Austerity is living within our means

If the Conservative Party stands for anything it is sound finance so it is puzzling when Cabinet Ministers, seemingly hustled by Corbyn’s agenda, recently wanted to dilute a commitment to securing the country’s financial future. The debate over relaxing public sector pay is a legitimate one but from the Government’s perspective it is an issue for the Prime Minister/Chancellor and not set in the context of panic or a possible cynical display of’ leadership ambition.

We should make an effort to ban the word austerity or at least put it in the context of what it really means. The UK is still borrowing over £50 billion a year to make ends meet. Debt interest is over £40 billion per annum which is 3% of GDP that can’t be invested in public services. To relax a grip on public finances would damage the very people that more expenditure is meant to help. Cameron’s rare intervention to make this point is welcome. Nobody likes austerity. It is unfortunately essential.

It is legitimate to assess the impact of cuts versus higher taxes but in reality we currently need both. What we also need is cross party co-operation. The country faces unprecedented peacetime challenges. In addition to Brexit and the consequent Repeal bill, the rapidly accelerating pressures on social care provision and a struggling NHS require more consensual solutions. Then there is making capitalism work more fairly for all stakeholders starting with workers’ rights. We have had the Dilnot Report, party manifesto proposals and now the Taylor Review to name but a few initiatives covering these areas. None have attracted any consensus even in a post election world.

It is easy to see Theresa’s May’s initiative this week to reach out to other parties for solutions as a sign of weakness, particularly given her pre-election aggressive stance. But politicians need to grow up and understand that some issues are bigger than their own ambitions and ideologies. Only if they recognise this will the reputation of the political class show even the slightest hint of recovery.