Getting confidence back is the key to economic growth

Ruth Porter appears on BBC Radio 2's Jeremy Vine show

Ed Balls called for 100,000 affordable homes to be built using the £4 billion expected to be raised from the forthcoming auction of the 4G mobile phone spectrum.

Ruth outlined how Balls is trying to address two challenges, economic growth and housing affordability.  With the expected £4 billion, the best thing to do would be to attempt to eliminate the deficit, which is what will help the economy in the long-term. Alternatively the money could be used to fund tax cuts which would help people with the increasing costs of living.

Housing affordability is also a huge issue in the UK. Ruth aruged that it isn't due to a lack of capital, but becase of restrictive planning laws and economic uncertainty. Putting money into infrastructure is pointless considering there are private companies willing to invest. There needs to be a focus on cutting the deficit and increasing economic certainty to spur on growth.

Listen here. Segment starts at 39:30.

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