Only a few months ago Gordon Brown was harping on about “Labour Investment vs Tory Cuts”, then the message was “Nice fluffy warm Labour cuts vs Nasty Tory cuts” and now the Chancellor has said that if elected Labour’s cuts would deeper than those Margaret Thatcher was forced to make after Labour screwed up the economy last time their government was over.
Two very different messages from the Prime Minister and his Chancellor.
Asked by the BBC’s Political Editor Nick Robinson to accept the Treasury’s own figures suggest deeper, tougher cuts than those implemented by the Thatcher government in the 1980s, Mr Darling replied: “They will be deeper and tougher – where we make the precise comparison I think is secondary to fact is an acknowledgement that these reductions will be tough”.
He added: “There may be things that we don’t do, that we cut in the future. We will have to decide what precisely we can do within the [spending] envelope I set.”
Shadow Chancellor George Osborne:
“Gordon Brown is basing his election campaign on the claim that Labour can go on spending. That is completely blown apart by Alistair Darling’s admission, under pressure, that Labour’s own Budget numbers imply deep cuts. But why didn’t he admit that yesterday? Twenty four hours on this empty Budget has completely unravelled and Labour’s failure to act will hit families hard.”
Wind Power at the heart of Darling’s last budget, ignoring the opportunity for jokes, the question is why?
Alistair Darling will place nuclear and wind power today at the heart of efforts to lead Britain into sustained growth as he sets out the choices voters face in the coming election.
The Chancellor will use the Budget to try to “unlock private sector investment” to boost jobs and help to harness the energy sources of the future. He will seek to use government support for private companies as a key election dividing line, portraying Labour as safe custodians of a recovery that is as yet too fragile to trust to the Conservatives More from The Times
Under Labour manufacturing output has fallen every year since 2000, even the so called good times were just smoke and mirrors, our industrial base was shrinking the whole time while Brown was Chancellor as well as, Prime Minister.
The last factory that produced wind turbines in Britain has gone, 98% of all wind turbine components are made abroad. Like the car scrappage scheme where hundreds of millions of pounds left the country, the so called Green Jobs revolution is just another Labour mirage. Read the rest of this entry
The Organisation for Economic Co-operation and Development has warned Chancellor Alistair Darling that he cannot afford pre-election sweeteners as there is no money.
The latest set of figures show October to be the worst month for public finances since records began 35 years ago. The budget deficit for October 2009 was £11 billion and national debt is now 60% of GDP. The deficit for the fiscal year 2009 – 2010 is likely to top £175 billion which blows the Governments financial predictions for the year to shreds, once again.
In the last year Government borrowing has almost doubled, tax receipts are falling and spending on unemployment benefit is rising.
If that is not bad enough the Bank of England reports that for the eighth month in a row, bank lending to business is still contracting. What happened to pumping money into the banks and the banks lending money to spark growth.
The OECD has another grim warning that cutting expenditure and increasing taxes will stifle growth.
With their heads firmly in the sand the Government are continuing to spend money at an ever-increasing rate and nowhere in the Queens Speech was there mention of spending cuts. Apart from a politically motivated law to force any government to cut the debt by 2014, not a word.
Then there are the rumours in Westminster of Labour pursuing a scorched earth policy to make life difficult for any Conservative Government.
Bank of England Governor Mervyn King says the recovery for the UK economy is “Highly Uncertain”
Gordon Brown and Alastair Darling say that the economy will come out of recession at the end of the year, which leaves the question of who to believe? The Man Who Saved The World or Mervyn King who has been consistently correct on the economy.
Giving today’s Inflation report Mr King said “the economy can’t be repaired in a few quarters” and he carried on in somber mood:”bank lending will remain weak over the next three years” and the economic output would take years to return to previous levels.
Output fell by 0.4% between July and September, catching everyone off guard including our two Labour financial geniuses.
The outlook for inflation is unsure with a likely spike to 3% in the first quarter of 2010 as VAT increases to 17.5%.
My King also had a warning about the massive level of Public debt and the urgent need to address it.
Brown and his government’s answer is to continue spending irrespective.
Brown was a dead loss as Chancellor in the pseudo good times of his credit fuelled boom, as managers of a broken economy Darling and Brown are quite simply not fit for purpose