Gordon brown

The choice facing the Tories

If you'd like a step-by-step preview of Labour's next election campaign, then do read Alastair Campbell's latest blog post.  All of Brown's attacks from PMQs are in there, and then some: "tax cuts for the rich"; a lack of "policy heavy lifting" on Cameron's part; the Tories "haven't really changed", etc. etc.  The spinmeister has been in closer contact with Downing Street recently, and it shows.  It's all gone a bit bar-brawling. The Tories now face a choice between, broadly speaking, three different responses: i) Ignore Campbell.

Might there be some fight left in the class war after all?

The Tories are in mild shock following PMQs, they never expected Cameron to get clunked like that. Brown is clearly going to try and use Tory inheritance tax policy to ram home the message that a Cameron government will be a government of the rich, by the rich, for the rich. But the Tories are taking comfort from their belief that Brown’s ugly class war politics won’t work, pointing to how they failed in Crewe and Nantwich. But the attacks on Edward Timpson backfired, at least in part, because Timpson was a bad target. It is hard to portray someone as an out of touch, uncaring toff when their family have fostered 80 odd children and have a long history of local philanthropy.

Etonians and Bolsheviks

A terrific PMQs today. This exchange had it all. Noise, laughter, rhetoric, anger, humiliation, jokes, and dramatic swings in the balance of advantage. We even had a sighting of that great Westminster rarity – a fact.  Cameron’s first question elicited simple information. Would our troops start returning from Afghanistan in 2010 or 2011? Brown didn’t quite answer it but said that by 2011 the combined forces, including Afghans, would number 300,000, by which point the military burden ‘will start to change’. Cameron clarified. ‘That sounds more like 2011.’ Brown didn’t demur.   Turning to the economy Cameron asked why Britain is the last G20 country to come out of recession.Brown: We aren’t. What about Spain?

A PMQs to damage Brown?

A quick tour around the political blogoshpere, and it seems everyone is saying Brown came out on top in today's PMQs.  For what it's worth, I'd agree with them – but only to a point.  On the one hand, Cameron was unusually clumsy, which allowed Brown to land some pretty decent blows.  But, on the other, I suspect some of those blows won't play well on TV later.  And, let's not forget, the entire point of PMQs, from the leaders' perspectives, is to score some coverage on the Ten 'O' Clock News.   It all depends on what the broadcasters pick up on.  If it's Brown's gag that the Tories' IHT policy was "dreamed up on the playing fields of Eton", then it will hardly reflect well on the PM.

This small man thinks he’s St. Joan

I sympathise with Alistair Darling and his defence of the City. When he’s not contending with Gordon Brown’s suicidal Tobin tax proposals, Darling has to confront Nicolas Sarkozy’s calculated anti-Anglo popular politics. Yesterday, the Elysees’s Puss-in-Boots delivered a deliberately provocative and economically senseless attack on what he described as the “unconstrained Anglo-Saxon market model.

Burnham enters the fray

Oh dear.  The Labour leadership speculation is back in full effect, thanks to Paul Waugh's scoop in the Standard.  According to Paul, Andy Burnham is "prepared to throw his hat into the ring" to succeed Gordon Brown, should it all go wrong for Labour in the next election.  Apparently, he's even lined up Tessa Jowell as his campaign manager – although, naturally, the Health Minister is downplaying the claims. One thing's for sure: this story is badly timed for Labour – with their recent progress in the polls – and Brown could well do without another bout of leadership wrangling to undermine his premiership.  But what about Burnham – has he got what he takes to become Labour leader?

The good and/or bad news for the Tories is that there hasn’t been a Brown Bounce

If you're still scratching your head over the latest opinion polls, then I'd recommend you read Anthony Wells' latest post over at UK Polling report.  In it, he outlines four potential reasons for the diminishing gap between the Tories and Labour: Cameron's "reverse" over the Lisbon Treaty; increased economic optimism; Labour performing better; and the absence of positive feeling towards the Tories.  To my mind, it's probably a case of "all of the above," to varying degrees – but, as Anthony concludes, "we can't tell for sure." One further point that's worth making is that the reduced gap between the parties isn't due to a "Brown bounce".

