.Perhaps mindful of the need to confront the Conservatives more aggressively, Mr. Starmer stepped up his criticism this weekend, telling the BBC that there had been a “complete lack of planning” by the government over the shortage of truck drivers that has Britons anxious about the delivery of fuel and goods.In terms of election strategy, Labour faces a huge challenge. In 2019, it lost a clutch of parliamentary seats in its former strongholds — the middle and north of the country — as working-class voters warmed to Mr. Johnson, with his pro-Brexit agenda and willingness to wade into culture wars.That left Mr. Starmer with the unenviable task of winning back those traditional Labour voters behind the so-called “red wall” without alienating anti-Brexit supporters in big cities like London, where the party’s support is increasingly concentrated.His bad luck is that the pandemic has dominated the media agenda, keeping the government at center stage and giving it a megaphone to trumpet its leadership role, whether merited or not.During the early months of the Covid crisis, the prime minister floundered, initially resisting lockdowns then having to reverse course, and Mr. Starmer outperformed Mr. Johnson in their head-to-heads in Parliament. The government’s effective vaccine rollout revived the Conservatives’ fortunes, but that effect has now faded and Britain faces an uncertain winter, with the effects of the pandemic difficult to predict. Still, Mr. Johnson is polling reasonably well for an accident-prone leader in the middle of his term.Critics on the left say that Mr. Starmer’s camp has opted for platitudes and shied away from distinctive left-of-center policies to avoid offending any electoral group.“They thought that Starmer is Biden and Johnson is Trump, and that Johnson would self-destruct,” said James Schneider, a former spokesman for Mr. Corbyn. “The difference is that Biden is a hugely more appealing figure to the American public — he has an everyman appeal.”A Jeremy Corbyn mask at the Labour conference in Brighton on Saturday.Justin Tallis/Agence France-Presse — Getty ImagesWhen Labour lost an election for a vacant parliamentary seat in northern England in May, Mr. Starmer suffered another self-inflicted setback with a botched reshuffle of his top team. He appeared to blame his deputy, Angela Rayner, for the defeat, stripping her of a key position, but he was forced to retreat in the face of a backlash and eventually gave her more responsibilities.A full-blown leadership crisis was averted when Labour unexpectedly went on to win an election in another northern constituency, Batley and Spen, in July.But there may be challenges to Mr. Starmer’s authority as he prepares to take on Mr. Johnson in a general election that must take place by 2024 but is expected a year earlier. One Labour member on the ascent is Andy Burnham, the mayor of Manchester, who has raised his profile during the pandemic.Others in the party are still committed to Mr. Corbyn’s hard-left agenda and remain angry about Mr. Starmer’s push to change the voting system. It also wants Mr. Corbyn reinstated to the parliamentary group.The worry for more moderate Labour supporters is that they may be seeing a repeat of the leadership of Ed Miliband, who, like Mr. Starmer, came from the “soft left” of the Labour Party, but who lost the 2015 general election.Tom Baldwin, a former spokesman for Mr. Miliband, said that he believed Mr. Starmer could win and that he could well be an effective prime minister. But he was also critical of his lack of a convincing message and his focus on internal battles, which he said “are not going to help us reconnect ourselves to voters.”“I would prefer if the Labour Party were having a conversation with the country about the country,” Mr. Baldwin said.Mr. Starmer’s supporters say voters will become disenchanted with Mr. Johnson in light of his broken promise not to raise taxes, and that the government will fail to deliver on his pledges to bring prosperity to neglected parts of the country.Anti-Brexit demonstrators in Brighton on Saturday. Mr. Starmer needs to avoid alienating such voters in big cities while trying to win back traditional Labour support elsewhere.Justin Tallis/Agence France-Presse — Getty ImagesOnce “normal” politics resumes after the pandemic, voters will ultimately warm to Mr. Starmer, they argue. Though he prefers to talk about policy rather than personality, Mr. Starmer spoke movingly about his upbringing in a recent interview with Piers Morgan.Still, his personality is very different from that of Mr. Johnson, and most analysts believe his best tactic is to lean into his strengths, hoping that voters are drawn to a man who exudes stability after years of political turmoil.It is also critical, political analysts say, that Mr. Starmer give voters a clear reason to support the Labour Party.“He’s got to find a message, he’s got to be able to communicate that message and to be able to sell it, and he’s not done any of this so far,” Professor Fielding said. “Competence isn’t enough.” More

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      Labour's Kim Leadbeater Wins U.K. By-Election in Batley and Spen

