Tag: 2004

  • HISTORIC PRESS RELEASE : Brown and Hewitt call on EU to lead the way in the Doha Development Agenda [May 2004]

    HISTORIC PRESS RELEASE : Brown and Hewitt call on EU to lead the way in the Doha Development Agenda [May 2004]

    The press release issued by HM Treasury on 19 May 2004.

    Chancellor of the Exchequer Gordon Brown and Secretary of State for Trade and Industry Patricia Hewitt today called on the EU to lead progress in removing barriers to trade, and set out the full costs of current protectionism.

    In a paper launched today, ‘Trade and the Global Economy: the role of international trade in productivity, economic reform and growth’, the Treasury and DTI estimated that the world economy is losing $500 billion of income each year as a result of continuing barriers to trade.  Welcoming Commissioner Lamy’s recent proposals to put all EU export subsidies on the table for negotiation, Gordon Brown and Patricia Hewitt called on the Commission to go further. The EU should agree to significant further agricultural reform so that border protection is substantially reduced and export subsidies are no longer an issue for world trade by 2010 and to reduce all agricultural tariff peaks towards the maximum level for non-agricultural products.

    The paper highlights the waste of the Common Agricultural Policy (CAP), which costs taxpayers within Europe 50 billion Euros per year, plus a further 50 billion Euros in artificially high food prices, the equivalent of over £800 every year for an average family of four. Whilst locking developing countries out of the international trading system, the CAP also fails to deliver on its core objectives, as EU farm incomes continue their steady relative decline and Europe’s poorest households face higher food prices.

    Gordon Brown said he would make clear at this weekend’s G7 talks in New York that continued protectionism risks putting global economic recovery at risk whilst jeopardising the growth prospects of many poorer countries:

    “We cannot proclaim ourselves supporters of development while preventing developing countries from selling us the products they can produce most efficiently. Protection is highest in agriculture and labour intensive goods – precisely those areas in which developing countries are most competitive. Reducing barriers to trade in agriculture could benefit developing countries by $240 billion a year – more than three times as much as current annual aid flows.”

    Alongside real progress on reducing agricultural trade barriers in developed countries Gordon Brown and Patricia Hewitt suggested that developing countries need to design their own trade reform in a careful and sequenced way to be integrated into their own development and poverty reduction strategies. They also proposed supporting this by additional aid flows to ease capacity constraints, help capture the benefits of trade and manage change.

    Speaking about the potential benefits of removing existing barriers, Patricia Hewitt said:

    “We know from our own experience in Europe that countries that trade together also grow together. Following Pascal Lamy’s recent letter to WTO Members, we now have a opportunity to get the Doha Development Agenda back on track. Let’s all redouble our efforts to make the progress we need before this window closes in July.”

  • HISTORIC PRESS RELEASE : Reforming Europe in the global economy – delivering the EU Financial Services Action Plan [May 2004]

    HISTORIC PRESS RELEASE : Reforming Europe in the global economy – delivering the EU Financial Services Action Plan [May 2004]

    The press release issued by HM Treasury on 19 May 2004.

    HM Treasury, the Financial Services Authority and the Bank of England have today published two documents on the future of financial services in Europe.

    The EU Financial Services Action Plan: Delivering the FSAP in the UK, outlines the steps being taken by the UK authorities to implement the large number of EU measures – over 20 – that are likely to affect the financial sector over the next three to four years.

    The second document, After the Financial Services Action Plan: A new strategic approach, considers what can and should be done to further integrate the Single Market in financial services. It also highlights the success of the UK’s regulatory environment for financial business; recent successes in Europe in negotiating the Investment Services Directive the Transparency Directive and the decision to locate the Committee of European Banking Supervisors in London.

    The Chancellor of the Exchequer, Gordon Brown, said:

    “To be fully equipped for the global economy all of us must ensure that the new enlarged Europe must become more open, more outward looking, and more flexible, competitive and reforming – in product and capital markets, employment policy, our attitude to taxation, and in monetary and fiscal policy, and trade.

    “The financial sector is a key part of the European economy and reform in financial services is essential to economic reform in Europe, to contribute to economic growth and employment.

    “Today, we face the challenge of more competitive global markets, in finance especially.  Europe must respond to this challenge to become and remain competitive.  An efficient, competitive and integrated Single Market in Europe is a key element, but it must always recognise that financial markets are global.

    “We will support the European Financial Services Action Plan as it improves recognition of financial services providers in insurance, banking and capital markets. “

  • HISTORIC PRESS RELEASE : Eurex US recognised as overseas investment exchange [May 2004]

    HISTORIC PRESS RELEASE : Eurex US recognised as overseas investment exchange [May 2004]

    The press release issued by HM Treasury on 21 May 2004.

    Financial Secretary Ruth Kelly has today given the Financial Services Authority (FSA) leave under the Financial Services and Markets Act 2000 to recognise Eurex US as a recognised overseas investment exchange.

