Thursday 6th June

The chancellor is determined to reduce the deficit.  At any cost.  He feels that if he fails in this basic objective the whole raison d’etre of the Coalition collapses.  And he may be right.  So far, after a good start in reducing the deficit, last year there was no real discernible progress, in fact, depending on how you count the numbers he could have slipped backwards a tad.  The most generous assessment is that the deficit reduction has stalled.  He is therefore demanding even greater cuts from all departments, except (on paper at least) Health and Overseas Development.  The original promise was that no front-line services would suffer, but police numbers are tumbling; accident and emergency departments in hospitals are being swamped and Social Services are at breaking point.  And yet we need more cuts.  Which will just run the country down faster.

The chancellor is fond of comparing the country to running a business or a household.  I have run both of those, and yes, in one’s own budget it is disastrous to get into debt, the truth is that the country is making a huge loss month on month and year on year.  The only way to improve this in either a business or your own life is to increase revenue.  I have taken on an extra job and taken in lodgers to make sure I never went into debt.  Companies actually increase their borrowing in order to invest, because if the product or service they are offering ‘aint selling well you have to diversify and try something different.

The country is crying out for investment, and housing is the quickest and best way to provide it.  If you build lots of affordable housing you will help many poorer people, also the housing benefit bill will fall.  More disposable income, more spending, more jobs.  It will cost money now but will pay dividends.  It ‘aint rocket science.  But it does mean swallowing a little bit of humble pie, instead of the same old formula – cuts, cuts and more cuts.