Nick Clegg: Coalition's infrastructure spending cut was a mistake

The Liberal Democrat leader tells The House magazine that he is "self-critical" - and that the Tory demand for an EU referendum isn't a deal-breaker in future referendum negotiations.

Labour will be quick to pounce on an admission by Nick Clegg that the coalition made a mistake in cutting capital spending. The Liberal Democrat leader told the House magazine:

If I'm going to be sort of self-critical, there was this reduction in capital spending when we came into the Coalition Government But I think we've all realised that you actually need, in order to foster a recovery, to try and mobilise as much public and private capital into infrastructure as possible.

He added that the Tory policy of offering an in-out referendum on EU membership would not be a "deal breaker" in future coalition negotiations:

Every party will have their positions on Europe at the 2015 general election, and like everybody else, if there's a Coalition, the parties will need to compare notes and work out what goes in the Coalition agreement.

In response, Labour treasury minister Rachel Reeves told ITV:

This is the first admission that this Government has made serious mistakes on the economy. But the real question is what Nick Clegg’s Government is going to do about it. We have urged Ministers to bring forward infrastructure investment and build thousands more homes, but they have refused to listen.

Nick Clegg. Photo: Getty

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.

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Have voters turned against globalisation? It depends how you describe it

Brits are more positive about diversity than Sweden. 

New research shows that citizens across Europe are pessimistic about the future, distrustful of government and other political institutions, ambivalent at best about multiculturalism, and increasingly sceptical about the role of the European Union.

We wanted to understand the extent to which Europe’s citizens favour a "closed" rather than an "open" outlook and perspective on politics, economics and society. Making globalisation work for ordinary people in the developed world is one of the defining challenges of the 21st century. Globalisation’s popularity and political viability is both a pre-condition and a consequence of making it work, but mainstream politicians seem to be failing to persuade us to embrace it, to the detriment of democratic institutions and norms, as well as their own careers.

The decision of the British people to leave the European Union has been perceived as yet another step back from globalisation and a rejection of an "open" outlook that favours international co-operation in favour of a more closed, inward-looking national debate.

There’s certainly a strong element of truth in this explanation. The referendum campaign was deeply divisive, with the Leave campaign playing heavily on concerns over immigration, refugees and EU enlargement. As a consequence, the "liberal" Leavers – those who wanted to leave but favoured a continuing a close economic relationship with the EU along with free movement of labour – appear to have been side-lined within the Conservative party.

Our results are by no means uplifting, but it’s not all doom and gloom. While there’s no doubt that opposition to certain features and consequences of globalisation played an important role in driving the Leave vote, Brits as a whole are just as open, outward-looking and liberal-minded, if not more so, than many of our European neighbours.

First, we asked respondents in all six countries the following:

“Over recent decades the world has become more interconnected. There is greater free trade between countries and easier communication across the globe. Money, people, cultures, jobs and industries all move more easily between countries

“Generally speaking, do you think this has had a positive or negative effect?”

Respondents were asked to consider the effects at four levels: Europe as a whole, their country, their local area, and their own life.

Overall, British voters are overwhelmingly positive about globalisation when described in this way - 58 per cent think it has benefited Europe and 59 per cent think it has benefited Britain. More than half (52 per cent) think it has benefited their local area, and 55 per cent think it has benefited their own life.

One might respond that this question skates over questions of immigration and multiculturalism somewhat, which are the most controversial features of globalisation in the UK. Therefore, we asked whether respondents thought that society becoming more ethnically and religiously diverse had changed it for the better or for the worse.

Overall, 41 per cent said that ethnic and religious diversity had changed British society for the better, while 32 per cent said it had changed for the worse. That’s a net response of +9, compared to -25 in France, -13 in Germany, and -17 in Poland. Brits are even more positive about ethnic and religious diversity than Sweden (+7) – only Spanish respondents were more positive (+27).

There’s a long way to go before ordinary people across the developed world embrace globalisation and international cooperation. Despite the apparent setback of Brexit, the UK is well-placed politically to take full advantage of the opportunities our increasingly inter-connected world will present us with. It would be a mistake to assume, in the wake of the referendum, that the British public want to turn inwards, to close themselves off from the rest of the world. We’re an open, tolerant and outward-looking society, and we should make the most of it.

Charlie Cadywould is a Researcher in the Citizenship Programme at the cross-party think tank Demos. His writing has been published in peer-reviewed journals as well as the national media.