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Alan S asked this question yesterday after we called for boldness on economic policy:

"One question for conservativehome:

Does boldness mean bringing the public finances under control or fighting recession? They are not the same thing."

Priority one can’t be some idea of fiscal stability – fiscal stability will be impossible in an ugly recession.  Priority one must be to beat recession (or at least diminish its severity).  If Britain suffers an extended period of economic decline the consequences for social solidarity and the public finances will scupper all long-term Tory plans.

That is why the Tory leadership must advance a bold plan to stimulate the real economy.  Boris is writing about major investment in infrastructure.  John Redwood is advocating significant interest rate cuts.  Andrew Lilico was there first of all with his recommendation of massive (but time-limited) tax reliefs.

David Cameron may have been wise to not announce big policy shifts in this morning’s economic responsibility speech given continued market uncertainties but we hope recession-beating policies are what he has in mind when he promises "over the coming weeks and months we will set out many more ways to help families through the downturn."

* With apologies to Tacitus.

24 comments for: They make a desert and call it stability*

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