The need for a coalition attitude to growth

The publication of the Beecroft report on Thursday is a big moment for the coalition. The Lib Dems have long been dismissive of it but it is now a crucial part of any coalition grand bargain on growth.

In recent days, those close to David Cameron and Nick Clegg have been talking about a more cooperative, coalition attitude to growth. There’s been a recognition that the two sides both need to make some concessions to give the coalition a more adequate growth strategy. As one senior figure puts it, the coalition needs to show ‘more radicalism and unity on growth’.

This is what makes the publication of Beecroft on Thursday so important. If it is accompanied by those close to Vince Cable rubbishing the report, it will show just how difficult it is to make any progress on a growth strategy. For any kind of deal on growth is going to require a mix of things that are liked by the Tories, for instance deregulation, and the Liberal Democrats, say UK infrastructure bonds.