Cut taxes or Brexit will fail, says Frost
Minister warns against ‘European social model’ amid reports of Downing St unrest
BRITAIN cannot carry on as it did before Brexit and must cut taxes and reduce regulation, Lord Frost said yesterday as he called for “free debate” over government policy.
In a speech at a conference attended by Boris Johnson, the Brexit minister said he needed to speak up as he urged the country not to follow the “European social model” or risk the split from the EU failing.
His intervention came amid growing reports of concerns over drift in No10, compounded by a chaotic speech given by the Prime Minister earlier yesterday to the Confederation of British Industry (CBI).
Laura Kuenssberg, the BBC political editor, quoted a senior Downing Street source as saying senior Tories needed to “wake up” and demand changes.
“There is a lot of concern inside the building about the PM … It’s just not working,” the source reportedly said. “Cabinet needs to wake up and demand serious changes otherwise it’ll keep getting worse. If they don’t insist, he just won’t do anything about it.”
Meanwhile, the Prime Minister faced a rebellion over social care cap reforms in the Commons, as 18 Tories rebelled and more appeared to have abstained.
It came after ministers made changes critics believe “disadvantage the less well-off”. Although the rebels failed, the backlash is set to spread to the Lords where former ministers will attempt to force a climbdown by the Government.
Lord Frost’s intervention will be seen to reflect wider Tory party concerns over government tax rises. He said last night: “I can’t share the views of those who think we can treat the private sector as just a convenient way of keeping the public sector running. It isn’t just a source of taxes. Nor is it a bunch of people who will inevitably do bad things unless the Government keeps a very close eye on them.
“We can’t carry on as we were before, and if after Brexit all we do is import the European social model, we will not succeed.”
In recent weeks there has been disquiet among Tory MPS as the botched handling of the Owen Paterson lobbying row led to Labour pulling ahead in opinion polls.
Cabinet ministers are now being sent to campaign in Old Bexley and Sidcup ahead of next week’s by-election – a sign of precaution over what should be an easy hold for the Tories.
Under Mr Johnson, the tax burden has risen to its highest level in 70 years despite the Prime Minister and Rishi Sunak, the Chancellor, insisting they are low-tax Tories at heart.
Speaking at the Centre for Policy Studies conference, Lord Frost said: “The formula for success as a country is well known. Low taxes. I agree with the Chancellor, as he said in his Budget speech, our goal must be to reduce taxes. Light-touch and proportionate regula- tion, whatever our policy objectives.”
Lord Frost, one of three ministers who spoke out in Cabinet against the National Insurance rise earlier this year, said: “To make the best decisions we need the fullest and free-est possible debate. I believe that free debate is a good thing. It forces everyone to test their arguments and I strongly believe it means the best ideas win.”
The Prime Minister earlier made a speech outlining his pro-business vision to the CBI, but the message was overshadowed by blunders in delivery. He invoked Peppa Pig as proof of the power of the free market and jokingly likened himself to Moses as he argued
for the need for a green revolution. On social care, Esther Mcvey, the former pensions secretary, and Dan Poulter, a former health minister, were among 18 Tories who last night rebelled against an amendment to the Health and Care Bill, which will stop means-tested support counting towards the new £86,000 cap on costs.
It means more people in England will pay higher care costs.
Mark Harper, the former chief whip, said: “It potentially disadvantages the less well-off and those of working age with life-long conditions.”
A further 69 Tories recorded no vote, of which a proportion will have had permission to miss the division, but others will have chosen to abstain.
Amid a fierce whipping operation, some Tories reported they had chosen to abstain rather than rebel, in the expectation the House of Lords would send it back to the Commons later for reconsideration. Lord Lansley, the Former Conservative health secretary, and Baroness Altmann, the former pensions minister, said they would seek to amend the legislation when it arrives in the upper chamber.
The Prime Minister’s allies in Government were last night waving away criticisms of him, arguing that they were politically motivated attacks.