Garry Thomas of Hereford recommends spending our way out of recession (From Hereford Times)

Garry Thomas of Hereford recommends spending our way out of recession

12:21pm Friday 12th March 2010 in

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Could it actually be possible to spend your way out of a recession? For a small business with fixed overheads and falling sales then probably not, but for an organisation like Herefordshire Council it may actually be possible.

With Council’s stated debt of £115m, I ask how much of this figure applies to Herefordshire Council and how much is central government prepared to underwrite?

If, as it would appear, central government will underwrite 80% of the £115m then the Council as a unitary authority should recognise its financial position is strong.

Herefordshire Council with a triple-A credit-rating could easily borrow money for capital projects. And with interest rates at an all time low, contractor profit slashed, people in need of jobs and labour rates equally depressed, in terms of the wider public benefit now is the time for local authorities to use our money to build capital projects.

The Butter Market, new schools, a library, GP centres, care provision, social housing and dare I say it a centralised facility for Herefordshire Council offices on the ESG site.

It is a bold Council that announces this, but with all the potential for jobs and services created for Herefordshire people, what can go wrong?