This parliament’s real battle won’t be cultural, it will be over the size of the state
Kemi Badenoch was still wooing votes from Conservative members last Wednesday, the day the budget was delivered. Now leader of only 120 MPs, she can do little more than tut over the finance bill. Nevertheless, it’s the budget that sets out the great philosophical divide between Ms Badenoch and Sir Keir Starmer. It lies not in a particular policy or even a political commitment, but most acutely in a graph. It’s an exhibit that has received precious little discussion, yet it represents an ideological battleground that could help shape this parliament.
You can find the chart about halfway through the outlook issued by the Office for Budget Responsibility (OBR). Along its X axis are the world’s richest economies, ordered by how much they tax, which is a key measure of the size of their state. The countries that levy the least are Ireland, Chile, Switzerland and the US. At the other end are France, Norway, Austria and Finland – these are the biggest states, taking over 40% of GDP in tax.
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