The Knight’s Days column – Sir Greg Knight reports back from Westminster: Government’s growth plan must deliver the prosperity we need to support our public services

No-one can deny that we are living through tumultuous times and that the rest of Europe is also and that these difficulties have been driven, firstly by a global pandemic and secondly by war in Europe, instigated by Vladimir Putin.

While understanding these underlying causes, people rightly turn to the government for leadership and action. It is our Government’s responsibility to address these difficult times in the most effective manner possible, limiting the impact on the most vulnerable, and ensuring that the United Kingdom emerges strongly positioned for the future.

Into this scenario have stepped our new Prime Minister, Liz Truss, and a new Chancellor, Kwasi Kwarteng.

They say they recognise the need to move quickly to establish leadership and direction but it is quite clear in the first few days mistakes were made – and our leaders have recognised this too. The elimination of the 45% tax rate, announced by the Chancellor in the September Growth Plan, was intended as a signal that the UK backs investment, innovation, and hard work. But the Government now recognises that the timing was poor.

It listened to the public and reversed this decision at this time.

The worst thing about these events is that they have over-shadowed so much that is worthy in the Prime Ministers Growth Plan.

Firstly, in the face of the energy price shock felt across Europe, the government has committed to shouldering the worst impact of high energy bills for households and businesses across the UK.

The average household will benefit by about £1,400 this year, the most vulnerable households by more.

Businesses need the assurances that have been given to be able to stay open, protecting jobs and our future prosperity.

Looking to the future, the government announced plans to drive work and business opportunities, and growth across the UK.

Following Brexit the Government finally has the headroom to address the regulation and red-tape that holds back so many opportunities.

Ministers have already announced that the existing simplification of red-tape for small businesses will be expanded to include those with up to 500 employees (from 50). This reform has already come into place and will help 40,000 businesses across the UK – more, as it becomes easier to start a new business. If the scheme works effectively the Government will consult on extending it further.

Whilst unemployment is at its lowest level in 50 years, many households still feel an income pinch.

The Government has been right to cancel impending national insurance increases and it is right to cut the basic rate of income tax to 19% beginning in April 2023. These measures will benefit 31 million people and their households.

The Government has also announced cuts to stamp duty on house sales and I fully back this. This insidious tax makes it so much harder for people to own the home they want, and where they want it.

The Government has announced tax cuts and simplification for businesses. It has announced an intriguing plan to create ‘investment zones’ in designated areas. Aligning with the levelling-up agenda, in these zones, taxes and bureaucracy will be stripped back to incentivise investment.

The aspiration of our government is to empower businesses and individuals to create the jobs and the prosperity that we all benefit from because any government that is fundamentally focused on delivering outstanding public services must first be pro-business and pro-opportunity.

The United Kingdom has the second lowest debt-to-GDP ratio of the G7 nations. Headline inflation is below the eurozone average. We are continuing to avoid the recession that nervous commentators have feared.

We need to see less squabbling at Westminster and give these new ideas a chance: to enable our economy to grow, so that individuals, households, and our public services have the opportunity to flourish.