Hammond’s “Sound Money” Speech Sadly All Spin

Philip Hammond’s Mansion House speech this morning was sound in its rhetoric. “We must make anew the case for a market economy and for sound money,” he said, warning that “higher taxes and higher borrowing” must be rejected, taxes must be kept “as low as possible” or else they will “slow growth, undermine competitiveness, and cost jobs”. He repeated this language at Cabinet, telling colleagues of the “importance of making the case for a market economy and sound money”. This is all positive rhetoric. The policy truth is alas very different.

Hammond confirmed this morning that he still wants to push back closing the deficit until 2025, ten years later than the Tories promised. The Tories have added £500 billion to the national debt in 7 years, Hammond now plans to add a billion a week to the burden. That is not “sound money” by any definition of the term.

Taxes have risen under the Tories. The claim by the Tories to be a low tax party has not been true this century. They raised VAT almost immediately upon coming into office. They argue they have cut business taxes, yet they raised dividend taxes on small business owners and tried to raise National Insurance contributions. Hammond ditched the triple tax lock at the election. He has signalled further tax rises are likely. The tax burden under this Chancellor will rise to its highest level since 1969. That is not keeping taxes “as low as possible”. 

Hammond is sounder on economics than Theresa May and her former aides. Talking up the “market economy” is clearly a slap down of the PM’s failed attempt at interventionism in the manifesto. Though his claim to be funding public services by anything other than more borrowing and more taxes is sadly all spin…




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

No prizes for guessing who Andrea Leadsom is talking about:

“As you said last week, Mr Speaker, we have a responsibility to safeguard the rights of this House and as Leader of the House I seek to do exactly that, treating all members of parliament with courtesy and respect. I hope and expect all Honourable and Right Honourable members to do likewise.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
New Tory Treasurer is Director of 7 Companies With Overdue Accounts New Tory Treasurer is Director of 7 Companies With Overdue Accounts
All-Remain Peston Show “Kerfuffle” All-Remain Peston Show “Kerfuffle”
Top Tory’s Firm Implicated in Russian Dirty Money Report Top Tory’s Firm Implicated in Russian Dirty Money Report
New Peerages New Peerages
Kate Osamor Plagiarises Barack Obama Speech Kate Osamor Plagiarises Barack Obama Speech
Corbyn’s New Peer Martha Osamor Defended Anti-Semites Corbyn’s New Peer Martha Osamor Defended Anti-Semites
Tower Hamlets Labour Council Bosses Award Themselves Vast Pay Rises Tower Hamlets Labour Council Bosses Award Themselves Vast Pay Rises
Corbyn-Backed Lewisham Candidate Loves Castro and Chavez Corbyn-Backed Lewisham Candidate Loves Castro and Chavez
‘Beijing Barry’ Takes £43,000 from China-Linked Firm ‘Beijing Barry’ Takes £43,000 from China-Linked Firm
Bercow Bullying Inquiry Blockers Bercow Bullying Inquiry Blockers
Irish Border Camera Problem Solved Irish Border Camera Problem Solved
Thornberry Talks Up Assad Thornberry Talks Up Assad
Three Labour Lewisham East Candidates Promoted Extremist Imam Three Labour Lewisham East Candidates Promoted Extremist Imam
Bercow Worked With Labour on Humble Address Bercow Worked With Labour on Humble Address
Red Gammon Red Gammon
Labour Drop Punchy Parliamentary Candidate Labour Drop Punchy Parliamentary Candidate
Under 25s More Likely to Say State Taxes and Spends Too Much Under 25s More Likely to Say State Taxes and Spends Too Much
Remainers Tell Aussie Brexiter to Go Home Remainers Tell Aussie Brexiter to Go Home
Starmer Joins Orchestrated Remainer Attempt to Keep Us in Single Market Starmer Joins Orchestrated Remainer Attempt to Keep Us in Single Market