Wednesday, 29 October 2008

PMQs - Brown haunted by his own economic legacy

I actually attended PMQs at the House of Commons for the first time today which was good fun. From where you sit you can only properly see one half of the Chamber and have to lean over quite far to see Nick Clegg in action.
As I watched the Commons fill-up ahead of PMQs I saw David Miliband enter and plop himself onto the frontbench like a school boy. He then proceeded to pull both his extraordinarily freakish long socks up to almost his knee. Odd bloke.
David Cameron picked up where he left last week asking whether the Prime Minister would finally now admit that he was wrong to have said he had abolished boom and bust given all the poor economic data. Surprise surprise the PM also picked up where he left off from last week and did not answer the question.
Cameron then shifted to Brown's economic fiscal rules. The Leader of the Opposition wanted the PM to admit that these were now dead despite Brown saying repeatedly over the last 10 years that they were vital to ensure economic stability. Gordon Brown admit anything? Of course, not. So Cameron fired back saying that Brown had previously said that the fiscal rules were for all economic cycles. A good line as Brown now claims they can be 'changed' because circumstances have changed. Cameron then reminded the Commons what the fiscal rules were. Labour MPs didn't like this one bit. Cameron said they were happy to hear about them when Brown used to lecture the House but obviously not now that they were being killed off. If Brown was not going to admit mistakes and be honest then Cameron effectively said he would declare the fiscal rules dead for him. He said the Golden Rule was dead because the government was not borrowing for investment but was now borrowing to pay unemployment benefit. Cameron then said the Sustainable Investment Rule was also now dead because the government would go over its own 40% threshold with its planned increases in borrowing and spending.Cameron said the fiscal rules had not delivered responsibility in the good years and now we're in the bad years they had collapsed. He said the PM didn't have a plan, just an overdraft.
Cameron then moved on to the issue of whether governments should try and spend themselves out of recession. Brown had, up to this point, held his own against Cameron - despite not answering a single question. But i thought from about halfway through their exchange he started showing signs of anger - Cameron clearly getting to him - and he began to lose his way. He tried to say the Conservative policy was in disarray by trying to use a Cameron quote about the need to borrow out of context and link to an article Osborne had written today saying the Tories would not borrow and spend. The problem for the PM was that he kept on using the Cameron quote and it made him look like he had run out of ideas for ways to attack the Tories. Cameron came back with a quote from Brown when he was Chancellor in 1997. The mention of 1997 had the Labour benches shouting at Cameron. Cameron, as quick witted as ever, fired back unscripted: "Oh, is this the new fiscal rule: nothing said 10 years ago is allowed to be mentioned." It got a big laugh in the Chamber and Gallery. Cameron's Brown quote was from the 1997 Labour Party Conference and it hit home. Brown had said government's should not spend their ways out of recession - exactly what he is now telling us needs to be done. Brown's comback was a tired one. He said borrowing was the right approach and then just repeated what he has said many times that the Tories do not have any policies.
As for the exchange between Nick Clegg and Gordon Brown, the Lib Dem leader made the case for tax cuts for the most needy and called on Brown to close the financial loopholes which wealthy individuals and companies exploit to avoid paying the full amount of tax. Brown said he was helping families but could not do so if he followed the Lib Dems and cut spending. Clegg retorted by accusing the Prime Minister of being unable to tell the difference between redistributing taxes and cutting them. Brown was dismissive once again of the Lib Dems and has taken to just saying their economic policy is not credible because they seek to fund their tax cuts through cuts in public spending. It is a brave economic stance taken by Clegg but he is exposed, especially as Cameron has decided to hold the centre ground and not follow suit with the offer of tax cuts - clearly because he does not want to expose himself to these type of attacks from the PM, though there may be safety in numbers.
PMQs Ratings
Gordon Brown - 6/10 - Held his own to begin with but the potency of his attacks declined and he lost his way towards the end repeating himself. Also, loses points for not answering questions put to him.
David Cameron - 8/10 - Is offering a decent critique of Brown's economic legacy making sure it will haunt him for years to come. Good points on fiscal rules and spending and showed quickness of mind.
Nick Clegg - 7/10 - Good question on offering tax cuts showing smaller state would be better than Brown's big state solution though as always difficult to make an impact with just two questions.

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