Labour's new dividing line is a gamble
David Blackburn 9:10am
Alistair Darling has long suggested that the original dividing line between the Tories and Labour concerned Labour spending, which will stimulate growth, versus Tory inaction. And last week, Darling was quoted in the Mail on Sunday setting out a new dividing line between the parties by framing the “debate in terms of our cuts being better than their cuts”. It is a stance that presupposes Britain is returning to growth thanks to the government’s strategy. And that is the message of an opinion piece, titled ‘The cure is working’, penned by Darling in this morning’s Guardian. Here’s the key section:
‘The Tories have opposed our measures every inch of the way, but I make no apology. For me the cost of doing nothing, far from being "a price worth paying", would have been morally indefensible. Governments can and should make a difference. That's the clear division between our approach and that of the Conservative party. The international response, led by Gordon Brown, has been critical. By the end of 2010, the extra $5tn spent by the G20 countries to boost their economies is expected to increase global economic output by 4%. That is why international co-operation is imperative.I am determined the recovery will be sustainable and lasting, that no one should be consigned to the scrap-heap, like so many were in the 1980s and 1990s. The Tories were wrong then, just as they are wrong now – David Cameron and George Osborne appear to wallow in the prospect of swingeing cuts, unwilling to spell out their economic and social consequences.’
As I argued last week, Labour’s cuts strategy is risky, because if the government’s response to the recession is to be vindicated Britain has to return to growth much faster than expected. Even if that happens, Labour is probably beyond salvation. Put simply, their unpopularity extends far beyond economy mismanagement.
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mitch
August 31st, 2009 9:28am Report this commentEvery public sector non job culled and the person propelled into the private sector is a victory and a step out of recession.
5 a day co-ordinator currently £30,000 drain on taxpayer turns into burger seller(same qualifications) and £6,000 contributor to paying off browns debt.
Ray
August 31st, 2009 9:53am Report this comment"I am determined the recovery will be sustainable and lasting, that no one should be consigned to the scrap-heap, like so many were in the 1980s and 1990s."
Darling obviously hasn't read his own youth unemployment statistics then, has he.
Liz Brown
August 31st, 2009 9:54am Report this commentand at the same time taxes are set to rise - 2p on fuel, restoration of VAT to 17.5% income taxes to rise on those paid over £150,000 - yup - all will restore the woes of the economy and the fortunes of Libeore
Pete-s
August 31st, 2009 10:10am Report this commentI will have no problem in reminding them that McDoom stated categorically that we are 'better placed' to recover from the recession.
Swiss Bob
August 31st, 2009 10:12am Report this commentA contributor produced this list of Government liabilities for us:
Labour’s Six and a half trillion legacy.
So far I haven't seen anyone critique this list other than to knock a few billion off here and there.
No Government can pay down these liabilities with their present policies, if they don't change then Britain will surely default on its debt.
BigAl
August 31st, 2009 10:13am Report this commentThis is a less than subtle variance on Labour investment vs Tory cuts again. Massive spending coming up to the election to provide a false growth in the economy will quickly fizzle out as tax increases for motorists, business and high earners kick in. These are the rises announced so far!
cuffleyburgers
August 31st, 2009 11:26am Report this commentDarling seems to make his point more convincingly than his loathsome, useless boss.
At least his intervention merits a riposte.
A 4% boost to the global economy seems unlikely however, and the benefits to the UK economy are probably even sketchier.
Fraser - time to step up.
paracelsus
August 31st, 2009 11:50am Report this commentSuch dividing lines pre-suppose that anyone, outside of media hacks and bored political commentators, is actually listening anymore.
Nobody cares about Labour, they want a fresh start.
Fernando
August 31st, 2009 12:12pm Report this commentI notice that one of the dividing lines is that the Tories consigned people to the scrap heap in the 1980s, unlike Labour in the present recession.
It’s a myth that the Tories did nothing to try to combat unemployment in the 1980s. I remember YTS, Youth Opportunities and encouragement to stay in full-time education. However, it didn’t work, same as now, because there were no proper jobs once the schemes ended.
The key point is that it is when the economy is doing well that the workless need to be moved into paid employment. Those on the scrap heap need to be helped during the boom, not the bust. The Tories did not have a good record with this, but Labour also spectacularly failed during the boom years of the early part of this decade. Now that they seem to be backtracking on Purnell’s welfare reforms there is even less likelihood that they would be successful next time. Thankfully, they will not be given the chance, again.
colin c
August 31st, 2009 12:43pm Report this commentLabour are going to get hammered anyhow so I ask again: where's the risk?
HedgePig
August 31st, 2009 12:48pm Report this commentJim O'Neill's piece in today's Times suggests global recovery has started in Q2 and will be realised in W3. http://tinyurl.com/neq29h
jon
August 31st, 2009 1:46pm Report this commentSo why is it Labour and government policy to increase the population to 70 million?
David Barnett
August 31st, 2009 2:09pm Report this commentWhen did the verb "to critique" enter the language?
Andy
August 31st, 2009 2:24pm Report this comment"Governments can and should make a difference." Well, yes, but a positive one, not trashing the country!
Boudicca
August 31st, 2009 6:27pm Report this comment"Governments can and should make a difference"
Well this one certainly made a difference to the UK's lack of preparedness for the credit crisis. Gordon Brown spent every penny we had during the boom; increased taxes and spent that; borrowed billions more and spent that. At the same time he engineered an unsustainable property boom; encouraged massive immigration and paid hundreds of thousands of Brits to sit at home and live off welfare.
The Labour Government certainly made a significant difference to the scale of debt we're now in.
ultrabear
August 31st, 2009 11:47pm Report this commentGood luck with that, old bean.
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