Labour party

What is the true price of Gordon Brown’s economic incompetence and inept bank regulation? The soaring national debt is one. And if you own a mortgage, you’ll find that you’re paying another. The gulf between the Bank of England base rate and the average mortgage rate is now at a huge high – as banks rip off their customers, trying to fill the hole in their balance sheets. This is an under-discussed topic. The “action we have taken” (a phrase Brown uses to try to lay claim to the Bank of England’s base rate reduction) would have a far greater effect on the economy if the UK banking system was not (still) so badly broken. The below graph, from Citi, shows spreads (ie, gap between base rate and retail rate) on key UK mortgages from 1995.

Breaking news on Politics Home: the Tories have a 17 point lead in the polls following their party conference and Cameron's speech. The Conservatives stand at 44%, Labour at 27% and the Liberal Democrats at 17%. That would suggest a job well done by Cameron and Tories in Manchester, and that Cameron's speech resonated with the public, because this is a sharp bounce from polls at the beginning of the week, which had the Tories placed between 37% and 40%. Obviously, these bounces don't last: consider that Labour is dropping back after its 5-point conference climb last week. But this bodes well for the Tories' momentum as the election draws near.

So what do the Tories make of Alistair Darling's limelight-grabbing decision to freeze public sector pay? The ones I've spoken to seem perfectly relaxed with it. A little bit annoyed perhaps: wouldn't you be, if your opponents appeared to cynically delay an announcement that they could have made during their own party conference last week?  But they're confident that the public will see through the stunt, and that it will actually reflect badly on Brown & Co.  On top of that, the Tories are sure that Labour will make little headway in a news agenda that will be dominated by Tory announcements for the next few days. It's hard to disagree with them.

It’s not yet official, but everyone is couning on a big “yes” from Ireland – to the tune of about 64% says The Guardian. I say in my News of the World column tomorrow that this is far from a disaster for the Conservatives. It works well for them, in fact: it isn't nerds who want a UK referendum but any fair-minded person who has just witnessed the way Brussels bullies, bribes and cajoles to get its way. Tony Blair was the one who reneged on his promise of a rederendum – something which, in my opinion, should be a criminal act (but, as Stuart Wheeler tested, is not technically breach of contract). And who is to be EU President? Blair himself. It will be dawning on Cameron, fairly soon, why Europe is important.

Much has been made of David Miliband’s vitriol against the Tories and their EU parliament grouping, and the intimation that Eric Pickles is Anti-Semitic. William Hague complained yesterday, and has now formalised that complaint by writing to the Foreign Secretary, highlighting the factual errors and misconceptions that dominated Miliband’s speech. Hague ends the letter by writing: ‘Democratic politics is at its best when it is a civilised and constructive debate between different points of view. It is deeply regrettable that you have listened to those who prefer the politics of slur and smear. Your duty as the country’s Foreign Secretary is to support our nation’s good relations with our allies.

Iain Martin writes a typically insightful post on Labour's conference capitulation.  His central point is that Brown & Co. are following a misguided "no compromise" strategy: "These difficulties with the media are part of a wider problem with the so-called 'fight-back' strategy being used by Gordon Brown. It is based on an analysis which is highly unlikely to convince any voter to change his or her mind. In short, it runs like this: 'We have looked at the many opinion polls which tell us the vast majority of you think we’re untrustworthy and have messed up monumentally. But we think you’re wrong. We’re actually brilliant, and we’re going to keep telling you so, in a very aggressive fashion.' Who is going to be wooed by that?