Curious George and the Guardian’s contrarian columnist

For once, Simon Jenkins is behind the curve as he expresses doubts about the coalition’s austerity m

As a columnist, Simon Jenkins likes to think of himself as something of a high-class contrarian: he invariably allows a consensus to form and then writes against it. There's something of the old-style Tory anarchist about his love of mischief and lofty provocation; his high, rhetorical Oxonian style, so redolent of the 1950s, has served him well through a long career of churning out 1,200 words three times a week to non-negotiable newspaper deadlines. One has to admire the old boy's stamina. And his Olympian range!

"I absolutely love writing columns; in fact, I live to write them," he once told me when I spent a weekend in his company at Casa Ecco, the philanthropist Drue Heinz's house on Lake Como, at a grandly titled conversazione dedicated to the form of the essay.

In the Guardian today Jenkins has belatedly written about George Osborne's austerity Budget and the coalition's hawkish deficit reduction programme. He has allowed a consensus to form -- nearly all the newspapers and columnists support doctrinaire cuts in public spending and are opposed to Keynesian hyperstimulus and deficit spending -- and has now decided to write against it.

Yet, for once, Jenkins is behind the curve as he expresses doubts about the austerity measures and warns of an impending double-dip recession.

Sound familiar? In truth, his column reads as little more than a hasty summary of the position of our own economics columnist, Professor David Blanchflower, who, since he joined us in September last year, has been absolutely consistent in his opposition to the foolishness of slashing spending during a downturn.

As I said recently on Any Questions -- when in response to my contribution Kenneth Clarke conceded, with characteristic candour, that withdrawing stimulus could lead us back into recession -- George Osborne is a conviction politician. He's been very impressive since becoming Chancellor; his performance in the House as he delivered his first Budget was outstanding. He is a low-tax, small-state, social and economic liberal. He believes that there is something morally reprehensible about running large Budget deficits. All of this is sincere.

However, I disagree with him profoundly, and fear that at a time of systemic crisis we are repeating the mistakes of the 1930s, when premature attempts to reduce spending and to balance the Budget plunged Britain and the United States back into severe recession.

At present, it's too early to say how the economy will respond to severe deficit reduction. But the government should have been more pragmatic and more flexible, and it should have learned from the mistakes of the past. It should have remained in wait-and-see mode. "O Lord," wrote Saint Augustine in his Confessions, "give me chastity and continence, but not yet."

Or, as the New York Times said in a recent leader about the coalition's needlessly draconian emergency Budget:

In the days since, the misguided nature of this budget has become clear. Some cutbacks were necessary, if only to reassure Europe's panicky bond markets. But the coalition's budget aims to cut too much too soon, in pursuit of a pointless structural budget surplus by 2015. Its real achievements are more likely to be drastically downsized public services and, if the fiscal austerity backfires, as it well might, a contribution to years of stagnation or worse in Britain and the rest of Europe.

There was more:

No reputable economic theory justifies this bleeding. In fact, most mainstream economists have argued for delaying the most severe cuts until a more robust economic recovery has begun. The coalition budget reflects Conservative Party ideology, which asserts that as the government withdraws money from the economy, private businesses and consumers will step in to replace it. That won't happen if Britons see only hard times ahead.

And already, as David Blanchflower writes in his weekly column tomorrow, all the available data indicates that consumer confidence is diminishing once more.

There may be trouble ahead.

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Jason Cowley is editor of the New Statesman. He has been the editor of Granta, a senior editor at the Observer and a staff writer at the Times.

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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