Douglas Carswell's Blog

Flat line growth. Flat line thinking

The Treasury might say they have a growth strategy.  But in the real Britain outside there's no growth. 

Over the past four years - first under Alistair Darling and now George Osborne - we have tested to destruction the idea that monetary and fiscal stimulus will get the economy moving.  Despite interest rates at almost zero, and leaving the PFI spending taps running, and more public spending than ever in our history, the economy has stalled. 

It is time for a different approach.  Raising productive output means more than simply stoking up demand.

We need bold supply side reform.  Remove barriers that stop firms taking on new staff.  Get regulatory agencies off entrepreneurs’ backs.  If EU rules prevent us creating wealth and jobs, opt out of them unilaterally.  Don't simply talk about a Great Repeal Bill - make it happen.

Giving big developers a license to build identikit housing is not the same as free market housing reform.  Credit easing rationing will no more stimulate the economy or increase the supply of credit than clothes rationing in the 1940s stimulated high street shopping or British fashion. 

Credit easing rationing is not supply side reform.  It is a corporatist throw back to the days of Ted Heath.  

Again and again across most departments, the Sir Humphreys in Whitehall have been able to determine the range of policy options from which Coalition ministers must then choose.  Too often the result has been institutional inertia.  In the Treasury, this means that we are still a long way from making many of the changes Britain needs.

Back to all posts