The contrasts between Britain and Ireland have been highlighted in a number of key areas over the last few days.

The slide in the value of sterling has reinforced the risk that has been Brexit and the enormous borrowing undertaken by the new Chancellor of the Exchequer in an effort to kickstart the economy has caused an international questioning of the direction of British economic policy.

But what has struck me most forcefully has been the huge gap in living standards that has been identified between the least well off 10% of the two populations.

The fact that the bottom 10% of the population in Ireland has, according to data analysed by The Financial Times, a standard of living that is 65% higher than their counterparts in Britain is astonishing. These figures were repeated by The Irish Times on Saturday.

But what has struck me most forcefully has been the huge gap in living standards that has been identified between the least well off 10% of the two populations

Europe and Ireland have made mistakes, especially in relation to energy dependence on Russia, but collectively, action is being taken and the emergency will hopefully pass. But Ireland’s proximity to Britain is permanent and a prosperous UK is in all our interests, especially as food producers beside a large country with a continuing need to import foodstuffs.

The budget presented by Ministers Donohoe and McGrath on Tuesday was a vivid illustration of how far Ireland has come in recent decades.

No other country in Europe has experienced a growth in population remotely similar to Ireland’s increase from 2.8m in the late 1960s to over 5m today.

Housing planning has been so poor compared with the industrial strategy pursued by the IDA and Enterprise Ireland

The pity is that housing planning has been so poor compared with the industrial strategy pursued by the IDA and Enterprise Ireland, where successive Governments have consistently followed a coherent strategy in allowing the successful State agencies to operate effectively. Whereas in housing, there has been an incoherence between tax policy discouraging owner occupancy and the over reliance on high-end, institutional-owned rental apartments.

But the overall conclusion is crystal clear – politics matter hugely in the development of a country.

When looking across Europe, Ireland is being well served by the current cohort. This week’s budget was an example of both a difference in approach between here and the UK and a difference in capacity to ease current difficulties across their populations.