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Welcome to my weekly update no.362
Another busy week in Westminster - including news today that Labour are cancelling their major local government reorganisation plans for much of the UK - except for Surrey! Locally I attended the splendid opening of The Napper Centre in Cranleigh. Did you know Dr Albert Napper built the first village hospital in England there in 1859?
WESTMINSTER WHISPERS
MAKE BRITAIN GROW AGAIN? Earlier today John Healey made his first major speech since becoming Chancellor. It was billed to be about economic growth but to me it felt more like an exercise in walking the tightrope between Labour MPs who want more money spent and markets who want less money spent. You can hear me explain to Sarah Montague on today’s World at One why his focus at the moment will be on markets – and why he needs to stop the spendthrift messaging coming out of No 10. Borrowing costs are significantly higher than they were at the mini-budget (and have gone up £2-3 billion since Andy Burnham became PM). But putting up taxes to pay for it would only make things worse by killing off growth. There are, however, plenty of ways for the Chancellor to save money, even outside welfare reform. They are the topic in my next substack email coming out on Wednesday which you can sign up for here.
JLR JOB LOSSES Jaguar Land Rover’s decision to cut 4,000 jobs over the next two years is deeply worrying but not a total surprise. The European car industry is being destroyed by the extraordinary advance of Chinese electric vehicles. You don’t see too many BYD cars on the road (yet) but the impact has been profound because Chinese domestic consumers are now buying local vehicles rather than spending money on luxury western imports. It is tough for us and even tougher for France and Germany. What is the solution? Perhaps to recognise that China has been planning this for over a decade…and ask ourselves what plan we could put in place for the next decade. We have extraordinary innovation in British universities which are the most respected globally outside the US. Somehow we need to be better in tapping into the brilliant innovations they are throwing out both for the automotive and other sectors.
LOCAL LIFE
WEST SURREY SURVIVES The Government has today announced a review of Local Government Reorganisation, cancelling reorganisation plans across much of England (sorry Andy). However Surrey will not be affected as the new East and West Surrey councils have already been established in law and elections held. West Surrey Council will continue as planned and take over services from the existing councils on 1 April 2027. The Government has also confirmed this week that it has begun paying down £500 million of Woking Borough Council’s historic £2 billion debt. Big questions still remain though about how assets and liabilities will be divided between East and West Surrey – Bramley’s Cllr Jane Austin, who leads the Conservative group in West Surrey – is on the case.
THE NAPPER CENTRE, CRANLEIGH On Friday I cut the ribbon for the former Cranleigh Cottage Hospital, now renamed in homage to the pioneering work of local surgeon Dr Albert Napper. It was a splendid occasion! A few years ago, this extraordinary building was looking very forlorn and slipping into disrepair. Today it has been given a new lease of life thanks to an amazing group of local volunteers and a significant grant from the National Lottery Heritage Fund plus other donors. Exceptional care and attention that has gone into the restoration so that generations to come will now be able to visit and learn about this wonderful building and its history – as well as hire the fantastic new space for events. A huge congratulations to Howard and the team of volunteers.
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