Kemi Badenoch has made clear in a recent email to members that she stands for Conservative values. She wrote
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Kemi Badenoch has made clear in a recent email to members that she stands for Conservative values. She wrote
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The government’s policy of ever closer relations with the EU will damage our slow and stuttering growth more.
It means sending more money to the EU which in turn means putting up taxes further. It is Labour’s massive tax rises to date that have slowed growth, destroyed jobs, slashed vacancies and put up unemployment. Why do more of the same?
It means adopting the higher carbon taxes under the EU emissions scheme, putting up the costs of energy. Far from helping abate the cost of living crisis they talk about, it will make it worse.
It means adopting a version of the EU carbon border tax or tariff, designed to make things we import from outside the EU dearer if they have used fossil fuel energy in their production and transport. That might invite retaliatory damaging tariffs from the US and others.
It means accepting more young migrants from the EU keeping wages lower and taking job opportunities our young people need.
Far from boosting our exports it is more likely to boost our imports and displace imports from non EU. This will not increase our GDP and will help push up the cost of living.
The Family farm tax is very damaging. It was troubling older farmers greatly, threatening splitting up farms and making the less viable. Now some of the smaller family farms have been exempted. Still many small businesses and some of the larger family farms are being attacked by IHT, making it difficult for them to pass them on to a new generation of owner/managers. It puts people off building businesses here in the UK or leads to early closure.
More damage was done to more people by the Jobs tax of the first Labour budget, the hike in Employers National Insurance. As some of us forecast there has been a fall in vacancies, and a rise in unemployment. There are especially acute problems for young people looking for their first job. Putting the Minimum wage up at the same time as the big tax rise exacerbated the problem, leading more employers to cut back on recruitment or to slim their workforces down. The catering and hospitality sector was particularly hard hit, and shops also suffered another blow to their chances of survival. The addition of big rises in business rates, against the government promise of helping pubs and High Street shops, was another unexpected hit when they had been promised rates reform to lower their bills.
The language Labour used in its Manifesto to avoid tax rises on working people and to boost living standards has been blown away by a run of anti growth tax rises, managed price rises, and the overriding policy of dear energy to speed net zero. Many more people are now on benefits, and many more young people are not in training, education or work. The government struggles to define a working person, and finds plenty of people to tax more that look like working people to the rest of us. The Chancellor says she is concentrating on getting the cost of living under control, yet she grants large wage rises to a wide range of public sector activities and allows through rises in energy prices, rail fares, Council tax bills and other public sector activities.
As Labour criticise their leader and examine other options, their attention goes to things that will make the situation worse. Every deal with the EU entails paying the EU more money for no advantage, leading to yet higher taxes. The Erasmus deal costs far too much and will if like the last time we were in it pay for more EU students to come here than it will help UK students to go abroad. The idea of joining the Customs Union would mean putting many more tariffs back on imports to the UK, pushing up prices and making UK business less competitive with dearer imported raw materials and components. They have given far too much of our fish away for 12 more years, preventing the good growth of our local fishing industry. They have still not lifted the ban on getting our own oil and gas out of the ground, which bring us more tax revenue and well paid jobs. They still are wedded to closing down all our petrol and diesel car plants by 2030, which means more closures and job losses soon.
To get the econo0my growing again, to help create more jobs, to get the numbers on benefits coming down will take more than a small tax cut on family farms, welcome though that is. They must reverse many of their bans that stop us making and growing things here. They must bring down the costs of employing people, especially young people, by cutting their Jobs tax. They need to review taxation of small businesses generally and create a better climate to encourage new and growing businesses to stay and flourish here.
The government has carried out one sensible U turn on its farms policy. It says it wants to get back to growth, to controlling the cost of living and to encouraging investment. To do that it needs more U turns on its tax rising agenda. It needs to grapple more successfully with runaway public sector costs. it needs to concentrate on getting many more people back to work, whilst issuing fewer sicknotes for life.
