The Financial Times this morning has a story that Jeremy Hunt is considering further cuts in public expenditure to make room for tax giveaways to boost Tory election hopes. As the Pink 'Un notes, Hunt's current plans to increase public expenditure by just 1 per cent would imply real cuts.
We are surrounded by examples of deteriorating public services in 'broken Britain'. Many people cannot access NHS dental services and have had to extract their own teeth. There is a huge backlog in the courts and buildings are in such a poor state that trials have been delayed. Even well-run local authorities don't have enough cash to meet their statutory duties.
Of course, Hunt is setting a trap for Labour who, apart from some modest increases, have pledged not to increase taxes. The tax burden is at its highest for a very long time, but it is very difficult to see how needed improvements in public services can be funded.
Unfortunately, voters can't have it both ways: lower taxes and better public services. With the economy in a technical recession and generally flat lining there is no medium-term path out through growth. As a report from Goldman Sachs make clear, Brexit has hit GDP.
It is possible that interest rates will start to fall and this will reduce the very high cost of servicing the public debt. About a quarter is index linked and new gilts are being used at higher rates than previously.
Kicking the can down the road doesn't help with the the PFI contracts favoured by New Labour coming home to roost with schools having to over pay for maintenance.
Who would be a decision-maker?
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