Are Labour Chancellors really still blaming Liz Truss?

John Healey's first major speech as Chancellor followed the conventional Labour narrative, highlighting the downsides of austerity, the advantages of state intervention, and the blame on Liz Truss. The "Truss penalty" in the cost of UK government borrowing was dismissed as both lazy and unnecessary, as bond traders don't still blame her for the current issues.

Despite the UK's heightened exposure to energy shocks and Bank of England decisions, the Labour government only has two years left to regain the fiscal credibility lost under the Conservatives. The argument for increased "public control" was also criticized, as the markets can already provide it with additional regulation, and state ownership could lead to lower productivity and higher taxpayer subsidies.

Healey also echoed Burnham's criticism of austerity and Brexit, which is seen as tone-deaf and misguided. While Healey's speech was not entirely negative, it was largely overshadowed by the optimistic tone compared to Rachel Reeves' first speech, and the signs that the UK economy is turning the corner due to the less severe impacts of the Middle East crisis.

However, there are still many unforeseen challenges ahead. The new Chancellor, along with Burnham, seems set to continue the same flawed policies as Starmer and Reeves, including increased spending, borrowing, regulation, and taxation, which may not lead to a positive outcome.