British politics

British towns and cities in receipt of substantial urban policy funding designed to bring them up to the economic standard nationally are, in fact, declining when judged by a whole range of indices. That is the worrying conclusion of Cities Limited which calls into question the value of the plethora of urban regeneration schemes delivered by a myriad of different agencies. Spending on the 14 core urban regeneration schemes in the last decade totals £30bn of public money.

There are questions about Gordon Brown’s alleged record of sound economic management if the economy is thrown into a state of panic just because house prices remain by-and-large stable for the first time in a decade. The emperor of prudence has finally lost his clothes.

While the boom lasted, economists calling for a return to such policies have often been treated like party-poopers. Now the party is over, will politicians start listening to their advice again?

All this presents UK economic policy with a challenge: to improve our infrastructure while reducing tax and regulatory burdens. This would increase the UK’s still disappointing productivity. In the long run, this is the key to economic growth. An economy built on lower taxes, lighter regulation and better infrastructure will be more sustainable than one built partly on rising house prices and extra debt.

Hopefully the debate about PGS is over and the discussion can move on to making the tariff work. If properly designed, it could both strengthen local democracy and help to build the houses this country needs.

The press may have christened our new Chancellor the “Magpie” but real magpies at least accumulate small treasures. Mr Darling, on the other hand, has collected nothing but debt.

For people who believe in limited government, low taxation and free trade – in other words, for economic liberals – the Conservative party had for a long time been the party closest to their thinking. Yet over the past months, some conflicting messages have come out of the party.

If Britain cannot shift the balance towards more local incentives and decision-making in planning, then good and affordable housing will remain something that the British will only be able to see on TV – when reporting from Germany, says Oliver Hartwich