    The decision was taken after the Treasury took advice from the Director General of Fair Trading, who concluded that the rules of Eurex US do not appear likely to restrict, distort or prevent competition to any significant extent.

    Ruth Kelly said:

    “Eurex US is a welcome addition to the list of UK recognised overseas investment exchanges and is further proof of London’s status as a leading international financial centre.”

  • HISTORIC PRESS RELEASE : Chancellor congratulates motor industry on contribution to UK economy [May 2004]

    HISTORIC PRESS RELEASE : Chancellor congratulates motor industry on contribution to UK economy [May 2004]

    The press release issued by HM Treasury on 26 May 2004.

    The Chancellor of the Exchequer, the Rt Hon Gordon Brown MP, congratulated the UK’s automotive industry on the “vital contribution” it makes to the UK’s economy. The Chancellor paid tribute to the industry during a visit to the Sunday Times Motor Show Live at the NEC in Birmingham today.

    The Chancellor said:

    “I’m delighted to be visiting Motor Show Live to see at first hand what a great job the UK’s automotive sector is doing and pay tribute to the vital contribution it makes to our national economy.

    “And I can tell you today that the ten year science and innovation plan we will announce in the next few weeks will be a major boost for manufacturing strength.  Building on the Manufacturing Advisory Service, capital allowances, corporation tax cuts and the Research and Development tax credit, we will seek to make Britain the best location for new investment and innovation.  And we will raise the level of science funding as a share of national income in the next spending review period.

    “The motor industry has risen to the challenges of globalisation and international competition and not just survived, but thrived.

    “The UK automotive manufacturing sector contributes some £8.5 billion to the UK economy and accounts for almost 10% of total UK exports of goods.

    “Almost 250,000 people across the country are employed in the manufacture of vehicles and components in some 3,200 businesses. Another 544,000 work in the automotive retail sector.

    “And the motor industry makes a major contribution not just to employment and exports, but to innovation in our economy – investing £1.2 billion a year in research and development – and to training and skills as well with over 20,000 thousand young apprenticeships.

    “The motor industry has won for Britain huge amounts of inward investment with some of the world’s leading manufacturers choosing to locate new plants in the UK.  68% of the vehicles produced in the UK are exported.  And companies in the supply chain trade with customers and suppliers right around Europe.

    “That is why our commitment as a Government is that we will make the case for our membership of the European Union – which accounts for 55 per cent of the UK’s trade – for the advantages it brings to Britain, and for Britain being a leader in an enlarged Europe.

    “The issue is making the most of our membership in Britain’s interest against those who would, for dogmatic reasons, detach Britain from Europe and put at risk many of the three million jobs that arise from our trade with Europe.

    “I am particularly pleased to be able to pay tribute to the contribution the automotive sector makes to our country here in the West Midlands.

    “40% of the UK’s income generated by the motor industry is generated here in the West Midlands. The automotive sector provides jobs for around 65,000 employees in the region with many more jobs provided in the supply chain.

    “And the successes we celebrate here have helped create 80,000 jobs in the West Midlands alone since 1997.”

  • HISTORIC PRESS RELEASE : Consultation on Implementing the EU Market Abuse Directive [June 2004]

    HISTORIC PRESS RELEASE : Consultation on Implementing the EU Market Abuse Directive [June 2004]

    The press release issued by HM Treasury on 18 June 2004.

    HM Treasury and Financial Services Authority (FSA) today published a joint consultation document on proposals for UK implementation of the EU Market Abuse Directive .

    The Directive sets out a common framework for tackling insider dealing and market manipulation in the EU.

    Financial Secretary, Ruth Kelly said:

    “The Treasury welcomes the Directive’s aim of protecting investors and promoting confidence in financial markets by establishing a framework for the prevention of market abuse.  However, the proposals are complex and it is therefore important that all parties engage in the consultation process.”

    This joint consultation document seeks comments on the proposed  legislative and FSA Handbook changes to achieve implementation.  Comments on the proposals generally or any particular aspect of them would be welcomed.

    The closing date for responses to the consultation is 10 September 2004.

  • HISTORIC PRESS RELEASE : Three Hundreds Of Chiltern – Terry Davis [June 2004]

    HISTORIC PRESS RELEASE : Three Hundreds Of Chiltern – Terry Davis [June 2004]

    The press release issued by HM Treasury on 22 June 2004.

    The Chancellor of the Exchequer has today appointed the Right Honourable Terence Anthony Gordon Davis to be Steward and Bailiff of the Three Hundreds of Chiltern.

  • Gordon Brown – 2004 Speech at Launch of the Enterprise Insight Campaign

    Gordon Brown – 2004 Speech at Launch of the Enterprise Insight Campaign

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 28 June 2004.

    I am delighted to be here today with Britain’s top entrepreneurs, businesses and education organisations to launch a new campaign aimed at inspiring young people to believe in their own entrepreneurial potential and “Make Their Mark”.

