Modernisation 2.0
James Forsyth 7:01pm
One of the flaws of Tory modernisation was that it was never interested enough in pounds
and pence. Social issues, the environment and public service reform were what the modernisers specialised in, not economics.
But tonight’s Macmillan lecture by Nick Boles, one of the most intellectually influential modernisers, is devoted to the subject of how Britain’s global competiveness in the global
economy can be improved. His argument is that:
Boles argues for a huge cut in employers’ National Insurance. This would be paid for by a land value tax from which people’s main home and farmland would be excluded. Personally, I would rather see this funded by more spending cuts but a push to get down employers’ NI, one of the most economically damaging taxes, is to be welcomed.‘What really threatens the general wellbeing of the British people is the stalling of productivity growth and the certainty that the next 20 years will expose them to competition that is vastly more intense than anything we have ever seen. If we Conservatives want to show that we are truly progressive, improving the productivity of average British workers and the competitiveness of our economy should be our focus. For this is the only way in which most people's living standards will improve.’
The MP for Grantham also wants improvements to the country’s infrastructure. He makes the case for a new Oxford to Cambridge motorway which would facilitate the emergence of a new brain belt cluster that could hope to have a similar economic impact to Silicon Valley.
In a sign of the new economic realism of the modernisers, he also backs a new airport in the south east:
As Boles points out, these measures will have to be part of a whole policy agenda of ensuring that this country’s tax rates are competitive and raising the skills and education-levels of the British workforce. But Boles’ is a welcome contribution to a political debate that is often too obsessed with the top and bottom one percent and doesn’t think enough about the other 98 per cent. As he says, ‘this obsession with the incomes of the wealthiest is blinding us to the biggest economic challenge that our country faces’ — namely that the British labour force is becoming less and less competitive globally.‘I fervently hope that, in 2012, David Cameron is able to persuade Nick Clegg of the case for expanding London's airport capacity. Because people who cannot get here easily will place their orders and make their investments elsewhere — and the resulting CO2 will still make its way into the atmosphere we all share.’
Previous
teledu
January 30th, 2012 7:08pm Report this commentEnterprise might get a look in if we could throw of the shackles of the EU.
Publius
January 30th, 2012 7:21pm Report this commentNothing to say about the EU then and its crushing effect on our competitiveness? Give it a few months and we'll be fending off demands from the EU for "tax harmonisation" (i.e., raising tax to French levels to prevent "unfair competition").
(On Cambridge - Oxford, why not reopen the old railway that ran between the two cities? Large parts of it are still in situ.)
daniel maris
January 30th, 2012 7:22pm Report this commentWhat a silly little pundit.
Does he really think there is any way we can compete against a nation of 1000 million ruled by a Communist dictatorship who hold down labour costs at the point of a gun.
Politicians and pundits should start thinking about how we exit globalism, as we surely will in due course (unless we want to see our economy laid waste).
Fortunately there is no reason that we can't now use technology to make ourselves self-sufficient.
Andrew SW18
January 30th, 2012 8:59pm Report this commentThe Bonus Culture is a classic 98 percent issue - in that 98 percent of us aren't getting one - and "Difficult Times Call for Difficult Choices*".
I understand that the Leader of Her Majesty's Most Loyal Opposition receives a bonus of tens of thousands of pounds on top of his already well-above average salary as an MP. This uplift (which is paid regardless of performance, luckily enough) has clearly gone "Too Far, Too Fast*", and to demonstrate that he himself is not "Out Of Touch*", obviously he should forego this bonus at once - we are, after all, "In This Together*".
But just in case there are any residual hesitations, I should think an intimidatory House of Commons debate is called for, in order to ensure that contract law is ground into the dust.
(*have I missed any cliches here?)
(and do Business Secretaries and Deputy Prime Ministers get bonuses too?)
Nicholas
January 30th, 2012 9:33pm Report this commentI don't want the Conservatives to be "truly progressive" thanks. We have Labour and the Lib Dems for that sort of nonsense. I'd like the Conservatives to stand up for preserving and continuing the legacy left to us by centuries of proven worth and not to piss it away on puerile soundbites. And then to get out of the way.
As for "wellbeing", my "wellbeing" would improve considerably if they stopped cramming as many foreigners as possible into this country and pretending that they are instantly British.
Fabian Solutions
January 30th, 2012 10:46pm Report this commentThose who care about our past, our traditions, our customs and our heritage should realise that all of these are incompatible with capitalism.
Everywhere and at every time, capitalism has proved destructive of tradition.
In the last 2 centuries, capitalism has radically transformed every aspect of human existence, and swept away the old way of life with its traditions, communities and values.
So-called "conservatives" need to wake up to the fact that traditionalist conservatism and capitalism are irreconcilably opposed. In the words of Marx and Engels:
"The bourgeoisie, wherever it has got the upper hand, has put an end to all feudal, patriarchal, idyllic relations. It has ... left remaining no other nexus between man and man than naked self-interest, than callous “cash payment”.
It has drowned the most heavenly ecstasies of religious fervour, of chivalrous enthusiasm, of philistine sentimentalism, in the icy water of egotistical calculation....
The bourgeoisie has stripped of its halo every occupation hitherto honoured and looked up to with reverent awe.
Andy H
January 30th, 2012 11:28pm Report this commentThose who care about our past, our traditions, our customs and our heritage should realise that all of these are incompatible with socialism.
Everywhere and at every time, socialism has proved destructive of tradition.
In the last 2 centuries, socialism has radically transformed every aspect of human existence, and swept away the old way of life with its traditions, communities and values.
So-called "Socialists" need to wake up to the fact that fairness and equality are irreconcilably opposed. To interpret the words of Marx and Engels:
"The Socialist Fabians, wherever it has got the upper hand, has put an end to all feudal, patriarchal, idyllic relations. It has ... left remaining no other nexus between man and man than naked self-interest, than callous “Equality”.
It has drowned the most heavenly ecstasies of religious fervour, of chivalrous enthusiasm, of philistine sentimentalism, in the icy water of egotistical calculation....
The Socialist Fabians have stripped of its halo every occupation hitherto honoured and looked up to with reverent awe.
David Cockerham
January 30th, 2012 11:35pm Report this commenthttp://www.corybernardi.com/2012/01/how-did-the-political-left-get-it-so-wrong.html
Heartless C.
January 30th, 2012 11:42pm Report this commentSomeone, - anyone, - touches on issues that have some real importance?
The H2B had better be sure to throw him overboard directly! (And then throw himself in as an act of contrition)
daniel maris
January 31st, 2012 12:03am Report this commentThe real path to wealth in this age of globalism is greater self-sufficiency, no longer trade. Now, the more you trade, the more you bleed wealth.
Technology now puts self-sufficiency within reach through:
1. Maximised recycling - we can probably recycle something like 70-80% of our waste.
2. Energy independence: there are many avenues to energy independence but I think LENR technology will be really big within 2 years.
3. Huge increases in agricultural production using polytunnels, hydroponic techniques, farm towers and so on.
4. Material substitution. We can use materials substitution to allow us to use indigenous materials.
Tom Pride
January 31st, 2012 12:15am Report this commentFabian Solutions
It’s late and I didn’t have the energy or inclination to contest your comment – it is just not worth the effort of a reasoned reply. And then, I read Andy H so there is really no need. Instead I’ll allow myself the satisfaction of a one word response – crap. No, make that three - crap, pure crap.
Lee Jakeman
January 31st, 2012 3:26am Report this commentNo mention of monetary and banking reform. Private banks can still create money as debt, cheating the public (to date) of over 2 TRILLION pounds in lost seigniorage income and causing long term inflation. When is anyone going to address this issue? Positive Money UK and Prosperity UK have addressed it, but these are extra-parliamentary organisations.
Colin Cumner
January 31st, 2012 6:55am Report this commentNicholas - well said and 'hear hear'. As for whether capitalism has failed us, the answer is a resounding 'no' but the eager embrace of globalisation (centralism by another name) has.
TrevorsDen
January 31st, 2012 8:00am Report this commentCut a tax by raising another tax? And this is meant to encourage growth? Cutting govt spending to add to spending elsewhere? And this is meant to add to growth?
