Our problem is no longer unwillingness to spend on infrastructure, it's inability

Outsourcing government policy since 2010

As my colleague George Eaton wrote this morning, the political top-line from the government's announcement of a £50bn infrastructure program is that it signals a gruff acceptance of Keynesian economics:

The delusion that the coalition's spending cuts would increase consumer confidence and produce a self-sustaining private-sector-led recovery has been abandoned after Osborne's "expansionary fiscal contraction" turned out to be, well, contractionary.

But getting wonkish about it, there is something interesting buried in all this about how the government has chosen to execute this volte-face. Rather than simply borrow the money – at interest rates so low that it would basically be paid to do so – it has announced that it will guarantee the private loans of any company which fulfils certain requirements.

Doubtless part of the reason is political. This way, the government can confidently state that they aren't adding anything to the deficit, even though this way of borrowing is functionally identical to doing it the standard, on-the-books way. But part of it will be because infrastructure investment is really hard.

According to the FT:

To qualify for the new guarantees, projects must be ready to start in the 12 months from the offer being made and Treasury officials say they will be monitored to ensure they would not have gone ahead in any case.

The thing is, there just aren't that many shovel-ready projects simply lying around the place, and certainly not big flashy ones. Although the government is proclaiming that the Thames tunnel, the Mersey Gateway toll bridge and the A14 road widening in Cambridge could all be helped with the money, it's usually more mundane things which are the easiest use of infrastructure spending. Forget high-speed rail and airport islands, and focus on sewers and road resurfacing.

Unfortunately, its relatively tricky to spend £50bn on sewers in a year. Thames Water is replacing all the Victorian Water mains in London, but its taking 5 years and costing £5bn. To do it any faster would risk chaos in the streets. And noteably, they had already started that program without the governments money. That's going to be true of a lot of the low-level infrastructure investments that would otherwise be ripe for targeted spending.

So the government needs ideas. And what better way to get them than to offload the generating of them to the private sector? It's no longer just a government outsourcing based on ideology. It's now a government outsourcing because it has literally no idea how to enact policy it desperately wants to.

Osborne knows what it means to be Keynesian, but doesn't know how to do it. If you think you do, why not bid for his money?

The Thames tunnel, one of the proposed uses of the infrastructure money. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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6 ways Brexit is ruining our food

A meat-eating chocolate-lover? You're in trouble.

We were warned. “We’ve got to get our act together”, said Tim Lang, Professor of Food Policy at City University London about an impending culinary crisis. He predicted that food would be the second biggest Brexit issue after the future of banking in the City of London. But whereas The City, ominously capitalised, is an ephemeral consideration for those outside the infamous metropolitan liberal elite, food certainly isn’t. Food affects us all – and so far it’s been hit hard by Brexit, after the value of the pound has been savaged, making importing to the UK more expensive. Here are six ways in which Brexit has is ruining our food.

Walnut Whip

The final insult. The sign that Brexit really has gone too far. It was announced yesterday that Walnut Whips would become nothing more than mere Whips. The reason given for this abomination was that the new range would cater for those who didn’t like, or were allergic to, nuts, allowing them to enjoy just the gooey, chocolatey goodness within. Closer inspection reveals that’s not quite the whole story. Walnut importers like Helen Graham, told the Guardian that the pound’s post-Brexit fall in value after last June, combined with “strong global demand” and a poor walnut yield in Chile, have led to Whips shedding the Walnut - not consumer demand. Nestlé say that individual packets and Christmas bumper packs will still be available - but at this rate, getting hold of them might prove harder in practice than in theory.

Marmite

2016’s Marmite shortages was perhaps the first sign that not all was well. Marmite is the ultimate Brexit metaphor: you either love it or hate it, a binary reflected in the 48-52 per cent vote – and the bitter taste it leaves for many. Marmite’s endangered status was confirmed after Tesco entered hostile negotiations with food megacorp Unilever, who wanted to raise trade prices by 10 per cent due to that inconvenient falling pound. Lynx deodorant, Ben & Jerry’s ice cream, Persil washing powder and PG Tips tea were similarly affected, but none inspired quite the same amount of outrage as the yeast-based spread.

Toblerone

The beauty of Toblerone is the frequency of its triangles. That angularity has been undermined by manufacturer Mondelēz’s decision to space them out, removing 10 per cent of the bar’s total chocolate in the process. Art has truly been tampered with. The scandal led to Colin Beattie MSP calling for the Scottish Parliament to offer condolences to triangle fans, blaming it directly on Brexit. Defending the change, a spokeswoman for Mondelēz said "this change wasn't done as a result of Brexit", suggesting it's part of the sad trend of chocolates getting skimpier. That said, they did admit that the current exchange rate was "not favourable" - and that in itself is directly due to Brexit. They also refused to be drawn on whether they'd be changing their signature chocolate in other EU territories. Hmm. Semantics aside, the dispute is getting legal. Poundland, who are seeking to bring out a "Twin Peaks" alternative to Toblerone echoing the brand's original shape but with two peaks per block instead of one, claim that Toblerone's shape is no longer distinctive enough to warrant a trademark. They claim that their new rival has "a British taste, and with all the spaces in the right places". Shots. Fired.

Cheddar

This one hurts more because it’s closer to home. Our Irish neighbours are reportedly considering turning away from cheddar to mozzarella. This act of dairy-based betrayal is understandable: if export tariffs to the UK go up, Irish cheese producers will have to sell their wares primarily on the continent – for which mozzarella would be a better fit. Tragic.

Chlorinated chicken

Ah, the big one. The subject of not only a transatlantic war of words, but also the source of strife within the cabinet. With the UK forced to look to the US for trade support, it was feared that the country's’ trademark chlorinated chicken would be forced upon these shores as a concession. International Trade Secretary Liam Fox called the media “obsessed” with the topic, dismissing fears over Britain’s meat of the future by saying that there is “no health risk”. Environment Secretary Michael Gove, however, said that there is no way that chlorinated chicken would reach British shelves. The row has faded away somewhat – but this game of chicken between these cabinet heavyweights may yet be renewed when Parliament reconvenes.

Hormone beef

Hormone beef is similarly contentious. US farmers raise cows on growth hormones to fatten them up for markets. As with chlorinated chicken, it’s a practice banned under EU law. It’s a touchy subject for US trade negotiators. Gregg Doud, a senior figure in Trump’s agriculture team, has said that accepting hormone beef is essential to any trade agreement. This debate, too, will presumably rumble on.

All told, it’s a good time to be a vegetarian, but a bad time to have a sweet tooth. Most of the upheaval rests around the weakness of the pound, so maybe the only way forward is to just eat good old homegrown British fruit. At least we'd all be healthier and more in pocket. Oh wait. Apparently British fruit harvests are in jeopardy too, given that most of our fruit is picked by short-term EU migrants. Ah, well, at least we've all got Boris Johnson to make sure that we can have our bananas curved, in packs of more than three.