Jeremy Hunt tax speech: Chancellor gives speech light on details, but maybe that's a good thing

Jeremy Hunt has outlined how he plans to use Brexit and investment outside of London to drive economic growth.

Outlined is the key word here, because during the 20-minute speech there was little substantive policy, with the Chancellor explaining we’d have to wait for the Budget.

Instead, this was a statement of intent, repeating the pledge to halve inflation, claiming it was the only way to “restore industrial harmony”.

There was, crucially, no announcement of tax cuts, despite a growing clamour from figures, including former prime minister Liz Truss, perhaps forgetting the impact of what was done mere months ago with the mini-Budget.

The Chancellor said the "best tax cut right now is a cut in inflation".

However, in a clear bid to keep the raucous elements of his party on side, the Chancellor instead sung the virtues of Brexit, insisting it could be a “catalyst” for growth.

This is exactly what backbench Tory MPs want to hear, many of whom were sceptical of Mr Hunt, but his speech did well to seem sensible for moderates while also embracing the less realistic views of his party.

Confronted over statistics showing how poorly Britain’s economy was doing, the Chancellor outright dismissed them, telling guests during a Q&A they were simply wrong.

Mr Hunt instead called for a reverse of the “declinism” attitude in Britain, arguing pundits on both sides were wrong and things would get better. He said the country’s economy had “grown at about the same rate as Germany” since the 2016 European Union referendum.

By dismissing statistics, Mr Hunt was establishing the theme that patriotic love of country trumps mathematics so strongly deployed by Ms Truss and Boris Johnson – a tactic that will land well with his own party.

Despite this, there was also talk of investment, growing businesses and establishing four new pillars for growth of “enterprise, education, employment and everywhere”. These again are buzzwords rather than real policy, but they speak to exactly the sort of aspiration markets want to here.

No controversial plan to worry about, just a Government promising general support that things will get better, and it’s business who will save the economy. This was a speech that didn’t say much, but for keeping people on side, said just enough of what they want to hear.