Sir Robert writes for The Times.
We are facing unprecedented challenges, nowhere more so than on the economy. Inflation is the enemy that makes everyone poorer and we have no choice but to grip it. While the chancellor has had to take some tough decisions, his statement this week is fair, sensible and will restore the economic stability that we so urgently need.
Putin’s illegal invasion of Ukraine and the pandemic have cost the UK billions. It was absolutely right that we spent the money that we spent to support jobs and businesses throughout the pandemic. In my own constituency of South Swindon there are businesses still open today because of that support. But it is right that we start to pay that money back; we cannot saddle the next generation with our debts.
There is a clear plan to tackle inflation and help families with the rising cost of living. I am particularly pleased to see the energy price guarantee extended to 2024 and direct support for eight million low-income households. Putin’s actions have driven energy prices through the roof; we acted quickly and now we must strive to make sure that we never find ourselves in this situation again.
The chancellor has also demonstrated that we don’t have to choose between a strong economy or good public services; we will have both. We are going to protect and maintain public spending for the next two years and increase it in real terms by 1 per cent a year until 2027-28. We know how important our public services are; that is why the NHS and schools will receive an £11 billion funding boost over the next two years.
I was one of a group of MPs who wrote to the chancellor last week to ask that education funding be prioritised. I am hugely grateful that he has listened to MPs and is making money available so that we can continue to push forward with work on school standards and Covid recovery. I know that it will make a real difference to children across the country and will be welcomed by parents and teachers alike.
We are uprating benefits in line with inflation and keeping the pensions triple lock. The chancellor’s plan is a common-sense approach, with a roughly equal split between tax rises and spending cuts, with the greatest burden falling on those who can afford it most.
It is true that we need to boost growth in the UK. We are doing that with over £600 billion in capital investment, protecting R&D spending and using our Brexit freedoms to reform the financial services sector. Businesses across the country will benefit from a £14 billion business rates cuts package — which will help small businesses in particular. Crucially, we are protecting the levelling-up fund. The Conservatives were elected on a manifesto promise to level up every part of our United Kingdom. Everyone should have the opportunity to do well and get on in life, wherever they may come from. We are living through difficult times, but the commitments that we have made will ensure that we are boosting opportunity and offering people a better life.
Will it be enough? The early signs are encouraging. The OBR is confident that the measures set out will reduce peak inflation and unemployment. GDP will be 1 per cent higher due to these measures and the Bank of England expects that it will tackle inflation and keep interest rates lower for borrowers and mortgage holders.
As for what Labour are saying, they have spectacularly failed to set out anything resembling a plan for how they would tackle inflation or get debt falling. It is only this Conservative government that has a plan to tackle our challenges and move us forward.