The Lib Dems invent absurd figures of how much better off we would be if only we were in the Customs Union of the EU. They clearly do not understand that we are in free trade Agreement with the EU meaning we do not have any tariffs on EU imports or exports already so there is no tariff gain from joining. They do not seem to understand that there would be a substantial tariff loss from joining, as we would have to re impose tariffs on all those imports from non EU where we cancelled the tariffs on leaving the EU. We took tariffs off all the things we cannot grow or make for ourselves, and off things needed for UK manufacturers as raw materials and components for their added value production.
The Lib Dems condemn President Trump for putting tariffs on, so why do they want to put more tariffs on our imports from non EU by joining the Customs Union? Why do they support the ruinous carbon border mechanism, a big EU tariff like charge coming soon to markets near us, and soon to be imposed by an unholy Lib/Lab alliance on UK consumers already suffering from rising prices? The carbon border tax will make many imports dearer.
They claim they want to negotiate fewer border frictions for our tariff free trade with the EU. The EU answers that we need to adopt all the extra rules and costs the EU has imposed on itself since we left, and reverse any repeals or simplifications of EU laws we have so far made to all the older EU law we carried with us into a half hearted Brexit. Far from cutting frictions the EU would ensure there are more.
Some say they want us back in the Single market. That means we would automatically have to adopt all the extra rules and regulations they wish to introduce without a voice or vote over the laws they are making. I remember well as Single Market Minister how excessive those laws can be, and also that even as a voting member the best we could do was delay or dilute a bit. The EU always proceeds by excessive detailed regulation of everything business tries to do, making it a high cost low growth low innovation zone. It seeks to make good new ideas illegal to protect incumbents.
Far from adding to our GDP and to our tax revenues joining the Customs Union comes with a triple cost. More money paid to the EU for administering it. More money paid by consumers in tariffs on non EU imports. Jobs lost as business can no longer import materials and components tariff free from non EU. Less trade with non EU as we have to cancel our free trade Agreements made as an independent country.
Facts4eu published their version of this piece with charts showing how the UK grew faster outside the EU than in it, and has grown faster than Germany, Italy and France since leaving.
This is the text of my Christmas story which had its first reading on GB New last night
I have posted today my Christmas Eve poem. Tomorrow at 8 pm GB News will be screening a reading by Jacob Rees Mogg of my Christmas story this year. Tune in to watch it. I will also post the text of it.
Feel free to send in what is on your mind as some of you usually do regardless of my topic of the day.
Will Santa come for me?
May you all feel the excitement of Christmas.
WILL SANTA COME TONIGHT?
“Will Santa come? Will Santa come tonight?”
“He might. He might.
If you are good, he might.”
“Can I stay up and see?”
“No. He will not come for you or me
if we do not sleep . He’s too busy to meet us all.”
“And will he come for us?
If you go to sleep – he does not like fuss.”
Tonight, by the lights of the tree,
there is, at last, some grown up time for me.
The cake is iced. The wine is spiced .The carrots diced.
The pudding’s steamed. The brandy butter creamed.
The turkey prepared awaits. And yes, I did clean the plates.
The tree is up, the table laid,
the cards are out , though the credit card’s unpaid!
So shall I soon with gifts a plenty
mount the stairs to deliver twenty?
Do I dare to tread the stair?
And will it creak?
And will it make a noise that upsets all those Santa ploys?
I need to know if they slumber before I arrive with my lumber.
If they are still awake what dreams will go?
Or do they know? And is their belief just all for show?
So tonight by the magic tree there is need of more time just for me.
I will wait – and struggle to keep open my eyes
And wrestle with the morality of eating Santa’s mince pies.
My adult mind is full of Christmas chores
The cooking times, and the cards through neighbours’ doors
Drinks with friends to come – but not that cheap red
Which would give me a headache as soon as I got to bed
I was once a child too excited to sleep with a torrent of thoughts about what I might be given
Hoping that it was a toy that could be ridden
Should I peep? –Not more socks or hankies, preferably something to be driven
So could Santa still come for me? Drowsily I dream as if I were eight
Hoping that Santa would not be late
Like every little boy there is of course a much wanted toy
So will Santa come tonight? He might, He might.
