A bleak outlook
Peter Hoskin 9:04am
Gloomy reading on the cover of the FT this morning – apparently, our economy's heading ever more swiftly to stagnation and slowdown. New data reveals that confidence in the housing market has hit “rock bottom”; retail spending is dropping; and inflation is sky-rocketing. A dangerous, fiscal cocktail, indeed.
Of course, it's far from good news for the Prime Minister. On a straightforward level, it makes his job more difficult – it's so much easier to reign when the economy's booming – but it may also make it untenable. As Fraser noted the other day – and as Peter Riddell writes in today's Times – people are turning against Brown over the economy at an astonishing pace. And, rightly or wrongly, they're now prepared to lay every fiscal problem at his feet. The housing bubble? Blame Brown. High food prices? Blame Brown. High fuel prices? Blame Brown.
The implication is that the more economic troubles we have, the more trouble Brown will be in – a reversal of what many said about this “steady hand on the tiller” when he took office last year. As Riddell puts it:
“His fate will be partly determined by the length and severity of the economic slowdown...”
It's hard to disagree.
For more on the economy – including news of yet another climbdown by Alistair Darling – head over to Trading Floor.
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Comments
Patrick, London
May 13th, 2008 9:40amAnd indeed much of the pain is his fault. Brown has pissed a trillion quid up the wall with nothing to show for it.
Without Brown we would have a much less testing picture on pensions, public debt, public sector waste, financial regulation, lack of reform, complex tax system, etc, etc.
The myth that he was a good chancellor is just that, a myth. He has done apalling damage and must now face the music.
Frank Pulley
May 13th, 2008 9:50amWell, if the Govern Gargoyle does decide to vacate his office in the near future, under pressure from his erstwhile 'supporters', then he should be able to pack the entire contents of his desk and filing cabinets in those bags under his fear-crazed eyes. It's good to see an extortionist suffer for his sins. But we musn't gloat too much just yet, given the fecklessness of 'la canaille.'
BrianSJ
May 13th, 2008 9:59amIn addition to Patrick's comment, Brown took to himself all the credit for the boom, so his protestations at global turbulence now are completely hollow.
Martin..Aberdeen.
May 13th, 2008 10:01amLabour and the International Monetry Fund come to mind...History repeating itself?...Please tell me I'm wrong?
London Calling
May 13th, 2008 10:31amWhether we like it or not, we are saddled with Labour for the next two years, regardless of whom is at the helm, it makes no difference, unless of course the remaining Labour Ministers regain what dignity they have left and reform themselves for the better and good for the people of Great Britain.
Yes we know all the negative, the treachery and the seismic mistakes that have been made, but if Westminster dissolves into Pirates of the Caribbean, then Britain’s resistance to all that comes thereafter would mean we are not prepared and have learnt nothing and consequently we shall all suffer.
We must break free from our divisions between each party and rebuild public confidence once more, after all it is the job Parliament is paid to do, enough of Punch and Judy, its now time for St George and King Arthur, I'll let you decide who is who, we shall know them by their nobleness, truth and courage,
Come on England...
We can do better than this?
mark
May 13th, 2008 11:03amodd that a the very same time that stagflation rears its ugly head and it all unravels on him, Broon has the impossible rescue act to manage whilst he busily undermines those he most needs to help him. By driving the engine of growth to re-domicile and reinvigorating the lefts hatred of the capitalist beast and fat cats, all for a quick and cheap political boost, he risks stabiliy and dear prudence yet again for the sake of saving his sorry ass
Water
May 13th, 2008 11:33amEven if the fiscal cocktail were to find itself defused, it seems hard to see how the PM will win back favour. Holistic resentment will ultimately seal Labours fate ‘if’ Tory sympathies remain at the current level.
Water
May 13th, 2008 11:50amJust read the Mail something nw has been devised ageing tax!
John Page
May 13th, 2008 12:08pmHousing? Stamp duty can't help. Hips can't help. Food? Support for biofuels can't help. Fuel? Remind me how much G Brown put up fuel taxes by. Energy? How much do renewables cost? Brown never ever cared about making life cheaper for people. If you want a microcosm of government waste (prop G Brown) see the Telegraph's coverage today of business support schemes.