Cameron's declaration that "money is no object" has destroyed his austerity message

By insisting that he will spend "whatever money is needed" on flood relief, Cameron has undermined his claim that austerity means we must tolerate rising homelessness and poverty.

It was just a few years ago that David Cameron was warning that Britain was "nearly bankrupt". The claim was, of course, nonsense. With its own currency, its own monetary policy and the ability to borrow at historically low rates, the UK was never at risk of insolvency. In extremis, the Bank of England could simply buy up government debt (as it has done through quantitative easing).

But the suggestion that Britain was bankrupt, or at least close to being so (Cameron often casually alternated between the two), was an immensely valuable means of justifying the coalition's austerity programme. Since 2010, Cameron has repeatedly invoked the deficit and the "tough choices" required to reduce it when confronted with the social and economic harm caused by the cuts to welfare and other government programmes.

Britain today is a country in which more than half a million people have turned to food banks since April 2013, in which homelessness has risen by 34 per cent since 2010, and in which, for the first time ever, there are more people from working families living in poverty (6.7 million) than from workless and retired ones (6.3 million). But Cameron has been able to justify all of this pain by presenting it as the tough medicine required to clear the country's debts. As yesterday's YouGov poll showed, 54 per cent of voters believe the cuts are "necessary", compared to just 30 per cent who believe they are unnecessary, a gap that has remained consistent throughout this parliament. 

But yesterday, during his Downing Street press conference on the floods, Cameron suddenly abandoned this austere message. "Money," he declared, "is no object in this relief effort. Whatever money is needed, we will spend it." Many voters, not least those who have lost their homes to the floods, will appreciate the sentiment, but it prompts the question: if money is no object in the case of flooding, why is it an object in the case of homelessness, unemployment and poverty? Indeed, had he adopted such a generous stance from the start, and not cut real-terms spending on flood defences (what a false economy that has proved to be), Britain would have been far better prepared for the deluge than it was. 

During the same press conference, after being challenged to divert money from the foreign aid budget to flood relief schemes, he replied: "I don’t think it’s needed to go for the aid budget because we will make available the money that’s needed here in Britain. We are a wealthy country, we have a growing economy. If money is needed for clean-up, money will be made available." 

The decision of the Daily Mail, Nigel Farage and others to target foreign aid may be a cynical one (exploiting the misperception that it is one of the largest areas of government spending) but it is entirely consistent with the logic employed by Cameron since 2010: spending increases in one area must be matched by cuts elsewhere. 

Yet having once declared that there is "no magic money tree", the PM now gives entirely the reverse impression. The coalition would no doubt argue that the return of growth, with GDP rising at its fastest rate since the crisis, and the fall in the deficit (from £160bn in 2009-10 to £115bn in 2012-13) means that there is some spare cash around. But this ignores the scale of austerity that the government believes is still necessary and desirable. As the IFS noted last week, just 40 per cent of George Osborne's planned spending cuts have been delivered. Indeed, so wedded to austerity is Cameron, that he has argued it should continue even once the deficit has been eliminated. As he argud in his speech at the Lord Mayor's banquet last year:

We are sticking to the task. But that doesn't just mean making difficult decisions on public spending. It also means something more profound. It means building a leaner, more efficient state. We need to do more with less. Not just now, but permanently.

By now carelessly insisting that "money is no object", he has dramatically weakened the force of this message. 

David Cameron addresses the media during a press conference at 10 Downing Street yesterday. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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What is the Scottish Six and why are people getting so upset about it?

The BBC is launching a new Scottish-produced TV channel. And it's already causing a stooshie. 

At first glance, it should be brilliant news. The BBC’s director general Tony Hall has unveiled a new TV channel for Scotland, due to start broadcasting in 2018. 

It will be called BBC Scotland (a label that already exists, confusingly), and means the creation of 80 new journalism jobs – a boon at a time when the traditional news industry is floundering. While the details are yet to be finalised, it means that a Scottish watcher will be able to turn on the TV at 7pm and flick to a Scottish-produced channel. Crucially, it will have a flagship news programme at 9pm.

The BBC is pumping £19m into the channel and digital developments, as well as another £1.2m for BBC Alba (Scotland’s Gaelic language channel). What’s not to like? 

One thing in particular, according to the Scottish National Party. The announcement of a 9pm news show effectively kills the idea of replacing News at Six. 

Leading the charge for “a Scottish Six” is John Nicolson, the party’s Westminster spokesman for culture, media and sport. A former BBC presenter himself, Nicolson has tried to frame the debate as a practical one. 

“Look at the running order this week,” he told the Today programme:

“You’ll see that the BBC network six o’clock news repeatedly runs leading on an English transport story, an English health story, an English education story. 

“That’s right and proper because of the majority of audience in the UK are English, so absolutely reasonable that English people should want to see and hear English news, but equally reasonable that Scottish people should not want to listen to English news.”

The SNP’s opponents think they spy fake nationalist outrage. The Scottish Conservatives shadow culture secretary Jackson Carlaw declared: “Only they, with their inherent and serial grievance agenda, could find fault with this.” 

The critics have a point. The BBC has become a favourite punch bag for cybernats. It has been accused of everything from doctored editing during the independence referendum to shrinking Scotland on the weather map

Meanwhile, the SNP’s claim to want more coverage of Scottish policies seems rather hollow at a time when at least one journalist claims the party is trying to silence him

As for the BBC, it says the main reason for not scrapping News at Six is simply that it is popular in Scotland already. 

But if the SNP is playing it up, there is no doubt that TV schedules can be annoying north of the border. When I was a kid, at a time when #indyref was only a twinkle in Alex Salmond’s eye, one of my main grievances was that children’s TV was all scheduled to match the English holidays. I’ve migrated to London and BBC iPlayer, but I do feel truly sorry for anyone in Glasgow who has lost half an hour to hearing about Southern Railways. 

Then there's the fact that the Scottish government could do with more scrutiny. 

“I’m at odds with most Labour folk on this, as I’ve long been a strong supporter of a Scottish Six,” Duncan Hothershall, who edits the Scottish website Labour Hame. “I think the lack of a Scotland-centred but internationally focused news programme is one of the factors that has allowed SNP ministers to avoid responsibility for failures.”

Still, he’s not about to complain if that scrutiny happens at nine o’clock instead: “I think the news this morning of a new evening channel with a one hour news programme exactly as the Scottish Six was envisaged is enormously good news.”

Let the reporting begin. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.