They couldn't have prevented the global recession but there is more that the Government could be doing to reduce its impact.  For a start they could have come into the recession with stronger public finances.  The cut in VAT is untargeted and the money could have been used more effectively.  Major infrastructure projects should be being brought forward.   As a one off measure people on benefits for a long time should be able to work and keep all their pay and benefits for a set period.  Mortgage lenders should be encouraged to re-introduce first-time-buyer mortgages at sensible interest rates.  As long as they have a good deposit and they meet affordability tests, first time homebuyers should be given a right to a mortgage and the right to a very quick appeal process.   Finally the Government should be doing everything to make the UK a great place for business.  See our proposals for Competitiveness and Public Finances.