Rishi Sunak's conference speech on Wednesday did not contain a clear plan to stimulate business and growth. Photo: ADAM VAUGHAN/Shutterstock
Rishi Sunak's conference speech was an attempt to reassure a divided party that he has a vision for Britain.
By taking bold decisions to scrap the northern leg of HS2, making it illegal for anyone to sell cigarettes future generations and overhaul A-levels, the Prime Minister said he was ready to make “radical” changes to ensure a better future for the country.
However, his speech was conspicuously missing a clear business plan.
Although the Prime Minister spoke of his parents' entrepreneurial skills and portrayed the Tories as the party of small businesses, there was no clear solution. plan to stimulate business and growth.
Sunak did not address issues such as the tax burden on companies, productivity and investment challenges in the UK or support for industries seen as future growth drivers, such as green energy or artificial intelligence. .
The shift away from economics was a recurring theme at the conference. Kemi Badenoch, the business and trade minister, devoted much of her keynote speech to “fighting for a society that knows what women are.”
Throughout the four-day meeting in Manchester this week, the message was clear. to see the Tory party move into an election war stance. The party believes its best chance of winning re-election is to shift its focus to culture war issues such as gender and net zero.
But the reversal risks alienating business leaders, a traditional key pillar of both Tory support and funding.
Cracks are already beginning to show. Industry bosses have reacted with howls of pain at the Prime Minister's decision to radically cut HS2.
John Dickie, head of lobby group BusinessLDN, said the decision was «pulling the handbrake» on the rise.
p>John Dickie, head of lobby group BusinessLDN, said the decision «puts the handbrake on» on the rise. p>
Construction company Mace, which plans to work on the HS2 link to Euston, said it would “seriously undermine business and investor confidence in the UK”.
Stephen Phipson, chief executive of Make UK, said the turnaround “sends extreme a disappointing message about our commitment to completing major infrastructure projects.”
It's not just businesses with an interest in HS2 that are cooling their views on the government. More and more executives are rethinking their commitment.
One strategy consultant says: “The number of our clients attending the labor conference this year has doubled. This year they're making a conscious decision to go to both, not just the Tories.»
An insider at a centre-right think tank gave an even harsher assessment: «Many businesses usually only go to one conference, and this year they are going to the Labor Party.»
The number of businesses booking exhibition space at this year's Labor Party conference almost tripled to more than 40. In contrast, the number of exhibition space bookings at the Tory conference remained almost unchanged at 28.
Selection of businesses Occupying exhibition space was eclectic: next to Google and Lloyds Bank there was a Blackwell's bookshop and a stand for independent shops.
The lobbyist says: «If you go to the Labor Party, they'll have all the big corporations.» there.»
In part, leaders are simply reacting to the polls: Labor is still far ahead and it would be wise to know what the government can expect.
However, there is a risk that the Prime Minister's lack of focus on business will also push companies into the arms of the opposition.
One business leader says Sunak is «dithering» on a number of major decisions, including the partial scrap of HS2 and the decision to slow the UK's transition to net zero, stun companies and undermine confidence in the Conservative Party's ability to get things done.
“This sows the seeds of doubt that the government may not follow through on its other major infrastructure projects. And that's a problem.”
There are few signs that the offering for business leaders will improve anytime soon. Jeremy Hunt has repeatedly said there is little room for tax cuts or big giveaways in the November Budget.
Speaking at a side event this week, the Chancellor said the scale of the national debt means tax cuts are not possible even if the Government achieves its target of halving inflation by the end of the year.
Hunt said: “As in recent years six months, the interest payments on our debts have risen so much that I think it is unlikely that we will have the opportunity to do something like that.»
Not everyone is happy with this assessment. The Conservative Growth Group, which represents around 60 Tory MPs and includes Liz Truss, is pushing Jeremy Hunt to announce tax cuts and cut red tape in a bid to kickstart economic growth.
They want the Chancellor to raise threshold for inheritance tax to £1 million before the next election and has charted a path towards its complete abolition.
They also want payroll rules known as IR35 to be scrapped. The rules require employers to determine the tax status of contractors. MPs say the system prevents businesses from taking on extra work due to the administrative burden of hiring freelancers.
For now, Sunak and Hunt's focus is elsewhere. The prime minister's speech was a mix of hot-button issues and what looked like legacy-building reforms.
This certainly helps galvanize support for the party. “This was the best speech by a prime minister since Margaret Thatcher. Now I have completely come over to Rishi's side,” said one party member who watched the speech.
However, not everyone is confident that this will lead to electoral success. . There are signs that some Tory MPs are already keeping an eye on life outside Westminster.
At least half a dozen MPs were spotted at a drinks reception hosted by Airbus during the conference, leading to speculation that some they were advertised for future job opportunities.
“We usually get one or two candidates,” says one delegate. “I think I saw eight? These people are clearly looking for a plan B.»
As one MP says: «I had a good job before this, so I think I'll be okay.»
“Then again, I have a majority of 20,000 people, so if I'm a ***, then so are we all.”
At least in some ways, the business world is still in the focus of the Tory Party.
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