Thursday 12 December 2019 12:01 am
https://www.cityam.com/george-freeman-we-cant-afford-corbyn/
The outcome of this election is too close to call — a few votes will be decisive. The worst result of all would be a hung parliament led by a weak Jeremy Corbyn government, propped up by Nicola Sturgeon and the SNP.
Jeremy Corbyn — a lifelong friend of the IRA and enemy to our police and armed forces — is danger to our security and defence, but the economic threat he poses is just as alarming.
His hard left prospectus would have a devastating effect on small businesses, startups and innovators up and down our country. Every entrepreneur, or anyone concerned with UK economic prosperity, should be worried.
Yet many young people under 40 in London are apparently tempted by Corbyn’s radical agenda.
Here are my 10 economic reasons to urge them to think again.
Fiscal policy
The party is fiscally irresponsible. It has committed to an additional spending splurge of £1.2 trillion over the next five years. That’s an extra £650m a day.
Who will pay? We will. You will. Labour says it will fund this through tax on the wealthy (those who earn over £80,000) and on businesses, but the Institute for Fiscal Studies (IFS) says this isn’t credible.
Jobs creation
Our “workfare” reforms are working to reduce unemployment. Labour has always left unemployment higher than it has found it. Under the last Labour government, unemployment rose by nearly half a million.
Even after an economic boom, Labour left office in May 2010 with welfare and unemployment up by 23 per cent. The public finances were broken — we were borrowing £1 in every £4 government spent.
A four-day-week
Corbyn’s proposal would cost the public sector £85bn over five years — paid for by taxpayers. It would cost the NHS £6.1bn a year, taking precious resources away from patients.
It is unfeasible and would have a devastating effect on huge numbers of small businesses who would have to pay less money to more staff just to keep afloat.
Tax
Labour’s taxes would be the highest in peace time history. As the IFS itself says, Labour’s policies would lead to “higher prices, lower wages or less valuable investments”. And higher interest rates risking a negative equity housing crisis for millions of low income buyers.
Marxism
Yes, actually. The shadow chancellor himself is genuinely an avowed Marxist who says his main aim in life is “the overthrow of capitalism”.
He made clear that he thinks private enterprises are “the real enemy”. This is the man who could be chancellor tomorrow.
Deja vu
Labour’s economic plans are so radical that we are seriously back in the realms of a run on the pound and capital flight.
The last major run on the pound was during the Winter of Discontent under a previous Labour government. We can’t let history repeat itself.
The Bank of England
Labour would imperil the independence of the Bank of England.
It is flirting with the idea of installing a hard-left governor of the Bank of England who is in tune with its Marxist ideas. Threadneedle Street’s independence has worked. We can’t possibly put that at risk.
Nationalisation
In the words of John McDonnell: “We’re going to bring back into public ownership rail, water, energy and mail. We will get this legislation through in the first Queen’s Speech — we want to hit the deck running,” he said.
Experts have warned this could cost £196bn and cripple our hard-won reputation as a business-friendly country.
Business
Labour has planned a draconian tax grab of £300bn, taking control of 10 per cent of a company’s shares in order to create an “inclusive ownership fund”.
Pension holders would be hit hard with millions wiped off the value of their hard-earned retirement pots. The Institute of Directors called it draconian, and the British Chambers of Commerce described it as a tax grab.
Rising debt
Finally, under Labour’s new fiscal rules, debt will rise and could continue to rise indefinitely and uncontrollably. This is grossly irresponsible.
Jeremy Corbyn’s neo-Marxist economic vision would destroy the enterprise, innovation and dynamism that this great newspaper celebrates. He has no plan for Brexit, so he would spend the next year miring the country in the chaos of two more costly and divisive referendums, one on Brexit and another on breaking up the union with Scotland.
Only a majority Conservative government can break the deadlock in parliament, get Brexit done and focus on unleashing the country’s potential.
To all City A.M. readers, I have one plea: please, don’t give us a hung parliament which would see the Marxists get the keys to Downing Street.
George Freeman is founder of the 2020 Conservative Group, author of its recent Britain Beyond Brexit report, and minister of state for the future of transport
Main image: Getty
City A.M.'s opinion pages are a place for thought-provoking views and debate. These views are not necessarily shared by City A.M.
https://www.cityam.com/george-freeman-we-cant-afford-corbyn/
