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28^th January 2023

Nothing in the tank – Chancellor Jeremy Hunt fails to enthuse even his own supporters

Britain’s Tory Chancellor, Jeremy Hunt, claims to have a plan for economic growth.  As he and his political predecessors have presided over the active de-industrialisation of Britain for over 40 years this news was not greeted by thousands pouring onto the streets, to await words of wisdom from the Chancellor.  Thousands have continued to swell the ranks of picket lines however, protesting the case for better pay, terms and conditions.

Undeterred by the evidence of political chaos and the sounds of the crumbling economic edifice all around him, Hunt pressed on regardless.  He was at least conscious of the dangers of making any pronouncements in a public sector building, so retreated to the safety of the City of London, choosing the headquarters of the financial data and news service Bloomberg.  No nasty picket lines there and no one worrying about their next meal, their wait for a hip operation or how they were going to pay the energy bills.

Scene set, what did the wisdom of Jeremy Hunt consist of?  Well, in typical soundbite fashion, Hunt explained that he wanted to focus on ‘the four Es’; enterprise, education, employment and everywhere.

On the issue of enterprise Hunt was keen to see Britain as a leader in digital technology.  Hunt failed to account for the fact that the tech world is united in its criticism of the scale and speed of Britain’s broadband infrastructure, which is becoming more of an impediment than an aid to progress.  The failure of Britishvolt this week to establish the electric battery manufacturing plant in Blyth in Northumberland, also sent out something of a negative signal.  When asked about this during the week the Prime Minister, Rishi Sunak, denied it was lack of government support which undermined the project but a failure of the private sector to cough up enough cash.  

Enterprise, looked wobbly and its prospects were not enhanced by reliance on private companies, BT Openreach and the National Grid, to modernise the technology and electricity infrastructure.   Hunt is clearly relying on the misplaced Tory mantra that the private sector is the engine of the economy.   In reality it is public sector investment, planned and sustained, without which the private sector cannot function, that is the engine of economic growth, even in capitalist terms.

As the party which has done all in its power to dismantle the comprehensive education sector, and continues to champion tax payer subsidised public school education for the privileged few, hopes were not riding high for the second E from the Chancellor; education.

The recent autumn budget did see an injection of £2.3 billion for the schools budget but, far from this being a boost for greater educational opportunity or training pupils for jobs in a bright high tech future, it just about saved them from having to go onto the streets to busk and beg for pencils!   With seven days of strike action by teachers coming up throughout February, in protest at real terms cuts in teachers’ pay, and a struggle to recruit and retain in the profession, Hunt seemed to be out of touch with the realities once again in his second E.

Third E; employment.  The outcome of a confident booming economy where well educated and well trained young people get well paid jobs with prospects of promotion and advancement.  Such an approach would go against the Tory economic model of the past forty years and nothing Hunt said indicated that this would change.  The low pay, zero hours contract, anti trades union, gig economy does not appear to give Hunt any cause for sleepless nights.  Nothing in Hunt’s plan appeared to suggest that there were any issues to address here. 

With even workers at Amazon centres going on strike this week, it is obvious that the bubble is beginning to burst in a sector which has traditionally relied on poor terms and conditions being compensated for by relatively higher pay than low paid public service jobs.  The derisory 50p an hour pay increase offered to Amazon staff contrasted sharply enough with the billions the company made in profits to see GMB membership soar in the past week.

Finally, Hunt moved on the E number four; everywhere.  The government’s failure to give up on the redundant concept of ‘levelling up’ is abject.  The last round of so called levelling up funds saw 60% land in London and the South East; £19m go to the well heeled constituency of one Rishi Sunak MP, Richmond in North Yorkshire; with a few scraps left over to try and shore up so called red wall seats for the Tories, in advance of the looming General Election.  Continuing to labour under the levelling up delusion Hunt nevertheless claimed that the programme would ensure all parts of the UK would benefit from “making Britain one of the most prosperous places in Europe.”

As the world’s sixth largest economy it should not have escaped Hunt’s notice that Britain is already quite prosperous.  The problem, for the majority, is the uneven and inequitable distribution of that prosperity with the number of billionaires increasing at the same time as more people end up homeless and sleeping on the streets.  

In economic terms Hunt and his boss Rishi Sunak behave with the mentality of a couple of barrow boys flogging knockoff kit at a street market.  Shift as much gear as you can, as quick as you can, then do a runner before the cops turn up.  It is no way to run a modern economy, even a capitalist one.

A planned approach to production, investment based on the needs of the people, not the profit margins of private companies, and a socialist approach to economic planning, are the ultimate solution.  These are not approaches which fit the mindset of the Tories and sadly continue to be too taxing for the limited imaginations of those running the Labour Party at present.  The Tories are beyond redemption as dyed in the wool defenders of capitalism.  The hope remains that with pressure and persuasion Labour can change.

The final word on Hunt’s plan for growth however goes to the Institute of Directors, a traditionally reliable true blue Tory supporting institution, who described the content of the Chancellor’s speech with a fifth E; empty.