Last week saw the Conservative Party Conference taking place in Birmingham. The growth agenda that this Government is putting forward is the only way out of the financial challenges we face. We can’t do more with the same – or less. If we can grow the economy by getting more businesses to invest here, that will lead to a bigger tax-take from profits generated by those companies and individuals attracted here to work in them. That will fund more public services. We need new money into the economy to pay for the increasing demands on it. So, it’s critical we become more attractive as a place to invest and work than our competitor countries. Increasing taxation isn’t the answer. It’s effectively recycling existing money making everyone in the end poorer.
We can’t get away from the fact that the financial support for Covid, estimated at £310-£410bn and the support for energy bills resulting from Putin’s attack on Ukraine, estimated at £60bn for the first six months have put huge pressure on the economy. Funding this was always going to be something we had to pay for. Quantitative easing – printing money to generate immediate cash - a tool we have been using since the 2008 financial crash, didn’t change that - it just delayed it. I don’t think anyone would argue this support should not have been put in place and quickly. This support is not to be unfunded – but how we fund it isn’t a 24-hour decision. We need to get it right and in November the plan will be clear.
At the heart of the growth agenda then is getting business back on the front foot and encouraging investment. Changing the definition of what a small business is (moving the threshold for SMEs from 250 to 500 employees) will cut the costs of regulation for nearly 40,000 businesses saving them time and money. Similarly, the new Investment Zones will drive growth and unlock new housing by liberalising planning, offering tax incentives, and giving wider support to local economies that have been left behind for too long. None of this will be at the expense of our existing biodiversity and climate change commitments.
Immigration, is a key issue to be resolved and the new Home Secretary made it very clear that if someone deliberately enter the United Kingdom illegally from a safe country, they should be swiftly returned to their home country or relocated to Rwanda where your asylum claim will be considered. UK policy on illegal migration should not be derailed by abuse of our laws, or orders of the Strasbourg Court. The Prime minister is also pressing the case with the French to do better and has secured agreement to a different, more effective approach.
Now that we have left the EU, our farmers will have greater freedom. New grant schemes will be used to support farmers and food producers to invest in the technology that will boost their productivity and profitability. We should not forget they have been the guardians of our environment for years – our beautiful countryside didn’t just happen. So, a refocus on food production giving Britain security of food supply alongside countryside stewardship is welcome. And at last polluting water companies will be made to pay- potentially up to £250m in fines!
I know people are finding meeting today’s bills harder and harder. As a result of Covid and the war in Ukraine, inflation has risen around the world and banks have raised interest rates to address this. We are all having to come to terms with today’s new reality. While energy costs have been addressed, I have been lobbying government to also look at what more can be done to address rising mortgage rates.
As always, if you would like to book a surgery appointment (in-person or virtual) or raise a specific issue, please call my office on 01626 368277 or email annemarie.morris.mp@parliament.uk to arrange an appointment.