Spring Budget 2024: What do ‘the five families’ of Tory MPs want to see Jeremy Hunt announce?
When Jeremy Hunt gets to his feet in the House of Commons on Wednesday, March 6, to deliver his Spring Budget, it won’t just be taxpayers and economists hanging off his words.
For Conservative MPs, the moment represents a chance to reverse their fortunes; to offer voters a true distillation of ‘real’ Tory-ism, and they’ve been lobbying the Chancellor hard.
Just one issue: they can’t agree on exactly what that singular vision is.
One Nation
Who are they? The seen as the centrist, moderate wing of the Tory party. They’re pro-establishment, pro-institutions and generally in favour of working to improve the lives of the nation as a whole.
What do they want? The caucus, consisting of 107 registered members, this week issued a statement, calling for a “fair, tax-cutting budget that delivers for hardworking people”.
Citing the “spiralling cost of living, childcare costs and the highest tax burden in over 70 years”, they want to see items including: a multiyear childcare funding settlement; a ‘cap’ on student loan interest rates; abolishing stamp duty for downsizing buyers; a levy on foreign owners of vacant luxury flats; and a flat rate of tax on all income regardless of its source.
What do they say? One Nation chairman Damian Green said: “As Conservatives, we know that the best way to get our economy growing is by putting our faith in the hard-working people of Britain. This means cutting taxes and giving people the opportunity to buy their own homes and invest in their future.
“This is our chance to demonstrate to voters that we are on their side and that we are taking steps to alleviate pressures they face in all aspects of everyday lives. If we fail to do so, we risk the damaging consequences of a Labour government.”
The Growth Commission
Who are they? A group of around a dozen economists linked to former Prime Minister Liz Truss who argue for pro-growth policies. Their political equivalent – the Conservative Growth Group – is a faction of MPs allied to Truss, and the Commission’s aims are also backed by the Popular Conservatives movement.
What do they want? The Commission argues that reining in government overspending and boosting public sector productivity could create £60bn in fiscal headroom.
They also posit slashing net migration would leave people over £1,100 a year richer in the long term, and suggest scrapping inheritance tax would see better results than cutting income tax.
What do they say? Co-chairman Douglas McWilliams said: “The ONS believes that GDP per capita has fallen in each of the past seven quarters for which they have data and by 0.7 per cent in the 2023 calendar year. This is underpinning the weakness in living standards that is leading to the UK falling behind the US and losing ground to Eastern Europe and Asia.
“This is not predetermined – there are policies which will reverse our trend and we have put them forward. If the policies we put forward are implemented, we are confident that there will be a massive benefit, worth nearly £15,000 for every person in the country.”
New Conservatives
Who are they? The New Conservative faction is a group of Tory MPs elected since the Brexit referendum in 2016, who want to realign British politics and promote the Red Wall.
What do they want to see? The group have put forward a document called A Budget For Families, which calls for measures including: a 1p cut to income tax; broader support for childcare; retaining the 5p cut to fuel duty; and raising the VAT threshold on SMEs.
What do they say? Jonathan Gullis, Conservative MP for Stoke-on-Trent North, said: “By the government accepting these proposals, we will very squarely be saying to the British public – it’s either lower taxes and high growth under the Conservatives or higher taxes and low growth under Labour.
“What we’re proposing helps hardworking families, helps the motorist and helps those amazing, independent family run businesses, who are the backbone of our economy.”
Next Gen Tories
Who are they? The Next Gen Tories are a campaign aiming to bridge the generational gap and restore the appeal of Conservatism to young voters. MP backers include Robert Courts.
What do they want to see? The group are calling for a budget to support the under-45s. They want to see: 1p per pound off the basic rate of income tax; stamp duty abolished; rent payments included in mortgage affordability; and more long-term fixed-rate mortgages.
What do they say? Co-founder and director James Cowling said: “The budget is an opportunity for the Conservatives to regain the trust of working-age voters who have moved away from our party. The Chancellor must focus on these voters’ concerns.
“We need to make it easier to own a home and raise a family. Where there is fiscal headroom, tax cuts must be focused on work rather than wealth so that aspirational voters can create their own stake in society.”