Author Archives: George Crozier

IMF Head Christine Lagarde is the latest outside observer to praise Britain’s economic recovery. Sitting on a panel with George Osborne yesterday she praised the UK Government’s unyielding adherence to unprecedented austerity, the stern fortitude with which the harsh economic medicine had been delivered by an iron Chancellor, ignoring all calls for mercy…

Except no, she didn’t. In fact quite the opposite. Far from crediting unbending austerity for the UK’s exceptional recovery she applauded the UK Government for having shown flexibility and balance. She commended the UK for “adjusting to the economic reality in order to provide the right balance of spending cuts, revenue raising and in the order, in the proportion and in the pace that is appropriate to the economy.”

She’s right. For different reasons it often suits both Conservative and Labour voices to paint a picture in primary colours of undeviating adherence to Plan A. But this caricature is wrong. The reality is more nuanced and rather more Liberal Democrat. The Coalition has shown commendable flexibility, for example in reversing some of the capital spending cuts that were inherited from Labour once it became clear they were holding back the recovery. The Coalition has balanced cuts with carefully targeted stimulus. And above all it has been willing to forego substantial amounts of tax revenue and even slow the pace of austerity in order to help create jobs and encourage people to take them up.

This approach has worked. Liberal Democrat policies and influence have been at the heart of it. Three of the five key politicians deciding economic strategy in this Parliament have been Liberal Democrats. Liberal Democrats should be proud of this. It should be front and centre of our election campaign.