Tory Conference - Moving Away From Banker Bashing - it's all About growth

Osborne knows that with the economic data likely to remain flat in the coming months the most testing challenge for the Coalition and his stewardship of the economy lie ahead.

The final party conference of the season takes us to Manchester and the Conservatives. The themes emerging in Birmingham and Liverpool over the past fortnight have been focussed, as expected, on growth and jobs, and this is only going to be amplified at the five-day meeting of David Cameron's faithful.

Whilst the Liberal Democrats clearly signified a move away from the 'banker bashing' that has been so evident in recent years, no such move was evident in the Labour Party with grassroots party members at many fringe events speaking out against the sector with as loaded a dialogue as ever.

Even party officials continued to adopt accusatory tones when speaking about the financial services sector. Ministers at various fringe events were notably cautious in their rhetoric, if not outright negative. The 'financial services will play a vital role in economic recovery, but...' line was heard in abundance, and we saw that very approach in Ed Miliband's Leader's speech:

"Britain's future will be built not on credit default swaps but on creative industries. Not low wages and high finance, but low carbon and high tech. Not financial engineering, but real engineering. Of course, the banks and financial services are important to Britain... But..."

Hardly the resounding move away from banker bashing we had expected as part of a post-Vickers settlement. And the Miliband speech is now regarded by the commentariat as 'anti-business', to which the Labour Leader was quick to qualify his remarks as 'not anti-business, but anti-business-as-usual'. Nice line.

We will largely see widespread acceptance of the Independent Commission on Banking's recommendations in Manchester this week, though perhaps with added attention being paid to the protection of Britain's competitiveness in a global context.

That said, the financial services sector has its detractors in the Conservative Party, most of whom are as angry as Labour MPs when it comes to the irresponsibility of the banks during the financial crisis. It will be interesting to see if this penetrates through the wider dialogue in Manchester, or whether the Tories will follow their Lib Dem partners in a united Coalition move away from banker bashing.

Whilst the Report of Sir John Vickers and the Independent Commission on Banking will no doubt be keenly discussed in Manchester's fringe rooms and bars alike, the focus at conference will still remain where the growth is coming from. This is by no means a discussion contained within party conference season - it is a question that will continue to monopolise the political debate over the course of this Parliament and is overlayed by the ongoing crisis in the Eurozone.

It is against this backdrop that David Cameron and George Osborne will be under pressure to demonstrate to the party faithful that the deficit reduction plan is working. Failure to do so will raise further questions as to whether or not the UK needs a Plan B (or, rather, 'plan A*') to stimulate demand.

Osborne knows that with the economic data likely to remain flat in the coming months the most testing challenge for the Coalition and his stewardship of the economy lie ahead. He will want to come out of conference on the right footing and with the full support of the Conservative Party behind him.

And with the grassroots of the Conservative Party in bullish mood, no doubt he will.

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