    As you know, the campaign will culminate in November with the first ever British ‘National Enterprise Week’ designed to encourage young people to think entrepreneurially, to get them excited about the possibilities of starting up a business, and to mark a step change in the creation of a more dynamic enterprise culture in our country.

    And I want to take this opportunity to thank all of you here who are working tirelessly to make Enterprise Week a success: Kevin Steele and George Cox from Enterprise Insight; and all the individual members of the Enterprise Insight campaign who are bringing together so many events into just one week this autumn.

    During Enterprise Week Britain will showcase our entrepreneurial talent and inspire young people in every region of the country:

    • over 2,000 young people from all over the world will compete in a 24 hour global enterprise challenge;
    • Shell Livewire will showcase their 300 best young business start-ups;
    • Britain’s 100 fastest growing inner city companies will be rewarded for their success;
    • young people will attend mentoring classes, networking events and workshops with established entrepreneurs;
    • there will be competitions for the most innovative business ideas; and
    • there will be enterprise roadshows for school pupils all over Britain.

    And as we launch this Enterprise Week campaign today, I can also tell you that there will be three other competitions to recognise and reward our brightest and best entrepreneurs – and the cities and towns that are doing most to encourage the entrepreneurs of the future.

    The ‘Enterprising Britain’ competition will identify British cities or towns that have championed a culture of enterprise throughout the regions of the UK. Nominations from across the country will be unveiled during Enterprise Week, and Britain’s first national capital of enterprise will be chosen next spring.

    I congratulate the Daily Mail and Enterprise Insight for setting up, in parallel, ‘Enterprising Britons’ – a competition to find the nation’s most outstanding enterprising individuals – with the winners crowned during Enterprise Week this autumn.

    And when in a fortnight’s time the Queen and other members of the Royal family visit the most outstanding examples of enterprise in each region, we will be announcing a new Queen’s award for enterprise.

    As we celebrate entrepreneurship I have set a goal for the Pre-Budget Report, which will be presented to the House of Commons at the same time as National Enterprise Week, to do more to remove all the old barriers holding the enterprising back.

    For too long, in too many areas, for too much of our recent past, enterprise has been seen as something for someone else, for a small elite. People thought the opportunity to start a business, to become self-employed, to make their ideas happen, was, somehow, not for them.

    So we must rebuild a truly enterprising culture in Britain and we must open up enterprise to all.  Encouragement for business start ups must be available in the highest unemployment area as well as the most prosperous areas, to the redundant worker as well as to the tycoon’s son.

    I want us to create a Britain of ambition where what matters is not where you come from but what you aspire to – and where business creation is encouraged.

    That is why in the last seven years we have put in place reforms to help business start up and grow.  We have cut capital gains tax from 40p to 10p. We have introduced the most open competition regime this country has seen. To cut the penalties of failure we have radically reformed the insolvency laws. We have cut small companies corporation tax from 23p to 19p, with a new zero rate for the smallest companies first £10,000 pounds of profit. And perhaps most importantly of all, we have created economic stability in which businesses can plan ahead with confidence.

    As a result more people than ever want to start businesses. There are 100,000 more businesses than in 1997, 3000 new businesses are starting up each week, and last year saw the fastest rate of increase in self-employment for two decades.

    55 per cent of people now believe they have the skills to start up a business, compared to 40 per cent in 2001.  Indeed 39 per cent believe there are good start up opportunities for them, compared to 18 per cent, only a few years ago.

    It takes 24 days to set up a business in the rest of Europe but only 7 days in Britain – and I want that time to be even less.

    So we have made progress but there is still much more to do.

    It is because we want as strong and deep an enterprise culture as the United States, that Britain must now prepare for the next round of enterprise reforms: removing the barriers to enterprise; more devolution of business support to the regions; and enterprise brought into schools and universities –  as well as greater encouragement for entrepreneurs.

    At every stage – whether for companies starting up, investing, hiring, training, seeking equity, exporting – our aim is to be on businesses’ side.  And, learning from flexibilities in the United States, we are working to remove all the old barriers holding the enterprising back:

    • we are simplifying VAT, audit and regulatory regimes;
    • instead of having to account for every transaction there is now a simple flat rate VAT calculation for small businesses which lifts the burden of VAT red tape off the shoulders of hundreds of thousand of companies;
    • we have exempted more small businesses from the requirement to submit an independent audit;
    • we have set up a review to minimise and reduce duplication in the inspection system and enforcement regimes;
    • this year we will launch new funds for enterprise capital, to bridge the funding gap many new businesses face;
    • and because run down inner city areas or derelict industrial estates should not be seen as no go areas for new business but as areas of business opportunity – offering new choices, new recruits, and new markets – we have put in place 2000 new Enterprise Areas with stamp duty exemptions, community investment tax relief, fast track planning, and enhanced capital allowances for the renovation of business premises.  And I want to look at how we can go even further to encourage enterprise in disadvantaged communities in particular.

    And I believe that the announcements we make in the forthcoming Spending Review will reflect these priorities.

