Lord David Frost says fears the UK are “swinging back to George Osborne style austerity” as he hit out at Rishi Sunak for his fracking U-turn.
Lord Frost, speaking exclusively to GB News’ Liam Halligan, also believes former Prime Minister Liz Truss and Kwasi Kwarteng “should have stuck to their guns”.
Boris Johnson’s chief negotiator for exiting the European Union, told Liam on Mr Sunak’s fracking U-turn: “there’s a degree of hypocrisy on the part of those who won’t do fracking in the UK but are perfectly happy to import large quantities of fracked gas from the US”.
Shortly after becoming PM last month, Mr Sunak reintroduced the moratorium on fracking in England.
The PM told the Commons last month that he “stands by” the 2019 Conservative Party manifesto and insisted his Government will deliver on what was agreed at the UN Cop26 Glasgow climate talks.
Lord David Frost
GB News
While speaking about the Government’s economic policies, warning that the country could be “heading for decline” if the we reduce productive capacity.
Lord Frost said: “We seem to be swinging back to George Osborne style austerity. But we need to retain the aspiration to increase the productive capacity of this country, to make everyone wealthier and more successful in their work and their daily lives.
Rishi Sunak
Victoria Jones
“If we give up on that aspiration, we’re heading for decline.
He added: “There is a real risk of raising taxes into a recession, especially when interest rates and monetary policy is getting tighter.
“There are very few examples of countries in the world that have consolidated their fiscal policy and then grown.
“Budgetary consolidation tends to slow growth and crush the economy.
“You then have to consolidate further and you get into a vicious cycle. You have to be cautious when economic conditions are getting worse so that we are not making our situation worse.”
In a message to Mr Sunak, Lord Frost said: “My advice to Rishi Sunak would be to try to develop a programme that everyone can get behind.
“Don’t pivot to austerity. Keep focussed on raising productivity and on supply side reform. Try and bring everyone with you so people feel the government is stable and can get behind it.”
He continued: “Kwasi Kwarteng and Liz Truss should have stuck to their guns. The great disappointment to me was not that they made mistakes, but that they were pushed off what they were trying to do too quickly.
“We need to keep the focus on growth and productivity and making the economy stronger – and it’s a great pity that hasn’t happened."