Paying Osborne’s bills

In her early campaigning days as Conservative leader, Mrs Thatcher had the gift of being able to relate the national economy to the domestic finances of ordinary voters. The battle against inflation commenced with her and her shopping basket, nattering away with voters over the cheese counter. It is a skill which David Cameron needs rapidly to discover. Now, as in the 1970s, a political leader who doesn’t understand the personal finances of ordinary people is going to be in deep peril.

Four years ago, realising my income was going to fall, and with a little time on my hands, I started doing something I had never bothered to do before — and during the previous decade had never felt I needed to do: I started adding up every penny I had spent over the previous year. At the time, I found that for every pound I was spending, I was paying 77 pence in income taxes and council tax.