16 July 2012

Dominic Raab: A Tory's liberal proposals to save the coalition

Writing in the FT, Conservative MP Raab says that what is required to stem the coalition's fragmentation is commitment to some of the British liberal – not progressive – values common to both parties.

The only plausible source of a relevant, tangible policy agenda, based on common principles, is the liberal glue that binds large sections of both parties. In practical policy terms, to shore up its erratic communications the coalition should focus on free enterprise, liberty and social mobility.

The government’s top priority is the economy. Yet growth remains elusive and unemployment stubbornly high. The coalition’s modest measures – cutting corporation tax, taking low earners out of income tax – don’t go far enough. A big tax cut for small and medium-sized enterprises, delivered through national insurance employer’s contributions and business rates, would spur business expansion and jobs growth. Funding it is the contentious part. So, why not draw on Lib Dem thinking? David Laws recently suggested cutting state spending by 14 per cent of gross domestic product and Lib Dems previously advocated abolishing the Department for Business, Innovation and Skills (saving £8 billion). Reshaping the bloated state would pay for the shot in the arm our entrepreneurs sorely need.

The coalition’s greatest struggle is knitting a common thread on social fairness during austerity. If Labour wants to bash bankers, soak the rich and spend more, the coalition should vacate that ground. The politics of envy is a mirage that leads to moral and economic bankruptcy. Yet, while all the parties profess their commitment to improving social mobility and meritocracy, creative policy making is more scarce. YouGov surveys show the public, by 3 to 1, think that fairness is getting what you deserve, not equal treatment. The coalition should make this its touchstone for social policy.

I did not want coalition in 2010. But it is here, so we need to make it work. To survive to 2015, it needs the glue of classic liberal values common to both parties, not the politics of identity that fragments government and turns off the public.

Full article (FT subscription required)

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