Andrew Jones: We are the party of business – and actions always speak louder than words

The Government has enacted a broad range of measures to help companies large and small grow, create jobs, and boost their local economies.

Andrew Jones is the Member of Parliament for Harrogate & Knaresborough and Conservative Vice-Chair for Business Engagement.

John McDonnell has repeatedly declared his aim in life to be “fomenting the overthrow of capitalism”, a system that has ensured 200 years of economic growth for our country and left millions better off – not just in the UK but across the globe – by promoting business, entrepreneurship, and personal responsibility.

In contrast, the Conservative Party is proud to champion businesses and entrepreneurs and proactively engage with business people. Because we believe that the country can only succeed when it works in partnership with business.

The Prime Minister is committed to ensuring that, post-Brexit, Britain will be even more pro-business than ever before. That is why today she has launched five new business advisory councils, made up of pioneering leaders from a diverse range sectors, who will advise her on maximising the opportunities for business in the UK after we leave the EU.

It is an initiative from business, for business. They will make sure the Government hears directly from those who are creating new jobs and economic growth, helping us guarantee that the United Kingdom remains one of the most dynamic and business-friendly economies in the world.

Ever since she became Prime Minister, Theresa May has been active in promoting the UK as open to business. Like me, she believes that when it comes to business, actions always speak louder than words.

That’s why, earlier this year, the Prime Minister led a trade delegation on a trip to three key African markets: Kenya, Nigeria, and South Africa. It’s why, in August, she travelled with a large, multi-sector business delegation in order to strengthen the established links between the UK and China, which is expected to be one of the UK’s largest foreign investors by 2020.

It’s why, at the United Nations General Assembly in September, she made clear: this Conservative Government is dedicated to harnessing the enormous power of business as a partner in tackling some of the greatest social and economic challenges of our time.

That’s a message she repeated loudly and clearly in her speech to the Conservative Party Conference last month:

“Offering someone a job – creating opportunity for other people – is one of the most socially-responsible things you can do. It is an act of public service as noble as any other. To everyone who has done it – we are all in your debt. So, we in this party, we in this hall, we say thank you.

“And to all businesses – large and small – you may have heard that there is a four-letter word to describe what we Conservatives want to do to you. It has a single syllable. It is of Anglo-Saxon derivation. It ends in the letter ‘K’.

“Back business. Back them to create jobs and build prosperity. Back them to drive innovation and improve lives. Back them with the lowest Corporation Tax in the G20. Britain, under my Conservative Government, is open for business.”

A key plank of the Conservative Government’s commitment to business are the foundations we are laying through our modern Industrial Strategy – enabling businesses in every part of the country to create good jobs and bolster the earning power of people right across the UK. We have listened to business leaders, entrepreneurs, and start-ups – and have taken action to create the business environment that is most beneficial for them.

The Conservatives have always been the party of business: our philosophy centres on spreading opportunity and a belief in the power of enterprise and entrepreneurship as the means to harness talent and improve lives. As the Prime Minister says, we want to see people go as far in life as their talents and hard work can take them.

We believe that business and commerce are the cornerstones of every successful economy, and are the embodiment of our principles and values. We understand that it is business which drives wealth and innovation.

In his Autumn Budget Philip Hammond, the Chancellor, set out the Government’s plans to ensure we remain the best possible partner for businesses both large and small. As part of the new package of measures to support small- and medium-sized companies, the Government has committed an extra £30 million to ‘Be the Business’ – an initiative that will foster closer links between large corporations and smaller companies, to promote an environment of mutual support and allow bigger companies to mentor smaller ones so that they are able to realise their full potential and develop their management and leadership skills.

Jeremy Corbyn and McDonnell’s Labour Party will never understand that local businesses form the backbone of our communities – that they create jobs and pay the taxes which support our schools and hospitals. While this Conservative Government is supporting our high streets by cutting business rates by a third for two years – saving the shops we visit every day up to £8,000 each year – Labour openly call business the ‘enemy’ and advocate for extortionate taxes that will stop businesses up and down the country being able to create jobs, hire workers, and contribute to a thriving local economy.

