Who is the real opposition?
With economic growth seemingly returning, and Labour struggling to provide a coherent policy narrative to present as an alternative, the Coalition, especially the Conservatives, will be rather positive as they look down the road to the 2015 General Election.
However, there are pockets of alternative opposition emerging that are challenging elements of the Government’s current economic policy plans.
For example, this week saw the Treasury add its concerns, in its usual subtle way, to the cost for High Speed 2, when it suggested that the cost for the controversial project may hit £73bn, far higher than the projected £43bn. Meanwhile, the Institute of Economic Affairs published a report that suggested that Ministers appear to have disregarded the economic evidence and have chosen to proceed with the project for political reasons.
The flagship policy “Help to Buy” has also come in for criticism from the European Commission, which has warned that the scheme, designed to help Britons buy property, could potentially make the housing situation worse by further spurring demand for houses without increasing the supply of much-needed new homes. Meanwhile, doubts do remain over the pace of the Government’s proposed austerity measures, with the IMF, for example, having previously criticised the extension of the programme to 2018.
The Prime Minister and the Chancellor won’t care too much about such criticisms if the economic figures keep coming back positive. However, the Conservatives do remain behind in the polls and, according to some, there are possible chinks in its economic plan. Others are showing the Labour party where the weaknesses may be, but there is no sign of a co-ordinated plan of attack just yet.