Gordon brown

A parting shot

I need a new radio for Christmas. Whilst listening to Dr. Sir Liam Donaldson tell the Today programme that parents should not offer their fifteen year old offspring alcohol, my pocket-radio had an altercation with a wall. The soon to be retiring chief medical officer said: “The more they get a taste for it, the more likely they are to be heavy drinking adults or binge drinkers later in childhood.” This latest soothsaying counts among Sir Liam’s other alcohol-related triumphs; he also gave us the inscrutable phenomenon of “passive drinking” – I don’t know about you but this guy makes me drink actively. Continental Europe has its fair share of

Inflation nation<br />

The inflation surge is now upon us. The CPI rate again “surprised” to the upside – Britain is the only major economy in the world to have inflation doing this. But given that the Bank of England’s printing presses have been working overtime to fund a fiscally irresponsible government then little wonder things are different here. To understand just how unusual the UK situation is, consider the below graph: despite suffering the longest recession in G20, we have one of highest rates of inflation in the developed world. The next few months will see this push higher, potentially reaching 4 percent in March and busting the 2 percent target. Without

The Labour leadership question hasn’t been answered

Rabble-rouser and bruiser-in-chief Charles Clarke has taken a hatchet to the government’s highly political Pre-Budget Report. Writing on his blog, Clarke argues: ‘He (Brown) felt that the main purpose of this pre-election Pre-Budget Report was to recycle his old political dividing lines.   This weakness can only come from fear of discussion of our past failures and fear that it is too dangerous to set out our future plans.   The real danger for Labour is that this weakness will pave the way to political defeat in 2010.’ The Labour leadership crisis has retreated from the limelight recently, but the spectre of internecine war after a whipping at the polls

Playing politics with the public finances

It has started. The Labour attack unit is out today talking about a “Tory VAT rise” – as per Paddy Hennessy’s scoop. Osborne stated his (to me, relatively paltry) position on the deficit: that he’d reduce it faster than Labour but can’t say how much. The Labour attack unit keeps partying like its 1999 with the “Tory cuts” line, now augmented with a “Tory tax rise.” Here are the words which the attack unit has crafted for Stephen Timms, chief secretary to the Treasury: “George Osborne refuses to say what services he would cut or what taxes he would increase in order to cut the deficit ‘further and faster’ than

The Ed Balls approach to fiscal management

Considering the fiscal crisis we face, this revelation in Andrew Rawnsley’s column is particularly dispiriting: “[Gordon Brown] has been egged on by Ed Balls [to make more spending promises], partly because the schools secretary is also obsessed with that old dividing line, partly because he wanted to be able to boast that he had won more money for his department. I am reliably told that the wrangling between the schools secretary and the chancellor went on into the early hours of the morning on the day of the PBR itself. The result was that some of the extra spending beaten out of Mr Darling by Mr Balls did not get

Has Mandelson given up on Brown?

For any Kremlinologists among us, Peter Oborne’s latest column in the Mail sure is a juicy read.  It claims that Mandelson and Brown are “at war again” – only, this time, insiders say the damage to their relationship is “irreparable”.  The Business Secretary is said to be “bitterly unhappy” with Labour’s class war strategy, and with Brown’s reluctance to deal with the fiscal crisis.  And – as Martin highlighted the other day – he wants out. None of this is too surprising.  Indeed, Mandelson has been conspicuous by his absence from the government’s PBR media drive, fuelling more than a few Westminster mumblings about his commitment to the Brownite cause. 

Why class wars don’t work

Well, it seems like Paul Richards – a former aide to Hazel Blears – wants to corner the market in quietly persuasive demolitions of his own party’s strategy.  If you remember, he wrote a perceptive piece on Labour’s shortcomings in the aftermath of the Norwich North by-election, which we highlighted here on Coffee House.  And, today, he’s at it again, with a very readable article in PR Week on why the class war won’t work.  His three reasons why are worth noting down: “First, it is hypocritical. The Labour Party has a disproportionately far higher number of former public schoolboys and schoolgirls in parliament and in the government than a

The unravelling continues apace

Has Brown got away with his horror Budget?  Reading the Populus poll in this morning’s Times, you might be tempted to say he has.  Sure, there’s some bad news in there for the government: trust in Dave ‘n’ George’s ability to manage the economy has hit an all-time high, and only 12 percent of respondents think that the measures outlined in the PBR will be sufficient to deal with our country’s fiscal woes.  But Labour types will also seize on those numbers which show quite high levels of support for the individual proposals annouced on Wednesday.  78 percent back the bonus tax.  61 percent back the capping of public sector

The PBR Suggests that Labour Thinks It’s All Over but Peter Mandelson Knows It Is

Labour’s Pre-Budget Report has been interpreted as a cynical electioneering exercise, a last-ditch attempt to to open up clear blue water between Labour and the Conservatives. Perhaps paradoxically, I thought it was a sign that the Government knows the game is up. Of course the Labour Party has to fight the election – it can’t simply not turn up. But it strikes me that using the UK economy quite so blatantly for party political advantage when it was already so fragile, was a strategic error. I am sure Alistair Darling believed he was doing the right thing. He is a man of principle. But it felt very much like a last

Gordon Brown’s one and only legacy

I will sign off tonight with this sickening graph from the earlier IFS presentation – showing the extent to which Gordon Brown’s economic incompetence has transformed the public finances for a generation. Servicing this debt will absorb money that would otherwise be spent creating jobs, lifting people out of poverty, advancing education, promoting prosperity. The leading article in the magazine this week finishes with these words, which came to mind when I saw the above graph: “It will be no surprise if UK public debt has been downgraded by the election; if so, a gilt buyers’ strike will become more than a theoretical possibility. The new government will face a

