Tough times need true leadership

THE economic news over the past few days has been dire. For the first time, the twin economic crises – credit crunch and accelerating oil and commodity inflation – have inflicted serious damage to the real economy in the UK. There are signs of a sharp fall in manufacturing activity and investment, the building sector has started to lay off workers in large numbers and major high-street retailers, such as Marks & Spencer, have registered significant falls in consumer spending.

Much of this is a necessary (and unavoidable) correction to previous imbalances in the UK economy – an overheated housing market and unsustainable levels of consumer debt. The trouble is that politicians of all parties are refusing to face up to the ...