Like Lady Thatcher, David Cameron’s first administration was dominated by an overarching macro objective, the need to stabilise the public finances.

Of course, there is much more work still to be done on this. But the debt ratio will soon peak. I know, it will still be too high. But all the markets require is confidence that it will be coming down. They will have it. Whisper it quietly only among friends, but the fiscal crisis is over.

Yet man cannot live by fiscal stability alone – and neither can governments. The second administration, while carrying on the work of fiscal stabilisation, should have at its heart something different. It should be about markets: allowing them greater rein where they work well, introducing them where they don’t currently exist and, yes, intervening to reform them where they work badly.

What’s more, there should be a moral tone to this objective. One of the most galling aspects of Labour’s election campaign was its assumption of moral superiority. The implication was that business was tainted because it was selfish, while state spending, regulation and interference were “caring” and altruistic. Labour is yet to appreciate that markets have a better record of delivering the goods for ordinary people.

The Conservative Party knows this – but it still has a long way to travel. The areas where markets need to be helped to work better are headed by the labour market. The previous government made huge strides, but there is more to be done.

Reducing the cap on welfare payments and increasing the tax-free allowance will continue to tip the balance of incentives in favour of work.

Tightening up the requirements for trade unions to gain support before calling strikes, and enabling employers to employ temporary replacement labour, will tilt the balance against damaging strike action which penalises the many to promote the interests of the few.

In addition, there needs to be major action on tax structures as well as levels. Reducing the top rate may bring few plaudits but it is necessary to reverse Gordon Brown’s cynical and destructive rise, and to make plain the commitment to keeping talented people in this country. This, too, has a moral aspect. Except in times of national emergency, the government has no right to take virtually half of a person’s income in tax. Concede this point to the Left and the overall battle will be lost.

David Fuller's view

Here is a PDF of Roger Bootle's article:

This is excellent advice, and not just for David Cameron’s economic agenda.  Any aspiring economy would benefit from Roger Bootle’s guidelines, not least those of Europe.