How Liz, How?

‘We should balance the books and live within our means and get the debt down. Because, unless we do that, we won’t be able to invest in the schools and the hospitals people need.’

Liz Kendall, 29th June 2015

How Liz, how?

Firstly, whatever happened to PFI? I thought that’s how most of the schools and hospitals were built under Labour? Have we agreed we don’t do that any more? It WAS a canny way to stop the investments being added to government borrowing though, wasn’t it?

Secondly, a government practising seemingly endless deflation (not ‘austerity’ – that’s a different concept altogether, involving limiting of imports to keep the balance of payments in check) can’t spend anything like the kind of money needed to build new schools and hospitals. You either have Tory deflation and no investment or you have borrowing to invest. Or, more controversially, you increase income tax to pay for better public services, like schools and hospitals.

You can’t simply deflate and somehow hope a bunch of schools and hospitals are magically gonna get built because people in the south of England respect you for being ‘tough on the deficit’. For all the pretence of being tough, it all just sounds like rhetoric.

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