Jeremy Hunt has rounded on Labour and critics within his own party, accusing them of peddling “declinism” and dismissing calls for immediate tax-cuts.
The Chancellor, used a major speech at Bloomberg’s London HQ this morning, to strike a surprisingly upbeat tone, pledging to transform “British genius and hard work” into long-term prosperity and bring down inflation.
Setting out the Government’s plan for growth, Mr Hunt said the country was well placed to exploit “the growth sectors which will define this century” and the EU red tape that has held back investment and productivity will be swept away.
He insisted that downbeat projections from Labour and some commentators “do not reflect the whole picture” and claimedthat the economy was standing up well against our global competitor.
But after an introduction, reportedly written for him by AI software, he took aim at his critics within his own Party who have been calling for tax-cuts to kick start the economy and drive growth.
“My party understands better than others the importance of low taxes in creating incentives and fostering the animal spirits that spur economic growth”, he said.
“Another Conservative insight is that risk-taking by individuals and businesses can only happen when governments provide economic and financial stability.
“So, the best tax cut right now is a cut in inflation.
“And the plan I set out in the autumn statement tackles that root cause of instability in the British economy.
“The Prime Minister talked about halving inflation as one of his five key priorities and doing so is the only sustainable way to restore industrial harmony.”
However, in attempt to appease those who want tax cuts, he admitted that reducing taxation was important to attract investment alongside reigning in public spending.
“High taxes directly affect the incentives which determine decisions by entrepreneurs, investors or larger companies, about whether to pursue their ambitions in Britain.
“Our ambition should be to have nothing less than the most competitive tax regime of any major country. That means restraint on spending.”
He continued: “In case anyone is in any doubt about who will actually deliver that restraint to make a low tax economy possible, I gently point out that in the three weeks since Labour promised no big Government chequebook they’ve made £45 billion of unfunded spending commitments.”
Responding to the speech, Rachel Reeves MP, Labour’s Shadow Chancellor, said the the Chancellor’s speech, underlined the Conservatives’ failures on growth and ‘the four E’s’.
“Britain has so much potential”, she said.
“From creating good, new jobs in the industries of the future, to making our country the best place to start and grow a business, Labour’s proper plan for growth will grasp those opportunities and make our economy stronger to face up to the challenges.
“13 years of Tory economic failure have left living standards and growth on the floor, crashed our economy, and driven up mortgages and bills.
“The Tories have no plan for now, and no plan for the future. It’s time for a Labour government that will build a better Britain.”
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