- Chancellor will set out his vision for
a lower tax, dynamic market economy, when delivering his first
major speech at the annual Mais lecture tomorrow
- Setting out his economic vision the Chancellor resolves to
‘create the conditions for private businesses and individuals to
thrive’
- Dismissing the claim ‘tax cuts always pay for themselves’ the
Chancellor will argue for sustainable tax cuts to turbocharge UK
growth
DELIVERING a low tax, higher growth economy is set to form the
cornerstone for the Chancellor’s economic vision when he delivers
the Mais lecture tomorrow (24 February).
In his lecture to the Bayes Business School (formerly known as
Cass Business School), he will underscore the benefits of
sustainable tax cuts, saying:
“I firmly believe in lower taxes.
“The most powerful case for the dynamic market economy is
that it brings economic freedom and prosperity. And the best
expression of that freedom is for all of us to be able to make
decisions about how to save, invest or use the money we
earn.
“The marginal pound our country produces is far better spent
by individuals and businesses than government.”
The Chancellor will emphasise the importance of cutting taxes
responsibly, saying:
“I am going to deliver a lower tax economy but I am going to
do so in a responsible way, and in a way that tackles our long
term challenges”
He will challenge the idea that taxes should be cut even where
that would leave spending pressures unfunded, saying:
“I am disheartened when I hear the flippant claim that ‘tax
cuts always pay for themselves’. They do not.
“Cutting tax sustainably requires hard work, prioritisation,
and the willingness to make difficult and often unpopular
arguments elsewhere.”
He will also defend his firm belief in the market economy,
saying:
“As a machine for innovation and growth the free market is
positively correlated with almost everything we imagine is
desirable for humanity: higher living standards, greater
wellbeing, longer lives lived in greater leisure, freedom and
peace.”
The Chancellor’s comments will form part of his overall vision
for a better economy which involves boosting growth and
productivity.
At the Mais lecture tomorrow he will set out his priorities to
achieve that. He is expected to say:
“Capital. People. Ideas. Three priorities to deliver higher
productivity, tied with one golden thread: that what government
does is far less important than creating the conditions for
private businesses and individuals to thrive.”
Growth in all 3 of these areas are already being supported by the
government, with public sector net investment reaching its
highest sustained level as a proportion of GDP since the 1970s,
dramatically improved school and university performance in recent
years and improvements to access to finance through initiatives
like British Patient Capital, the Future Fund and reforming
Solvency II.
Notes to editors
- The Chancellor will deliver his Mais lecture tomorrow
(24th February) at 12.30pm at the Bayes Business
School at City, University of London.
- The annual Mais lecture is regarded as the City of London’s
foremost event for the banking and finance community, and is
attended by senior practitioners and academics. Since its
inception in 1978, the Mais has maintained a tradition of
prestigious speakers including Mark Carney, , , and . The last lecture took
place in January 2021 with .
