“Make America Great Again.” “Take Back Control.” “Long Term Economic Plan.” Slogans may win elections, but do less to buoy a nation’s confidence once the polls have closed.
This year has seen a vote for Brexit, a new Tory administration and the election of Donald J. Trump. The next few months offer the prospect of further political unrest across Europe and a fragile economy, not to mention the increasingly rancorous divorce negotiations between the UK and Brussels.
The tone of the Autumn Statement – the Chancellor’s bi-annual analysis of the UK’s finances and Philip Hammond’s first major speech since his appointment by Theresa May – made clear that catchy soundbites are no longer enough, and have perhaps in themselves have compounded the geopolitical turbulence.
Financial services firms should welcome this shift in political rhetoric. The overarching message of the Autumn Statement was that finance is complicated, details are important and economic problems cannot be properly understood when reduced to 140 characters.
Delivering a budget that values careful evidence-based explanation, Hammond has given the cue to companies large and small (which underpin our economy) to speak in similar terms. “Spreadsheet Phil,” as he colloquially known, understands talking up financial statements takes you only so far.
The Autumn Statement might be seen, if not as a U-turn, then at least as part of the government’s rapid repositioning since the Prime Minister’s criticisms of Britain’s open business culture at her Conference Speech in September. May had already rehearsed some of her Chancellor’s announcements through her own speech to the Confederation of British Industry earlier, where she stressed the Autumn Statement would be “ambitious for business and ambitious for Britain.”
In the same way, Hammond’s detailed fiscal analysis was delivered with the corporate world front of mind. Companies, especially financial services, have been calling for reassurance that this government believes in business and recognizes the need to maintain an open Britain, which is attractive for investment, especially as confidence will be even more delicate once Article 50 is triggered.
It is no surprise, then, that Hammond delivered a deliberately unexciting analysis of public spending. The speech was short (50 minutes) with no big reveals. This sober rhetoric suggests an instinct to cultivate a new “shock-proof” language of politics suitable for an economy that must cope with, and indeed try to grow through, uncertain times.
The new Chancellor’s job is to break the economic bad news to the country and his vernacular could not be more different to his predecessor. Hammond’s admission that he would prove “no more adept at pulling rabbits from hats” was frank acknowledgement of the financial difficulties which now face the government; difficulties that must be reconciled with a post-Brexit populist agenda and managed without alienating the business ‘elites’ who must generate the wealth to pay for it.
This is the public framework of which the private sector is inextricably a part. It’s a rickety framework and there are many unanswered questions. It is worth noting that Hammond, once thought of as the City’s best advocate for maintaining a relationship with Europe, made no attempt to address issues of single-market access in his speech.
But perhaps Hammond’s new language can still pay dividends. In a digital era of twitter soundbites, it is easy to make quick wins and exploit “post-truth” culture. But a solid, unflashy message that champions transparency will eventually build bridges between its listeners. Adapting, or perhaps reverting, to a more traditional lexis may be one way to re-build trust between government, businesses and the consumer, and to deliver the productivity and growth Hammond admits we lack.
A generation ago, Mrs. Thatcher’s Chancellor, Sir Geoffrey Howe, took the same undemonstrative approach. His opponent, Denis Healey, compared Howe’s performance to “being savaged by a dead sheep.” Everyone remembers the joke, but it was Howe, not Healey, who won. Philip Hammond has learned speaking simply doesn’t necessarily mean speaking noisily. He may be speaking to us for a long time yet.
Imogen Gardam, account manager, Smithfield Consultants.