You always sell the car before denying your kids school books

By Alex Smith / @alexsmith1982

The Prime Minister will announce tomorrow that he is selling off government owned assets to help reduce the national deficit.

Student loans, the channel tunnel rail link and the Dartford Crossing are all to be auctioned off to help balance our national books, and the sales are expected to raise £16bn over the next two years.

While this is by no means a panacea, it should be applauded as part of a deficit reduction plan that should next look to prioritise shutting off tax loopholes and increasing revenue from the wealthiest, before searching for areas in which to chop at public services.

And as sad as it is – and although this is only a small measure that will recoup a mere 9% of the national debt – you have to admit that it is preferable to reducing the funding of hospitals and schools, or to slashing investment in training, apprenticeships and the industries of the future. It was Bill Clinton, who knows a thing or two about reducing budget deficits, who said:

“The better the economy is, the quicker you’ll balance the budget.”

However, the government should also be sure to put in place measures that will safeguard these assets in the public interest, so that students do not feel the added pinch of increased interest payments for private profit, for example.

The measures will be announced in full tomorrow lunchtime, before debates on education and health.

You can listen to the PM’s short podcast on the economy here.