    Indeed I have studied the submissions of the Spending Review and what is remarkable is the consensus from unions to management; from Scotland, Wales and Northern Ireland to the regions of England south and north that enterprise, along with science, innovation and skills, must be an investment priority for government.

    And in each case we should commit ourselves to the long term – resisting the old stop-go in spending that has done so much damage in the past.

    To make business support services more responsive to local people and local businesses, we will confirm in the Spending Review that the Business Links service – which helped half a million businesses last year – will be devolved out of Whitehall to the regions and we will do more to give RDAs the freedom and flexibility to be the driving force behind enterprise and business growth in every region of the country.

    Creating an enterprise culture starts not in the boardroom but in the classroom. Yet when I was at school no business ever came near the doors of our classroom.

    I can tell you today that there are funds set aside in the forthcoming Spending Review so that each school will be able to offer every pupil not just work experience but 5 days of enterprise education too.  1000 new enterprise advisors are already working in schools in deprived areas. And a week ago experts from Britain and the US met in Boston to share experience on inspiring young people in schools about enterprise.

    British universities, once slow to respond, are now fixed on working with businesses, expanding university spin offs, licensing technologies and teaching students about enterprise.  The spending round will offer more incentives for university and graduate enterprise.  We will encourage existing firms to use the entrepreneurial skills of Britain’s universities and colleges.  And this autumn we will launch a new National Council for Graduate Entrepreneurship – which, working with the Kauffman foundation, will hold an international conference on how we can do more to put enterprise at the centre of the university curriculum.

    All our proposals on enterprise for this year each add up to something bigger than their individual parts – initiatives that taken together can make a difference, and contribute to a change in culture and attitudes by valuing and celebrating the spirit of enterprise throughout Britain.

    We know how much stronger our economy and our society will be if we see released all the dynamism, creativity and potential of all our people.  But too often, young people do not believe that enterprise is for them.

    That is why this campaign and Enterprise Week are so important – inspiring young people to be enterprising, mobilising people to aim high and to achieve success, and giving those with ideas and ambition the confidence and know-how to start up their own businesses and make a success of their ideas.

    So I urge you all to get involved and play your part in making Enterprise Week a success:

    • setting up and taking part in enterprise events;
    • telling the world about Enterprise Week – helping to get the enterprise message to young people where they spend their time – in  schools, universities, pubs and coffee shops, and online; and
    • sharing your stories about how ideas can become successful businesses.

    Because with business, government and the voluntary sector working together, I believe we can foster a British enterprise renaissance – and begin to tap the immense skill and entrepreneurial talent that exists in Britain to the benefit of the whole community.

  • Queen Elizabeth II – 2004 Christmas Broadcast

    Queen Elizabeth II – 2004 Christmas Broadcast

    The Christmas Broadcast made by Queen Elizabeth II on 25 December 2004.

    Christmas is for most of us a time for a break from work, for family and friends, for presents, turkey and crackers. But we should not lose sight of the fact that these are traditional celebrations around a great religious festival, one of the most important in the Christian year.

    Religion and culture are much in the news these days, usually as sources of difference and conflict, rather than for bringing people together. But the irony is that every religion has something to say about tolerance and respecting others.

    For me as a Christian one of the most important of these teachings is contained in the parable of the Good Samaritan, when Jesus answers the question “who is my neighbour”.

    It is a timeless story of a victim of a mugging who was ignored by his own countrymen but helped by a foreigner – and a despised foreigner at that.

    The implication drawn by Jesus is clear. Everyone is our neighbour, no matter what race, creed or colour. The need to look after a fellow human being is far more important than any cultural or religious differences.

    Most of us have learned to acknowledge and respect the ways of other cultures and religions, but what matters even more is the way in which those from different backgrounds behave towards each other in everyday life.

    It is vitally important that we all should participate and cooperate for the sake of the wellbeing of the whole community. We have only to look around to recognise the benefits of this positive approach in business or local government, in sport, music and the arts.

    There is certainly much more to be done and many challenges to be overcome. Discrimination still exists. Some people feel that their own beliefs are being threatened. Some are unhappy about unfamiliar cultures.

    They all need to be reassured that there is so much to be gained by reaching out to others; that diversity is indeed a strength and not a threat.
    We need also to realise that peaceful and steady progress in our society of differing cultures and heritage can be threatened at any moment by the actions of extremists at home or by events abroad. We can certainly never be complacent.

    But there is every reason to be hopeful about the future. I certainly recognise that much has been achieved in my lifetime. I believe tolerance and fair play remain strong British values and we have so much to build on for the future.

    It was for this reason that I particularly enjoyed a story I heard the other day about an overseas visitor to Britain who said the best part of his visit had been travelling from Heathrow into Central London on the tube.

    His British friends were, as you can imagine, somewhat surprised, particularly as the visitor had been to some of the great attractions of the country. What do you mean they asked?

    Because, he replied, I boarded the train just as the schools were coming out. At each stop children were getting on and off – they were of every ethnic and religious background, some with scarves or turbans, some talking quietly, others playing and occasionally misbehaving together – completely at ease and trusting one another.