If you sleep well and if you believe
Only if you believe. And only if in your family Love fills the hours you will be spending.
It could be the true Santa on the stair
Or it could be someone from an empty chair.
So will Santa come? He will. He will.
There are a number of areas where the EU has lower animal welfare standards.
The UK should have high standards. It should not allow EU imports to undercut our farmers by relying on lower standards .The danger of the government’s new animal welfare proposals is it will stop some UK production to be replaced with imports from places where animals are treated worse.
There were wild responses to my X questions on steel yesterday. Most critics were wedded to the idea that nationalising steel will provide the answer and will save the Scunthorpe blast furnaces and jobs. I fear they will be badly let down. They will send huge bills to taxpayers before closing the furnaces down anyway.
Some queried my aims for steel. I would like to keep steel making in the UK, including some blast furnace steel as well as recycled. To do this requires many changes. I have consistently called for a proper business plan , for ending penal taxes and charges on energy , for a deal with the previous Chinese owners of Scunthorpe and for well negotiated purchase contracts for public steel for rail, defence and construction public spending.
The first necessity is to acquire Scunthorpe from its Chinese owners. I suggest buying it for £1 whilst ensuring past debts rest with the previous owners. Taxpayers would take on future liabilities including responsibility for jobs and wages.
The second is to change energy taxation and subsidy to get UK industrial prices closer to US and Chinese ones.
The third is to review how long the business can run the Scunthorpe blast furnaces and when they might need major maintenance with a difficult temporary shut down .
The fourth is to develop the work in place on public sector demand for steel and see how the gap between import cost and domestic cost can be bridged.
It is obvious there needs to be some combination of subsidy and lower tax demands to price this steel back into wider use. It is also clear our steel industry is being sacrificed on the altar of extreme net zero polices. These are self harming, and result in more CO 2 worldwide as we close down our industry.
President Trump in 2025 was busy defining his new Administration with his one Big Beautiful Bill built around tax cuts and cheap energy. It is true some of his other policies were less helpful, but the thrust towards more growth and investment was clear. The relatively new Labour government also defined itself by key legislation in its early months . The two Finance Bills to implement the 2024 and the 2025 budgets set course for a dearer public sector, for more borrowing and for much higher taxes. The Employment Rights Act decided to grant the Union bosses most of their requests to make it dearer and more risky to employ people. As a result of these measures the UK sentenced itself to much lower growth than the US, and to rising unemployment.
It is difficult to comprehend how PM and Chancellor thought they were following a growth strategy when they decided to make such a large increase in the cost and difficulty of employing people, allied to an attack on successful small businesses and farms through an Inheritance tax raid. They seemed unaware of the huge success of the US digital giants out competing the UK and turning so much of our computer expenses into revenue for the USA. They seemed to think people and companies would stay here despite the large deterioration in the tax regime relative to lower tax jurisdictions including the US, and assumed businesses and farms would struggle on despite the more hostile atmosphere for them. Instead many people left the UK, jobs were lost and businesses shut down. There was a surge in more people living on benefits.
The government’s growth theory is based on expanding public sector investment in rail, energy, and public services. They are discovering that to afford this they need both to raise taxes and to accept higher interest costs for all the extra money they wish to borrow. They do not seem to have realised this attempt to re direct day to day activity and investment away from the competitive private sector to the public sector is likely to lower our productivity and lead to more losses and waste. Preventing a new gas well or a new gas fired power station but pressing on with HS2, Post Office computerisation and the Ajax military vehicle means a big bill for taxpayers and a less productive economy.
The impact of higher National Insurance and the Employment Rights Act is already being felt in more employment intensive activities like entertainment and hospitality, where there has been a big job loss. We will also feel the expansion of the state in our pockets as the bills come flooding in for railway losses, steel losses, Bank of England losses, Post Office losses, MOD cost over runs and the rest.