Uk politics

Rabble-rouser and bruiser-in-chief Charles Clarke has taken a hatchet to the government’s highly political Pre-Budget Report. Writing on his blog, Clarke argues: ‘He (Brown) felt that the main purpose of this pre-election Pre-Budget Report was to recycle his old political dividing lines.   This weakness can only come from fear of discussion of our past failures and fear that it is too dangerous to set out our future plans.   The real danger for Labour is that this weakness will pave the way to political defeat in 2010.’ The Labour leadership crisis has retreated from the limelight recently, but the spectre of internecine war after a whipping at the polls has not.

An argument put forward by some Labour types is that we're not really facing a debt crisis at all.  "Yes, the national debt levels are bad," they say, "but we started off at a low level in comparison to other countries, so we can absorb the deficits we're racking up." Well, you can take issue with the idea that we had "low levels" of debt before the crisis kicked in – but the real mistake this statement makes is to ignore the rate at which we've accumulated debt.  As the latest OECD data shows, UK debt is set to rise faster than any other nation save for Iceland and Ireland: The picture would probably look even worse if you accounted for all the off-balance sheet fiddles, like the toxic bank assets and PFI.

It has started. The Labour attack unit is out today talking about a "Tory VAT rise" - as per Paddy Hennessy’s scoop. Osborne stated his (to me, relatively paltry) position on the deficit: that he’d reduce it faster than Labour but can’t say how much. The Labour attack unit keeps partying like its 1999 with the "Tory cuts" line, now augmented with a "Tory tax rise." Here are the words which the attack unit has crafted for Stephen Timms, chief secretary to the Treasury: "George Osborne refuses to say what services he would cut or what taxes he would increase in order to cut the deficit 'further and faster' than Labour.

There were two possible strategic approaches Labour could have taken to the PBR. One option was to surprise everyone by actually making cuts. They then could have said, "we've made all the cuts we can. Anything else would really hurt frontline services". This would have put them in position to challenge the Tories as to what they would cut to reduce the deficit faster. The other was to be really populist. They could have carried on spending, bashed the bankers, soaked the rich, and hope that they could get away without a crisis in the markets until the election. Instead, they’ve fallen between two stools.

It has taken eight years, but Tony Blair has finally leveled with the British public and admitted that the WMD thing didn’t really matter: he wanted to depose Saddam Hussein anyway. That's what he has said in a BBC interview, presumably to pre-empt his appearance before the Chilcot inquiry. His chosen confessor: Fern Britton. His medium: BBC1 on Sunday. It has been trailed to the newspapers, including tomorrow’s Times. As it says: "He said it was the 'threat' that Saddam presented to the region that was uppermost in his mind. The development of weapons of mass destruction was one aspect of that threat. Mr Blair said that there had been 12 years of the United Nations going 'to and fro' on the subject, and he noted that Saddam had used chemical weapons on his own people.

I will sign off tonight with this sickening graph from the earlier IFS presentation – showing the extent to which Gordon Brown’s economic incompetence has transformed the public finances for a generation. Servicing this debt will absorb money that would otherwise be spent creating jobs, lifting people out of poverty, advancing education, promoting prosperity. The leading article in the magazine this week finishes with these words, which came to mind when I saw the above graph: “It will be no surprise if UK public debt has been downgraded by the election; if so, a gilt buyers’ strike will become more than a theoretical possibility. The new government will face a Sisyphian financial task, so formidable as to make almost every other issue of the day look trivial.