Sunday, 18 May 2014

Lord Butler missed the fiscal problem


THE differences in priorities for the United Kingdom coalition government has brought to the fore the problems with having two opposing forces in power together. Since its formation the Conservative/Liberal Democrat government has faced a string of criticisms over inabilities to create cohesive strategies and policies on a range of topics.

The most recent judgement on the possible ineffectiveness of the coalition government has perhaps been its harshest though. In a statement to the House former Cabinet secretary Lord Butler of Brockwell condemned the government for the failure of the parties to work together and warned that it was “looking divided and weak, more concerned with washing their dirty linen in public than with running the country.” He continued by stating that “the country would have been better served by bringing this Parliament to an end now so that a new Government could be elected with a fresh mandate.”

While the Tories and Liberal Democrats have had a number of notable disagreements, particularly over free school meals and knife crime in recent weeks, it is not just its differences in beliefs which are causing problems though. With recent polling figures showing that neither Labour or Conservatives have enough public support for an all out majority should an election be called tomorrow, and the Liberal Democrats sliding to fourth place behind the right wing United Kingdom Independence Party, Britain’s political landscape is undergoing radical changes.

Gone are the days of the clear two party system, with coalition governments looking to become more common in the future as the UK follows in the steps of other European countries. Meanwhile party-centered politics have started to move towards a centre ground with little differences apparent between the three old guard parties at times. It is perhaps for this reason that groups such as UKIP are able to gain ground as the electorate attempts to find some means of expressing its views.

Overall, however, it is the difference in economic ideals which remains the greatest obstacle. At the heart of government policy is the question of affordability. Fiscal policy is a contentious matter, increasingly so when there are two parties with differing agendas attempting to agree on it.

In the financial year 2012- 2013 the total government spending was £683 billion, of which the two areas of which health and social protection received just short of half with a combined £337 billion. The allocation of these funds to maximise their efficiency has been the subject of much debate between Conservative and Liberal Democrat politicians,  as was made clear in the recent storm between Education Secretary Michael Gove and School’s Minister David Laws over the financing of free school meals..

Lord Butler may be right in his statement that by calling a snap election now would avoid the two leading parties from spending the next twelve months electioneering and thereby allow the crucial work of government to continue, What he fails to take into account though is that without a coordinated financial approach from all parties the divisions are likely to reappear in the future, election or not.

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