Thursday, 4 December 2014
Autumn Statement 2014
Naughtie v Balls Radio 4 c0745. Quite a decisive interview. Naughtie got out of Balls that the chancellor is de facto exactly where Darling planned to be if he had been chancellor. The reason: Britain cannot afford to be Britain. Austerity, the wage squeeze, cost of living crisis equals even with some growth not enough revenue to balance the books. Borrowing is at an historical low for cost; it rises and disaster looms again. Balls was perfectly competent on the cost of austerity, less happy to admit that the result is no different to where Labour would have got. Both the two political parties are caught. Balls could not explain how or why more borrowing can be funded. Osborne's hopes to eliminate the deficit with more growth AND CUTS require some pretty impressive assumptions (as do his tax cutting hopes). Do I have any bright ideas? Sadly no. History suggests complex societies are not guaranteed a bright future unless they crack sustainability. Just possibly (and it explains Osborne's interest) the Northern Powerhouse offers something. A resource broadly the size of London, if not bigger, ought to achieve the economic result of London. It does not and if it did perhaps we could all be more optimistic? A Northern Powerhouse will have to function with strong 21st century communications and so every Pacer needs to go for scrap and wires need to appear through the Tyne Valley.