Ministers must go for growth

Yet, while Mr Clegg and David Cameron used the landmark to talk about their objectives for the next four years, their message was undermined by the Bank of England’s decision to downgrade its growth forecast – a decision that could have far-reaching consequences for the coalition’s austerity measures.

The Bank’s verdict was stark: a continued surge in energy prices – including the cost of crude oil and soaring utility bills – will hit growth and increase the cost of living for the next two years.

The foreboding does not end here. Lower growth inevitably equates to less revenue for the Treasury from the private sector. And that, in turn, could require the Government to instigate cuts to public services which are even greater than those envisaged. Mr Cameron was clearly not in a mood for compromise on the economy, or his NHS reforms, at Prime Minister’s Questions yesterday when he again resorted to the undignified name-calling – he likened his Labour opponent to “Eddie the Eagle” – rather than accepting that his coalition needs to raise its game.

For, unless the Government presides over a renaissance in private industry and enterprise, the coalition difficulties will only intensify – despite Mr Clegg’s resilient defence of the past year and the need for decisive budget action to tackle the financial deficit. It also puts an increased onus on Business Minister Mark Prisk when he visits the Deputy Prime Minister’s “home” city of Sheffield today to explain how the Local Enterprise Partnerships will work.

The Minister will inevitably talk up their prospects. But, unless there is far greater clarity – and sooner rather than later – on their remit and funding, then it will be even more difficult for them to fill the void in UK growth that the Bank of England highlighted yesterday. One year on, and the sound of Ministers blaming Labour for every difficulty is becoming a little wearisome. What is required is some original thought on their part – and a relentless focus on the need to create new jobs every day of the week, and in every part of the country.