The former will help to rebalance the economy and boost ‘levelling up’, but the latter will squeeze the foreign investment ‘global Britain’ needs.
The Budget was, if truly honest, a sign that the Government shuns spending cuts and embraces tax rises – which is ultimately unsustainable.
How have think-tanks and campaign groups responded to the Chancellor’s fiscal and economic initiatives?
His three part plan: protecting jobs and livelihoods. Securing the public finances. And laying foundations for the future.
Sunak is clearly the politician that alarms Labour – and the Opposition leader went for him personally over Covid and lockdowns.
“Let’s consider the alternatives. The first is to do nothing. To leave our deficit problem untreated. Our debt problem for someone else in future to deal with.”
It’s a dangerous game, relying solely on polling to judge the state of public opinion: it never tells the full story.
Conservative messaging implies an implicit belief that there are no major state functions ripe for reform in any fiscal repair.
It will probe whether or or not Sunak can prepare the country for that future – and perhaps succeed Johnson himself, “one fine day”.
Perhaps the simplest way of putting it is: it’s all about economic credibility, stupid. Because come 2024, it certainly will be.
Sunak’s scores have come in at exceptionally high levels. We will see what happens next as more conventional times approach.
We need to have a debate about which taxes are least damaging to economic growth. Over the long term, corporation tax ranks as being one of the worst.
Once the exigencies of the pandemic are behind him, Johnson will be faced with much more straightforwardly ideological policy choices.
One of an occasional series of articles that ConservativeHome is publishing in advance of the Budget.
One of an occasional series of articles that ConservativeHome is publishing in advance of the Budget.