Ministers want to ‘tough out’ labour shortages, but some Tories believe flexibility will be needed
Rishi Sunak became chancellor a month before the country went into COVID lockdown – and became the public face of the furlough scheme, as the government paid millions of people’s wages.
Today, in his first in-person speech to the Tory party conference, days after the scheme wound up, he is trying to do two things.
Chancellor Rishi Sunak is set to announce £500m to help people return to walk
The first, to show he has a jobs plan for the recovery. But, also, after a spending splurge that many at this gathering see as not very Conservative, to show that he can somehow deliver on the “levelling up” agenda while getting the public finances on track, and trying not to raise any more taxes.
On jobs, he’s announcing a £500m plan to help people return to work, with extension of the Kickstart scheme for young people – which has been slower than expected to meet its 250,000 target – and support for people on low incomes to retrain and learn new skills.
The Tories are in a chipper mood, ahead in the polls, and confident that more lockdowns are not on the horizon. But the backdrop is not what they would have chosen – with ongoing fuel queues and a looming cost of living squeeze driven by rising gas prices, and the prospect of rising inflation and months-long problems with getting food onto supermarket shelves.
The chancellor knows some sectors are facing acute labour shortages, but he echoed the words of the prime minister yesterday when he told Sky News this is the price of “the transition to a high wage, high skill economy” – or bluntly, that if businesses are short of lorry drivers or butchers, don’t bring them in from abroad, just pay them more.
Nick Allen, of the Meat Processors Association, responded that this has a cost to everyone, that paying higher wages to butchers would mean more expensive products in the shops or relying on more imports. Transitioning away from free movement of people, he said, would take 18 months of government support, not weeks.
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The clear message from ministers going into the conference is that with fewer low-skilled migrants, British workers will in time be paid more. They plan to, in the words of the Business Secretary Kwasi Kwarteng this weekend, take some emergency measures to ease shortages, but essentially “tough it out”.
But some Tories here privately believe the government will need to be more flexible and may need in the coming months to offer more help to industries if the real-world impact on products on the supermarket shelves continues to be disrupted, and to families who will be affected by higher living costs. It’s a dynamic to watch.
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Politics
No job for Tom Tugendhat in Kemi Badenoch’s shadow cabinet as Chris Philp appointed shadow home secretary
Tom Tugendhat is not serving in Kemi Badenoch’s shadow cabinet, it has been revealed – as the new Tory leader continued her appointments today.
Former Home Office minister Chris Philp has been awarded the job of shadow home secretary, the last of the key posts to be announced.
A Conservative source told Sky News Mr Tugendhat was offered a job and turned it down.
Unveiling a host of appointments today, Ms Badenoch, who was elected leader of the Conservative Party last weekend, confirmed that Ed Argar would be the shadow health secretary, while James Cartlidge will take on the role of shadow defence secretary.
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Former business minister Kevin Hollinrake will shadow Angela Rayner on the housing brief, while Victoria Atkins will take on the role of shadow environment secretary.
Claire Coutinho, who was the energy secretary under Rishi Sunak, will continue in the opposition version of the role.
Helen Whately has been appointed shadow work and pensions secretary and Andrew Griffith, the former economic secretary to the Treasury, is the new shadow business and trade secretary.
Ms Badenoch, who became Conservative leader on Saturday, started officially appointing her shadow cabinet on Sunday evening.
Yesterday Dame Priti Patel made a comeback to frontline politics after the new Conservative leader appointed her as shadow foreign secretary.
Former shadow work and pensions secretary Mel Stride, who ran in the Tory leadership race and is considered more of a moderate than Ms Badenoch, was also made shadow chancellor.
The move has been interpreted as Ms Badenoch making an effort to unite the party following its bruising election defeat, which saw it reduced to just 121 seats.
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Badenoch: ‘It is time to renew’
Robert Jenrick, who lost out to Ms Badenoch in the Tory leadership race, is the new shadow justice secretary, while Laura Trott, who previously served as chief secretary to the Treasury, was appointed shadow education secretary.
Now the Conservatives are in opposition, the shadow cabinet’s role is to scrutinise the policies and actions of the government and offer alternative policies.
Other roles that have been confirmed today include Stuart Andrew as shadow culture secretary, Gareth Bacon as shadow transport secretary, Andrew Bowie as shadow Scotland secretary, Alex Burghart as shadow Chancellor of the Duchy of Lancaster and Shadow Secretary of State for Northern Ireland and Mims Davies as shadow Wales secretary and shadow minister for women.
Former transport minister Jesse Norman has been appointed as shadow leader of the Commons while Richard Fuller is the new shadow chief secretary to the Treasury and Alan Mak is the new shadow science secretary.
Read more:
Who’s who in Kemi Badenoch’s new shadow cabinet?
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During the Conservative Party leadership race, Ms Badenoch suggested that all six MPs who ran against her for the top job – Mr Jenrick, Mr Tugendhat, Mr Stride, Ms Patel and James Cleverly – would be offered a job in her shadow cabinet.
Mr Cleverly, who came third in the leadership race, said on Friday he would not be joining Ms Badenoch’s top team.
It is understood Ms Badenoch will appoint the remainder of the team later in the week and on a rolling basis.
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