At least Gordo and Sarko are still friends…

If you’re looking for some sort of light relief after yesterday’s horror-PBR, then can I recommend the joint article by Gordon Brown and Nicolas Sarkozy in today’s Wall Street Journal.  Yep, the two men have put their recent spat behind them, and have cemented their relationship by huddling over a typewriter and bashing out just under 900 words on global financial regulation.  The Entente Cordiale never looked so strong.    Beyond the display of unity, it seems the article’s purpose is to convince the City that the EU’s French finance commissioner won’t blunt our competitive edge.  Hence lines like this: “We recognize the importance to Europe of ensuring that we

Behind the expenses curve

And so the expenses scandal rumbles inevitably on.  If you want the latest on all the dubious claims our, erm, honourable representatives made in 2008-09, then I’d recommend Andrew Sparrow’s live blog over at the Guardian – and Guido’s got a good round-up here.  But, behind all that, there’s a u-turn which is almost as embarrassing for the government as all those dodgy, dodgy receipts. Remember when Gordon Brown neglected to mention MP’s expenses, or the Kelly reforms, as part of his legislative agenda in the Queen’s Speech?  The decision was immediately launched on by Sir Christopher Kelly himself, and set up some juicy attacks for the Tories.  Well, as

Last orders in the last chance saloon?

It’s the set of headlines which Labour must have dreaded after their recent progress in the polls.  The Times: “The axeman dithereth … but the taxman cometh”.  The Guardian: “Darling soaks the rich … and the rest of us too”.  The Mail: “The Buck Passer’s Budget”.  And so on and so on.  It doesn’t look too good inside the papers either.  The FT rails against a  “lack of clarity on public spending plans”, while the Independent says that “rarely has a pre-Budget report promised so much and delivered so little”.  The Sun’s opposition may not be too surprising, but it’s there in bucketfuls: “Britain is staring into the abyss. After

In his comfort zone

Today we saw just how tricky the game can be for opposition leaders. The government sets the parliamentary agenda and holds the keys to the war-chest. Cameron’s attempts to upset the PM looked diffuse and repetitive. On Afghanistan he offered support. On Kelly he flannelled about some footling detail of parliamentary timing. And on ministerial pay he drew attention to his gravest difficulty, namely that the pre-budget report was coming up next. Brown never looked in difficulty and he cruised easily towards his Six O’Clock sound-bite. ‘The opposition leader has lost the art of communication but not alas the gift of speech.’ A poor day for Dave. Nick Clegg did

One thing to remember today

As you can probably imagine, plenty of Labour folk are getting excited about the PBR today.  They regard it as a chance for their party to harden their rise in the polls, and hasten the Tories’ descent.  But Danny Finkelstein strikes a necessary note of calm over at Comment Central.  As he puts it, a Budget in which the government has to ‘fess up to the horrible state of the public finances is hardly going to do much good for them.   To Danny’s analysis I’d add one supporting fact: that rarely, if ever, in recent times, has the government received a significant poll bounce on the back of a

James Forsyth

Brown’s bonus smokescreen

If today ends up with the government in a row with the City over plans to tax bank bonus pots with bankers threatening to take the government to court, then it will be mission accomplished for the Labour party. The same goes if we end up in a debate over the merits of a Tobin-style tax. For obvious reasons, Labour would rather talk about anything other than the state of the public finances so anything that distracts attention from that central question is, to use the word of the morning, a bonus for Brown. The Tories know this and will try and turn the debate back to the public finances

Fraser Nelson

Your guide to the PBR Brownies<br />

How can you tell if you’re being lied to on budget day? Normally its easy: Gordon Brown’s lips move. But, today, there’s a handy guide. You can compare Darling’s fiction with the independent average calculated by HM Treasury. I have pulled out the relevant tables:

Tackling the deficit

Reform’s report, The Front Line, focused on the how of the public finance question – how to get the deficit down in practice.  We pointed out that since the public sector workforce accounts for around a third of the total government deficit, it should contribute a third of the reduction in the structural deficit.  That would mean reducing the costs of the public sector workforce by £30 billion, equivalent to a reduction of one million of the six million public sector jobs in the UK.  That would take public sector employment back to the levels of 1999 when the recent period of major spending increases began.  It means reducing the

How long until the plug is pulled?<br />

Moody’s AAA sovereign monitor was published today, and whilst the UK’s AAA status remains ‘resilient’ the situation is far from rosy. The report states: ‘The UK economy entered the crisis in a vulnerable position, owing to the (overly) large size of its banking sector and the high level of household indebtedness. Both continue to weigh on economic performance. Net bank lending to the UK business sector has continued to contract through Q3 2009, and repairs to household balance sheets (i.e. the rising savings ratio) may weigh on demand for some time to come. The depth of the crisis has been mirrored by the ongoing deterioration of public finances (with gross

James Forsyth

Tomorrow could be a turning point for the Tories

The number of polls showing the Tories below forty percent are causing some heartburn for the Tory leadership. When the first poll came out showing the Tory lead down, there was a feeling that this wasn’t all bad, that it would help remind the party that the election isn’t in the bag. But there is now mounting concern at Tory slippage, this is being reinforced by the fact that the party’s own research shows the same trends. Today’s leader in The Times, a paper which is normally editorially supportive of the leadership, was another unhelpful development. Newspaper editorials don’t move popular opinion but they do still influence the prism through