Angus Taylor vows Liberal values at heart of ‘back to basics’ economics agenda

Angus Taylor will restore Liberal Party values at the heart of the ­Coalition’s economic policy agenda, moving away from big government and pandemic-era spending sprees.

Opposition treasury spokesman Angus Taylor. Picture: NCA NewsWire / Gary Ramage

Angus Taylor will restore Liberal Party values at the heart of the ­Coalition’s economic policy agenda, moving away from big government and pandemic-era spending sprees to ramp up pressure on ­Anthony Albanese ahead of the 2025 election.

The opposition treasury spokesman will begin the task of rebuilding the Coalition’s economic credentials in his first keynote speech on Tuesday, declaring it was time to reassert “what we believe in as Liberals and Nationals”.

Mr Taylor will outline four pillars of the Coalition’s “back-to-­basics economic agenda” – containing inflation and interest rates, balancing the budget and reducing debt, reducing taxes to empower aspiration, and reasserting the role of productivity to drive growth and wages.

“In recent decades a consensus emerged, which only some dared to challenge, that adversity could always be ‘fixed’ with more government spending. But you can’t just throw money at rising inflation and interest rates hoping to solve the problem,” Mr Taylor will say.

“Moreover, the public’s demand for stronger public services will need to be met but can’t just be met by throwing more money at those services.”

Speaking at a Centre for Independent Studies breakfast, Mr Taylor will invoke the philosophies of Margaret Thatcher and Ronald Reagan that “emerged the last time we faced this kind of environment”.

“They recognised, and voters recognised, that centre-right values offered solutions to the problems their countries faced. Many will say the situation we now face is not as bad as then,” he will say. “But even if inflation hasn’t reached the giddy heights of the 70s and 80s, the fastest way to get there is to deny the problem and adopt the wrong solutions.”

After the Morrison government alienated some conservatives in its handling of Covid-19, Mr Taylor will argue that the Coalition’s economic principles were “very much on display” prior to the pandemic and as the economy opened up.

He will say the Coalition’s economic policies, developed over the coming months and years, would be anchored by core Liberal values that support aspiration.

“My side of politics has long believed that a strong economy demands lower tax rates, balanced budgets, spending growth restraint and containment of inflation and interest rates,” he will say.

“There is no greater killer of ­aspiration, enterprise and personal responsibility than permanently higher taxing and spending with governments crowding out individuals and businesses.

“It’s timely to look at the new challenges we now face through the traditional lens of Liberal and National party values. For the Coalition, this need not be a debate about whether we should move to the left or to the right. It is not a contest between conservatives and moderates.”

Mr Taylor, who leads the Coalition economic team alongside Peter Dutton, Nationals leader David Littleproud, deputy Liberal leader Sussan Ley and opposition finance spokeswoman Jane Hume, will argue the “real contest here is between our core beliefs and the alternatives offered by our political competitors”.

“A belief that the private sector drives opportunity and prosperity, not government. A belief that dynamic, resilient small businesses are the backbone of a strong economy, not bureaucracies.

“A belief that hardworking families know what is best for them, not public servants or politicians. A belief that the vision of each Australian should be the ­vision of our nation, not a vision conjured up at conferences in Canberra.

“A belief that big business also has a crucial role to play, providing competitive goods and services to their customers: hard working Australian families and small businesses.”

In his speech, the former energy minister says the Coalition had laid down economic markers that helped deliver last week’s $50bn budget improvement.

“The economy Labor has inherited is extraordinarily strong. This is entirely at odds with the grim narrative of the Treasurer (Jim Chalmers) who is only too happy to talk down the economy and the budget.

“But the economic and political context is changing rapidly.”

Mr Taylor told The Australian the “last few years have been a tough time for fiscal conservatives across the globe”.

“It is very clear that the world has changed dramatically even in the last few months and our core values have much to offer in addressing the current challenges,” he said. “Productivity is more urgent than ever.”