End of austerity?

The meeting of Tory backbenchers with Theresa May on Monday evening was notable for complaints about austerity. Many candidates reported how they were criticised on the doorsteps during the campaign for cuts while Jeremy Corbyn was touring the country promising the earth. After the meeting Government sources briefed that “austerity is over”.

This is perhaps the greatest indictment of the way the election was conducted. Mr Corbyn was able to make the running because no one argued the counter case. Even though the Tories said they would means-test winter fuel allowances and rebalance inter-generational inequity, they failed to set this in the context of public service reform or economic strategy.

The Conservatives did not want to offend the group of Labour voters who had backed Ukip and voted Brexit and whose support they needed for the big majority Mrs May sought. But she didn’t get it, because Labour will always outflank the Tories when it comes to boosting spending. Arguably, the Tories have not run an austerity programme for years.

They have abandoned their fiscal targets and scrapped cuts to tax credits and disability benefits. With a hung parliament, the Tories are merely stating the obvious that there is not a majority for even tougher measures. But the Conservatives need to start once again developing the arguments in favour of low taxes, free markets and the importance of profit-making. Businesses felt totally ignored in the campaign. It is not enough for the Tories to argue they need to be kept in office just to avoid Mr Corbyn taking over. They have to persuade the country that it is a good in itself.