View from the Gallery: ‘Anti-growth’ policies are hitting home

Before the election, and since, there have been many warm words from
Labour about economic growth and backing business.

But the latest GDP data shows the reality of their talking down of the economy, the uncertainty they created in the run up to their Budget, and the anti-growth policies they announced.

And across Lancashire that’s having an impact.

Take our rural economy as just one example. In recent weeks hundreds of local farmers from our county have descended on London to highlight the impact that the family farm tax will have on them and their business.

For many farms, the profit generated is tiny – they are asset-rich but cash-poor.

Because farming isn’t something you do for the money, it’s a way of life.

And with the threat of large inheritance tax bills lingering, many farms are now re-evaluating investment decisions – be it in new plant and equipment, or in diversification – to see if it’s worthwhile.

Sadly, it isn’t just our farmers who are having to re-evaluate existing business plans.

The dramatic hike in employers’ National Insurance, and the reduction in thresholds, has forced many businesses to review plans for growth and existing headcount.

And in a part of the country like ours, where we have pockets of unemployment significantly higher than the national average, that’s a big problem.

But we shouldn’t be surprised.

Disappointingly the Cabinet doesn’t have a single person in it who has run or started a business. Instead, we have career politicians, union workers, and a whole host who have sat in the public sector unconcerned with how the economy actually works.

It is of course for the Prime Minister to appoint who he wants, but in the absence of business experience around the Cabinet table he and his team should listen to what the private sector is telling him.

And the current message is that some of these policies need to be reviewed.

I’ll end with a thought on events across the pond, because whilst President-elect Trump may not be everyone’s cup of tea, his ambitious plan for a Department of Government Efficiency is intriguing.

Given it will exist solely to reduce bureaucracy – and thereby empower
business – perhaps it’s something we should give serious thought to over here.