The new Conservatism

BRITAIN’S chancellor is credited with turning received wisdom on its head. George Osborne steered the Conservative party to a stunning, if narrow, majority in May, because of—not despite—painful cuts and the promise of more. Britain is now growing faster than any of its G7 peers, employment is at record levels, and wages are rising. The opposition Labour Party is in disarray; the Tories in raptures. Unthinkable a couple of years ago, the austerity chancellor is now Britain’s most likely next prime minister.On July 8th Mr Osborne rose to give the budget—his seventh, and the first by a majority Conservative government in 19 years—and outline what he called a “new settlement” for Britain (see ). He announced plans to cut the deficit further, while trimming rates for business, slashing inheritance tax and furthering radical devolution to England’s neglected cities. Boldest of all, he declared an overhaul of the welfare system, replacing benefits with a higher minimum wage. With this, and measures to raise the personal tax allowance and double free child care for parents, he marched his party onto ground once considered too left wing even for Labour.