Darling struggles to find consistency
Peter Hoskin 4:25pm
Alistair Darling's got an interview in today's FT, and you know the story by now. Yep, the government thinks that borrowing needs to come down drastically; extra growth would go towards cutting the structural deficit; there'll be the "toughest settlement" on public spending for twenty years, only it shouldn't be introduced too quickly; those bankers aren't quite as evil as previously suggested; and so on and so on. As we've said before, it's certainly an improvement on that fatuous investment-vs-cuts line. But you've got to wonder whether the public will find it credible, in view of what Brown & Co. have said, and done, in the past.
Reading the complete transcript, a couple more inconsistencies jump out as Darling struggles to merge his more honest approach with some of the government's pre-existing attacks. One comes when the Chancellor criticises the Tories for wanting to cut spending earlier than Labour would, from this year on. This, he scoffs, would take "another £25, £26 billion out of the economy ... and ... [the Conservatives] can’t say what the effect of that would be." But, eager also to attack the substance of the Tories' deficit-reduction plans, Darling also says:
"If you look at what [the Conservatives have] identified, they’ve identified less being spent, consultancy on advertising. Well, we’ve already cut those budgets last November. There’s the abolition of tax credits over 50,000. Well, the amount of money you save for the actual over 50,000s is not much. Where you do make savings, and savings are identified, takes you down to people whose incomes are ust about 30,000."
Hang on. The government have already implemented a chunk of the Tory cuts, or think the Tory cuts don't save enough? Ok, there may be a legitimate case about whether the Tories have given us enough detail. But this will be difficult for Labour to make if they're also conjuring up the spectre of savage Tory axes falling come June. The message comes across rather mixed.
And then there's the confusion over the government's own spending plans. The FT's men, Chris Giles and George Parker, rightly concentrate on the disconnect between Darling establishing a target to halve government borrowing over four years, on the one hand, and saying that the fiscal climate is too uncertain to detail any spending plans, on the other. This is where Darling seems most uncomfortable, and he even seems to concede the point:
"You’re right. You do need the spending plans and you do that in the spending reviews because you then will have a better idea of how much you’re going to be spending on unemployment, how much you’re going to be spending on debt interest, how much you’re going to allocate for current expenditure."
To be fair, Darling does go on to say that he'll provide more detail on spending in the Budget. But will that really clear up this central inconsistency? CoffeeHousers, over to you
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Nash
January 19th, 2010 5:23pm Report this commentLabour always wreck the economy - it's in their DNA. Why is anyone surprised!? Did Brown's father not tell him to be truthful and honest! Why should anyone has non-numerate as Brown have been any good as Chancellor.
badger
January 19th, 2010 5:38pm Report this commentWhat does it matter if Darling says he will halve the budget in four years. If Labour was to win again, he wouldn't be chancellor, and Ed Balls would do what he wants.
Spotty Spider
January 19th, 2010 5:50pm Report this commentDarling is at least two laps behind Osborne. He is desperately trying to cach up and now that Balls and Brown are no longer trying to trip him over, he is finally building up speed. His problem is that he has left it so late in the day to
Holly ......
January 19th, 2010 5:53pm Report this commentbeing completely thick here, what figures will Darling use for the April budget?
Where will he get these figures and will they be accurate?
Then with the election supposed to be in May,he would then have the spending review,
after the election as stated at the time of the November PBR.
What will the spending review do to the April budget?
Me being thick I would have my spending review first ...THEN base my budget on that.
Alan
January 19th, 2010 6:11pm Report this comment" This, he scoffs, would take "another £25, £26 billion out of the economy ... and ... [the Conservatives] can’t say what the effect of that would be." "
A tax cut does not take money out of the economy. Unless you assume the only money in an economy is that which is spent by the Government. If the money is saved by savers it will be lent out by banks. If it is used to pay off debts it will reduce risks in the future and return to the productive economy via wages, dividends and profits and some of that will be taxed. If the money is spent on things it will help keep the productive side of the economy ticking over.
A tax cut does not remove any money from the economy.
2trueblue
January 19th, 2010 6:29pm Report this commentI am sure Darling is a good man but he has left it all too late. Liebore are frantically trying to rubbish anything Osbourne is putting out and then rearranging the letters and using some of them.
The thing is you have to understand it first, Liebore do not, so they can not fix it. The mess will have to cleaned up by some one else. So, sorry Darling but you missed that bit. Anyway Balls-up is near by.
Battle 2807
January 19th, 2010 8:43pm Report this commentEr, excuse me, but am I the only person who watches the debt counter in the top right hand corner, and is filled with dread - particularly the 'average family' part. This part seems to be rising faster and faster. It would seem that each family's contribution has gone up by some TWO HUNDRED POUNDS this week. This week!!! And its only Wednesday.
Why is this not the lead story in the Spectator Magazine - or perhaps you could mention it in your column in the NOTW, Fraser.
Chris lancashire
January 20th, 2010 1:10pm Report this comment2trueblue : Darling is not a good man. He is merely trying to put a front on to the fact that Labour are refusing to properly address the crisis they largely created.
Not to publish spending plans now is inexcusable. The Labour Govt. knows what is required, refuses to face up to it or to tell us - the taxpayers. Darling is as culpable in this as Brown, Balls and the rest of these useless incompetents.
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