    How lucky you are, said the visitor, to live in a country where your children can grow up this way.

    I hope they will be allowed to enjoy this happy companionship for the rest of their lives.

    A Happy Christmas to you all.

  • Michael Howard – 2004 Speech at Policy Exchange on the British Dream

    Michael Howard – 2004 Speech at Policy Exchange on the British Dream

    The speech made by Michael Howard, the then Leader of the Opposition, on 9 February 2004.

    Thank you for inviting me to speak to you today.

    Policy Exchange is one of the bright new stars in the think tank universe. Its success, under the dynamic leadership of Nicholas Boles and Francis Maude, demonstrates that the centre-right is once again at the forefront of public debate, generating the ideas which will determine the direction of future policy.

    When I applied to university in the late Fifties, I wrote an essay called “Why I am an Angry Young Man”. I saw Britain as a country too stratified, too hidebound, where people tended to be judged on their background, not on their worth. I saw a country teeming with the most energetic, talented, compassionate and decent people; and it seemed to me that too few of them were able to make the best of their lives.

    In lots of ways society has been transformed since then. Yet many of those constraints still remain. And today there are new constraints and frustrations. Too many are disenchanted with politics and government. Too many are cheated of the decent education that is essential for people to make the best of their lives. Too many are cheated of the first class healthcare that they deserve. Why? Because we have a State that does too much, that interferes too much, that is too unaccountable. A State that has grown so much that it diminishes the people it is meant to serve.

    When I look at our amazing country, the more wonder I feel at what it could be. I see a people just as talented, just as energetic as we always were, with all the same virtues we always had, with a richer culture thanks to the greater diversity that Britain now boasts, and I’m filled with a passion to see us do better. I see so many missed opportunities.

    I wrote my essay forty-five years ago.

    Thirty-four days ago I published a statement setting out my beliefs.

    My principles and convictions have remained the same throughout.

    Today the contrast between what government does and the way people live their lives could not be more stark. Think what has happened over just the last few years. People have more and more control over more and more aspects of their lives. They make more and more sophisticated decisions every day of their lives. Cheap flights enable more of us to go abroad more often; almost everyone now has a mobile phone and soon, no doubt, will have a video phone. More and more people have multi-channel television and access to the internet. Many businesses are organised in completely different ways. Change happens at incredible speed.

    This revolution in business, communication, travel and leisure has not been matched by a similar revolution in government. Government – and I think to a certain extent politicians of all persuasions – have sat on the sidelines and have failed to learn lessons from what is happening in the real world.

    In the 1980s, the country had a clear path to follow. We were the sick man of Europe. Our economy was on its knees. Radical reform was required. So, taxes were reduced, many industries were returned to the private sphere and the trade unions were brought under control.

    But there were many areas of life that needed radical reform and did not get it.

    Take healthcare. The NHS is one of the biggest employers in the world. But it was established at a time when people thought you needed big organisations to deal with big problems.

    By the time we got to the 1980s that mindset had changed but there were too many powerful obstacles that stood in the way of radical reform. Opponents of change assiduously propagated two myths. First, that no country had better health care. And secondly that there was nothing wrong with the system that just a little bit more money would not solve.

    But now we have seen those myths blown out of the water. The current Government has spent a huge amount more of people’s taxes on the NHS: they have set hundreds of targets and bench marks. But we still lag behind many of our neighbours.

    So the reason this speech is relevant today is because this approach has been tried, it has been given time to work and it has failed. Public sector productivity has not increased. The public’s expectations, raised by the rhetoric of politicians, have not been realised. There is now a fundamental imbalance between what voters want and what government is able to deliver.

    That’s what I meant on 2nd January this year when I said that the people should be big and the state should be small.

    The growth of government has not led to any growth in affection towards government. Quite the opposite.

    Extravagant promises about what government can achieve have not been honoured. Not through bad faith on the part of politicians. But simply because central government action cannot deliver the improvements, the growth in control over their own lives, that people rightly desire.

    Because government has failed to make the improvements it promised, cynicism has grown – towards not just the Government but all politicians. Political promises are now treated like a salesman’s patter – pious words not to be taken at face value. People think public service failures are inevitable – the consequence of politicians not knowing how to improve things. And they believe failure is like the weather – something they are powerless to improve, unless they emigrate.

    The answer to this cynicism is not the replacement of one set of managers with another (though that would be a start). It is the transfer of power from politicians back to people – the handing of control over to citizens and the professionals who serve them.

    Any government I lead will be guided by the principle that people should be given more control over policing in their local areas, the health care they receive, the schools their children are educated in and the way they get around.

    It will mean more control for people, as individuals and families. So you’re in charge, and you can follow your dream wherever it takes you. It means government should let people grow and be wary of taking control away from people.

    I grew up in Llanelli, a small town in South Wales. Neither of my parents had been born in this country. They started with no advantages except the abilities they were born with and a readiness to work hard and make the most of those abilities.

