Tories need a clear vision

Chancellor must balance books

DURING HER speech to the Conservative Party Conference 37 years ago, Margaret Thatcher famously said, “the lady’s not for turning”.

It’s not a phrase that Theresa May is likely to utter this week as she seeks to regain the political initiative after a troubled summer. Speaking ahead of the start of this year’s annual conference, the Prime Minister announced a “freeze” on tuition fees in England which, although she wouldn’t admit it, is a U-turn in everything but name.

It’s a bid to show that she has listened to the electorate in the wake of a calamitous General Election campaign, and also an unabashed attempt to woo younger voters. So, too, is the £10bn that the Chancellor Philip Hammond is unveiling to help young people get on the housing ladder, as part of an expanded Help to Buy scheme.

These represent a fundamental shift in the Tories’ approach, for if there’s one thing the election proved in no uncertain terms it was that the public has little appetite for yet more austerity.

Yes, the country must balance its books and there are unquestionably going to be some difficult decisions ahead – none more so than over the vexed question of NHS funding and social care provision – but equally the government realises it cannot cut its way to economic growth.

A central tenet of the Tories’ traditional appeal is that they are the party of economic stability, which is why as well as highlighting the flaws in Labour’s renationalisation plans, Mrs May and her Ministers must spell out a clear vision of how a post-Brexit Britain can flourish.

Austerity alone is no longer politically viable, so the challenge for the Chancellor is to explain to the nation how, in the current climate, greater spending fits with fiscal responsibility.

Over to you Mr Hammond.