The OBR is clear: Not a single measure from this Budget will raise growth

This Budget was not a plan for growth or national renewal, it was a smothering pillow for the UK economy, writes Robert Jenrick For months, the Treasury has been banging on about a fresh start. By the time John Healey sat down after delivering his maiden Budget, British enterprise saw precious little of it. Instead, they got the usual display of chicanery, sophistry and sleight of hand. On no fewer than 38 occasions, the Chancellor referred to giving the economy “breathing space”.

Do me a favour! He quite literally put a pillow over its face and suffocated the life out of it. Let’s be clear, this Budget was not a plan for growth or national renewal. The Office of Budget Responsibility even said it couldn’t score a single measure as raising growth. This was simply a timid exercise in political management, a sticking plaster designed to allow this government to limp on a few more months. But in the wealth-creating hubs of the City, businesses don’t need sticking plasters.

They need stability, competitive taxation and a clear signal that ambition will be rewarded. Consider the Chancellor’s treatment of our financial sector. At a time when London must fight harder than ever to maintain its status as a global financial powerhouse, Mr Healey’s answer was to hike taxes on banks. Putting an extra three per cent on the bank surcharge sends a chilling signal to international investors. After all, capital is mobile.

If London becomes a more expensive and unpredictable place to do business, investment simply flows elsewhere, taking jobs and future tax revenues with it. Equally concerning was the sheer lack of fiscal discipline underpinning this statement. This nothing burger budget didn’t have anything to say about cutting the ballooning benefits bill or the eye-watering cost of borrowing. Here are just some of the figures: borrowing forecasts for the next five years have risen £65bn since March.

By 2031 we’ll be spending £160bn a year on debt interest alone – up £36bn a year. Terrifying. Pushing these issues into the distant future while distributing modest, headline-grabbing handouts today is the oldest trick in the socialist playbook. It is economic short-termism at its most reckless, mortgaging our future stability for tomorrow’s newspaper headlines. Meanwhile, economists and independent watchdogs have rightly pointed out that the Chancellor’s long-term plans are built on the ludicrous assumption that the government will make significant reductions to spending in the years ahead.

But considering Labour was unwilling to stomach even a modest £5bn reduction on the benefits bill last year, does anyone seriously believe that? Britain is crying out for a bold supply-side revolution. We need aggressive deregulation, structural tax reform that makes us the most competitive place in Europe to do business and a laser-like focus on unleashing private investment. On top of that, we need a Chancellor willing to trust the ingenuity of the British people.

Healey claims to understand the risks our entrepreneurs take. How? He’s never gambled his home on a business venture. He’s never experienced the gut-wrenching fear that there might not be enough money in the bank account to pay staff at the end of the week. British business deserves so much better. Reform UK has a different plan. Before the Budget we came forward with 64 pro-growth policies that cost nothing, such as approving the Rosebank Oil field and giving the go ahead to new runways at Heathrow and Gatwick.

We would raise the personal allowance to £15,000 and pay for it by cutting £40bn in waste, welfare dependency and foreign aid. We would cut the cost of hiring British workers, raise the VAT registration threshold to £150,000 to give small firms more room to grow and scrap income tax on overtime. Above all, we will ensure businessmen and entrepreneurs spend less time wrestling with the government and more time building successful businesses.

Because Britain is broke. Britains needs Reform. Robert Jenrick is Reform UK’s shadow chancellor