Andrew Tyrie, Chairman of the Treasury Select Committee, analysed the Coalition's growth policy in ‘After the Age of Abundance,’ a CPS Pointmaker.
He noted that the strategy to reduce the public deficit is both necessary and correct. Yet he argued that policies for improving long-term growth needed radical improvement. He argued for a coherent and credible plan for supply-side reform to improve the long-term economic growth rate of the UK economy. The main elements included:
- reform of labour legislation and regulation
- tax reform and simplification combined with further reductions in business taxation
- education reform so that young people entering the labour market have sufficient literacy, numeracy and scientific skills
- planning reform
- the development of an energy policy that supports, rather than undermines, economic competitiveness
- a transport policy based on efficient air, rail and road transport. Neither the HS2 proposals nor the rationing of air travel inherent in current policy, appear consistent with efficiency.
The Chancellor George Osborne’s speech clearly picked up on some of the criticisms made by Tyrie in his speech. He began to unpick some of the most damaging employment legislation by announcing that people should have to work for two years, not one, before they could go to an employment tribunal. And he promised that the government would now cut its carbon emissions no faster than the rest of Europe.
James Landale at BBC News outlined that Mr Tyrie was supportive of these developments, even prior to speaking with Cameron’s advisor Steve Hilton after Osborne’s speech: Andrew Tyrie and Steve Hilton: Revisiting THAT meeting.
Ryan Bourne also wrote for the Commentator on the substance of Osborne’s speech.