As Pete notes, Darling has committed the government to a Keynesian stimulus package. This is going to be funded by yet more borrowing, worsening the government’s already bad debt problems. If the Tories win the next election, this spending spree is going to leave them facing some tough questions about cutting public spending.
This is where the Office of Budget Responsibility, largely derided as a gimmick when it was announced just before conference, comes in. If the OBR demands spending cuts to reduce government debt, it will give the Tories cover for taking some of the tough decisions that are going to be needed to reduce what by 2010 is going to be a dangerously high debt burden. Obviously, this will only work if the OBR appears to be a credibly independent body from the off. It is essential that The Tories find a non-partisan heavyweight to run it if it is to serve this purpose.
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