Conservative Party Manifesto: A robust manifesto but more work to be done to boost the economy

The Adam Smith Institute has today responded to the Conservative Party Manifesto announcement.

The manifesto is robust, but there is more work to be done to boost our economy, the ASI’s Head of Research Matthew Lesh says:

The Conservatives should be congratulated for a robust manifesto that lowers national insurance, seeks to revise business rates, and commits to not increasing income tax.

Creating ten free ports will help boost some of Britain’s left behind areas with lower taxes and less cumbersome red tape — an approach that should ultimately be taken nationwide. Free trade deals will help boost Britain's economy and deliver lower priced, high quality products for consumers. It is also welcome to see a commitment to ensure regulation is “sensible and proportionate” and “using our new freedom after Brexit to ensure that British rules work for British companies”. Abolishing Section 40 of the Crime and Courts Act 2014, which requires media outlets to pay costs even when they lose cases, is a welcome move for free speech. The introduction of safe standing will ensure football fans have more choice while keeping patrons safe.

But overall, this will not be enough to turbocharge Britain’s economy, or address the ballooning size of the state and long-run issues. Splashing out taxpayer money — albeit at a much more sensible scale than Labour — will do little to solve structural issues and raises questions about fiscal responsibility. The NHS needs more than higher spending, but fundamental structural reform and the embrace of a European-style insurance model for those who can pay. To improve the standard of our schools we need more parental choice, not simply more funding. 

The recommitment to the so-called “Green Belt” and Help to Buy will do little more than throw fuel on the fire of the housing market. Cancelling the planned corporate tax reduction will discourage investment and job creation and will make it harder to unleash Britain's potential. The substantial increase in the minimum wage will mean fewer jobs and less hours, particularly for those will fewer skills, the young and minorities. While embracing nuclear, hydrogen and fusion has the potential to provide substantial low-cost, low-emission energy, the moratorium on fracking will hamper efforts to fight climate change with transitional energy sources.

Support for skills throughout people’s lives is much-needed in this era of rapid technological change - this should be spent on experimenting with different models of retraining, relocation and cash payments to find out what works for different individuals and communities. The Conservatives should also be looking to reform taxes to encourage investment and cut red tape that is strangling business. 

To arrange an interview or further comment, please contact Matt Kilcoyne via email (matt@adamsmith.org) or phone (07904099599).