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Sunday, 10th May 2009

Another blow to the Budget's credibility

James Forsyth 2:01pm

The expenses scandal is becoming more depressing all the time. There are no apologies forthcoming and too many politicians want to circle the wagons against any kind of scrutiny. As Jonathan Isaby notes, Theresa May is refusing to say any MP has behaved immorally and is instead “blaming the culture that has grown up in Parliament.” This is a quite shocking denial of the moral agency of the individual, the worst kind of crime is all society’s fault claptrap. As for James Gray, words fail me.    

There are, though, other stories developing that are worth keeping an eye on. The News of the World reports that:

“In a major snub to the Chancellor, boffins at the Bank [of England] will DOWNGRADE their growth forecasts in their Inflation Report on Wednesday.

They will say the economy will shrink by more than four per cent in 2009-not the 3.5 per cent that Mr Darling predicted in his Budget.”

It is becoming clearer by the day that the Budget was built on a set of Panglossian predictions. This means that the real state of the public finances is even worse than is currently believed to be the case. To compound the problem, we know that no repair work will take place this side of the election. Indeed, the rumours about Darling being moved, which Pete blogged about earlier, are a result of the belief that Brown wants to keep the option open of a pre-election spree in this autumn’s PBR and he knows that the Treasury under Darling won’t go along with that.      

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Verity

May 10th, 2009 3:06pm Report this comment

I continue to be intrigued by what Theresa May has on the entire top echelon of the Tory party that she is still at the top table.

The woman is not even qualified to be a lollipop lady, which at least takes judgement and the ability to foresee hazards. Every time this fool opens her fat mouth, she makes the party look ridiculous in the eyes of the uncommitted voter.

Writes James: "Theresa May is refusing to say any MP has behaved immorally and is instead “blaming the culture that has grown up in Parliament.” He rightly adds, "This is a quite shocking denial of the moral agency of the individual, the worst kind of crime is all society’s fault claptrap."

And therefore not what the Tory Party is all about, which is the responsibility of the individual. Yet another appalling misjudgement by Cameron. She should have been history years ago.

May, FYI, "cultures" in human society don't spring up spontaneously. They are shaped by people. Therefore your use of the passive voice signals a willful intent to mislead.

In other words, it's sleazy.

oldtimer

May 10th, 2009 3:25pm Report this comment

Perhaps if Four Flips Darling had paid as much attention to the nation`s finances as he evidently has to his own, we might have been a little bit closer to a balanced budget in 25 years time - or whenever that long distant day hoves in view.

The very idea of the notion that Brown is planning a pre-election spree in the Autumn PBR is disgraceful - more so even than the MPs expenses scandal. They need to get a tight grip on spending, not loosen it.

john miller

May 10th, 2009 3:37pm Report this comment

As I said at the time, are there no remedies for us when a politician lies so comprehensively?

Not because of the politics of it all, but because the foreign investors who have to buy the bonds and who may do their financial dealings in London will not be best pleased to have a bunch of liars in charge of the economy and the financial institutions.

Let's not forget, even the most conservative forecasts rely on a mighty recovery of the financial sector.

Silent Hunter

May 10th, 2009 3:38pm Report this comment

This state of affairs cannot be allowed to go on - we need to get out onto the streets and demand a General Election before this corrupt Labour Government completely destroy any chances of the next government being able to stand a chance of restoring some sense of normality in our economy.

jon dee

May 10th, 2009 3:45pm Report this comment

A test case is surely needed against say, a "flipping MP", under the Fraud Act 2006 to ascertain whether their conduct is indeed "within the rules".

Only then could we be satisfied that the concepts of honesty, integrity,accountability and openness had been met and that no improper financial benefit had been accrued.

Julian Boulter

May 10th, 2009 3:52pm Report this comment

I heard Theresa May on Radio 5 on Friday night. Left me in a fury. I have written to both my MP and Dave. Frankly I am close to voting against the Tories as well as the rotting corpse that is Labour. If Senior Tories like May cannot see what is wrong then there is no hope...

Austin Barry

May 10th, 2009 3:55pm Report this comment

Brown, his appearance becoming more sinister, venal and hideous by the day, should be forcibly restrained before he can embark on his final desperate, mad, scorched-earth spending spree. But who will stop him? Certainly not the supine, rear-presenting, non-alpha primates in the Cabinet and parliamentary Labour Party. We're done for chums, done for.

TrevorsDen

May 10th, 2009 4:18pm Report this comment

But I read that the BoE is talking about a strong 'V' recovery. Not sure about this but they are in a position to make a judgement. This - given all the QE going on must have an effect on inflation and interest rates, or are they conveniently going to ignore it?

The problem is that apparently gilt yields or some such are not lower but higher than before QE began.

Or is it the other way round. And this is the point - we morons do not know what is going on here. Except I fear that following this QE there is going to be an explosion - of inflation. the govt will talk recovery but ignore inflation.

CoffeeHouse should keep us intelligently informed.

John Austin

May 10th, 2009 6:52pm Report this comment

What a bunch of sleazy crooks. The Telegraph hasn't yet divulged the Tories' expenses; no doubt they'll be as bad as Theresa May's comment implies. Surely it is time for an option on the polling card 'none of the above'? Otherwise, there ought to be a determined campaign to have as many voting cards spoiled as possible. Recent events raise the question whether any of our MP's is worthy of the job? Yet it gets even worse, with the deliberate and dishonest fiddling of the Budget forecasts. Words fail me.

Dr Heinz Kiosk

May 10th, 2009 7:35pm Report this comment

We are all guilty.

Moraymint

May 10th, 2009 8:30pm Report this comment

God Almighty, how bad does this have to get before we flip into full blown street riots?

Probably, I know the answer to my own question. There'll come a time in the next 12 months or so when unemployment shoots into inner orbit on the back of Brown's lies, damned lies and statistics. Then, the chickens really will come home to roost.

Sir Graphus

May 10th, 2009 10:02pm Report this comment

The budget really did bury this govt; their utter irresponsibility was laid totally bare.

QE is an opaque enough term to pass over the heads of most people (though TrevorsDen is right to worry and highlight it).

But everyone understood that the borrowing figure was enormous and irresponsible. Everyone understood that the forecasts were absurd; irresponsibly optimistic.

Everyone understand that we're in the soup, and we're all tightening our belts. We're outraged that the govt has refused to do this with our taxes.

Gary

May 11th, 2009 9:17am Report this comment

The country is buckling under the consequences of welfarism.

Corporate welfarism let the banks run riot without being checked.

Public welfarism and the minimum wage traps many low paid or unemployed in the benefits system.

Parlimentary welfarism has left MPs of all parties being encouraged to behave without conscience through an egregious 'entitlement' culture.

That entitlement culture has been the ruining of this country from top to bottom. The decreasing number of us who are net taxpayers cannot take it much longer.

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