Cameron’s firm grip on reality

Ed Miliband’s speech this week at the Labour Party conference signalled a sharp and carefully calculated lurch to the Left.

His pledge to freeze energy bills and bash big business, alongside other populist policies such as the expansion of free childcare, indicates that he believes the economic crisis and resulting drop in living standards will be enough to drive Labour to Downing Street without him having to make the concessions that characterised Tony Blair’s fabled Third Way.

The Conservatives, meanwhile, partly under pressure from Ukip, are heading in the opposite direction.

This polarisation of politics is undoubtedly a reaction to the challenges facing Britain in the wake of an economic downturn from which we are only just emerging. Yet it is important to remember just who must bear the burden of responsibility for the country’s £90bn deficit – a millstone around the nation’s neck that was noticeably given precious little airtime in Ed Miliband’s speech.

In an interview with the Yorkshire Post today, David Cameron talks of accountability. In marked contrast to the hollow promises offered up by Labour, the Prime Minister emphasises the need for government to take responsibility for leading the country out of one of the most difficult periods in its recent history.

He is adamant that the Tories remain a party that is firmly in the corner of those who work hard and want to get on. It is a stance reinforced by the much-needed welfare reforms spearheaded by Iain Duncan Smith.

Rather than make pie in the sky policy pronouncements, Mr Cameron reiterates his support for HS2 and his confidence that it will stimulate growth in our region. Instead of offering throwaway promises to freeze energy bills for 20 months, he restates his commitment to ensuring they are low for 20 years.

The next General Election will offer the country a clear choice. It will be a choice between a party whose policies are rooted in reality, and one that persists in offering up the sort of flights of fancy that got us into this mess in the first place.

Carney’s challenge

IF nothing else, Mark Carney has impeccable timing. His arrival as new Governor of the Bank of England coincided with the first signs of long-awaited growth in the UK economy.

But if Mr Carney cannot claim credit for being the architect of the fledgling recovery, then it is his job – along with Chancellor George Osborne – to ensure that it is built on.

It will be no easy task. The Canadian hailed as one of the world’s best central bankers has to deal with the long term consequences of extended low interest rates and quantitative easing, as well as the suspicion that the tentative recovery owes too much to a state-engineered spike in property prices.

His chosen tool to create some much-needed stability is “forward guidance” – the pledge that interest rates will not rise until a specified target has been reached, in this case unemployment falling to seven per cent.

The hope is that this will give households and businesses greater “certainty and clarity”, which in turn stimulates the economy. Yet if this is to happen there is a clear need to rebalance the economy and narrow the widening gap between North and South.

While unemployment has slipped below six per cent in the South East, it is hovering at around the nine per cent mark in Yorkshire. It is essential that regions such as ours share in the recovery and are not left behind.

Speaking to this newspaper during his visit to Leeds yesterday, Mr Carney pinpointed Yorkshire as one of the country’s potential growth areas as the financial services industry restructures following the banking crisis.

Yet that growth must be both credible and sustainable over the long-term. It means that the Bank of England must remain especially vigilant in terms of avoiding another house price bubble.

If interest rates are to recover – and savers are to be rewarded for their financial prudence – then it is essential that the property market is not allowed to spiral out of control. The last thing we need is another false boom built on reckless borrowing and easy credit.

Food for thought

YORKSHIRE has long been synonymous with good 
food – and the presence of five of the county’s restaurants in the latest Michelin Guide underlines its credentials.

Of course, no one in the Broad Acres needs convincing of the quality and variety of our cuisine.

Yet it is another gentle reminder to those unfortunate enough to live outside the county boundaries of just how much Yorkshire has to offer.

Tellingly, several of the county’s restaurants have also been recognised for serving quality cuisine at a reasonable price.

One key factor in the success of Yorkshire’s best restaurants is their focus on sourcing local produce. As such, they also serve as a showcase for the finest food producers to be found anywhere in the country.