David Vance SubstackRead More
You can see it. I can see it. Britain is being steered towards a lethal financial storm, yet the UK Government appears to be utterly paralysed, distracted by stupid slogans and devoid of any real solutions.
As oil prices surge on the back of conflict in the Middle East, the risks to inflation, interest rates and growth are plain to see but seemingly not to ministers. Bankers warn of a looming shock on the scale of the post‑Ukraine energy crisis and the oil crunches of the late 20th century. Yet Downing Street clings to hollow promises of “growth” and ‘fighting” the cost of living while offering zero credible plans to shield households from the fallout.
There is talk of FOUR increases in Interest Rates across the remainder of 2026 which would be a hammer blow to out economic prospects.
Nearly two years into office, Chancellor Rachel Reeves has been tested and found wanting. Her curious fiscal rules, politically convenient when markets were calm, now look dangerously inflexible as borrowing costs soar and tax revenues are threatened by slower growth.
Instead of being honest with the public about hard choices, Government ministers hide behind soundbites while families face the prospect of higher mortgages, squeezed savings and renewed pressure on pensions.
This failure is not just one of communication; it is competence. Any responsible government, faced with a clear warning from markets and bankers, would be all action, It would be urgently stress‑testing public finances against these oil‑price shocks, outlining contingency plans, and moving to protect the most vulnerable savers and borrowers.
Instead, this lot appear much more concerned with trying to manage headlines than managing the economy. What makes this dereliction so annoying is that we have been here before and not that long ago. The energy‑price spike after Russia’s invasion of Ukraine exposed how fragile our economic model had become; yet lessons have not been learned, and resilience has not been built.
So we watch on in horror as Reeves steers the economy towards the icebergs.
We know how it will end. Up until this point I assumed Reeves would go with Starmer after what should be devastatingly bad May election results. But I am not sure the economy can survive another three months of her utter incompetence.
