HUHNE IS NOT ALONE

I’m pleased that Chris Huhne has voiced caveats about the future of Government economic policy. His views are shared by many Liberal Democrat parliamentarians, myself included.

We all accept the need to reduce the deficit but it is common sense to point out that the approach may have to be adjusted if the economy experiences a severe downturn.

So long as the private sector creates plenty of new jobs we can afford to cut public expenditure. But if unemployment soars, tax revenues fall and the welfare bill grows, making it harder to reduce the deficit.

Of course our approach would have to be adjusted in such circumstances. To do otherwise would be akin to the captain of a ship ordering ‘full steam ahead’ after being told that water is pouring in through a hole at the bows.