They say a week is a long time in politics and it’s been 8 weeks since my last column.
In that time a lot has happened. But as I write this today it looks and feels like calmer political times are ahead. And we need to find a calmer way of doing politics, because you – our business community – need us as politicians to focus on delivery.
The unopposed election of Rishi Sunak as Leader of the Conservative Party and Prime Minister is an important and positive step forward in that direction. Within just a few hours of that decision we saw the market reaction, with stability returning to Sterling, Gilts and the FTSE. And that really matters.
We are heading into a challenging winter with interest rates rising across developed economies, inflation across Western nations hitting double digits, and energy prices only just being affordable because of major Government intervention.
But we know from the Covid pandemic that in Rishi we have a person who understands the need to protect businesses which, in turn, will safeguard our economic prosperity.
There is an enormous task now facing Rishi as Prime Minister, and Jeremy Hunt as Chancellor. That is how to confront the financial hole in our public finances caused by rising inflation and interest rates. We also know, despite what some may suggest, that this hole has not been caused by UK related problems but global issues. But the solution can only lie domestically because we cannot stop Russia’s invasion of Ukraine, nor the Chinese economic shutdowns due to Covid.
There have already been some important decisions made to close the gap in finances which, whilst painful politically and financially for businesses, are necessary. In includes the cancellation of corporation tax reductions. As Conservatives we all got elected to keep tax low, but to do that long-term we have to maintain market confidence in the short and medium term.
As we look ahead to the Autumn Statement I am engaging with the Chancellor to ensure he understands our local needs as he makes these decisions and focuses limited public investment on key priorities. At the heart of this must be protecting and supporting SMEs across Lancashire.
The opportunity here is huge. With targeted investment in infrastructure; support with research, development, and expansion; and help getting through the winter months, our county can be set up for success.
As I said recently at the East Lancashire Chamber of Commerce annual gala, I have no doubt that in the decades ahead we will cement our position as a global leader in aerospace, cyber-security and nuclear power. The Government can help us along with that, and that’s the message I’m making to Jeremy Hunt.
