CPS responds to Chancellor’s speech on growth
‘The Chancellor’s speech struck all the right notes. It is clear he understands both the economic challenges we face, and the opportunities we could capitalise on with the right policy approach.
‘Mr Hunt is right that we need to focus on our strategic advantages, prioritising investment and innovation, rewarding entrepreneurial risk-taking, and making sure that work always pays.
‘More broadly, it was great to see the Chancellor put himself definitively in the optimistic, pro-growth camp – plainly, he has no intention of simply managing Britain’s decline.
‘Still, there are various areas where the Chancellor’s admirable rhetoric sits uneasily with reality.
‘He says we should have the most competitive tax system of any major economy – and we applaud him for that. But such a commitment is hard to square with raising the corporation tax rate, not replacing the super-deduction, and failing to fundamentally overhaul business rates.
‘Similarly, welcome as the ambition to make Britain the next Silicon Valley is, passing legislation as flawed as the Online Safety Bill seems a very odd way to start.
‘And even on green tech, where the UK does have genuine achievements to trumpet, it isn’t clear how the government can respond to the emerging ‘subsidy war’ sparked by Biden’s Inflation Reduction Act.
‘Nevertheless, this was a solid speech and a welcome statement of intent. We hope to see it translated into hard policy in the months ahead.’
By Robert Colvile, director, Center for Policy Studies