New PM will face big challenges 

• THE increasing intensity surrounding the Tory leadership contest focuses on the economic and political prospects for the new premier, anointed on September 5.

A written constitution; the democratisation of civil society; the republicanisation of finance; the recognition that the market economy has to be managed and regulated both at home and abroad; the upholding of a welfare state that incorporates social citizenship; the construction of a stable financial order beyond the nation state.

These feasible and achievable reforms must be accomplished if the dynamism of capitalism is to be harnessed to the common good.

The new administration will be a continuation of the current Conservative government and its official policies on economic management, monetary regulation with fiscal austerity, sounding a bleak note.

The inflationary spiral, the crisis in the cost of fuel, concomitant extension in taxation with interest rates rising offering no prospects, the choice between severe contraction in money supply from Rishi Sunak and the tax incentives with inflationary expansion engineered by Liz Truss the agenda.

I prefer the second alternative, accelerating growth to commandeer overheating.

CN KYLE, N7