Skip to content
Wednesday 12 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,833.15
-0.10%
DAX
26,331.07
-0.23%
CAC 40
8,674.94
-0.46%
STOXX 50
6,533.99
-0.26%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Friday 05 October 2018 7:02 am  |  Updated:  Tuesday 21 May 2019 4:24 pm

The Tories talk the talk on free markets, but the policies don’t match the rhetoric

By: Kate Andrews

Add as a preferred source on Google

NULL

Last year’s Conservative party conference marked a change in tone for the Prime Minister and her relationship with the free market.

Perhaps it was the 2017 snap election upset that made her roll back her language around “untrammeled free markets”, or maybe there was increased understanding that after Brexit a commitment to competition would be vital for the UK’s economic growth.

Regardless of the trigger, Theresa May re-embraced the best economic system we’ve discovered for eradicating poverty, generating prosperity, and securing peace. May was halfway there – with the rhetoric in place, the policy now needed to follow.

Read more: The Conservative party conference was more SOS than Dancing Queen

Flash-forward to this year’s conference, and most of that same rhetoric remained intact.

Chancellor Philip Hammond made clear in his opening remarks that you can’t beat socialists at the spending game. You will always be playing catch-up, in what would be an extremely irresponsible race to the bottom, leaving the country’s finances in tatters.

Similarly, the Prime Minister gave a robust defence of the power of free markets, highlighting the dangers of the “ownership funds” proposed by Labour, which would essentially serve to nationalise 10 per cent of all companies with over 250 employees.

Delivering one of the best critiques of the nationalisation of industry that I’ve heard from an elected representative in a long time, May simply yet strongly laid out the reality of double-payment under such systems: the first payment when you buy the product (the train ticket, the energy subscription), and the second through your taxes, often resulting in higher costs, with less efficient and lower quality services.

The talk was all there. Sadly, the action wasn’t.

Despite praising markets and enterprise, Conservative leaders couldn’t bring themselves to adopt this philosophy into their policies.

After acknowledging the dangers of competing with socialists on spending, Hammond went on in his speech to boast about the Tory party out-spending Labour on funding for the NHS, which has been given an extra (and uncosted) £20bn per annum by 2023, despite no reforms to the outdated system.

Similarly, May diagnosed the country’s housing problem, noting that the under-supply of homes was making the existing supply unaffordable. Yet her solution to allow councils to scrap their borrowing cap to build more homes flew in the face of fiscal responsibility and market mechanisms.

There is no reason for councils to borrow money which taxpayers will have to pay for down the road, when the private sector is lining up to build the million or more homes needed, without increasing the burden on the taxpayer.

Despite saying that markets have the ability to deliver, the rabbit pulled out of May’s hat was a fundamentally statist policy that didn’t even touch upon Britain’s restricted planning system, which keeps private operators out of the market.

It has been a year since the rhetoric changed, yet philosophy and practical policy remain utterly distant from one another. The full benefits of market forces cannot be realised until the two align in a meaningful way.

Let’s hope it doesn’t take yet another party conference for this government to merge them.

Read more: Hammond says Tories are the 'party of business' as he attacks Corbyn

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Markets & Economics
  • News

Categories

  • Business
  • Economics
  • Politics

Related Topics

  • Brexit
  • Conservative party conference
  • NHS
  • People
  • Philip Hammond
  • Theresa May

Trending Articles

  • Five-star Mayfair hotel hit with HMRC winding-up petition

  • Nottingham Forest owner Marinakis sues Crystal Palace for defamation

  • Back to basics: Sainsbury’s gradual retreat from the British high street

  • It’s not just Jason Arday, most of sociology is a scam

  • Hargreaves Lansdown orders staff back to office

More from Morning Wire

  • Remembering Norman Tebbit

    Opinion
    Norman Tebbit and Margaret Thatcher discussing political strategy at a conference, highlighting Conservative leadership dy...
  • On this day in 1940: Happy birthday Ken Clarke

    Opinion
    GettyImages 3261869 showcasing a significant moment in news, emphasizing key details relevant to the articles context.
  • Britain’s problem isn’t too much Thatcherism, but too little

    Opinion
    Margaret Thatcher smiling outside 10 Downing Street during her tenure as UKs longest-serving Prime Minister in the 20th ce...
  • Barclays and Lloyds back calls to digitalise UK markets and unlock £33bn boost

    Markets
    GettyImages 2211256637 showing a significant event or figure relevant to recent news updates in the business sector
  • Rachel Reeves’ legacy of tinkering with the City is not enough, says Mel Stride

    Economics
    Mel Stride addressing an audience at a business conference, standing at a podium with a presentation screen behind him
  • Burnham won’t be bold enough to make devolution shift the dial on growth

    Economics
    Andy Burnham speaking at a press conference, addressing current events and regional developments, wearing a suit and tie.
  • City sizes up mystery Mahmood

    Politics
    Shabana Mahmood, potential Chancellor, in a professional setting, poised and confident, reflecting leadership qualities
  • Top Tory slams ‘ivory tower’ financial regulators as takeover bids blight London Stock Exchange

    Markets
    Shadow business secretary Andrew Griffith has said he would make it easier for small businesses to open bank accounts. (Photo by Dan Kitwood/Getty Images)
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook