The paper from the Free Market Forum (FMF), an offshoot of the Institute of Economic Affairs (IEA), proposes scrapping free childcare hours, freeing up the green belt for housing, scrapping corporation tax and scrapping teacher training qualifications for graduates. Other ideas include distance education so parents can choose the best teachers, amending the Equality Act so white working-class boys are better protected and restoring the link between taxation and household income so income of a married woman to be considered part of her husband’s income. Truss plans to unveil a package of supply-side reforms, mainly including deregulation, as part of the chancellor’s medium-term budget plan later this month, but the government remained tight-lipped on details. Kwarteng is expected to announce changes in eight areas, including planning, business regulation, childcare, immigration, agricultural productivity and financial services. The prime minister’s allies hope her proposals, a key element of her growth push, will help her stand on the front foot after a bruising two weeks since the mini-budget sent shockwaves through the market, followed by a conference of Tory party dominated by Overturning the 45p top tax rate after a rebellion by MPs. The foreword to the Free Market Forum document, published in September last year, said it aimed to “incubate and promote ideas” among Tory MPs about future policy direction. The document is billed as “a collection of policies for a better brighter Britain by the end of this decade”, which it says will “start the conversation about where we go next and put the FMF at the forefront of those discussions”. But a Labor source said: “It is deeply worrying that the Prime Minister and Chancellor – neither of whom have any mandate from the British people for their plans – are supporters of this shadowy group. Having already crashed the economy, Liz Truss must now distance herself from these ideas and the people behind them.” In one chapter, the IEA’s Annabel Denham suggests scrapping free childcare provision, arguing that the 15 hours a week provided costs the state around £6 billion a year “but there is little to show for it”. It suggests that adult-to-child ratios are “unnecessary and harmful” and that early years assessments should be stopped. Another proposal, from Cabinet minister Brendan Clarke-Smith, suggests restoring the link between taxation and household income. “Under the previous system … a married woman’s income was considered part of her husband’s,” he writes. “Of course attitudes towards women’s careers have changed … but the debate over the merits of personal taxation has raged.” Tory MP Richard Fuller, currently Chancellor of the Exchequer, is proposing to bring education online so parents can choose teachers for their children. “The distance learning capability provides[s] opportunities … enable schools to identify the best teachers and offer access to time slots.’ Meanwhile, Sam Collins, the FMF’s director of outreach, is proposing a review of “flat” minimum wage increases as they are “centrally set for the whole country” but have led to “significant and harmful unintended consequences”. IEA researcher Professor Len Shackleton wants the government to allow graduates to teach in state schools without teacher training qualifications as part of lifting entry requirements for specialist professions such as law and social work. Dr. Kristian Niemietz, the IEA’s head of political economy, is urging ministers to free up green belt land for more building, a move likely to be unpopular with Tory MPs. It proposes to free up greenbelt within an 800m radius of a passenger station, which is not otherwise protected, with extra infrastructure paid for by taxing the increase in land value. Other less controversial proposals include tackling NHS staff shortages, encouraging co-operatives and extending the business superannuation, which allows companies to reduce their tax by up to 25p for every £1 they invest, to help promote development. The IEA has inspired Truss’s policy newsletter and its graduates dot the ranks of government, including Prime Minister Matthew Sinclair’s chief economic adviser. It does not claim to represent the Prime Minister’s views. The FMF counts 60 Tory MPs among its “parliamentary supporters”, including Truss, Kwarteng, deputy prime minister Therese Coffey, rank and file secretary Simon Clarke and trade secretary Kemi Badenoch. Former chancellor Norman Lamont and former minister John Redwood are also supporters, while her No 10 deputy chief of staff, Ruth Porter, is on the advisory board. The thinktank was launched as a successor group to two other bodies: the Free Enterprise Group – an organization of Tory MPs founded by Truss at her party conference in 2011. and Freer, a joint initiative of Tory MPs and the IEA, launched in March 2018. Sam Collins, now head of the FMF, said: “Regulation has been estimated to cost the UK economy £220 billion a year. If the prime minister is to succeed with her economic agenda, major reforms will need to be made to make it easier for businesses to set up and grow. “Many of the 30 policy recommendations in our paper focus on removing these barriers to growth that make it difficult for people to build homes, start businesses, create jobs or move into new sectors. “But it’s not just the growth numbers on a spreadsheet that drive supply reform. The cost of living crisis facing British families is caused, in part, by government regulations that keep the price of everyday items such as food, childcare and energy artificially high. “Supply-side reforms, well targeted, will not only help the economy grow, but will also help improve the economic situation of the most vulnerable groups.”
