It's time for the Tories to go beyond deficit reduction

Cameron must use his speech this week to promote growth and job creation.

Over the next week, David Cameron will want to portray an image of strong leadership and firm resolution to the party and to the country. They will want to be reassured that the Government has a grip on the multi-faceted social and economic issues that the UK faces. And he will need to make clear that the Government understands the day to day concerns of ordinary people and is prepared to take decisive action to meet these concerns.

He also faces the challenge of broadening the Conservative appeal and moving the party's message from a negative one of deficit reduction to a more positive one of economic growth and job creation.

More than anything else, this week's Conservative conference, and David Cameron's speech in particular, needs to spell out what the Government's plans are to boost jobs and deliver growth.

Twelve months ago, when the Conservatives met in Birmingham, there was a feeling that implementing a deficit reduction plan had got the hard economic spadework out of the way. Now, with stuttering growth and rising unemployment, it is becoming clear that a deficit reduction plan is only a small, albeit necessary, part of an economic strategy.

The Tories will need to reassure the party faithful and the country at large that they have a coherent plan for growth and job creation and that the UK is well placed to ride out the continuing global crisis. Cameron will need to set out a passionate belief in reforming the economy to create jobs and tackle economic insecurity.

Such a plan for growth needs to include bold measures to encourage enterprise and job creation, further develop infrastructure, and pursue bold reforms to the planning system and the labour market. The Government also needs to take more radical steps to reform welfare and increase incentives to work, through promoting more conditionality and reciprocity in the system.

A conference focused on jobs would help the Conservatives address one of their fundamental political difficulties. Recent research for Lord Ashcroft showed that only 27 per cent of voters polled believe that the Conservatives are "on the side of ordinary people." The party needs to set out that it is on the side of ordinary people and will be taking measures to address their everyday concerns.

By setting out a strategy for jobs, Conservatives will begin to reach out to the ordinary voter worried about job security and the rising cost of living. Emphasising job creation and measures to help low and middle income earners squeezed by the economic situation would help Cameron to show that his Government is in touch with the real concerns of ordinary voters.

Whilst showing that he understands the needs of ordinary voters and is taking measures to boost growth, the Prime Minister must also carve out a more hopeful and positive message, against a difficult backdrop. He needs to make clear what the Government is doing to change the country for the better and that his party remains a positive and progressive one.

This might include setting out how reforms, in education for example, will improve outcomes for those from more deprived backgrounds. He also has to make clear that progressive reforms, from the pupil premium to gay marriage, aren't just Liberal Democrat inspired.

This party conference isn't set against an easy political or economic backdrop for the Conservatives. It is, however, their chance to set out a positive vision, with a broad appeal, of growth, reform and greater opportunity.

David Skelton is deputy director of Policy Exchange


David Skelton is the director of Renewal, a new campaign group aiming to broaden the appeal of the Conservative Party to working class and ethnic minority voters. @djskelton

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.