Wanted: a coherent plan for growth

12 April 2012

Deputy Prime Minister Nick Clegg's speech today on the Government's economic plans comes after a week when ministers have taken a battering from business over the feeble state of the recovery. Mr Clegg counters that he does have a plan: to rebalance the economy in order to spread growth and reduce its dependency on the financial sector and the South-East. He highlights investment in high-speed rail and broadband networks as a way of catalysing such regional development.

Mr Clegg's aims are laudable, although they will demand substantially more investment in infrastructure than ministers are prepared to make. Even then, it will take years: manufacturing has shrunk to just 12 per cent of our economy. This is too long-term a project to reassure businesses worried about government support for growth now. Moreover, the recovery can only come, substantively, from London and the South-East and in particular its financial sector: Mr Clegg should be careful not to look as though he is writing off that contribution.

If his vision is less than convincing, though, the alternative offered today by Labour leader Ed Miliband does not inspire confidence either. Mr Miliband is floating a new slogan, the "British promise": he says that this promise of each generation enjoying greater prosperity is under threat because of cuts. Only time will tell whether, as he predicts, the cuts end up prolonging the recession. But even if ministers fail to turn around the economy before the election - and Mr Miliband will be in an awkward position if they do - he is still not offering any coherent economic alternative other than a slowed-down version of cuts.

In truth, neither the Government nor the Opposition can really see past the deficit and the recession. That is rightly worrying to business: we need a clearer plan for growth.

Jubilee line hell

The row between Boris Johnson and transport bosses shows his rising frustration over the state of Tube upgrades, especially on the Jubilee line. This morning the line was suspended east of London Bridge due to a faulty train - only days after the Mayor hailed progress on the work. There were major delays on the Metropolitan line too.

Mr Johnson's anger will stem in part from the fact that this is the last year before next year's mayoral election in which he can show that he is fixing the Tube. But it also reflects the real anger of Tube users over the glacial pace of change, despite years of work and weekend closures.

The disruptions to the Jubilee line have been arguably the worst over the past year. Completion has now slipped to spring of this year. Transport for London largely blames former contractor Tube Lines for the delays in upgrading Jubilee line signalling. But TfL took over Tube Lines' work last June. Whatever the consortium's undoubted mistakes - the work was originally scheduled for completion in December 2009 - responsibility now rests squarely with TfL. The Mayor is right: Londoners are growing ever more impatient over these delays.

Small island

The threatened departure of presenter David Dimbleby from the BBC's Question Time highlights the wrong-headedness of the Corporation's move to the provinces. It would be very sad if Mr Dimbleby left the show because of its planned move to Glasgow. Other programmes are moving to Manchester. This makes no sense. The regions may not like it, but the reality is that this small island's political life is focused on London. That is where Question Time and other flagship news programmes should be based.

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