“Britain’s Headed for Calamity” – Lord Moynihan Slams Spring Statement and Labour’s ‘Anti-Growth’ Agenda
Britain is “flirting with recession” and current economic policies are “catastrophic for growth,” Conservative peer Lord Moynihan said in a blistering attack on government policies.
Speaking in response to last week’s Spring statement, and at the launch of his new book – Return to Growth – Lord Moynihan accused the government of trying to use businesses as a “milk cow,” hiking taxes and increasing red tape. At the same time it has been dishing out “inflation-busting pay rises” to its public sector allies.
The British businessman and venture capitalist added: “Every policy led to the opposite of growth,” he said. “Last year’s budget was fairly punitive on business – we warned in the Lords that growth would be crushed.”
Last week the Office for Budget Responsibility (OBR) predicted just 1% growth this year – half of its original figure but a projection Lord Moynihan says is still optimistic. “I think they’ll be proved wrong. It will be less. People are leaving for Dubai and other low-tax countries – not just bankers, but even hairdressers. This isn’t sustainable.”
In Return to Growth, Moynihan lays out what he calls the “three enemies of growth” – high government spending, excessive tax and regulation, and bureaucratic interference – all of which he says the Labour government is embracing. “We’re moving towards central state control. History shows that this eventually ends in state violence. It’s deeply worrying.”
He calls instead for a return to the “three angels of growth” – free markets, free trade and sound money – to unleash innovation and rebuild prosperity. “We’ve become a nation addicted to regulation. The belief that government knows best stifles the creativity of the British people.”
Particularly scathing was his criticism of the new Employment Rights Bill, which grants new hires immediate workplace rights. “It’s catastrophic for business. Employers will hesitate to take on new staff. This won’t help workers – it’ll reduce jobs. I’m on the side of the working man.”
Lord Moynihan also blasted “moral panics” around net zero and diversity initiatives, claiming these have sparked “a huge spray of regulation” with little purpose. “What on earth is the question they’re even trying to answer?”
He concluded: “If we keep taxing and regulating like this, in four years’ time the damage will be catastrophic. We need to return to growth – urgently.”
Last week chancellor Rachel Reeves defended her policies. She said: “While there are no quick solutions for fixing our damaged economy, our Plan for Change is starting to bear fruit. I won’t shy away from the challenges we face and change won’t happen overnight. But the prize on offer is immense.”
Return to Growth – How to Fix the Economy is published by Biteback publishing
