Letters: No more major cuts in public spending

These letters appear in the 5th May issue of The Independent

A comprehensive assessment of the economic impact of the Coalition’s economic policies will be the task of future economic historians. But there are some clear lessons that should inform the stance taken by the next government.

In the first half of 2010 the economy was growing at an annual rate in excess of 2 per cent and both bond markets and foreign exchange markets were stable. The austerity policy (and austerity rhetoric) of the incoming Coalition Government helped to stop the recovery in its tracks and precipitated two-and-a-half years of stagnation. The Office for Budget Responsibility estimates that austerity reduced economic growth by 1 per cent in both financial years 2010-11 and 2011-12. The easing of fiscal policy in late 2012, combined with quantitative easing and extremely low interest rates, has resuscitated the recovery, although growth in GDP per head over the past two years is no greater than its long-term average.

The overall policy result since the financial crisis of 2008-9 has been the slowest recovery from any major recession in modern times.

It is imperative that the mistakes of the past five years are not repeated, and that the new government elected on 7 May pursues a balanced expansion, eschews further major cuts in public expenditure or large tax increases, and focuses on desperately needed investment in capacity, research and skills to address the productivity crisis that is the other main economic outcome of the past five years.

Christopher Allsopp

Fellow of New College, Oxford; former member of the Monetary Policy Committee, Bank of England.

David Blanchflower

Professor of Economics, Dartmouth College and University of Stirling; former member of the Monetary Policy Committee, Bank of England.

Mark Blyth

Professor of Political Economy, Brown University, USA

David Cobham

Professor of Economics, Heriot-Watt University, Edinburgh

John Eatwell

Emeritus Professor of Financial Policy, University of Cambridge

Richard Layard

Emeritus Professor and Founder, Centre for Economic Performance, London School of Economics

Marcus Miller

Professor of Economics, Warwick University

John Van Reenen

Professor, Director of the Centre for Economic Performance, London School of Economics

David Vines

Professor of Economics, University of Oxford

Simon Wren-Lewis

Professor of Economics, University of Oxford

Privatisation threat to NHS

You report the involvement of Lynton Crosby’s firm in a plan to lobby David Cameron in favour of expanding private health care (4 May).

If an NHS hospital sub-contracts work to a private hospital, the NHS may be able to negotiate a good price. The NHS managers are pleased because they think that they have made a saving, reduced waiting lists and met their targets. It also keeps them busy, negotiating and drawing up contracts. Some politicians are also pleased.

The patients are pleased because they are having their operations done sooner and believe that the private hospital will offer more congenial conditions for their stay.

The private hospital, on the other hand, is a business. Presumably, if it doesn’t make a profit, it will close. Many private hospitals are foreign-owned so the profits go abroad.

How does it benefit our economy to pay other nations to do work which we could very well do ourselves?

David McKaigue

Wirral

Sadly no one is telling the truth about NHS funding.

World Bank data shows that in 2010 UK national wealth (percentage of GDP) spent on health was 9.4 per cent, its highest ever. Under the Coalition, during the past three years, that figure fell to 9.2 per cent.

Over the past three years Germany needed to spend 11.3 per cent on health; the Western European average was 10.4 per cent.

Just imagine what a real rise of 11 per cent could do for NHS and A&E waiting times. People need to know that we get the NHS on the cheap, and then they might be willing pay 1p or 2p on income tax to begin to match the western European average.

Professor Colin Pritchard

Southampton

I was not surprised to hear of Lynton Crosby’s company having plans to increase the provision of private health care to the NHS. A friend of mine who worked in the health service for many years was told by a consultant that if the Conservatives won this election the NHS would be privatised.

I have a personal interest in this. My 24-year-old grandson has suffered from depression for three years, and mostly has just received tablets with some cognitive behaviour therapy. Three weeks ago he attempted suicide and spent a night in hospital. He was told the emergency mental health team would be in contact. A week later he saw a psychotherapist for an hour and was told within a week he would be receiving psychotherapy treatment. Two weeks later he has not heard any more from them.

Mental health is already the Cinderella of the health service. There is little profit in this branch of medicine, so I dread to think what it would be like under private providers.

Name and Address Supplied

Homophobic attacks on teachers

The reports of death threats to teachers and mutilated animal corpses left in playgrounds to dissuade the teaching of objections to homophobia are utterly unacceptable, from whatever source or background.

These are not just a challenge to “British values”; they are a challenge to universal values of decency in an educated world. That the stirring up of this kind of ugliness is occurring in the midst of the educational theatre renders it all the more shameful. It must not be allowed to take further root, and on no account to spread.

Ian Bartlett

East Molesey, Surrey

Politics without the boxing match

As the election approaches, with the possibility of no clear winner, I wonder if the moment hasn’t come to encourage our leaders to rise above the boxing ring and form a government of national unity? Churchill’s government during the Second World War was very successful. Why not again?

Most select committees are composed of all parties, so the concept already exists right in the middle of Parliament today.

Imagine a government in which the most able politicians across the board were in the most senior roles, working together, bringing their best ideas forward for discussion, rather than trying to trip each other up constantly. Imagine the wisdom that would flow from such an approach.

Being forced to co-operate does not work well: actually choosing to work together would revolutionise politics.

James Maberly

Dennington, Suffolk

Yes, let’s vote, but who for?

Yasmin Alibhai-Brown (“Not voting makes you responsible for the worst that follows”, 4 May) is very keen that we should vote, but then proceeds to give cogent reasons for not supporting Labour, the Conservatives, the Liberal Democrats, the SNP, Ukip or even the royal baby.

The Greens must be very pleased not to have been mentioned at all, and hence to be the choice for born-again couch potatoes.

Bob Gould

Edinburgh

I usually read Yasmin Alibhai-Brown’s column with respect and admiration for her plain speaking, but not this week.

She claims that the three party leaders on Question Time last week “came under relentless abuse” from the audience. What rubbish! The audience members were courteous and asked straightforward questions which all three party leaders were unable to answer without using their usual political waffle.

Jan Huntingdon

Cricklade, Wiltshire

Dressed like a princess

It has often been said that women dress not for men but for other women. Jo Selwood (letter, 4 May) suggests that the new princess will be judged on her appearance in spite of the achievements of feminism. By whom will she be judged?

Apart from male newshounds in the tabloid press who will report on her because it’s their job, the bulk of scrutiny will come from women. So much for feminism.

Patrick Cleary

Honiton, Devon

Political pundits face the high jump on Thursday. The latest survey indicates that undecided voters will in fact select not a hung parliament but a government of national unity held together by an anonymous princess generally welcomed by the media, however republican, except for The Independent.

The Rev Richard James

Harrogate, North Yorkshire