Behind the Britannia Unchained Tories

The Guardian has taken a look at the influential Tories behind next month's Britannia Unchained

The Guardian has followed up on the unfavourable reaction to the extracts the Evening Standard published from Britannia Unchained, the new book by a group of five 2010 intake Tories which aims to present ways to radically overhaul Britain for the 21st century, lest we face "an inevitable slide into mediocrity".

Andy Beckett speaks to Dominic Raab, one of the book's authors, about the leaked passages, which revealed the authors think the British are "among the worst idlers in the world." Beckett writes:

When I speak to Raab again after the Evening Standard extract, he says it gave "a skewed and inaccurate reflection of what is in the book".

(For what it's worth, the passage – which goes on to state that "we work among the lowest hours, we retire early and our productivity is poor" – gives a "skewed and inaccurate reflection" of the British work ethic itself, as Chris Dillow pointed out in a response. Hopefully the rest of the book uses actual figures.)

Tim Montgomerie, the editor of Conservative Home, tells Beckett that these five MPs, and the Free Enterprise Group of libertarian Tories whose thinking they epitomise, are the best hope of the party:

"It's a pretty depressing time for the Conservative party, but the thing that gives me hope is the [parliamentary] class of 2010, and all the groups they've formed. Of those groups, the Free Enterprise Group is the group. They're quite spiky in their opinions, but well respected by the Conservative leadership. They are George Osborne's favourites. He has spoken to them. In some ways, it helps him to have them, so he can say, 'I'm not the [government's rightwing] outrider.'"

The whole piece is a thoughtful examination of a certain tendency in the Tory party which is growing in importance daily; until the embargo is lifted on the book itself, it may be the best place to go to understand them.

Britannia Chained. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR