Good news for Kwasi Kwarteng: a survey by AJ Bell found that 26% of the public rate Rachel Reeves as the least successful of the last five chancellors, putting her ahead of Kwarteng, despite his ill-fated stint alongside Liz Truss. Of course, John Healey hasn’t delivered his first Budget yet, so both may soon have some stiff competition.
CapX is still at Conservative conference, where national security is the order of the day, and the Tories have announced a £10 billion plan for an anti-missile defence system. The party has branded it Britannia Shield, but much of the coverage has either called it a British Iron Dome – nodding to the system used by Israel – or shot the Iron Dome comparison down as overblown. Given how much controversy has been stirred up by the policy’s nicknames, it may already need a rebrand.
Yesterday at conference, Shadow Work and Pensions Secretary Helen Whately sat down with CPS Director Liam Halligan to discuss her plans to cut the benefits bill – and why, unlike Andy Burnham, she believes that national security has to come before social security.
Below you’ll find all the latest pieces from CapX, plus what we’re reading from around the web.
Marc Sidwell
Editor, CapX
Today’s Takes
Fresh thinking from CapX
Helen Whately: no social security without national security
Marc Sidwell
‘The £23 billion [in welfare savings] is just the start. The number will be higher by the end of this conference. They’re savings that need to be made. Our welfare bill has gone up, will continue to go up, to a level that we as a country cannot afford.’
The Shadow Work and Pensions Secretary Helen Whately is setting out her plan for welfare under a Conservative government. She has a detailed vision for big welfare cuts that the Tories hope will be popular at the next election. Whately is also concerned about keeping the country safe. If we are spending too much on welfare, we can’t afford the necessary spending on defence. Read More
Don’t tariff Chinese cars
Ben Ramanauskas
‘Brussels might choose to force its member states to put jagged rocks in their ports, Britain is free to ignore them.’
The UK looks like it will join the EU in putting tariffs on Chinese electric vehicles. This would be a serious mistake. We would be imposing costs on millions of consumers for the benefit of a few producers. We shouldn’t be strong-armed by the EU into imposing tariffs. There are other, more effective ways we can stand up to China. Read More
Stat of the Day
Best of the Web
Kemi must tell people the truth
Peter Franklin, ConservativeHome
‘End-stage Labour isn’t a descent into Corbynite madness (which was an aberration) nor a terminal case of woke brainworms…, but the organised denial of reality on the affordability of welfarism.’
Last year, Kemi Badenoch’s conference speech helped to boost her popularity. This one needs to offer a cold blast of reality. As Andy Burnham indulges in deflection and denial about the threats to our national solvency, the Conservative leader needs to be honest with the public. When things go wrong, they’ll remember her warning. Read More
🎧Why our infrastructure is so expensive
Ben Hopkinson
Tories are right to end the £100k tax trap
Adam Smith, The Telegraph 🔒
‘To win the argument that work and enterprise create prosperity, the Conservatives must dismantle every trap that punishes both.’
The Conservatives have committed to remove the tax cliff edge for high earners that cuts off childcare support for anyone earning over £100,000. Labour will call it free childcare for millionaires. Let them. This is not just morally right but economically one of the most pro-growth interventions a government could do. Read More
The Capitalist: young people need jobs, not handouts
And if you want more...
– There will never be another Jeffrey Archer (The Spectator)
– Jeremy Hunt: raising bank taxes would hurt us all (The Times 🔒)
– Access to capital isn’t why British companies are small (The Progress Post)
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Here’s a really novel idea.
How about collecting the taxes that are supposed to be collected already? Or pursuing the businesses and individuals avoiding £35bn in tax annually? Or an even more novel idea, GROW THE BLODEY ECONOMY properly and not just nominally through bigger trades on current systems? This constant focus on welfare as a target anytime a cut is needed is pathetic and shows the uselessness of the so called ‘think tanks.