Author Archives: Steve Wotton

Lib Dems for Growth

Last year, I wrote about the lack of a Lib Dem vision for economic growth here.

Since then, we have started to sketch out some ideas. Last month, in a speech encouragingly entitled “Get Britain Growing Again” Daisy Cooper, our Treasury Spokesperson, announced a new policy to establish a Department for Growth that would seek to de-fang the “anti-growth” Treasury. While this headline (and a move to Birmingham) got most of the attention, Daisy also clearly stated that “Getting Britain Growing Again must be any government’s number one goal”.

I agree with this and, in my earlier article, I rather unabashedly declared that “fixing the UK’s growth problem underpins EVERYTHING”. Without growth, we cannot fix the issues we campaign on and care about, whether that is adult social care, SEND, the NHS, defence and inequality. Many commentators on LDV disagreed with my point at the time, but it seems Daisy, at least, agrees.

The policy announcement on reforms to the Treasury were a welcome acknowledgement that the UK has a wildly over-powered and centralised department that focuses, above all else, on short term spending control and arbitrary targets. Reforming the Treasury will be difficult. If we are to succeed, then I think local authorities and mayoralties need to be set free. We need meaningful fiscal devolution to allow local government to invest and build infrastructure – a tram for Leeds anyone?

While a welcome announcement, I feel that we need to go further to have a meaningful and eye catching vision for growth for the UK. I am hopeful that the Thriving Economy working group can help build out such a vision. They have published a consultation paper ahead of Spring Conference and are due to host a session on their paper on Friday.

Crucially, a meaningful vision for growth has the power to really set the Liberal Democrat message apart. Right now, the electorate has a choice of a lacklustre government that, notwithstanding their intermittent references to growth being their “number one mission”, they just appear to be a continuation of the incompetence of the previous Conservative administration. Reform are a grab bag of scape-goating, wild promises of tax cuts with a dose of quasi-Thatcherism. The resurgent Greens appear to be re-inventing themselves as Momentum style left populists.

Posted in Op-eds | Tagged | 3 Comments

What is the Lib Dem vision for growth?

Before writing this article I searched Lib Dem Voice for articles on the economy, economic growth and the hot topic of “abundance”. I was surprised how little the economy seems to be discussed or written about, at least as the main topic of an article. This contrasts with the uncomfortable reality that the UK is in a terrible economic position.

UK real wage growth has been flat for getting on for nearly 2 decades. This is not news to anyone. It has had plenty of focus in the media, and from economic think tanks on the right and left. This is a direct reflection of stagnating real GDP per capita and, in turn, means that tax revenues are not growing at a rate able to keep up with the demands of our aging population. Hence Rachel Reeves finds herself in a horrific fiscal position.

Posted in Op-eds | Tagged and | 22 Comments
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Recent Comments

  • Hywel
    Well, looks like the first shots have been fired. Interesting fact, the leaders who led the Lib Dems to their previous two high water marks (Ashdown 97 and K...
  • Tristan Ward
    "Badenochs ............ is now moving her party on economic and defence policy" To those criticising the party leadership 1 They have been talking about...
  • Ellyott
    @Hywel is pointing to the reality. In 2019, the LD were going to be the party of the 48% and ended up with the usual 12% on the one issue that the LD specialis...
  • Ellyott
    It's the economy and associated services. The UK has been in decline for a long time and anyone who can present a genuine way out of this decline, sort the s...
  • paul barker
    The start of the process that got The Greens into their current mess was in the 1990s with The "Gap on The Left" strategy - essentially pretending to have more ...