Chancellor Jeremy Hunt has set out his long-term vision for the UK economy.
The speech at Bloomberg's London offices set out how the country must tackle "declinism" arguing that the UK can become more like Silicon Valley.
The speech comes amid turbulent time for the Tory party. He refused to answer questions on his own tax affairs, saying that he didn't think the public was 'remotely intrested' in personal tax affairs afer it emerged that his Cabinet colleague Nadhim Zahawi is being investigated for paying a tax penalty while chancellor.
The speech also comes amid criticism from industry, with new figures showing the number of cars made in the UK had sunk to its lowest level for 66 years.
Inflation also remains at a 40-year high, leaving many struggling with the increased cost-of-living.
Here the key points from Jeremy Hunt's speech.
Mini Canary Wharfs
The UK Government will invest in “mini-Canary Wharfs” across the country to help reverse the economic migration from other parts of the country to the South East of England, the Chancellor said.
He said it was “economically damaging” that the country’s second cities were not the “economic powerhouses” that they are in other countries, arguing UK GDP could be 5% higher if they were producing more growth.
He said there would be an announcement on investment zones, termed 'mini-Canary Wharfs', supporting each growth industry, focused in high-potential but underperforming areas.
He said: “They will be focused on our research strengths, executed in partnership with local government, with advantageous fiscal treatment to attract new investment.
“And we’ll shortly start a process to identify exactly where they will go.”
Brexit and business reform
Brexit has provided an opportunity for the UK to change its regulations so that innovative companies can more easily access cash, said the Chancellor.
He argued that “Britain needs a more positive attitude to risk-taking”, as it is “too cautious compared to our US friends.”
Brexit gives an opportunity to change regulations and work with independent regulators.
He referred to the Government’s Edinburgh Reforms package which “could unlock more than £100 billion of additional investment into the UK’s most productive growth industries”, Mr Hunt reiterated.
Get back to work
He told people who left work during the pandemic and have not returned that “Britain needs you”.
He said that one fifth of working age adults are economically inactive and around five million people do not want to work.
“It’s time for a fundamental programme of reforms to support people with long-term conditions or mental illness to overcome the barriers and prejudices that prevent them from working.
“We will never harness the full potential of our country unless we unlock it for each and every one of our citizens.”
Four Es
Outlining his plan for growth, Jeremy Hunt said it would be based on what he called his “four pillars”.
The four pillars, all beginning with the letter “E” are: enterprise, education, employment and everywhere.
Everywhere perhaps, except Euston. There have been reports this morning the the HS2 rail link may terminate in the London suburbs instead of at a central station, as originally planned.
Taxes
He claimed taxes must be lowered to attract investment and pledged to put “restraint on spending”.
He said the “best tax cut right now is a cut in inflation”, arguing that reducing inflation was the “only sustainable way to restore industrial harmony” in Britain.
“My party understands better than others the importance of low taxes in creating incentives and fostering the animal spirits that spur economic growth.
“Another Conservative insight is that risk-taking by individuals and businesses can only happen when governments provide economic and financial stability.
“So the best tax cut right now is a cut in inflation.
“And the plan I set out in the autumn statement tackles that root cause of instability in the British economy.
“The Prime Minister talked about halving inflation as one of his five key priorities and doing so is the only sustainable way to restore industrial harmony.”
Green Growth
Jeremy Hunt has said that the UK is a world leader when it comes to green energy and innovation, which he stressed was vital to economic growth.
He also shone a light on the nation’s creative industries, tech and fintech companies which he said were “vital for Britain’s economic future”.
“I want to ask you to help turn the UK into the world’s next Silicon Valley”, he said to the audience.
