The Government needs to deliver both short and long term economic growth

Prime Minister Andy Burnham has so far restricted his boat to gentle waters but soon he is going to have to sail further out and confront the stormy seas swirling around Britain.

The economy is on its knees and there are no signs of a let up in the geopolitical troubles that are only adding to the fiscal challenge that the Government faces.

Burnham’s visit to Ukraine will be a stark reminder of the volatility that Britain must now contend with. That is why it is imperative that the PM answers the important question of how the £5bn in defence spending which was announced before he entered No 10 will be paid for.

Defence and the economy go hand in hand and his Chancellor John Healey knows better than most that even the current defence spending commitment won’t be enough to deliver the security the country needs.

Burnham has refused to rule out tax rises in the Budget. But the Government needs to be very careful with how it charts a course through this economic storm.

If punitive taxes continue to pummel businesses then Britain will never be able to deliver the economic growth that is needed to sustain the country both in the short and long term.

The latest report from the IPPR think tank shows why scraps of economic growth will not do. Population ageing is set to account for almost 80 per cent of the additional fiscal pressure facing the country by 2075.

It is clear that Britain cannot afford to carry a generation of young people on welfare while also coping with an aging population. In order to tackle the rising number of Neets, the Government needs to clear the way for businesses to provide the opportunities they need.