Yesterday, Chancellor Jeremy Hunt claimed that the Conservatives are taking the long-term decisions for a brighter future, as he announced an:
- Immediate Civil Service recruitment cap and Equality and Diversity Audit to save up to ÂŁ1billion next year, cutting the cost of government and boosting efficiency
- Benefits reform promised to make work pay, as 2 million UK workers set to benefit from National Living Wage boost in April 2024
- Tough action to protect freedom of speech with a law change to ensure banks do not discriminate against lawfully held views
Speaking at Conservative Party conference in Manchester the Chancellor set out his plans for a more efficient and productive British state, steps to make work pay with benefits reform a wage boost for millions of workers, and action to protect freedom of speech in the banking sector.
He told the Conference that despite enormous global challenges, the British economy is proving the doubters wrong. The economy is growing and we are on track to halve inflation this year. Compared to France, Germany and Italy, the UK has been the joint fastest growing since Brexit, and the fastest growing since 2010.
However, with an ageing population and a war in Europe leading to greater calls on the public purse, the Chancellor warned the way government delivers public services must change to avoid higher taxes, lower growth and more debt into the future. That will require some necessary long-term decisions over the coming months to build a brighter future for everyone.
In contrast, he slammed the Labour Party’s dangerous plan to borrow £28 billion which would exacerbate problems further, leading to higher debt, higher inflation and higher taxes. Branding Labour’s approach an “economic illusion”, the Chancellor accused Sir Keir Starmer and Rachel Reeves of not being honest with the British people about the impact of their borrowing plans.
As a first step to build a more productive state, the Chancellor announced an immediate Civil Service recruitment cap to ensure the workforce grows no further, increases efficiencies and boosts productivity. The cap is expected to save up to ÂŁ1billion next year.
The Civil Service workforce is 63,000 bigger than pre-pandemic and it is right that we review this growth to reduce inefficiencies. He said he wanted to ensure we are delivering the best public services possible and investing in the right skills and people for the Civil Service, while providing value for money for the British taxpayer.
The Civil Service recruitment cap will stay in place for the rest of the Spending Review period. While we are setting an initial cap, all Departments will have to provide comprehensive productivity plans that demonstrate a long-term plan to get back to pre-2019 staff numbers. As part of the recruitment cap, the Chancellor also announced that they are auditing spending in the Civil Service on diversity spending to drive efficiency, improve equality of opportunity and tackle disparities.
Improving opportunity and stopping discrimination should be every manager’s job and not a box you tick by hiring a person, so driving out inefficiency and waste on diversity spending is critical. It is expected there will be a reduction in the estimated 10,000 people working full time on equality and diversity initiatives in the Civil Service. Action by the government will be announced at the Autumn Statement.
In a major boost for 2 million of the UK’s lowest paid workers, the Chancellor also announced an uprating the National Living Wage in order to meet a Conservative manifesto commitment for it to reach two thirds of median earnings by 2024.
The Low Pay Commission is expected to recommend uprating the National Living Wage with the current published forecast rate at ÂŁ11.16 an hour. This could represent an increase of over ÂŁ1,300 to the annual earnings of a full-time worker on the National Living Wage from April 2024.
The Chancellor also confirmed he and Work and Pensions Secretary Mel Stride intend to rework the benefits sanctions regime to make it harder for people to claim benefits while refusing to take active steps to move into work. Proposals will be set out in the upcoming Autumn Statement.
He went on to say that free speech is the cornerstone of our democracy and a Conservative Government will always protect it. It is unacceptable for banks or other payment service providers to close accounts on the basis of someone’s political views. That’s why he pledged to take action to change the law to ensure that banks do not discriminate on the basis of lawfully held views.
That is why the Chancellor confirmed plans to legislate to change banks’ Threshold Conditions to ensure that banks do not discriminate against consumers based on their political opinions. He went on to say that he will also publish a statement on how financial institutions should implement new payment services framework contract termination rules so that customers have more protection from having their payment accounts closed.
He concluded by saying that the hard but necessary long-term decisions this Conservative government has taken means the UK has a growing the economy and is on track to halve inflation this year. The Labour Party have no plans to reduce the cost of government with their reckless borrowing and unfunded spending commitments meaning higher inflation and higher taxes. They are silent on protecting freedom of speech, and have pledged to end benefit sanctions which removes the incentive to look for a job.
Only Prime Minister Rishi Sunak and the Conservatives are willing to take the long-term decisions for a brighter future for everyone in the United Kingdom.