Investment in North is right, Tory leader says

Oct 2 2008 by William Green, The Journal

DAVID Cameron yesterday declared it was right to invest in the North but warned he would take unpopular decisions after signalling public spending could fall under a Conservative government.

The Tory leader said government should play an active part in helping business and industry and heralded a proposed new high-speed rail network that excludes the North East in his speech on the last day of his party’s conference in Birmingham.

In a gritty conference performance, where he highlighted local election success in the North East as an electoral breakthrough, Mr Cameron said: “So when our economy is overheating in the South East but still needs more investment in the North, the right thing to do is not go ahead with a third runway at Heathrow but instead build a new high-speed rail network linking Birmingham, Manchester, London, Leeds.

“In that way, we can rebalance Britain’s economy.”

A 3p cut in corporation tax for business and a simplification of the allowance system for companies was promised by Mr Cameron.

But he signalled his administration may not stick to Labour’s public spending plans, warning the cupboard was bare amid the global financial crisis.

“I will be asking all my shadow ministers to review all over again every spending programme to see if it is really necessary, really justifiable, in these new economic circumstances. But even that will not be enough.

“The really big savings will come from reforming inefficient public services and dealing with the long-term social problems that cause government spending to rise,” said Mr Cameron, who held out the long-term hope of tax cuts.

But he stressed that the test of being ready for government was whether “we have the grit and determination to impose discipline on government spending, keep our nerve and say no – even in the teeth of hostility and protest.”

The Conservative leader insisted he had the character and judgment to lead the country into a brighter future after being branded a novice by Gordon Brown.

Mr Cameron blamed the country’s social and economic ills largely on Mr Brown and irresponsible bankers, warning of a coming day of reckoning.

“Gordon Brown talks about his economic experience. The problem is, we have actually experienced his experience. We’ve experienced the massive increase in debt.

“We have experienced the huge rise in taxes. We experienced the folly of pretending that boom and bust could be abolished,” said Mr Cameron, although he pledged to work with the Government in the short-term to tackle the financial crisis.

He declared the Tories were now the party of the NHS after Labour failures, and promised to support marriage in the tax system, alongside tough benefits reform.

Mr Cameron pledged to mend Britain’s “broken society” with tougher punishments and dealing with the causes of crime – such as drugs, family breakdown and poor education.

He declared war against the “parts of the educational establishment” which engaged in dumbing down, and promised hundreds of new academies.

Shadow Tyneside minister Alan Duncan said his leader raised hope of a better Britain, while Tory Berwick Parliamentary candidate Anne-Marie Trevelyan said public cash currently being wasted would go to the front line.

“This is a determined focus in the light that we know budgets are going to be really tight. It is about making sure that we get the public money into the hands of the professionals,” she added.

But Dave Anderson, Labour MP for Blaydon, said only Labour could be trusted with the NHS while his Tyne Bridge colleague David Clelland said it was ludicrous to accuse Gordon Brown of being to blame for global economic turmoil.

“I don’t think the Conservatives will make a breakthrough in the North East because they don’t seem to be trying particularly hard given the announcement on high- speed rail,” added the Labour MP.

Page 2: Speeches thrown out as economy hijacks conference >>