Conservative Party conference: the Conservative plan for rebooting the economy
Researcher
With the UK’s GDP growth rate remaining stubbornly low, we were delighted to convene a panel at Conservative Party Conference to explore how a Conservative government would reboot the economy and drive growth throughout the country.
Kindly sponsored by KPMG, this panel included Gareth Davies MP, Shadow Financial Secretary; Aphra Brandreth MP; Mark Wallace, Chief Executive of Total Politics Group; and Tim Sarson, Tax Partner at KPMG. For me, three key insights stood out.
Be bolder
Panellists were clear that the UK needs to be bolder in its pursuit of growth. Maybe that requires a more targeted and direct industrial strategy. Or stronger measures to raise labour market participation. Or providing more incentives – such as the previous decision to make full expensing permanent – for capital investment. Or taking whatever steps are necessary to ensure we have the skills needed for the economy of the future. Whatever the answer, our current playbook is seemingly inadequate and we must be actively searching for and trying new approaches.
Ensure alignment
Of course, boldness risks being futile if the actions being taken are pulling in opposite directions. For example, a pro-growth taxation policy will achieve little if the regulatory regime is simultaneously supressing investment and innovation. What is needed is a whole-economy approach – with policy coherent across tax, regulation, skills and more – so that every lever being pulled reinforces the others.
Empower the regions
Panellists were broadly supportive of devolution as a route to unlocking growth. Greater local autonomy both incentivises and enables local government to proactively grow their economies. It also enables places to play to their strengths: what works in Manchester may be inappropriate for Plymouth. Particular attention was drawn to the growth challenge faced by rural areas, a theme we have touched on in previous reports. Improving infrastructure, widening access to capital and deepening the local skills base are all necessary. But these strategies must sit within a coherent pathway for economic growth, identifying distinct sectors and opportunities to build around. Growth in these areas cannot be reliant on simply capturing the spillovers from the nearest city region.