David Fuller's view -
Just as the Labour Party has recently moved to the left, so Mrs May has moved, at least presentationally, towards the centre, and in some respects to the left of centre. This seems curious, unless you give importance to the ambition of supplanting the Labour Party as the natural party of government in just about all parts of the country. But what is the point of supplanting the Labour Party if in order to do this you have to become the Labour Party?
I am suspending judgment. We are in an electioneering phase, when politicians are liable to say extraordinary things. Mrs May would be well advised to keep her economic and financial policy prognostications as vague as possible. In particular, she should avoid making expensive spending promises that use up fiscal room for manoeuvre, and she should avoid restricting the Chancellor of the Exchequer’s options on tax by making pledges not to raise one sort of tax or another.
In that regard, last week’s manifesto was just about acceptable, despite some continuing guarantees on the state pension, the re-affirmation of “free at the point of use” for the NHS, and the pledge not to raise the rate of VAT.
But some ideological issues need to be straightened out. There seems to be a presumption in Mrs May’s circle that government intervention is good for “the many”, whereas markets are good only for “the few”. This presumption is completely wrong. When markets work well they work for everybody, especially for people at the bottom end of the income distribution, who lack the contacts and sharp elbows to further their interests in a system dominated by controls and rationing. Markets give them power and choice.
Of course, markets do not always work well. And this should provide the defining theme of Mrs May’s new government. But there are many parts of the economy where what we need is not less of the market but more, including in the provision of health and education services, especially for the “JAMs”, the “Just About Managing”.
In attempting to seize Labour seats, Mrs May should not be alienating her most loyal constituency. She will need their support and Energy in the post-Brexit environment. To succeed in the manner every current supporter of Brexit wishes, the UK economy will need to be very attractive, not least to entice inward investment from other countries and their companies.
There are two advantages which can be achieved immediately following the June 8th General Election: 1) Lower taxes for individuals and also corporations; 2) Competitive employment policies to increase the talent available for 21st Century industries. The UK should be a beacon for talent, much of it home grown but with Companies free to import the skills sets which they may not be able to find locally. It is ludicrous for the Government to impose a tax on talent from overseas of £2000 per annum per person as it is currently doing.
(See also: UK companies to pay £2,000 a year for each non-EU worker, from Quell)
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