The recession was caused by a crash in banking liquidity. Growth comes from the normal process of borrowing and investment. Until the banking system recovers from its heart attack then growth will be sluggish. It is the rewards of growth which allow lower taxes.
But any solution is better than Mr Maris' ramblings.
Andy Leeds
January 31st, 2012 9:29am Report this commentThe only way to have a more balanced economy is to radically reduce the size of the State. But no one is going to do that.
Simon Mason
January 31st, 2012 9:34am Report this commentNick Boles still owes the Arts Blog a Spotify Sunday :)
Publius
January 31st, 2012 9:34am Report this commentColin Cumner (6.55am) writes:
"but the eager embrace of globalisation (centralism by another name) has"
Agreed. And globalisation requires the bringing about of the World State, which will be the ultimate tyranny -- masquerading under the beguiling guise of 'harmonisation' and legalism.
oldtimer
January 31st, 2012 10:00am Report this commentMr Boles evidently does not understand that the level of taxation and the obsession with CO2 are part of the problem - not the source of a solution.
Ostrich (occasionally)
January 31st, 2012 10:35am Report this commentisn't 'Fabian solutions' yet another oxymoron?
John Moss
January 31st, 2012 1:02pm Report this commentOne simple and "truly progressive" solution would be to merge NI (both employer and employee) with Income Tax and set it at 40% above £10,000 of personal allowance.
Earn £10k pay 0% tax. Earn £20k pay 20% tax. Earn £100k pay 36% tax. Simple.
Relieve income from savings, investments or pensions by 50% to keep them as now and we'll be laughing all the way to Hong Kong!
Paul Danon
January 31st, 2012 1:03pm Report this commentFor as long as we're a trade-based nation, it's wise to switch political debate away from how we build a welfare-based, bonus-envious culture to how we build an entrepreneurial one. It's no good saying Britain's open for business and then keeping tax at 50p and raising national debt and spending. It's also no good cutting the prestige of vocational studies just so that well-paid Tory fogeys can feel all nostalgic about useless academic subjects which don't relate to the world of work. Schools must be our apprentices' workshops, with older pupils turning out saleable goods.
Andy Carpark
January 31st, 2012 1:06pm Report this commentLand value tax … employer's NI … Oxford to Cambridge motorway … London's airport capacity ...
'these measures will have to be part of a whole policy agenda of … raising the skills and education-levels of the British workforce.'
No comment is required. Save perhaps to say that Cameroonian 'thought', as mediated through its Spectatorial stooges, has descended to a new low of self-deconstructing tosh.
michael
January 31st, 2012 3:51pm Report this commentEmployers 'set to rise another 3%' NI ... how about class 4 NI introduced on the small business SE'd at 9% of profits. ...Clueless double-speaking politicians strike again.
-And as for the 'jobs for state busybodies/lawyers' regulatory framework, there isn't a businessman alive who could separate any wheat from that mountain of chaff.
MilkSnatcher
January 31st, 2012 4:07pm Report this commentCome on chaps, can't you tell Fabian Solutions is winding you all up?
Fergus Pickering
January 31st, 2012 4:15pm Report this commentI can see I'm fighting a losing battle here, but deconstructing does not mean destroying. After all, if it did then we could just say destroying, couldn't we, and not bother with horrible French terms?
Andy Carpark
January 31st, 2012 5:49pm Report this commentHello, Fergus. Yes, you're fighting a losing battle. And how's Hildegard these days (Mr 'top 15% at Oxford' brainiac)?
*ttp://www.spectator.co.uk/coffeehouse/5306676/discontent-is-in-the-air.thtml
Cynic
January 31st, 2012 7:50pm Report this comment"If we Conservatives want to show that we are truly progressive, improving the productivity of average British workers and the competitiveness of our economy should be our focus." I'd like to bet (and I'm not a gambler) that he never mentioned throwing off the shackles of the EU.
daniel maris
January 31st, 2012 8:08pm Report this commentAndrew SW18 -
You are completely out of touch. Huge numbers of people are on bonus schemes now. I would suspect well over 50%. But the vast majority are on bonuses of less than 10% of their basic salary. The 98% issue is why some top managers are handed bonuses equivalent to 98% of their basic pay.
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