The deficit needs to be cut.  The government is in the strange position that Labour is being blamed for the cuts, so there is a very real prospect that severe cuts – particularly if Labour act like a bunch of spoilt teenagers – could actually increase the government’s popularity.

However we need to keep economic activity up in order to soak up the unemployed and create the tax that will help us out of the hole.  To do this we are playing Russian roulette with the money supply by expanding it and studiously talking about deflation when shop prices are rising at a fair clip.  That can’t go on forever, and loosening the money supply now will mean a sharp correction later.

So what’s left?  Deregulation.  There’s no doubt that Labour never got small business, and there’s plenty of damage that’s being undone.  How’s that doing?

We’ve had Lord Young‘s report on the Health and Safety culture, which even the  Today programme seemed to like.  And that was good.

But at the same time we had an Act coming into force that will threaten employers with court action from overheard office banter.  How’s that supposed to encourage employing people? (Telecommuting may become far more popular with employers).

What were the coalition doing?  Why didn’t they at least suspend this for a year.

A great deal was made about how we had to push the schools reform through, a good policy and far less radical than the rhetoric, but still there was obviously some parliamentary time to suspend this act.  Even a year while the MPs looked at it again would have been a good idea.

The coalition relies on private business to pick up the economy.  Stop treating private business as if it just turns up by magic.  That was Gordon Brown’s job.