Evening Standard Comment: A cost of living crisis requires a plan for growth

Is 2022 starting as 2021 ended for the Prime Minister? Reports suggest that Leader of the House Jacob Rees-Mogg spoke up at Cabinet to rally against the Government’s signature National Insurance increase to pay for social care, citing the rising cost of living.

Transport Secretary Grant Shapps took to the airwaves today to defend the policy. But this is more than a Cabinet skirmish. It is a fissure that runs right through the Conservative Party. People will certainly feel the rise in their pockets come April, which is set to be a dire period for household disposable income, given the energy price cap will be lifted that month as well.

Inflation caused by pandemic-induced supply chain stress is not Boris Johnson’s fault, nor is rising global wholesale gas prices. But his response to these twin challenges is.

A dynamic economy with rising productivity is the only way to secure long-term and widely-shared prosperity. Yet it remains unclear what the Government’s plan for growth is.

Instead, there appears to be an almighty vacuum where Johnson’s central organising economic principle should be. A political debate and general election focused on the cost of living, jobs and growth will be far harder for the Tories to win than one based on getting Brexit done.

In welcome news for London tourism, rules on testing for those travelling to England are set to be eased. The capital’s retail and hospitality sectors have sorely missed the millions of tourists and the billions they spend.

In the meantime, if you see a foreign tourist, do say “bonjour”, “guten tag” and “buenos días”.