Contribution
I will make a bit more progress.
Here is the fundamental bind that the Labour party is in. It does not matter who its next leader is—they will all fail. Its supposedly popular leadership contenders will become unpopular very quickly when they cannot keep their promises. It happened to us in government. It is happening to Labour now. It is happening to Reform at council level. It will happen to whoever is in government next unless they face up to the trade-offs that get us better growth.
Growth is the antidote to so many of our problems, but to deliver it, we need two things: cheap, abundant energy and economic freedom. By shutting down the North sea, cancelling nuclear projects and keeping a distorted electricity market in place, the Government are making energy scarce and expensive. Being part of the EU does not solve that problem. The EU leaders themselves rail against their own energy policy. Reindustrialisation is just a meaningless slogan unless we back the North sea, axe the carbon taxes that are killing British industry and cut the cost of energy. If none of Labour’s contenders has the courage to say anything about these issues, nothing will change.
Alongside cheap, abundant energy, the most important ingredient for growth is economic freedom, but the Labour party openly stands for more state control, more tax and spend, more red tape on employing people, more expensive energy, less AI, fewer profits and more subsidies. It has been on this path for two years now, and what do we have to show for it? Higher inflation, weaker growth and soaring unemployment. Why would anyone want more of this? Families are working harder and harder and getting less and less at the end of the month. And if people want full-fat socialism, why would they choose Labour when they have the boob whisperer offering them bigger and better?
Our whole system is flooded with caution. Nobody is incentivised to take any risks.
That is what is making us poorer. The truth is that the personalities in the Labour leadership race do not matter. Unless we get cheap, abundant energy, remove the legal straitjackets and onerous taxes, and fix the broken regulators and the sluggish machine of government to set the economy free, nothing is going to change.
If Labour Members think that Andy Burnham has the answers, let me tell them this. Andy is like the fun uncle who sits on the sidelines saying whatever he wants without anybody holding him accountable: “Let’s have ice cream for dinner! Let’s go to the zoo next week! Let’s nationalise everything! Who cares about the bond markets? Let’s rejoin the EU!” He has said whatever he liked because he has never had to pick up the bill. Now that he is actually looking at being in charge, he is having to go back on all those promises. Members should ask him this: how is he going to fund his nationalisation plans? He wants to stick to the fiscal rules. Is he really saying that he is going back to taxpayers, who already face the highest tax burden in history? When he talks about reindustrialisation, they should ask him whether he supports the Secretary of State’s plans to shut down the oil and gas industry—the biggest act of industrial self-harm committed in generations. If Andy Burnham wants more powers at a local level, amen to that—I could not agree more—but Labour Members should ask him how he can argue for economic freedom in one breath, while in another dictating to people what tumble dryers or cars they have to buy.
If Labour Members really cared about growth and reindustrialisation, they would axe carbon taxes, get Britain drilling, double down on nuclear and make electricity cheap. In short, they would put the national interest ahead of the Secretary of State’s ideology and vote with us tonight.