Paranoia rather than camaraderie

Another one for the Brown as Nixon folder, courtesy of Rachel Sylvester's column today: "'It’s about style of government,' says one senior figure due to give evidence [to the Iraq Inquiry]. 'Blair would have a war Cabinet, but a small caucus would meet beforehand. The civil servants were frustrated. Gordon is just as bad. He gives lots of time to Peter Mandelson and Shriti Vadera and ignores the officials. There’s a darker side to the Brown machine — he’s more suspicious. It’s cliquiness driven by paranoia rather than camaraderie, but it has the same result.

There are troops – and there are troops

The waiting will soon be over. Later today, the President Obama is expected to order around 34,000 troops into battle, including into Helmand province. This surge will be added to the additional 500 troops Gordon Brown committed yesterday and what sources tell me are cast-iron troop offers by another eight countries, including Turkey, Australia, Montenegro, and Georgia. If all these countries do sign up to send more troops, the credit must primarily go to Anders Fogh Rasmussen, the NATO Secretary-General, who has travelled far and wide in the attempt to drum up more military muscle.

The doubts that remain after Brown’s Afghanistan statement

So there we have it.  Gordon Brown has confirmed what we all expected: that 500 more British troops will be sent to Afghanistan, bringing the total UK presence up to around 10,000.  The "surge" will be rounded off when Obama announces something like 35,000 extra US troops tomorrow. Although greater manpower is A Good Thing for the mission in Afghanistan – and the mission in Afghanistan is certainly an important one – I can't help but have some qualms about the twin UK and US announcements.   For starters, there's the simple issue of numbers.  500 more UK troops and 35,000 more US troops falls short of the bar of 2,000 and 40,000, respectively, that some military figures had set.  It may not make much difference.

Labour’s free for all

The potentially huge exposure of UK banks in Dubai, depreciating some UK bank share prices again this morning, is a reminder of just how much UK bank lending grew in recent years. The above chart shows the growth in external claims of the UK owned banks around the world over the past decade. The sums lent almost quadrupled to nearly $4 trillion in 8 years.  Anyone interested in discovering which bubbles the UK banks (and now taxpayers) have funded can find the data on the Bank of England website - $1.2 trillion in the United States, $125 billion in Spain, $183 billion in Ireland, $50 billion to the UAE/Dubai. Bank profits soared, and the “New North Sea Oil” of booming bonus pools was taxed to fund ever growing government spending.

Will Darling’s politicking make the Tories weaken their IHT pledge?

Ok, so the Age of Austerity means that promises made in sunnier times will need to be forestalled - or even cancelled altogether.  But it's still revealing that Labour are thinking about reversing their plan to raise the threshold at which inheritance tax is levied. After all, this is what Brown regards as The Great Dividing Line: the Tories implementing a tax cut for their "rich friends," on the one side, and Labour implementing policies "for the many," on the other.  Darling's decision to raise the IHT threshold to £350,000 for single people and £700,000 for married couples undermined that crude message.  Reversing the policy may, in Labour strategists' eyes, strengthen the dividing line.

PBR 2008 and PBR 2009: a difference which may not make much difference

Yep, it's that time of the year again: the run-up to the Pre-Budget Report, when we hear tales of splits between Number 10 and the Treasury on how they should approach the fiscal mess we're in.  According to today's Sunday Telegraph, and going off rumblings on Whitehall, Darling is pushing for a more expansive package of cuts.  Whereas Brown – and Ed Balls, natch – would prefer to emphasise all that investment, investment, investment. In which case, I was tempted to just copy-and-paste a post I wrote last year, on a similar subject, and at almost exactly the same time in the political cycle.  Its point was that stories about tension between Brown and Darling could work to undermine Labour's overall economic message.  As it happens, that's still the case.

