The prime minister was hesitant to present a particularly bold policy that could upset one faction or another. This explains why it took the party several years to even define the phrase “equalization” – with countless explanations of the term used in Toridom, it was easier to let MPs tell their constituents what they want to hear than to set out exactly what the government plans to do.
And after more than a decade in power, the Tories’ commitment to traditional market-oriented policies has been diluted by Whitehall.
Breaking the manifesto’s commitment not to raise key taxes last fall by creating a new national health and social security tax was the moment the cabinet officially lost its way.
Rishi Sunak’s latest hint of unforeseen taxes on oil and gas companies is further evidence of this confused thinking. Nothing in the Chancellor’s political background would suggest that he really believes that a one-off tax on profitable companies is a good idea or beneficial to the economy in the long run.
His Mais lecture at Bayes Business School earlier this year revealed his true goal: to make business invest more voluntarily.
What companies need is not the threat of more taxes, but rather the traditional commitment of the Tories to create and maintain a business-friendly environment. But the knee reaction will still play out in the gallery, suggesting that the corporate world needs further regulation.
Maybe now the crisis will force conservatives to defend the free market again – not because they think it will win votes, but because it clearly works.
This week’s announcement that Johnson wants to give tenants the “right to buy” from their housing associations provides further evidence that he believes, as a last resort, that resorting to Thatcherism will provide some solutions to his current political problems.
Unfortunately, he has to go much further.
Thatcher brought life back to the UK economy because smart economic principles – reducing government intervention, prioritizing regulation with a light touch, pursuing economic growth – were applied to the chronic political problems plaguing Britain at the time.
The British now need someone to embrace the tried and tested principles of Thatcherism and apply it to today’s woes in a much more focused way than Johnson has ever been able to.
Giving tenants the right to buy their home from a housing association at a reduced price, for example, can be a boon for the lucky ones who can benefit, but the policy does nothing to add housing to the common housing stock and completely fails to tackling today’s big problem of undersupply.
Recycling old economic ideas is perhaps a step in the right direction – at least better than the government’s recent decision to abandon supply-side reforms around planning and increase the tax burden again. But critical thinking must be applied to today’s unique economic circumstances so that such an agenda can really escape.
If Johnson, the political chameleon, can rediscover himself as a true Thatcher, at least one good thing can come out of our current predicament.
Add Comment