Why does Rishi Sunak sound so desperate?

A year ago Boris Johnson lost his place in his speech to the CBI annual conference. He started blathering on about Peppa Pig World, after having treated young Wilfred to a day out there the day before. It was excruciating, but at least it was fun. It is hard to say the same about Rishi Sunak’s address to the CBI this morning. 

The CBI ought to be a natural habitat for Sunak, yet he didn’t seem entirely comfortable. His voice seemed a tone higher than normal, so his usual enthusiasm sounded something more like a desperate appeal. He wanted us to know that innovation is a good thing which improves productivity and creates wealth. But doesn’t everyone think that (except perhaps the Green party)? One of the examples he gave of how the government helps to employ innovation in public services, however, raised eyebrows. He said in future NHS patients living in remote areas would have their medicines delivered by drone. Seriously, is that the worst problem facing the NHS at the moment: how to get medicines to hill sheep farmers? Sorry, we can’t get you a hip operation for three years, nor a GP appointment for a month, but we can deliver your regular order of blood pressure tablets out this afternoon by drone rather than you have to wait until tomorrow for a courier in a boring old Transit van.     

Needless to say, there are reasons behind the strangely desperate tone of Sunak’s speech.  Much as he wants us to think that the government has a growth agenda, he knows as well as his CBI audience does that last week’s Autumn Statement was anything but about stimulating growth. It was 90 per cent fiscal consolidation. While businesses might have been thrown a few cherries in the shape of a few incentives for R&D, the underlying story is that businesses are going to be paying 25 per cent corporation tax rather than 19 per cent, which is where Kwasi Kwarteng wanted the rate to stay (in a previous life – this summer’s leadership contest – Jeremy Hunt wanted it to be cut to 15 per cent). They know, too, that they face higher capital gains tax bills. Neither is conducive to greater investment in technology.

It is unique that the CB it offers a stage to the Prime Minister and Leader of the Opposition, who receive equal billing on adjacent days. Tomorrow it will be Keir Starmer’s chance to appeal to businesses. I suspect they may be taking a keener interest in what the Labour leader has to say than in recent years.