Free Enterprise Group

Free Enterprise Group. The Free Enterprise Group is a parliamentary caucus of Conservative Party (UK) Members of Parliament dedicated to promoting free-market economic policies. Founded in 2011, it operates as a significant internal lobby advocating for lower taxation, reduced regulation, and a smaller state. The group has been influential in shaping the economic agenda of successive Conservative Party (UK) governments, particularly following the 2015 general election.

History

The group was established in 2011 by a cohort of newly elected MPs from the 2010 intake, seeking to champion classical liberal ideas within the Conservative Party (UK). Its formation occurred during the David Cameron premiership and the coalition government with the Liberal Democrats (UK), positioning itself as a voice for more robust free-market reforms. The group's influence grew substantially after the 2015 United Kingdom general election, which returned a Conservative majority government and saw many of its members appointed to ministerial roles. Key moments in its development include its advocacy during the Brexit negotiations following the 2016 referendum and its continued activity through the premierships of Theresa May, Boris Johnson, and Liz Truss.

Objectives and activities

The primary objective is to advance policies centered on Economic liberalism, including significant tax cuts, the rolling back of business regulations, and the promotion of Free trade. The group regularly publishes policy papers, hosts events with think tanks like the Institute of Economic Affairs and the Adam Smith Institute, and submits amendments to government legislation. A core focus has been advocating for the reduction of corporation tax and income tax, alongside reforms to employment law and planning regulations to stimulate economic growth. It has also been a consistent voice for a hardline Eurosceptic position, supporting a clean break from the European Union's regulatory orbit.

Key members

The group has included numerous prominent Conservative Party (UK) figures. Among its notable founding and early members were Kwasi Kwarteng, who later served as Chancellor of the Exchequer under Liz Truss, and Liz Truss herself during her tenure as an MP. Other significant members have included Dominic Raab, former Deputy Prime Minister; Priti Patel, former Home Secretary; and Chris Skidmore, a former Minister of State for Universities, Science, Research and Innovation. Jacob Rees-Mogg, a leading figure in the European Research Group, has also been associated with its activities, alongside backbenchers like Ranil Jayawardena and John Redwood.

Political influence

The group has exerted considerable influence on the economic direction of the Conservative Party (UK), particularly in shaping the 2015 and 2019 manifestos. Its advocacy was a major intellectual force behind the September 2022 mini-budget delivered by Kwasi Kwarteng, which proposed sweeping tax cuts. Members have held key positions on influential parliamentary committees like the Treasury Select Committee and within government departments such as the Department for Business and Trade. Its alignment with other right-wing factions like the European Research Group and the Common Sense Group has amplified its impact on issues ranging from Brexit to post-pandemic economic recovery.

Controversies and criticism

The group has faced criticism from across the political spectrum, notably for its advocacy of radical tax-cutting measures which opponents argue benefit the wealthy and risk destabilizing public finances. The 2022 mini-budget, heavily inspired by its ideology, triggered market turmoil, a plunge in the value of the Pound sterling, and intervention by the Bank of England, leading to the rapid downfall of the Truss ministry. It has been criticized by figures like Gordon Brown and think tanks such as the Resolution Foundation for promoting what they see as untested Trussonomics. Further controversy has stemmed from its members' links to libertarian think tanks and its opposition to policies addressing Climate change, often clashing with more moderate Conservatives and the official line of the Committee on Climate Change.

Category:Conservative Party (UK) Category:Political and economic think tanks in the United Kingdom Category:Organisations associated with the Conservative Party (UK)