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The vibe shift that could save the Tories

The signs of a Conservative recovery are finally emerging – hear me out, the vibe shift is coming. It’s undeniable that the Party has been reeling since the election. The disorientation has been compounded by Labour’s early car crash in office, shifting the wind in favour of Reform. With such a rapid change in the landscape, a fleetfooted Conservative pivot is required. 

Tories 2.0 must be bold enough to face up to the country’s challenges, and tackle them in an authentically conservative way. There are two big shifts which need to happen. Firstly, defining the Tories in contrast to both Labour and Reform. Secondly, demonstrating that the Conservatives have not only learnt from their time in office, but learnt lessons which other parties haven’t taken onboard.

Striking out in favour of fiscal responsibility is the clearest opportunity which has emerged. Labour’s failure to reform welfare and their attacks on businesses have provoked a tax-and-spend doomloop. The Laffer curve has already peaked, with capital gains tax receipts falling ‘unexpectedly’ last month. Similarly, Reform’s unfunded spending plans total nearly £200 billion according to The Economist. Who will pick up the tab for these spending splurges? It is working-age voters, especially those in their twenties and thirties who have a lifetime of tax hikes ahead of them. 

That’s why Kemi’s aspiration to channel Argentina’s state-slashing Milei must be the start of a prolonged pitch to disgruntled millennials. Both the scale of state spending and how it levies taxes are obviously unbalanced and in need of severe correction. With debt projected to hit 270% of GDP by 2070, the bond markets may enforce fiscal reality before the party can, but being on the right side of the argument is key. 

To demonstrate the party has learnt its lessons, it must also atone for one of its greatest failures; the ducking of planning reform and resulting stagnation in GDP per capita. The appointment of James Cleverly is a shrewd one. He understands the need to thread the needle between the powerful Nimby lobby and the obvious need to build more homes and infrastructure. 

A serious push for gentle density and streamlining of major critical infrastructure projects is an obvious landing zone. This approach focuses on getting the biggest productivity gains and  minimises the risk of disgruntled rural voters. It will come with the added benefit of making Conservatives relevant in cities once again. 

Similarly, Claire Coutinho has returned from maternity leave with pro-growth flair, making a powerful pro-nuclear case and highlighting the ridiculousness of the UK’s air conditioning ban. The UK’s energy debate has become painfully polarised around whether you’re for or against Net Zero. The sensible answer lies in a pro-abundance push to speed up energy infrastructure rollout in all its forms.  

These moves aren’t just about policy – they signal a broader recalibration. The Conservative Party is finally starting to move on from last year’s defeat and plot a pro-growth vision for the future. It’s more assertive, more idea-driven. Less managed decline, more ‘let’s get serious’. Conservatives 2.0 is happening.

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James Cowling is the Managing Director of Next Gen Tories.

Columns are the author’s own opinion and do not necessarily reflect the views of CapX.



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