David Willetts: Fiscal conservatism should be at the heart of the Tory Party

In this opinion piece, Lord David Willetts argues that fiscal conservatism must be central to the Conservative Party's identity. He warns that the UK faces a serious long-term fiscal gap driven by demographics, rising healthcare costs (projected to reach 13% of GDP), higher government borrowing costs, and the triple lock on pensions. Willetts notes that the post-2007 period of low growth and an aging population has reversed the favorable trends of the Thatcher and Blair eras. He advocates for a budget surplus of about 1% on current spending, controlled borrowing, and tough decisions including scrapping the triple lock, tightening disability benefits, and introducing a tax per mile for cars to replace lost fuel duties. He contrasts 'Wets' (who favor spending without tax increases) with 'Dries' (fiscal disciplinarians) and calls for a return to Thatcher-era fiscal rigor.