The Chancellor also underlined in the Budget the way in which we are backing established firms and supporting start-ups as they grow by committing to a five-fold increase in the annual investment allowance for firms, taking it to £1 million. Not only are we helping all businesses, large and small, with their investments, we have also committed to supporting them with their costs by delivering the lowest corporation tax rate in the G20.

We are the party and government of business, because business is the embodiment of Conservative values; of enterprise, of freedom, of stability and of community. And the Prime Minister’s new business advisory councils will ensure that we continue to work closely together with industry to shape our economy and make the UK one of the most attractive countries in the world for those wanting to establish and grow a business.

Howard Flight: The best part of a week on, we can see that last week’s Budget was a popular one

The Chancellor has been fortunate that the public finances have improved substantially at a particularly convenient time.

Lord Flight is Chairman of Flight & Partners Recovery Fund, and is a former Shadow Chief Secretary to the Treasury.

Philip Hammond has been fortunate that the public finances have improved substantially at a particularly convenient time. Economic growth has been revised up next year to 1.6 per cent; employment has been revised up, with 800,000 more jobs than forecast in 2023; wages will rise above inflation for the next five years.

The borrowing target has been met three years early, with the deficit now down to 1.9 per cent of GDP. The debt target has also been met three years early at a peak of 85 per cent of GDP. Borrowing is £11.6 billion lower than forecast at 1.2 per cent of GDP. This has improved significantly the scope of what the Budget can seek to address.

Overall public spending will increase by 1.2 per cent per annum, between 0.2 per cent and 0.4 per cent less than forecast growth. The improved tax yields have enabled the Prime Minister’s NHS commitment to be fully funded.

The Chancellor presented a pragmatic “micro” Budget, seeking to address virtually all of the issues which came up as needing attention. Yet perhaps its most important ingredient was a significant cut in taxation for the majority next April – increasing the personal allowance to £12,500 and the higher rate to £50,000 a year.

Local Authorities are getting an extra £1 billion of funding and business rates for retailers with rateable values below £51,000, will be cut by a third for two years. A further £1.7 billion each year will be provided to benefit working families on Universal Credit with the work allowance – the amount families can earn before losing credits – being increased by £1000 per annum.

A new two per cent digital services tax to insure that large digital firms pay a “fair share” of tax, is expected to raise £400 million per annum. Schools will get a further 400 million this year and defence will get a further £1 billion this year and next. There is also £160 million for counter-terror police. The national living wage will increase by nearly five per cent to £8.21. The national productivity investment fund will be increased to £37 billion and will be extended to 2024. Large roads will get £28.8 billion for 2020-25, and even potholes will get £420 million! PFI will be abolished, leaving a bill for £200 billion to be honoured.

There was a range of extra funding largely for small business – extending the annual investment allowance to £1 million; extending the start-up loans programme for 10,000 entrepreneurs; delivering the lowest corporation tax rate in the G20; keeping three million small businesses out of VAT; reducing the cost of taking on apprentices by halving the co-investment rate for non-levy payers; £121 million to support cutting-edge digital manufacturing; £78 million to fund electric motor innovations; £315 million in quantum technologies and £50 million for new Turing Fellowships.

Measures to help more people into home ownership include abolishing stamp duty retrospectively for first time buyers of all shared ownership properties of up to £500,000; an additional £500 million for the housing infrastructure fund; committing over £7.2 billion to a new help to buy equity loan scheme to support 110,000 new home buyers and the abolition of the housing revenue account cap controlling local authority borrowing for house building.

There are measures for those keen on the environment and more money for the Transforming Cities fund. Remarkably, the Chancellor has addressed virtually all the issues of concern to citizens and, as a result, I think, the best part of a week on, that this has proved to be a very popular Budget. The one important reform it has not addressed is the confiscatory rates of stamp duty on larger properties in London and the South East. This had led to a freezing up of the market – bad for revenues and for economic mobility.

Alexander Temerko: The relationship between business and government has never been as meaningless as under May

The key to a good Brexit is empowering UK entrepreneurs to talk to their European counterparts and become ambassadors for Downing Street’s plan.

Alexander Temerko is an industrialist and a Conservative Party donor and activist.

