Sunak must not make the mistakes of Osborne. So far, he has made the right moves. The massive £350 billion stimulus package was the right medicine for pandemic lockdown economic pain. Now he must not hit the brakes in fear of mounting debt, but focus on growing us out of crisis.
However tempting, this cannot be achieved from socialist public spending. It is the private sector that generates wealth from which taxes are paid and which now must get back on its feet. While it may seem logical to ramp up taxes, this would have an adverse effect. Beleaguered businesses facing mounting business rates, VAT, National Insurance and so forth, will fail.
Now more than ever, they need turnover taxes reduced. In the short term, this may result in greater debt, but it is the right thing to do. The private sector desperately needs breathing space to recalibrate, invest and grow. Sunak must take one step back in order to leap forward.
In addition to cutting taxes, growth must be boosted through deregulation. In boom times, governments use regulations to push social agendas. We no longer have that luxury and, frankly, any concept of sociocentric policy has anyway been blasted out of the water with perverse pandemic panic, razing freedoms and businesses alike.
With post-Brexit negotiations reaching a climax over the coming week, delivering a Brexit that does not tie the UK to policies not designed for our economy, from EU state aid and competition restrictions, to regulatory red tape, is utterly vital. Sunak must pressure his colleagues into holding firm and not caving to continental demands. Brexit gives us a massive opportunity to thrive under bespoke industrial policy while saving on contributions and not handing tariff revenues to Brussels.
Our message to Sunak is simple. Use the tools Brexit can provide to be brave, reduce taxes and deregulate to become the architect of Britain’s bright future.