Jeremy Hunt, Chancellor of the Exchequer, discusses entrepreneurship, productivity, tax cuts, and the link between managing the economy and public services. They also talk about their background in dancing, the fascination with honesty about making money, and the debate on cutting taxes and its impact on the economy.
Starting a business in your 20s allows for more opportunities for learning from failures.
Combining a strong startup culture with technical skills can lead to economic success and job opportunities.
Deep dives
Jeremy Hunt's Entrepreneurial Spirit
Jeremy Hunt discusses his early ventures into business, including performing magic shows and importing ties. Despite initial failures, he was driven to create businesses and alleviate the financial struggles he witnessed in his family. Inspired by Margaret Thatcher's promotion of entrepreneurship, Hunt pursued various business ideas before finding success. He emphasizes the importance of failure as a learning opportunity and highlights the benefits of starting businesses in your 20s. Hunt also touches on the correlation between lower taxes and economic dynamism, citing examples of countries with lower taxes experiencing faster growth.
Boosting Productivity and Closing the Gap
In the interview, Jeremy Hunt acknowledges Britain's lower productivity compared to countries like Germany and France. However, he emphasizes the country's strength in startups and innovation, noting that the technology industry in the UK is double the size of Germany's. Hunt believes that combining the startup culture with the productivity levels of countries like Germany and the United States could lead to significant growth. As the Chancellor, he aims to close the productivity gap through policies that encourage business investment, such as tax cuts and capital allowances. He highlights the importance of a strong economy in funding public services like the NHS.
Education and Skills for a Strong Workforce
Jeremy Hunt agrees with the need to integrate education with the job market and promote technical skills alongside academic learning. He recognizes the need to provide basic skills in reading, writing, and math while emphasizing the significance of technical skills for the 50% of school leavers who do not attend university. Hunt highlights the success of the apprenticeship program and aims to further strengthen the links between schools, FE colleges, and employers. He sees potential in industries like technology, life sciences, advanced manufacturing, clean energy, and creative industries, and believes that combining a strong startup culture with technical skills can lead to economic success and job opportunities.
Long-Term Economic Growth and Tax Cuts
During the interview, Jeremy Hunt addresses concerns about focusing on tax cuts instead of investing in public services. He emphasizes the need for a strong economy to support long-term growth and increase resources for public services like the NHS. Hunt points out that tax cuts can benefit businesses, especially during the period when they haven't started making profits. He argues that lower tax economies tend to be more dynamic and entrepreneurial, contributing to competitiveness and growth. While there may be other factors at play, he believes lower taxes can contribute to economic strength and supports investment and job creation.
Why does the UK have worse productivity than Germany? Is it better to start a business in your twenties, rather than your thirties? Does Britain’s Chancellor really have a sprung ballroom for dancing in his house?
Join Robert and Steph for their first ever interview on The Rest Is Money, where they’re joined by Jeremy Hunt, Chancellor of the Exchequer.
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