Never has the relationship between business and Number Ten been as meaningless or fruitless as under Theresa May. She continues to repeat the mantra that she is leading a pro-business government, but that is an exaggeration. Hers is not an anti-business government – that would be a more accurate way of putting it.

A pro-business government is what Margaret Thatcher and David Cameron led in their day; it’s what Donald Trump, Xi Jinping and Angela Merkel are leading today. Despite her soft-spot for SMEs, our Prime Minister is undeniably afraid of global business.

Globalisation has shown that big business and public-private partnerships (something we hardly see in the UK anymore) are the real long-term drivers of a steadily growing modern economy. The presence of global business centres is what makes the difference between a country that’s prosperous and one that’s merely surviving. Indeed, such business is the powerful locomotive, pulling along SMEs and much of the socio-economic activity in the regions.

Business leaders have always been there to support May’s Government at the most critical times. Yet our “strong and stable” leader has repeatedly shunned any direct engagement with business in favour of sporadic consultations with the trade lobby, whose academic experts’ interests have long since been prioritised over representation of any actual economy sectors.

The Prime Minister has a presidential style of leadership. Her talent is for forming small, quasi-familial groups of trusted advisers. While David Cameron was comfortable working with big diversified teams, she seems reluctant to engage with the broad meritocratic audiences whose praises she so often sings. This desire to keep discussions tightly controlled has had a negative impact on almost every key policy decision taken to date. It is time to change.

Today, not only the country’s economy but also its integrity hinges on the UK business community backing the Brexit plans proposed by the Prime Minister and her Cabinet. No-one wants Brexit to be a disaster – but how to avoid it without break-through ideas and bold compromises?

The British economy will quickly lose its appeal should financial, industrial and services majors, driven by impending uncertainty and the fear of mounting responsibility to shareholders, relocate their headquarters and investment capital to more profitable jurisdictions with more predictable regulations. This could, in turn, trigger almost instant separatist rhetoric and action by the country’s subsidised regions.

Inside the eye of the Brexit storm, this outcome would be increasingly irreversible. People will start going by the saying “Better a painful ending than endless pain”. One person will certainly be delighted with a “painful ending”: his name is Vladimir Putin. Are we willing to afford him the pleasure? The answer is clear even to Jeremy Corbyn and Jacob Rees-Mogg, both of whom have been aiding this “painful ending” by holding on to his very own wrong end of the stick.

Europe would suffer, too. Take just one example from my industry: 70 per cent of our utilities are owned by European firms. Machinery and metal products are another trade goldmine for European business. At a time of escalating conflict with the US and sanctions or restrictions in trade relations with China, Russia, Iran and others, this is key. Europe just cannot lose Britain with its import-oriented economy as well. If that happens, countries right at the heart of Europe – France, Germany, Portugal, and to some extent Belgium and Holland too – will feel the pain.

However, in these countries, business is much more influential and integrated with the operation of Government. European business wants to live and wants to live well – which makes it our best ally in promoting a sensible responsible Brexit.

Businesses talk best with other businesses. They will not waste time talking when they don’t know if they are being heard by the Government, though. Hence, the key to a good Brexit is empowering UK entrepreneurs to talk to their European counterparts and become official ambassadors for the Government’s Brexit plan.

The other key piece of the puzzle is for May to accept the Irish border backstop – provided that the EU undertakes to guarantee our country’s integrity. This would restrain any spontaneous separatist movements in the UK, at least for as long as the EU continues to exist. If accession to the EU is all but impossible for any breakaway state, withdrawal from the UK would be pointless.

What happens if our Government does not create the broad coalition of business it needs and push bold compromises through? Quite simply, if there is no deal hammered out by December, a new election will be the only option to avoid the catastrophe of no deal.

If the Chequers plan falls through, it clear to almost everyone today that Parliament will not accept any other plan – be it Canada-plus, Australia-minus or a No Deal. The European Commission for its part, will not consider any new proposals, since none of them could get a majority in the UK Parliament and Europe will itself be moving into EU Parliament elections.

All that’s left are two options. They are both domestic – either a new referendum or another snap election. It is up to Parliament and our political elites to choose. They have to choose between their two great fears: the fear of a new election which is highly likely to mean a coalition government, and the fear of a new referendum that goes against Brexit.