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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Theresa May could live to regret not putting Article 50 to a vote sooner

Today's Morning Call.

Theresa May will reveal her plan to Parliament, Downing Street has confirmed. They will seek to amend Labour's motion on Article 50 adding a note of support for the principle of triggering Article 50 by March 2017, in a bid to flush out the diehard Remainers.

Has the PM retreated under heavy fire or pulled off a clever gambit to take the wind out of Labour's sails while keeping her Brexit deal close to her chest? 

Well, as ever, you pays your money and you makes your choice. "May forced to reveal Brexit plan to head off Tory revolt" is the Guardian's splash. "PM caves in on plans for Brexit" is the i's take. "May goes into battle for Brexit" is the Telegraph's, while Ukip's Pravda aka the Express goes for "MPs to vote on EU exit today".

Who's right? Well, it's a bit of both. That the government has only conceded to reveal "a plan" might mean further banalities on a par with the PM's one-liner yesterday that she was seeking a "red white and blue Brexit" ie a special British deal. And they've been aided by a rare error by Labour's new star signing Keir Starmer. Hindsight is 20:20, but if he'd demanded a full-blown white paper the government would be in a trickier spot now. 

But make no mistake: the PM didn't want to be here. It's worth noting that if she had submitted Article 50 to a parliamentary vote at the start of the parliamentary year, when Labour's frontbench was still cobbled together from scotch-tape and Paul Flynn and the only opposition MP seemed to be Nicky Morgan, she'd have passed it by now - or, better still for the Tory party, she'd be in possession of a perfect excuse to reestablish the Conservative majority in the House of Lords. May's caution made her PM while her more reckless colleagues detonated - but she may have cause to regret her caution over the coming months and years.

PANNICK! AT THE SUPREME COURT

David Pannick, Gina Miller's barrister, has told the Supreme Court that it would be "quite extraordinary" if the government's case were upheld, as it would mean ministers could use prerogative powers to reduce a swathe of rights without parliamentary appeal. The case hinges on the question of whether or not triggering Article 50 represents a loss of rights, something only the legislature can do.  Jane Croft has the details in the FT 

SOMETHING OF A GAMBLE

Ministers are contemplating doing a deal with Nicola Sturgeon that would allow her to hold a second independence referendum, but only after Brexit is completed, Lindsay McIntosh reports in the Times. The right to hold a referendum is a reserved power. 

A BURKISH MOVE

Angela Merkel told a cheering crowd at the CDU conference that, where possible, the full-face veil should be banned in Germany. Although the remarks are being widely reported in the British press as a "U-Turn", Merkel has previously said the face veil is incompatible with integration and has called from them to be banned "where possible". In a boost for the Chancellor, Merkel was re-elected as party chairman with 89.5 per cent of the vote. Stefan Wagstyl has the story in the FT.

SOMEWHERE A CLOCK IS TICKING

Michael Barnier, the EU's chief Brexit negotiator, has reminded the United Kingdom that they will have just 15 to 18 months to negotiate the terms of exit when Article 50 is triggered, as the remaining time will be needed for the deal to secure legislative appeal.

LEN'S LAST STAND?

Len McCluskey has quit as general secretary of Unite in order to run for a third term, triggering a power struggle with big consequences for the Labour party. Though he starts as the frontrunner, he is more vulnerable now than he was in 2013. I write on his chances and possible opposition here.

AND NOW FOR SOMETHING COMPLETELY DIFFERENT

Emad asks if One Night Stand provides the most compelling account of sex and relationships in video games yet.

MUST READS

Theresa May is becoming adept at avoiding defeats says George

Liv Constable-Maxwell on what the Supreme Court protesters want

Theresa May risks becoming an accidental Europe wrecker, says Rafael Behr

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Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.