Boom and bust

2:10pm Monday 24th November 2008

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Lets hope the Government employ some strategic, long-term thinking when they announce their stimulus package for the economy today. Reports in the press suggest that one of the measures will be a reduction of VAT to 15%.

If this is true, then it is yet another example of short-term party politicking. Any stimulus is going to cost a lot to borrow, and therefore pay-back in the future, so very single penny of it should be carefully targeted to move our economy towards a more sustainable, low carbon and energy efficient state.

Short-term gestures such as reducing VAT for a year, to try to make people feel happier about Christmas, feel like gimmicks. Come on Chancellor Darling, be bold and visionary - use this stimulus to incorporate elements of a Green New Deal, and really try to end the boom and bust cycle for good, rather than simply saying it for the last 10 years and implementing policy that does the opposite.