A nation of property owners

An Abu Dhabian official has briefed Reuters that Abu Dhabi will rescue Dubai on a “case-by-case basis”. The official stated: “We will look at Dubai's commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts. “Some of Dubai's entities are commercial, semi-government ones. Abu Dhabi will pick and choose when and where to assist." This is potentially bad news for the UK taxpayer, who faces the prospect of provided further cover for British banks, who invested $50bn in the region at the height of the boom. The reason we're in the firing line?

Outmanoeuvred Brown endangers recovery

The Times’ Ian King writes that Dubai’s predicament presents an opportunity for the City to attract new business. There is no reason why, with attractive incentives, London shouldn’t capitalise on Sheik Mohammed’s momentary lapse of reason. However, the appointment of Michel Barnier, an evangelical protectionist who makes Joseph Chamberlain look like the father of Free Trade, as EU regulating supremo is a disaster for Britain. The appointment raises further questions about Gordon Brown’s acceptance of Baroness Ashton as the EU’s foreign minister. Michael Fallon is no doubt: “Brown has been completely outwitted. We now have none of the three key economic jobs in Brussels.

Has dead aid taken on a green hue?

We've got £800 million to spare, haven't we?  Don't be so cynical – of course we do.  After all, it's the amount of UK cash that Gordon Brown is prepared to sign over to a new £10 billion climate change fund that he's proposing.  The idea is that the money can be used to encourage poorer countries to move towards greener economies.  Brilliant. More seriously, I'd have thought that the money would be better spent on developing those green technologies which could create jobs and clean up the environment, both home and away.  Especially as we don't have much money to spare, and this fund contains so much potential for waste.  After all, will it make any real difference when set against the richer countries who are the main emission offenders?

What Gordon thinks of London 2012

Another good quote for the Brown 'n' Blair scrapbook, courtesy of Ben Brogan's column in the Telegraph: "Only once in the 20th century has a government that won the games survived to deliver them. A change of administration in the run-up to the Olympics might be expected to herald political trouble. Thankfully, David Cameron does not share Gordon Brown's loathing of what he refers to as 'Tony's f------ Olympics'. He is committed to ensuring stability by protecting London 2012's status as the Switzerland of politics, immune from partisan attacks." Brogan's wider argument is worth noting: that the Cameroons think 2012 could be the tonic the country – and their potential mid-term government – needs.  Myself, I still think there's a strong case for an Austerity Olympics.

At last

President Obama will announce his new Afghan policy on Tuesday night at 8pm eastern time, the early hours of Wednesday morning UK time. Obama will announce a troop increase and the signs are that he will send 30,000 plus in reinforcements. This is welcome, the nearer Obama gets to giving General McChrystal the 40,000 troops he has asked for the better. But the process has done the White House little credit and shown Obama to be even less solicitous of the concerns of his allies than President Bush. Bob Ainsworth's said yesterday that a 'period of hiatus' in Washington had undercut public support for the war in this country. This is undoubtedly true.

Saving the world | 25 November 2009

Today’s revised GDP data confirms that the UK remained alone of the world’s major economies in recession in the third quarter of this year*. The fact that the UK remains mired in recession long after most economies have recovered makes clear how uniquely badly positioned the UK economy was to handle a downturn.  While some investment banks continue to argue that this performance reflects the inability of the Office of National Statistics to calculate the data correctly, there is good reason to believe that this huge underperformance is grounded in reality. Economic history teaches that bank crises are amongst the worst things that can ever hit an economy. The collapse in credit availability and soaring bank margins have posed very substantial risks to economic growth.

A game of chess

Fascinating details dominated PMQs today. Instead of the usual custard pie-fight this was a game of chess. Things began with talk of downpours and sandbags. Both leaders were concerned that the sodden folk of Cumbria are receiving enough hot soup and blankets. The PM reminded us that he’d recently popped up there to squelch around in his wellies shaking people’s hands and nodding sympathetically. Then Cameron pulled out a firecracker. He accused Brown of shambolic incompetence in allowing public money to flow into the hands of a front organization for Hizb ut-Tahrir, an extremist group whose constitution denounces non-Moslems in virulent terms. ‘They are combatants in the battlefield. Their blood is lawful, as is their property.’ One thing’s for sure.