    They ran a small clothes shop. They started it from nothing. Too often, people talk about the economy in abstract terms. But in reality, it’s nothing more complicated than the collective efforts of individual people. Businesses are run by people like my parents. They start them, grow them and nurture them for many different reasons. To make a living, of course. But also for the satisfaction of creating something, of leaving a mark, of making a difference.

    People who start businesses are big people, every single one of them. Their enterprise and their readiness to take risks are the engine of our progress. We need them to succeed.

    Their dream is a dream shared by millions. All those childhood ambitions, all those conversations with friends, all those secret thoughts about the sure fire business idea. Millions of people, countless ideas, boundless possibilities. Imagine if more of them made it. Imagine if more of those who made it, made it bigger and better – growing from small businesses, to medium sized businesses to large businesses. Imagine how much wealthier, more fulfilled people could be. Imagine how much wealthier in every way our country would be.

    So why doesn’t it happen more often? What stands in our way? Is it that we have lost our creative edge, our energy, our dynamism? Hardly. We are still one of the most creative nations on earth. These small islands have had a totally disproportionate impact on the worlds of commerce, music, literature, science, fashion, sport and culture.

    No. There is no lack of drive, no want of ambition, no dearth of talent or creativity. What holds too many people back, is the one thing that’s supposed to help them grow: the State. In attempting to try and solve problems, government creates new ones. All too often government is the cause of our problems not the solution to them.

    I genuinely believe that politicians – almost all of us – start out with the best of intentions. We all think we’re helping when we pass that new law, impose that new regulation, levy that new charge, fee or tax.

    But these good intentions often make people’s lives worse because they take power away from families and individuals. So it’s the consequences, not the intentions, that really matter. And I will tell you today, in all honesty and as starkly as I am able to, that the size and scope of government in this country – and the means of its financing by the people through taxation – is quite simply too big.

    Government officials may have the time to produce tortuously-worded, lengthy regulations. But people who work in businesses have to read them, understand them, implement them. The consequence is wasted effort and higher costs.

    This is not an abstract point or the tired mantra of the free market. It’s real life for millions of people. Only recently, I went to see a small firm that had just been instructed to fit emergency lighting at a cost of many thousands of pounds. That cost had a real effect – they had to lay someone off. Yet the year before, at a previous inspection, no such requirement had been made. In the intervening twelve months, nothing had changed. There had been no accidents and no change in working practices to justify the new requirement. No new machines had been installed.

    I mentioned this when I spoke at the end of last year to the CBI’s annual conference. That provoked a letter from Andrew Smith, the Secretary of State for Work and Pensions. He was extremely concerned to hear about this. Do you know why? I was wrong to blame the Health and Safety Executive for this new burden on a small business. Apparently … I should have blamed the Fire Service.

    Wouldn’t it be better if we had a government that scrapped regulations instead of scrapping over who was to blame?

    The Government I hope to lead will indeed set about the task of getting rid of unnecessary burdens. We want the total regulatory burden imposed by government to fall each year. We want sunset clauses in new regulations. We want proper scrutiny of any new proposed regulations. We want to lighten the load on small businesses.

    This frustration with the constraints of an over-regulated society is not by any means confined to the business community. They are, of course, particularly important because they create the wealth on which we all depend. But the same principle applies to everyone.

    When I was a boy my parents told me “It does not matter what you do when you grow up as long as you do it to the best of your ability”. We should be a country which helps everyone to do what they do to the best of their ability, to make the most of their talent and their aptitude.

    I want every family to have the opportunities that my family had, and better opportunities still. That means creating the conditions for a strong economy and then removing the barriers that hold people back. That’s it. Not initiatives, strategies, targets, commissions, but the energy and enterprise of our people.

    Why do Labour and Liberal Democrat politicians think that spending taxpayers’ money is the solution to every problem? When taxes rise too high, they start to bring people low. There is a moral reason for government to take less from people in taxation. If people are highly taxed, they come to believe that their obligations to society and to one another are discharged just by handing money over to government.

    Over a long period, that is corrosive. I want Britain to be a country where people, families and communities take more responsibility for one another.

    Low taxes give people the opportunity to make their own decisions: decisions to save, to give, to spend, to keep more for their families and their children. People grow in confidence, and grow morally, when the state gives them the opportunity to do so.

    So these are the reasons why I want to see lower taxes, less government bureaucracy, less waste, and a simpler, more transparent tax system.

    I have asked David James, who had to be called in by the Government to help salvage the fiasco of the Dome, to investigate how we can cut government waste across the board. We call it Yard 10 Economics, after the now infamous yard in the Dome where £80 million worth of equipment lay in unopened boxes because it couldn’t be used.

    Oliver Letwin recently outlined our commitment to a simpler tax structure through long-term methodical reform. Tomorrow, we will announce a significant measure which will curtail the rise in government bureaucracy and waste. Next week Oliver will set out our medium-term approach to government spending.

    These measures will make the State smaller. But to feel bigger, people want to feel more in control of their own lives.

