Recession

Both James and Tim Montgomerie felt that William Hague must be more prominent during this campaign and Cameron has reached the same conclusion. Hague opened the spring confernece with a stark, bleak message: “And I say it is that most crucial election because I believe the choice for Britain is as stark as this: it is change or ruin.” He then detailed the easiest illustration of Brown’s appalling economic stweardship: a 13 year statistical progress of regression for which Brown, and Brown alone, is responsible. ‘When Gordon Brown took over, this, our great country, was the 4th largest economy in the world. Now it is falling behind and forecast within

At the beginning of this week the key figures in the Tory election campaign gathered together in Notting Hill to try and work out what was going wrong with the Tory campaign, why the Tory lead has halved since December. Our cover this week attempts to answer this question. My take is that the problem is largely caused by the structure of the campaign. Successful campaigns tend to have a chief strategist and a campaign manager. The strategist’s job is to work out what the election is about and the campaign manager’s role is to implement that vision and take charge of day to day tactics. The Tory problem is

By way of a response to the comments on my post yesterday, here are some reasons to be cheerful about Cameron and the Tories. The poll lead dropping to six points is indeed a wake-up call, and Cameron probably worked out a while ago that things were going a bit Pete Tong. Indeed (Short the UK), there are signs that he has already started to act. Look at last Monday: three strong election videos, without a politician in sight. The perfect remedy to the Tragedy of Cameron’s Head poster. The policy of allowing management buy-outs of government departments is bold, radical and entirely in keeping with Cameron’s general policy of

The recession has been intellectually thrilling, and I write that without a note of sarcasm. First, politicians argued as to whose understanding of Keynes was greatest; and now they’re in Keynes versus Hayek territory, over the timing and depth of cuts. The Chancellor and his Shadow have marshalled the various authorities who support their respective cases. The science of economics, if it is science, is in its adolescence. Should necessarily equivalent government policy be detirmined by pure intellectual opinions and reputations, especially as those are being forged for posterity by current events? Economics is as much history as science – like Coleridge’s lantern on the stern of the ship; it

The City had hoped that Britain would export its way out of trouble. Dream on City Boys: Britain’s trade deficit is £7.3bn. It is perverse that the Thatcher government is blamed for manufacturing’s decline. Certainly, deficits were a feature of the Thatcher years but Labour came to power with a £1.8bn trade surplus and the gap has widened every year thereafter; Britain was £56bn in the red by 2006. With a possible inflation crisis louring in the distance, precipitated in part by weak sterling and a dependency on imports, British manufacturing needs to be stimulated. John Redwood has a typically incisive post:       ‘It is quite possible to make things

There must be something about stepping back onto Scottish soil that invigorates Alistair Darling, because his Edinburgh speech is one of the most political and confrontational he has delivered for some time.  Sure, Darling is a Labour man, so it’s part of his job to oppose the Tories.  But, compared to his Cabinet colleagues, he’s normally so restrained about it.  Here, though, the gloves are well and truly off. The Chancellor calls Cameron a “real risk to Scotland’s future,” and throws in a dash of Thatcher-baiting (“The Tories … are as out of touch now as they were 30 years ago”).  But, really, there are two passages worth dwelling on,

Is it just me, or is there something grimly hilarious about The Man Who Claimed To Have Abolished Boom-And-Bust describing our recent economic turmoil as a “one-off”?  Yep, here’s Brown in today’s FT: “We are paying a one-off cost for globalisation.” More seriously, this is the technocratic side of Brown which Downing St will hope to contain during the election campaign.  Calling the recession and its rocky aftermath a “one-off cost” is unlikely to play well with people who have lost their jobs and businesses.

Smarting from the savaging he received in Mo, Peter Mandelson characterised David Cameron’s “no swingeing cuts” comment as a u-turn, and compared Cameron and Osborne to Laurel and Hardy. This is a bit rich considering the government’s obvious confusion over the timing and extent of cuts, and that the immortal line “That’s another fine mess you’ve gotten us into” should be the Tories’ campaign slogan. Cameron’s comments are a clarification, not a u-turn. As Jim Pickard notes, Tory policy has to respond to last week’s withered growth figures. Whilst still recognising that cuts have to be made now to avert a fiscal crisis, a distinction that the government fails to

The longest recession suffered by any major country in this cycle seems thankfully to be drawing to an end, even if only by the narrowest of margins.  Such has been the severity of the downturn though, that, as the above chart shows, GDP has fallen back to the levels of mid-2005. The economy is basically the same size as at the time of the last election. This means for probably the first time in modern British history, living standards have failed to rise for almost the entire duration of a Parliament.   Sadly, the cost of the economy going nowhere has not been as lacking as the growth or living

We’ve been rather starved of opinion polls over the past week, which is probably no bad thing.  But this PoliticsHome poll on the economy has come along to give us at least something to mull over.  And its findings aren’t good news for Labour. First, only thirty-four percent of repondents think that the economy has turned a corner into recovery.  And, crucially, only 36 percent are willing to give Labour “a lot” or “some” credit for their handling of the recession (down from 40 percent last August).  That’s against 29 percent saying “not very much,” and 34 percent saying “none at all”. As we saw on Wednesday, Labour is eager