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      The election this week of the sister of Jo Cox, a lawmaker who was killed in 2016, was seen as a victory for Labour’s leader in a region where Prime Minister Boris Johnson’s Conservatives had made big inroads.LONDON — Britain’s opposition Labour Party on Friday scored an unexpected if narrow victory in a battle for an open Parliament seat that was widely seen as a critical test for the party’s leader, Keir Starmer, who has been under pressure for failing to revive the party’s fortunes.Many had expected that the Conservatives would take the seat, which Labour has held since 1997, because of the spoiler campaign of George Galloway. The victory will be a big relief for Mr. Starmer, who faced criticism in May when his party lost a by-election in Hartlepool, another former stronghold in the north of England.That result added weight to the idea that support for Labour had collapsed in the “red wall,” former industrial areas of England in which Prime Minister Boris Johnson’s Conservatives have been making big inroads.Results announced early Friday gave the Labour candidate, Kim Leadbeater, a win of just 323 votes over her Conservative Party rival, Ryan Stephenson, after an acrimonious contest in Batley and Spen, one of Labour’s traditional heartland seats in northern England.Voting in the by-election took place on Thursday after a campaign marred by claims of intimidation, including one episode in which Ms. Leadbeater was heckled aggressively and another that led to the arrest of a man on suspicion of assault in connection with an attack on Labour supporters.Ms. Leadbeater acknowledged that it had been “a grueling few weeks” but added, “I am absolutely delighted that the people of Batley and Spen have rejected division and they voted for hope.”Labour fought hard to retain Batley and Spen, which was represented in Parliament by Ms. Leadbeater’s sister, Jo Cox, until she was murdered by a far-right fanatic in 2016.Ms. Leadbeater’s narrow path to victory was a complicated one. She was competing not only against the Conservative candidate, Mr. Stephenson, but also against Mr. Galloway, a former lawmaker and veteran left-wing campaigner who sought to divert support from Labour.Although Labour held off the challenge from Mr. Galloway, its share of the vote in Batley and Spen was lower than in the 2019 general election.Since the Brexit referendum in 2016, Mr. Johnson’s Conservative Party has succeeded in winning over many of Labour’s core voters in working-class communities in the north and middle of England.Before the result in Batley and Spen, there had been news media speculation that Mr. Starmer would be vulnerable to a leadership challenge if Ms. Leadbeater lost, as many were expecting.Most analysts believed that Mr. Starmer would have been safe regardless of the result, because there is no credible alternative waiting in the wings. But the victory — narrow as it was — will be especially welcome news for the party leaders, because the contest could have been avoided.The by-election was triggered in May when the area’s former Labour lawmaker, Tracy Brabin, was elected to another job as West Yorkshire mayor, requiring her to step down from Parliament. Mr. Starmer was accused of mismanaging the situation and putting the seat at risk by allowing her to run for the mayoral position.Since he took the job of leader last year, Mr. Starmer, a former top prosecutor, has tried to unite the party after it was routed in 2019 parliamentary elections under the stewardship of Jeremy Corbyn, its left-wing leader at the time.Mr. Starmer’s critics have accused him of a lack of charisma and of failing to set out a convincing alternative policy agenda to that of the Conservatives.His defenders have appealed for patience and have contended that the pandemic has made it hard for the opposition to impress voters whose attention is focused on government efforts to bring Covid-19 restrictions to an end.In his election literature, Mr. Galloway had called on voters to abandon Labour to increase pressure on Mr. Starmer and force him out of his job.When the count was completed early Friday, Ms. Leadbeater won 13,296 votes, Mr. Stephenson was in second place with 12,973 and Mr. Galloway third with 8,264.Labour “won this election against the odds,” Mr. Starmer said. “And we did so by showing that when we are true to our values — decency, honesty, committed to improving lives — then Labour can win.” More

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      UK's Labour Party Reels After Panicked Response to Election Loss

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      The party leader, Keir Starmer, was seen as scapegoating a key aide, causing more turmoil in an already divided party after a disappointing performance in local elections. LONDON — Sober, cerebral and with the poise of the top-shelf lawyer he once was, Keir Starmer promised competence rather than charisma when he became leader of Britain’s opposition Labour Party last year, following its crushing general election defeat in 2019.But his panicky response to last week’s poor local election results and a clumsy reshuffle of his top team have left his party in turmoil, diminishing his authority and raising doubts about whether Labour has a credible path back to power.Mr. Starmer found himself embroiled in fierce recriminations over local election results that, with smoother communication, could have been explained away as disappointing, but instead pointed to a deeper crisis.“The one thing Keir Starmer was supposed to be was competent,” said Steven Fielding, professor of political history at the University of Nottingham. “The election results were not good but they weren’t as bad as some people liked to present them. He completely messed up his reaction, and that highlights concerns about his ability to communicate.”Behind the latest setback lie profound structural changes in British politics, with Prime Minister Boris Johnson making deep inroads into former Labour heartlands in working class districts with a mixture of populist pro-Brexit politics and promises to bring jobs and prosperity.Jonathan Powell, who served as chief of staff to Tony Blair, Labour’s last election-winning prime minister, believes that critics are “massively over-interpreting” the local election results, adding: “The number of times I’ve read about the end of the Labour Party is legion.” However, he said, the Conservatives, under Mr. Johnson, have effectively fused left-wing economic policy with a right-wing appeal on cultural issues. The Labour Party, deprived of its traditional appeal to so-called “red wall” voters in the north and middle of the country on economic issues, now