I write this column following the Conservative Party Conference in Birmingham. I understand the sentiment from a few constituents that the Labour and Conservative Conferences should have been cancelled and that we should all get on with the job of running the country. The same thought had passed through my mind too. However, having mulled over the past few days, it is clear that political party conferences are not about the boozing and smoozing (for some perhaps), they are about panel and roundtable discussions, exploring policy and what we need to do for British people and businesses.
My focus at the Conference was on Hastings and Rye, about housing – particularly affordable and social, water quality and nature-based solutions, our environment and the issues affecting our coastal communities - as well as the local opportunities on offer, if given the right focus and investment. The main fixation in the media and seemingly in Birmingham for the last few days has been on the Prime Minister’s Growth Plan – or more specifically the ‘tax cuts for the rich’, the 45 pence tax cut. As a Conservative, I believe in low taxation, but to increase spending to help households and businesses with energy bills to the tune of around £100 billion, whilst cutting taxes at the same time, leaves a funding gap. It was therefore not only politically right to overturn the reduction in the top rate of tax at this moment in time, but economically correct too.
The new Prime Minister has taken on a massive job and will need to take measures to avoid double-digit inflation, increased interest rates, a predicted recession, stagnant productivity growth, caused by the after-effects of Covid-19 and a war in Europe. As we can see all over Europe and across the pond in the USA, the common path of dealing with inflation is already becoming apparent; encouraging people to spend to hold off recession is encouraging price rises but trying to squash inflation is tipping countries towards recession. This is why the Prime Minister is going for growth to fill in the funding gap and hold inflation in check. In order to do this, she will use other supply-side reforms in addition to the tax cuts to turbo-charge growth and encourage competition. Supply side policies seek to increase productivity, competition and innovation – all of which can maintain lower prices – and I am urging the Government to bring forward the announcement of these ambitious plans as soon as possible.
The Prime Minister has explained that her Growth Plan, which reduces taxes for ordinary people and businesses and provides support with rising energy bills, will curb inflation by up to 5 per cent and avoid a projected economic slowdown. Despite differences in opinion, Ms Truss is Prime Minister and we MPs need to pull together to give this Plan the best shot to deliver for our local communities. I owe it to the residents and businesses of Hastings and Rye to do just that.