The importance of the speech by David Cameron on economic policy should not be underestimated. Some have asked how the Conservatives would be different to Labour and he is starting to sketch out the key areas. He acknowledges the basic Conservative desire for lower taxes, fewer regulations as well as economic stability. Yet what is really important is the widening of the Conservative engagement on economic growth into improvements to transport infrastructure and education.
This is well founded. The OECD did an in depth review into what makes economies grow. It concluded that key to faster growth are better transport infrastructure, greater success at research and development, a more flexible job market, lower taxes along with knowledge and skills. For a more in depth discussion of why these issues matter, see a couple of articles here (page 28) and here. The key reforms needed are in the areas of vocational education - especially for success in helping the 5m people who could work yet do not get off benefits and into work. This stronger engagement by David Cameron will do much show how the Conservatives can be trusted with the economy and help deepen the case for change.
