British politics

The great German comedian Loriot once summed it up nicely. “Liberally speaking,” he said, “liberal does not only mean liberal.” Quite. He must have had the Liberal Democrats in mind when expressing this great political insight.

Let there be no doubt: a much stronger housing supply is needed to deal with the huge backlog in demand. If you are serious about this you have to accept that house prices could stabilise and even drop. No wonder the Government’s housing policy is falling off the catwalk.

While there is now widespread and cross-party support for contracting out employment services to private companies and charities, little is known about international experiences with such policies. In other countries, after all, similar schemes had been in operation for years, so you might think that they hold valuable lessons for UK policymakers.

Nobody can expect Boris to solve the banking crisis. But where he has the powers to improve London’s quality of life – especially in transport and housing – he must do so: for the sake of the city’s inhabitants, but ultimately also to maintain its position as an attractive place to do business.

For reasons unknown there is a persistent prejudice about Britain on the Continent. In Europe they appear to believe that some kind of Anglo-Saxon capitalism is practised on this island. There must be a terrible fog in the Channel which prevents the rest of the world from seeing clearly what is actually going on, but in some respects the UK economy has more in common with Soviet Russia than with free-market capitalism.

The Prime Minister’s reaction to the news from the housing front was as hapless as it was helpless. But given his record dealing with the housing market when he was Chancellor you wouldn’t have expected anything else.

To be sure, the creation of a world class service sector is something that Britain can be proud of. But, blinded by its success, it was a mistake to let the country deindustrialise to a point where it does not have much else to offer to the world.

If there is one topic that over the past decade has steadily climbed up the ladder of political priorities, it is housing. In the first years of the latest housing boom, which started in the mid-1990s, rising house prices were almost universally regarded as a good thing. As prices went up, people felt wealthier. And wasn’t a steady rise in house prices also a sign of economic strength?