Chancellor’s rhetoric must become reality

Responding to the Chancellor’s speech on economic growth Tom Clougherty, Executive Director of the Institute of Economic Affairs said:

“The Chancellor is saying all the right things on growth and should be applauded for many of the decisions she has taken today. Restoring Britain’s economic dynamism simply has to be the Government’s overriding objective – without that, no other meaningful agenda is possible.

“The challenge now is to make sure that rhetoric becomes reality. Can the government face down opposition to the developments that it now wants to proceed? Heathrow’s third runway will be the acid test of how heartfelt the government’s growth commitment is. After all, we have been here – and been disappointed – before.

“The Government also needs to ensure that pro-growth action on specific projects is following by fundamental, systemic reforms – which mean that in future, market-led development does not depend on intervention from Downing Street for its viability. We need genuine regulatory liberalisation if this pro-growth pivot is going to be sustainable.

“Crucially, how will prioritising growth sit alongside the Government’s plans on employment law and Net Zero? As things stand, policy commitments in those areas clearly militate against stronger economic growth. If the Government is willing to rethink its approach there, we will know that they are serious about putting growth first.”