Five things we need to hear from the Conservatives

A number of commentators in this morning's newspapers see evidence of a "traumatised" and ideologically-confused Conservative Party...

Peter Oborne in The Daily Mail:

"While the nationalisation of the banks will cheer all those who believe (as large parts of the Labour Party still do) in an all powerful state, it is also a massive blow for those who believe - like David Cameron's Conservatives - in liberal capitalism. The Tory Party has a desperate problem in the coming months - how to defend a failed economic system that is core to its political beliefs."

Simon Heffer in The Telegraph:

"The Conservative Party appears completely traumatised by events and, as its predecessors did after the war, seems happy to buy into the socialist project in the interests of a quiet life and a deceptively good night's sleep."

Simon Hoggart in The Guardian:

"Poor Mr Cameron was experiencing something he hasn't often experienced before - a defeat at prime minister's questions. He launched into a lengthy demand for bankers to be controlled and even punished. No more irresponsible behaviour, inappropriate dividends, indefensible bonuses. He sounded like a Trot."

Longstanding conservative beliefs are still relevant to this crisis.  Here are five:

Britain has lived beyond its means. Labour spent too much and too wastefully during the good years.  Where Labour is incapable of controlling public spending, Conservatives can and must bring good housekeeping back to government.  We should be recommending a real terms freeze in all discretionary expenditure.  Households are facing tougher limits.

Higher taxes are the last thing that our troubled economy needs. Various centre right thinkers made this case on ConHome last week.  Nick Clegg makes the argument in today's Independent.  We need to be hearing it from the Tory leadership, too.  If the banks do not need all of the £50bn recapitalisation we should consider diverting that money to economy-boosting tax relief for the real economy.

Over-regulation will kill our chances of recovery. Government is not good at financial regulation.  As Peter Cuthbertson has written: The economies to regulate most will recover least.

Protectionism will turn recession into depression.  We need to continue to make the case for free trade.  As the real economy turns towards we may see unhealthy and dangerous calls for protectionism.  Conservatives must lead resistance to those calls.

Welfare and schools reforms are vital to long-term competitiveness.  The Tory social agenda remains vital.  We can't afford to pay benefits to millions of able-bodied people and for schools that fail to teach basic skills.  The reforms proposed by Chris Grayling, Michael Gove and Iain Duncan Smith are more important than ever.   

One thing is absolutely true: Gordon Brown will always be willing to promise more spending and regulation than us. It might have been right to be bipartisan yesterday but we need to present our own distinctive way out of this crisis in the weeks ahead.

PS We recommended a 'Time to man up' speech to Mr Cameron in March.  That speech still needs to be given.

Comments

[christina Speight]

for ages I've said the Cameroonsare wet and this proves it. Brown is getting away with it and nobody is pinning the whole mess on him

But at the end of all arguments - government let control of our currency slip away from it and only government can be blamed. If you want to know which government look at the house-price graph!!!

A government's prime responsibilities are : 1. Defence of the realm; 2. defence of the currency; and 3. Law and Order.. Credit should have been controlled and wasn't. Minimum repayments on credit cards should have been controlled and weren't. Minimum house deposits should have been controlled and weren't. Bank rate was far too low. Result nobody saved!

It's no use them shuffling off responsibility either to the banks or to the consumer. Both were stupid and greedy but there was an open invitation to take advantage of no worthwhile credit control.

[David Sergeant]

First time I've agreed with you Christine so I'm writing in. The trouble has always been that Tory leaders, not just the Cameroons, seem incapeable, or unwilling, to get their hands dirty taking on Labour, (or Lib/Dems at by elections!).

However, up till recently the economic problems had been pinned on Brown so as things rumble on in the next few days maybe things will change.

[Goldie]

Cameron and Osborne have mishandled the financial crisis, proving, if further proof was necessary, that young Mr. Osborne is simply not suitable as Chancellor.

Cameron really, really, really needs to replace him -- I think Hague should do it, but Ken Clarke would be OK with me too, despite his europhilia he would be a reassuring figure.

And Cameron really needs to focus and get a grip. If he doesn't get his act together on this he could actually lose the premiership...!

[Libertarian]

Would you invest all your money in a financial institution run by a thirty-something whose experience was limited to research and writing speeches for his previous bosses?

If not, why do think that George Osborne is qualified to be in charge of Britain's economy? It's time for a change!

[Iain]

"Would you invest all your money in a financial institution run by a thirty-something whose experience was limited to research and writing speeches for his previous bosses?"

At least some clerical backroom staff in the city has passed his FSA exams; Osborne gets to play with the UK economy with a modern history degree. Something very wrong about this.