Earlier this week the Free Enterprise Group, a group of largely new Tory MPs, along with the IEA hosted a "Growth Forum". It was a short affair which lasted little more than two and a half hours, but there was an energy – an excitement even – which was palpable to everybody.
People often wonder what the point is of endless meetings and forums. I thought this week's event was an excellent example of how effective this sort of thing can be. Journalists, politicians, think tank people and academics all came together to articulate ways in which the British economy can prosper.
The inspiration behind the Free Enterprise Group is the enormous expansion of the state which occurred during Labour’s years of government. In 1997 government spending was about 37% of GDP. Today that figure is 49.4%, an increase of almost a third. Whereas the budget was balanced at £315bn in 1997, last year spending reached £710bn. Our tax receipts were only about £590bn, hence the large deficit....
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