On April 28, the Government will start borrowing more to borrow less

With Universal Credit, the Government is trying to invest in the future. Why can't it do that elsewhere?

You wouldn't know it from their criticism of Labour, but for the last year, the Government has been borrowing more to borrow less.

If its plans for Universal Credit come to fruition, spending on welfare will be reduced by millions, both through efficiency savings and reduced payouts. There will be a knock-on effect, too, from the changed incentives Universal Credit creates. With a smoother phase-out of benefits as claimants' income increases, the hope is that fewer people will find themselves in the situation where working more leaves them with less disposable cash. More people in employment means more tax revenues, fewer benefit payouts and faster growth.

But Universal Credit, the first "pathfinder" of which is starting in Manchester this month, has required an enormous outlay to get off the ground. Because it integrates six different benefits, the software required to calculate the correct payout is costly, and has had to be specially commissioned at great expense. It's made more complex by the fact that it is supposed to synchronise information out-of-work benefit claimants with Job Match, a job-search site. On top of that, the commissioning appears to have been done ineptly; as the Guardian's Patrick Wintour writes, "suspicion remains that the software is not ready".

But even if it's been performed ineptly – and incorporates a number of punishing reductions in transfers to poor people – the idea behind Universal Credit is sound. A massive initial outlay to modernise the infrastructure which underpins our social safety net, which will lead to reduced expenditures in the following years, ultimately contributing to the deficit reduction programme. Or, in simpler terms: Borrowing more to borrow less.

The Conservatives know that reducing the economy to glib talking points plays well in PMQs and TV interviews, and so can't quite drop that handy stick with which to beat Labour. But they also know, and demonstrate through their actions, that borrowing more to borrow less is an entirely sensible course of action for an economy like ours. Some infrastructure is falling apart; some more has glaringly obvious modernisation opportunities; and yet more won't be fit for purpose when (if?) the economy begins to return to growth.

Investment is a sound economic strategy. It's what the Government is trying to do with Universal Credit, and it's what they should be doing with a lot more projects.

IDS, Universal Credit's creator. 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.

Photo: Getty
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The campaign to keep Britain in Europe must be based on hope, not fear

Together we can show the world a generous, outward-facing Britain we can all be proud of.

Today the Liberal Democrats launched our national campaign to keep Britain in Europe. With the polls showing the outcome of this referendum is on a knife-edge, our party is determined to play a decisive role in this once in a generation fight. This will not be an easy campaign. But it is one we will relish as the UK's most outward-looking and internationalist party. Together in Europe the UK has delivered peace, created the world’s largest free trade area and given the British people the opportunity to live, work and travel freely across the continent. Now is the time to build on these achievements, not throw them all away.

Already we are hearing fear-mongering from both sides in this heated debate. On the one hand, Ukip and the feuding Leave campaigns have shamelessly seized on the events in Cologne at New Year to claim that British women will be at risk if the UK stays in Europe. On the other, David Cameron claims that the refugees he derides as a "bunch of migrants" in Calais will all descend on the other side of the Channel the minute Britain leaves the EU. The British public deserve better than this. Rather than constant mud-slinging and politicising of the world's biggest humanitarian crisis since the Second World War, we need a frank and honest debate about what is really at stake. Most importantly this should be a positive campaign, one that is fought on hope and not on fear. As we have a seen in Scotland, a referendum won through scare tactics alone risks winning the battle but losing the war.

The voice of business and civil society, from scientists and the police to environmental charities, have a crucial role to play in explaining how being in the EU benefits the British economy and enhances people's everyday lives. All those who believe in Britain's EU membership must not be afraid to speak out and make the positive case why being in Europe makes us more prosperous, stable and secure. Because at its heart this debate is not just about facts and figures, it is about what kind of country we want to be.

The Leave campaigns cannot agree what they believe in. Some want the UK to be an offshore, deregulated tax haven, others advocate a protectionist, mean-hearted country that shuts it doors to the world. As with so many populist movements, from Putin to Trump, they are defined not by what they are for but what they are against. Their failure to come up with a credible vision for our country's future is not patriotic, it is irresponsible.

This leaves the field open to put forward a united vision of Britain's place in Europe and the world. Liberal Democrats are clear what we believe in: an open, inclusive and tolerant nation that stands tall in the world and doesn't hide from it. We are not uncritical of the EU's institutions. Indeed as Liberals, we fiercely believe that power must be devolved to the lowest possible level, empowering communities and individuals wherever possible to make decisions for themselves. But we recognise that staying in Europe is the best way to find the solutions to the problems that don't stop at borders, rather than leaving them to our children and grandchildren. We believe Britain must put itself at the heart of our continent's future and shape a more effective and more accountable Europe, focused on responding to major global challenges we face.

Together in Europe we can build a strong and prosperous future, from pioneering research into life-saving new medicines to tackling climate change and fighting international crime. Together we can provide hope for the desperate and spread the peace we now take for granted to the rest of the world. And together we can show the world a generous, outward-facing Britain we can all be proud of. So if you agree then join the Liberal Democrat campaign today, to remain in together, and to stand up for the type of Britain you think we should be.