It's a glaring demonstration of just how confused Labour's message has become. On the one hand, they're boasting of their fiscal responsibility and the fact the they're going to introduce a "slowed rate of public-spending growth" from 2011. And, on the other, they're lambasting the Tories for the "slowed rate of public-spending growth" [aka, in Labour's lingo: cuts] that they'd introduce from 2010. As it happens, both parties will have to commit to much more severe fiscal tightening. But in the meantime, for a seasoned spinmaster such as Mandelson, it must be hell.“
"Just as importantly, when the government announced its borrowing plans last year, it made clear commitments to specified tax increases and a slowed rate of public-spending growth from 2011 onwards. This is a commitment that markets, in setting the cost of long-term British debt, have rightly taken very seriously. The pound has weakened, but there has been no sustained flight from sterling."