    Very few people want to lead a solitary life – to be alone. We come together in different groups of various kinds. Most of what we do every day is done together – with friends, with colleagues, at work, in our free time, as part of communities of every kind.

    The family remains the most immediate and important group within which people share responsibility for one another’s well-being. But families are changing. Not all conform to the traditional pattern. I continue to believe that the conventional marriage and family is the best environment within which to bring up children. But many couples now choose not to marry. And more and more same sex couples want to take on the shared responsibilities of a committed relationship.

    It is in all our interests to encourage the voluntary acceptance of such shared responsibilities – but in some instances the State actively discourages it. That should change, and I will support the Government’s Civil Partnerships Bill that makes some important reforms, on a free vote in the House of Commons.

    But it is important to be clear about this. Civil partnership differs from marriage. Marriage is a separate and special relationship which we should continue to celebrate and sustain. To recognise civil partnerships is not, in any way, to denigrate or downgrade marriage. It is to recognise and respect the fact that many people want to live their lives in different ways. And it is not the job of the State to put barriers in their way.

    The frenetic pace of modern life also makes people concerned about the balance between work and the rest of their lives. These responsibilities often compete with each other. They are difficult to juggle. The pressure on time is huge, often squeezing out the chance to see the wider family or to contribute fully to the life around you.

    The way we work is changing. More and more companies are introducing home-working or part-time work. The 9-5 office, an invention of the early twentieth century, is now far from universal.

    Business is adapting to this changing environment, but government is still getting in the way. We must remove the obstacles for families – to finding the best childcare, to getting access to the best schools, to creating the best working environment. Very often it is the State, through misguided regulation, that puts these obstacles in people’s way.

    I will make sure that the next Conservative Government will do all it can to help families achieve the work-life balance that is best for them. I have asked David Willetts and Caroline Spelman to review the current framework for providing childcare, which we believe has led to a narrowing of the options available to parents.

    For many of the best people in Britain, their dream is to become a doctor, a nurse or a teacher and dedicate themselves to healing the sick and educating the young. Every day, they go beyond the call of duty to perform extraordinary feats, far beyond what any politician could ever achieve.

    But many of them feel small, because the big State interferes so much in the way that they work. The burden of regulations and form filling, of initiatives and targets and task forces make it impossible for them to do their job well. It is not only the general public who fall victim to an interfering state. So do its own employees.

    The way our schools and hospitals are run has not kept up with the way that the rest of Britain works today. They remain poor relations not because of lack of funding but because of the lack of real reform. The people who work in them are dedicated and committed. But they work in a system which hinders and hampers them when it should be doing all it can to help.

    Parents want the best education for their children because they know that education opens the door to much greater opportunities.

    When I was a teenager, I went along to an election meeting in the town in Wales where I grew up. It was addressed by the town’s MP, a great man of his day, the Deputy Leader of the Labour Party. I asked him why the Labour Party was proposing to abolish grammar schools – including Llanelli Grammar School, where I was then a pupil. He said that they weren’t going to abolish grammar schools. They were going to make all schools grammar schools. Which perhaps goes to show that political spin has a very long history.

    You may possibly have noticed: that hasn’t happened. There has, indeed, been a rush to uniformity and a levelling down from excellence. We must reverse that trend. We need an education system that is rigorous, that suits every child’s talents, that helps people to achieve their best.

    The best schools, whether state or private, selective or comprehensive, offer the things which every parent has the right to expect for every child – discipline and the pursuit of excellence.

    No-one can learn – and few can teach – in an atmosphere where shouting, loutishness and actual or threatened violence prevail. In many schools a disruptive minority have been allowed to hold back the majority who are eager to progress. So our first priority will be to restore to teachers unambiguous control over the classroom. Heads must have the final say over expulsions. Schools should be allowed to offer legally-enforceable, tough home-school contracts, giving teachers the clear right to impose discipline.

    The pursuit of excellence in all its forms – academic, vocational, sporting, musical, charitable – should be the aim of every part of our education system. Few can excel at everything, but no-one should be condemned to an expectation of mediocrity or underperformance across the board. Schools should be free to specialise. Mixed ability teaching should be the exception, not the norm, in classroom teaching. Literacy and numeracy should be bedrock skills for all, and exams made more rigorous – never again must we hear from employers that even some school-leavers with A-grades in GCSE Maths have functional innumeracy.

    By giving parents the ability to exercise control over their children’s education, and by making it easier for popular and successful schools to expand – even to take over neighbouring schools – we will give opportunities to thousands of children. The opportunity to find out what it is that they can do best and develop the talent to realise their dreams.

    The values of the NHS – the chance to offer high quality care, free at the point of use and irrespective of the ability to pay – are enduring. But the way in which those values are delivered must change and do so at a much faster rate than this Government intends, if it is to respond to modern demands. The NHS is too impersonal, too inflexible, too centralised, too bureaucratic. These shortcomings can’t be changed without a new approach, a new philosophy.

