Recession

Sorry is the hardest word and Gordon Brown stil hasn’t said it. But, everyday brings surprises. His ‘admission’ about his errors is the first time I’ve ever agreed with his economic analysis. In short, even Brown knows he’s not what he’s cracked up to be. Making such an admission at this stage of the election cycle is extraordinary. The intention may have been to make Brown look human. In which case, he’s succeeded, but to his detriment. Brown looks Biblically fallible. Labour’s campaign rests on one deduction. Gordon Brown built an era of prosperity; then Gordon Brown saved the country from a recession that originated in America; therefore Gordon Brown

One of the Brownie’s we’ve been hearing recently from the Dear Leader is that it is in some way ambitious to “halve the deficit by 2014”. It’s a Brownie because it is technically accurate, yet designed to mislead the voter. Two years ago, he forecast no deficit at all by 2014. Now he’s projecting one of 5 percent of GDP – simply mammoth – and still makes out that this is something to be proud of. It’s a confidence trick: the voter is supposed to think ‘I don’t know about the figures, but if he’s boasting about it then it must be good’. When Brown told the Economist that his deficit

The City’s elopement with New Labour has ended violently. A poll of leading financiers, conducted by City AM, reveals that 73 percent think that a Tory majority would be best for the economy; a mere 10 percent support Labour. But the City has little enthusiasm for George Osborne: 23 percent believe he has the mettle to be Chancellor, 13 percent behind Ken Clarke. So where is it going wrong for Osborne? James Kirkup observes that the Tories recent collapse in the polls coincided with Osborne and Cameron obscuring their economic message. But the City’s antipathy to Osborne is long established. Disquiet reigned even when Osborne and the Tories were storming

If the Tories win power (still a big “if” these days), William Hague will walk into King Charles Street, be greeted by the FCO’s Permanent Secretary Peter Ricketts, meet his new staff and be briefed on the Office he will lead and the foreign challenges Britain faces. There will be plenty on his plate. Calls from foreign dignitaries, preparations for forthcoming summits, a discussion of key priorities, and suggestions for how to reorganise the machinery of government. There will also be a need to prepare the FCO’s contribution to a cost-cutting exercise.      But there ought to be an early discussion about how the world is changing and the

A striking passage from Peter Mandelson’s speech at Mansion House last night: “Starting in the 1980s we allowed the diversity of the British economy – or lack of it – to approach the limits of what was prudent. Sometimes there was an economic fatalism about manufacturing decline and falling British goods exports, rather than seeing them as something that policy and private enterprise should address. Our economy, and certainly our corporate tax base, became too dependent on the City. We were also carrying a huge hidden insurance liability for a sector that was taking badly understood and inadequately policed risks.” Yes, I know Mandelson takes things back to the 1980s

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,