Jeremy Hunt today delivered an optimistic message as he unveiled his plan to turbocharge Britain economy. In a keynote address at Bloomberg’s European headquarters in London, the Chancellor said the UK had been hit by a “decade of black swan events” with the financial crisis. Covid pandemic and rising energy prices.
But Mr. Hunt said he wanted it Brexit to become a “catalyst” for growth.
In an optimistic message, the Chancellor said: “We want to be one of the most prosperous countries in Europe. Today I want to outline our plan to tackle those problems.
“That plan, our growth plan, is necessary, endorsed and made possible by Brexit.
“The desire to move to an economy with high wages and highly educated people is shared by all parties in that debate.
“We have to make Brexit a catalyst for the bold choices that will benefit from the agility and flexibility it enables.”
The chancellor outlined his growth plan, saying it would be based on “four pillars” all starting with the letter “E”, namely: business, education, employment and everywhere.
He said: “Declinism about Britain is just wrong. It has always been wrong in the past and it is wrong today.
“Part of the gloom is based on statistics that don’t tell the whole picture. Like any G7 country, our growth has been slower in the years since the financial crisis than before.
“But since 2010 the UK has grown faster than France, Japan and Italy. Not at the bottom, but in the middle of the pack.
“Since the Brexit referendum, we have grown at about the same rate as Germany. Yes, we have not returned to pre-pandemic employment or production levels, but an economy that contracted by 20 percent during a pandemic still has nearly the lowest unemployment rate in half a century.
“While our public sector has been slower than we would like to recover from the pandemic, reinforcing the case for reform, our private sector has grown by seven and a half percent over the past year.”
Hunt said Britain is poised to take advantage of this Brexit “liberties” to become a new world leader.
He called on the UK to use the benefits of leaving the EU to boost productivity while using the proceeds of growth to support public services.
The Chancellor said: “It is a plan that is needed, stimulated and made possible by Brexit it will succeed if it becomes a catalyst for the bold choices we have to make.
“Our growth plan is a plan built on the freedoms that Brexit offers. It is a plan to increase productivity.
“It is a plan to use the proceeds of growth to support our public services at home, to support businesses in the new low-carbon economy and to support democracy abroad.
“It is the right course for our country and the role in the world we aspire to.”
And he announced that the government is going ahead with reforms to EU rules that dictate how much money UK insurers must keep in reserve to cover a major Brexit dividend.
He pointed to an estimate by the Association of British Insurers that suggested the changes to so-called “Solvency II” could unlock up to £100bn of private investment by insurance companies in UK infrastructure and clean energy – such as nuclear power. next decade.
But the chancellor rejected calls to cut taxes to boost economic growth, insisting that “the best tax cut right now is a reduction in inflation”.
He said: “My party understands better than others the importance of low taxes in creating incentives and fostering the animal spirits that drive economic growth,” Mr Hunt said.
“Another conservative view is that risk-taking by individuals and companies can only happen if governments ensure economic and financial stability.
“So the best tax cut right now is a cut in inflation.”
Prior to Mr. Hunt’s speech, senior Conservatives urged the Chancellor to lower the tax burdenwhich is the highest point since World War II.
Mr Hunt’s speech comes after a cabinet day yesterday at the Prime Minister’s Checkers Grace-and-Favour country residence, where the Chancellor told ministers to maintain their “disciplined approach” to bring rising inflation under control.