The radical report proposes a huge injection of cash into schools, prisons and the police, as well as lowering the tax burden for businesses and families. It argues that the UK’s budget deficit is now low enough to allow Chancellor Philip Hammond’s strict spending rules to be ripped up – allowing the Treasury to essentially “turn on all the taps” in a bid to boost the economy. Tory MP Neil O’Brien, author of the report, entitled Firing On All Cylinders, said the Treasury’s spending review this autumn was an opportunity for a major policy change. He said: “In this year’s spending review, it’s time to turn on all the taps and make sure that poorer families and poorer areas really feel the benefit of a growing economy. “We’ve got to invest in strong public services like schools and the police, but we also need to take back control of the economic debate and start talking about how we get productivity, growth and wages really moving.
“The way to build a strong economy is from the bottom up. More geographically-balanced economies are stronger.
“Tax cuts and changes to benefits that are focused on helping low income working families will raise employment and growth.
“We need to cut Britain’s uniquely high taxes on investment, and tackle Britain’s chronic underinvestment once and for all.”
Government debt is set to fall from 83 per cent to 73 per cent GDP over the next five years, according to the Onward report. It also called for the national income threshold to be raised to £13,000 for families with children.
Last night, the plan was backed by five Tory heavyweights looking to succeed Theresa May.
Environment Secretary Mr Gove said: “This report will kick-start a debate the party needs to have.
“I want this leadership election to be a positive contest of ideas, and I’ll be looking very carefully at the recommendations made in this report.
“We need to show that it’s the Conservatives who offer the best alternative to Jeremy Corbyn as we set out a positive vision for the future of the UK.”
Mr Hancock, the Health Secretary, said: “We must deliver higher pay and rising living standards, using the fruits of a strong economy to help people be better off, reach their aspirations and lead more fulfilling lives.
“To do that, the next prime minister should keep debt falling while putting pounds into people’s pockets, properly funding public services and providing the jobs of the future that can keep our country prosperous.”
Mr Hunt, the Foreign Secretary, said: “This is an inspiring vision for how we get the economy moving, post-Brexit.”
Home Secretary Mr Javid said: “As Conservatives, we will only succeed if we show we have a positive, uniting vision for the whole of the UK leaving no one, and no place, behind.
“The ideas in this report are a really important contribution to that discussion. It is only by building a strong, balanced economy and investing in our public services that we can ensure everyone has the opportunity to get on in life and do well.”
Former secretary of state for work and pensions Ms McVey said: “I welcome this report from Onward, which has exactly the type of thinking we need to rebuild our party, reconnect with the public and take the fight to Corbyn’s Labour Party.
“The priorities set out in this report are precisely the ones that most people will recognise.”
The call for lavish spending came after the Chancellor warned leadership hopefuls against “reckless” promises to slash tax and red tape.
In a speech at the Resolution Foundation think tank in Westminster, Mr Hammond said: “The truth is, we have seen a gap open up – in Britain and in other developed countries – between the theory of how a market economy and free trade creates and distributes wealth, and the reality experienced by many ordinary people.
“But that doesn’t mean we should abandon our economic model. It is imperative that we take decisive action to show that the regulated market model can deliver higher wages and higher living standards.”