relies on liberals in ethnically diverse metropolitan areas, like London and Manchester.That is too small a base to win a national election, he said, and squaring those voters with Labour’s vanishing “red wall” constituency will be difficult. “Labour is trying to hold together university-educated liberal voters with the old Labour party voters that they’ve lost to the Tories,” Mr. Powell said. “They can’t stand on two horses going in different directions at the same time.”The scale of the challenge became clear last Friday when Labour lost a parliamentary by-election in Hartlepool, an economically struggling port town in the northeast of England. Labour had expected a defeat in this staunchly pro-Brexit region, because the seat would have been lost in the 2019 election had the Brexit Party not contested it and taken votes away from Mr. Johnson’s Tories.Prime Minister Boris Johnson with Jill Mortimer, who won the recent by-election in Hartlepool, once a Labour stronghold.Scott Heppell/Associated PressBut Labour recorded a lower vote than in 2019 and, grim faced, Mr. Starmer refused to comment as he left his London home on Friday morning. When he did surface later he gave an unconvincing, at times almost robotic, interview that took responsibility for the result but provided no detail on changes.The following day, just as a set of better results for Labour were being announced, news leaked out that Mr. Starmer was stripping his deputy, Angela Rayner, of key responsibilities.With an impressive personal story of succeeding against the odds, Ms. Rayner, who has said she left school at 16 while pregnant and with no qualifications, is not only a popular figure in the Labour Party but comes from the sort of community with which the party is trying to reconnect. So the backlash was swift and ferocious.“The scapegoat sacking of Angie Rayner contradicted everything Keir Starmer said only 48 hours ago about taking personal responsibility for election defeats and his promise a year ago that he would unite the party,” John McDonnell, the party’s former spokesman on the economy under its last leader, Jeremy Corbyn, said on Twitter.Some on the center and right of the Labour Party were unimpressed too, including the newly re-elected mayor of Manchester, Andy Burnham. By late Sunday, Mr. Starmer had to beat an embarrassing retreat, ending up giving Ms. Rayner even more responsibilities, albeit away from campaigning.The humiliation seemed to encapsulate the disorientation of a Labour Party struggling to adapt to a world in which Mr. Johnson has not only stolen many of its traditional voters but also some of its redistributive, high-spending, political agenda.Unlike predecessors who presided over austerity, Mr. Johnson is promising to “level up” and bring jobs and prosperity to voters who feel ignored in the so-called red wall area that was once Labour’s electoral citadel.To many that may have sounded all the more attractive in the absence of a compelling message from Mr. Starmer, a former director of public prosecutions who often sounds as if he would be more at home in a courtroom than on a political stage.Following the 2019 general election defeat — Labour’s worst since 1935 — Mr. Starmer’s short-term strategy was to concentrate less on policy and more on detoxifying the party brand after its electoral disaster under his left-wing predecessor, Mr. Corbyn. Mr. Starmer has embraced the Jewish community, in contrast to Mr. Corbyn, whose leadership was dogged by allegations of anti-Semitism. Though he presents himself as a patriot, Mr. Starmer studiously avoids the culture-war issues that Mr. Johnson exploits, such as what to do with statues commemorating contested chapters in Britain’s history.Given that voters rarely care much about the policy platform of opposition parties until a general election is close, that looked like a sensible approach.Mr. Starmer at his office in London last week.Toby Melville/ReutersYet, while he should not have been expected to roll out a detailed policy agenda just 16 months after a general election, Mr. Powell said, Mr. Starmer “has to convince people he has a cause.” Mr. Blair did that effectively in the 1990s when he rebranded the party “New Labour,” embracing the free market and the European Union.Perhaps that did not seem urgent for Mr. Starmer, because voters normally use local elections and by-elections like those held last week to punish governments. His main campaign theme was to highlight claims Mr. Johnson broke electoral rules over the financing of a pricey refurbishment of his apartment.But Britons apparently ignored those goings on in Westminster, and with the country now emerging from Covid-19 restrictions seemed to reward politicians who controlled health policies. The ruling Scottish National Party in Scotland performed strongly, as did the governing Labour Party in Wales.In England, Mr. Johnson was forgiven for his chaotic early handling of the pandemic and rewarded for the country’s highly successful vaccination roll out.Not all is lost for Mr. Starmer, particularly when the entirety of last week’s results are taken into account. According to a BBC analysis projecting the local voting into a national vote share, Labour was seven points behind the Conservatives, hardly a good result but progress on the 12-point deficit recorded in the 2019 general election.With no credible challenger waiting in the wings, Mr. Starmer is unlikely to face any immediate threat to his leadership. Nonetheless, the speed with which critics attacked his reshuffle raises pressure on Mr. Starmer to at least identify a message that can appeal to two very different groups of Britons — the old working class stalwarts and the more youthful, liberal and better educated city dwellers.“Under Starmer it has been two steps forward and one step back,” said Mr. Fielding, “and he hasn’t addressed the problem of how you win back the red wall without losing metropolitan liberal voters.” More