Expect more "fine print" on spending soon
Peter Hoskin 10:45am
Sifting through this morning's papers, you'd say that it's mission accomplished for George Osborne's speech yesterday. The realigned Sun demonstrates how much it has got behind the Tories, by giving the Shadow Chancellor an absolutely glowing report ("the Shadow Chancellor came of age"). He also receives good-to-medium notices in the Times, the FT and the Independent, while the Guardian is more mixed, but hardly damning. In the Mail, Quentin Letts writes that "Yesterday the Boy became Boss George". And so on and so on.
You can see where they're all coming from. As I wrote yesterday, there's much that was impressive in Osborne's speech. But there were also some weaknesses on the policy side of things. Allister Heath puts it best in City AM:
"Yesterday’s proposals to trim spending are to be welcomed but amount to at best £7bn a year; yet the budget deficit this year could hit £200bn. Freezing public sector wages for those earning over £18,000 is a brave decision given the election is less than a year away; but it will save just £3.2bn in 2011. It goes no more than 1-2 per cent of the way towards eliminating the structural part of the deficit."
Osborne will need to do much more if the Tories are to win a mandate sufficient to the task awaiting them - and all of the politicos I've spoken to in Manchester recognise that. You can expect the Tories to set out more "fine print" around the time of the Pre-Budget Report.



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Andrew
October 7th, 2009 11:04am Report this commentWatching Newsnight last night, I was struck by how almost all of the criticism of Osborne, both from Jeremy Paxman and from his panel of political commentators, came essentially from the right, i.e. that he was not going far enough in terms of spending cuts to address the deficit problem. For me, this highlights the extent to which the media has come round to the Tories' side of the debate on spending and how out of touch Brown and Darling now appear.
Overall I was pleasantly surprised by how favourable the coverage was of what one might expect to be a deeply unpopular and controversial speech.
DavidDP
October 7th, 2009 11:04am Report this commentYou can see the benefit in not saying everything up front - journos see it as a potential weak point and attack on the "but you haven't done enough line" which makes Osborne's argument for him, allows him to agree with them and say that as they have said, more will be needed.
Very smart.
James
October 7th, 2009 11:04am Report this commentHave I entered some strange alternate reality, where the opposition is required to have detailed answers but the government, that created the mess, is allowed to get away with none?
Carly
October 7th, 2009 11:10am Report this commentWhen are the Government going to be hounded by the media as to where they will cut? Labour are getting away with painting the Tories as nasty cutters etc.
Jo
October 7th, 2009 11:12am Report this commentJournalists might want to know all the fine print but Osborne should not present a shadow budget. Remember what happened to Kinnock and Smith in 1992. He has gone far enough any further and the Tories are throwing away the next election.
Andy
October 7th, 2009 11:21am Report this commentIt's hilarious the way Labour stooges are pointing the finger at the Tories (in opposition for 12 years) as if to say:
"Yah, boo, sucks. This is nowhere near enough to sort out the unholy mess we've created. Call yourself serious politicians!"
Priceless.
My dream is that the FT (F****** Terrible) repent their New Labour beliefs and get behind the Tories because they are trying to be more open and honest about the structural problems our country faces.
Whilst New Labour spins and lies about the strong medicine that is needed to stop us sinking and becoming an undeveloping nation.
Come on FT!!!
Percy
October 7th, 2009 11:41am Report this commentIs it today or Thursday that we'll see an energetic Broon running down the loading bay of a Hercules in Afghanistan?
DavidDP
October 7th, 2009 11:46am Report this commentI see the idiocy of the Tories new grouping with a bunch of homphobes has now made the Daily Mail.
What stupid decision that was.
greenslime3
October 7th, 2009 11:47am Report this commentI'm just listening to Chris Grayling give his speech - seen more Go in a can of Pal!! Not an inspiring man - could wean people off mogadon
Reg511
October 7th, 2009 11:47am Report this commentThe BBC bias in it's reporting of the 2 main party conferences is a real story the MSM are ignoring. Not only are the statistics against the Tories, but also the publicly funded state broadcaster.
Nicholas
October 7th, 2009 12:11pm Report this comment"Have I entered some strange alternate reality, where the opposition is required to have detailed answers but the government, that created the mess, is allowed to get away with none?"
Yes, you have. It's the alternative reality of NooLabourLand, a cod-communist Britain of socialist propaganda where the BBC can be relied upon to make people view reality through rose-tinted TV screens.
Publius
October 7th, 2009 1:11pm Report this comment@DavidDP
"What stupid decision that was."
Why should you ally yourself with Euro-federalists when you don't want a Euro-federation? Now *that* would be stupid. Tantamount to voting Labour when you don't want a Labour government.
As for "homophobes", Jesus Christ! give it a rest. Before that they were supposed to be anti-Semites, until that myth was exploded.
Jack R
October 7th, 2009 2:55pm Report this commentI have no time for the extravagances and waste of the Labour and Lib Dem economic policies, but the Tories seem to be dogmatic in their anti-Keynesian deficit financing in the present recession.
Too many Tories seem to rely on using the false comparison of a private household's financial need to 'balance its budget', claiming that a government needs to do the same. It's quite normal for governments to have debts, but of course the scale and trend of the debt does matter.
A consequence of of an over-zealous 'balance the budget' drive is to bring in politically unpopular and unnecassary measures in a recession, such as increases in VAT rates, and top income tax rates, together with higher ages for retirement pensions.
For Mr Osborne to put up the pension age, to increase VAT rates, and put up top rate tax at 50% seems to
John Maynard
October 7th, 2009 6:12pm Report this commentThe election will be in Q2 2010, It will take the rest of next year to look at the books/mount an emergency financial statement etc.
These taxes won't apply before 2011, when, according to the economic commentariat, we will be in recovery.
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