    For all the chipping at the edges of monopoly, the State still controls healthcare in Britain. Our vision is that this control should pass to patients. They must have the opportunity to choose where and when they are treated.

    The benefits of control are not only for individuals, but for the whole NHS.

    Doctors and nurses, managers and lab scientists – all those who work in the NHS – believe in caring for patients. They want to respond to the needs and preferences of patients. But they can’t – because interfering ministers, bureaucracy, central directives, targets, plans, quangos and waste rob them of resources. They deprive them of the freedom to deliver the quality of care they want to offer. Too often, we have first-class medicine trapped in a second-rate system.

    This has to change. The reason I came back into frontline politics two years ago was because I became so angry about the decline of health care in my own constituency. Why should any of us put up with a system in which our families, our friends, my constituents, die from illnesses which would not kill them if they came from countries not very far away from us?

    So we will bring reform. We will be open-minded and learn from the systems that work so well on the continent. We will give control to patients. Under a Conservative government everyone will be free to choose where they want to have an operation within the NHS. If an elderly frail woman wants to have an operation in a hospital that is near where her son lives, she will be allowed to. If an informed patient wants their operation in a hospital which they think is better than their local one, they will be allowed to. If someone wants to go to a hospital with shorter waiting times, they will be able to. We will begin to implement the system necessary to make this work from the moment we come into office.

    The last time the Conservatives were in government, the country faced very different problems than those of today. In 1979 we were being drowned by a flood of high taxation, militant trade unionism and rampant inflation. We spent the 1980s fighting to reverse these tides. It was not easy. It meant taking tough decisions. But we stuck to our principles and delivered.

    When I was working as a barrister, I had to advise a man who had lost his job. He had refused to go on a march organised by his union against Edward Heath’s Industrial Relations Act. He had been fined by his union, and he had refused to pay the fine. The union kicked him out, and because of the closed shop he was sacked. Our law gave him no redress.

    That made me very angry. I became convinced that the closed shop should be abolished. It was a monstrous restriction on people’s rights. So I argued for the end of the closed shop, but because I wasn’t an MP there was little I could do. In 1983 I became an MP, and devoted much of my maiden speech to this question. But because I was not a minister there was little I could do. In 1990 I became Employment Secretary and I was finally able to abolish the closed shop. Even under a Conservative Government, it had taken eleven years to abolish completely one of the most iniquitous restrictions on freedom in recent times.

    Today we face new challenges. As the country’s economy has strengthened and stabilised, the failings of our public services have become clear. It will not be easy. The journey will be hard. But our principles will be our compass. As I said last October “power to people” – the people who use and run our services, not politicians and central government.

    At the heart of my approach is a fundamental belief in fair play. No one should be over-powerful. Not trade unions. Not corporations. Not the Government. Not the European Union. Wherever I see bullying by the over-mighty, I will oppose it, and stand up for people’s rights and freedoms.

    Britain’s history shows that when you give people the opportunity to succeed few of them choose to pursue a ruthlessly selfish path. Most of them want to put something back, to help extend the opportunity that worked so well for them to others. Think of some of Britain’s largest benefactors and you find some of our most successful entrepreneurs – Sainsburys, Westons, Wolfsons and Clores.

    One of the worst ways in which people are denied control over their own lives is through discrimination. I loathe it. Every one should be given the same opportunities that I was given – those who are born in Britain and those who settle here as immigrants. Discrimination against people because of their origins, their colour, their beliefs or their sexuality must become a thing of the past.

    Britain is a free country and should be free for all. A genuinely free Britain is one where people respect one another for what they do, not for what they are.

    I passionately believe that we are put on this earth to make the most of whatever talents and abilities we have – to fulfil our potential, to make the best of our lives.

    My belief in small government is not some academic exercise. Only when the State is small will people be big. It is a means to an end, and that end is opportunity, giving people power to control and run their lives as they see fit.

    Government often runs as if it were on a treadmill. It just carries on going and never questioning its direction.

    That era is coming to an end. Government must be much more responsive, much more clear-sighted and have a much more defined role.

    This is the framework for the visions and the policies that we will put before the British people at the next election. After I left university I spent a year in America. I admire many aspects of American life. In America, they talk about the American Dream. They talk about the ability of someone born in a log cabin to make it to the White House. As it happens, in America this is the exception, not the rule.

    In Britain it actually does happen. There are countless examples of people from humble beginnings who make it to the top: who live the British Dream. So we should talk about it. We should embrace it. We should celebrate it. I want everyone to live the British Dream.

    My family and I owe a huge debt to this country. I owe this country everything I have and everything I am. I have now been given a great responsibility by my Party. I shall do my utmost to discharge it to the very best of my ability.

    That means convincing the British people that there is a better way. A better way that gives them back control. A better way which makes it easier for them to fulfil their potential. A better way to make the most of their lives.

    Today, I hope that we have set about creating the framework for the vision and policies that we will put before the British people at the next election.

    The opportunity for every one to live bigger lives.

    Thank you.