PMQs - Brown saves the world

Well, it's official. Gordon Brown has saved the world!!!

How do we know? It came from the horse's mouth! Brown said at PMQs today in reply to a question from David Cameron: "We not only saved the world..."

Obviously it was an accidental slip by Brown. He meant to say 'banks' but it feeds into the hubris he has shown in recent months when he has claimed he has led the world in action to save the banking system and the wider economy from recession. Had Tony Blair made such a slip he would have made a self-effacing joke to laugh it off, but not Brown who instead bludgeoned on. I'll post it here on In the Brown when someone puts it up on YouTube.

As for the rest of PMQs, David Cameron went on the failure of the government's bank recapitalisation. He said that all parties had supported it but as the Bank of England Governor has said, bank recapitalisation was not just about saving the banks, but also about getting banks lending to companies and individuals again. Cameron asked the PM whether he would agree that recapitalisation was not working.

The PM ignored the part about banks not lending and insisted the action he had taken had saved the world... err... banks. (The opposition benches jeered and fell about laughing, waving their order papers at Brown after his mistake). Brown said no depositor had lost money and that steps were being taken to lower interest rates and increase lending. The Prime Minister said: "The Opposition may not like the fact we led the world but we did."

Cameron jumped up and retorted: "Well, it's now on the record. He's so busy thinking about saving the world, that he's forgotten about small businesses in this country." Cameron introduced a business case study about the effects of a lack of credit meaning a company had to lay off 11 staff. He then addressed Brown's claim that everyone had copied his scheme. Cameron said no other country had copied the details. No other country was lending banks money at 12 percent and asking them to in turn lend to businesses at 6 percent. The Leader of the Opposition said it had to change. Brown said Cameron had forgotten the government had set up a small business loan guarantee scheme of £1 billion, among other measures. He then sought to contrast and divide, reducing the argument to just "fiscal stimulus" vs. "do nothing" and once again said the Tories were pursuing the failed policies of the 1980s.

Cameron hit back saying Brown's fiscal stimulus had nothing to do with bank recapitalisation and getting banks to lend again. The Tory leader said he knew that Brown had been around the world boasting about his recapitalisation so was therefore reluctant to change it, but he has to. Cameron then quoted the Council of Mortgage Lenders who have said the government needs to sort out it's priorities, as its current economic strategy is "conflicting and incoherent." Why was this, Cameron asked. Brown said the Council of Mortgage Lenders supported his actions. The PM then went into full patronising mode - something he has started to do recently - and said he was sorry to have to teach Cameron what the economy was about and then preceded to talk up his fiscal stimulus, once again branding the Conservatives as the "do nothing" party.

Cameron fired back saying the difference between Brown and the Tories was that the PM is talking about saving the world, and the Conservatives are talking about saving businesses. Cameron said Brown could have spent more time on this had he not been wasting time on a pointless VAT cut. Cameron asked whether, on the day the government was "copying our welfare reforms," Brown would now accept the Tory proposal for a national loan guarantee scheme. The Prime Minister accused Cameron of refusing to put money in. He then attacked comments the Chairman of Public Accounts Committee (Tory MP Edward Leigh) has said dismissing the few pence poorer people could save as a result of the VAT cut on items they ought not to be buying. Brown said this showed up "uncaring Conservatism."

Cameron said why couldn't the PM just answer the question? He said others had welcomed the Tory proposal for a national loan guarantee scheme, including the Guardian who, in a dig at the government, manage to get leaks without getting arrested. Cameron asked Brown to swallow his pride and admit he needed to copy his proposal. Brown, once again in full patronising mode, said: "Again I've got to teach him something..." He said the government already had a loan guarantee scheme. He said it was an extension in the budget and on top of that the government had an export credit scheme, and was going to do more in next few days. Brown said it could not be done without preparation to put money in and accused the Tories of being on the wrong side of history.

Cameron retorted that Brown was on the wrong side of mathematics. He said Labour's £1 billion scheme helped just 0.2 percent. Trying to deflect Brown's jibes about the Tories being the "do nothing" party, Cameron said: "How can you accuse us of doing nothing, when we're announcing a multi-billion pound package to help businesses." Cameron then sought to portray Labour as the "do nothing" party. He said: "What did he do to put money aside for rainy day - nothing. What did he do to get real credit moving? Nothing." Rather cheesily the Tory backbenches joined in with the chants of "nothing" and were accordingly mocked by the Labour benches. Cameron finished up saying Brown had bankrupted the country and he was the only person responsible for the recession. The PM said Cameron had said only yesterday that he would spend no more money and would cut spending in 2010. "I think Tory party enters 2009 with same policies of 1980s. Say anything to disguise the fact they will do nothing."

A few minutes later, Nick Clegg, the Lib Dem leader, stood up to ask his two questions, criticising tax credits. He started saying that a single mother had come to see him in Sheffield but was interrupted by Members on other benches who for some reason found that hilarious - perhaps childishly thinking of the GQ interview when Clegg revealed he had slept with around 30 women. Once order had been restored, Clegg said the single mother had brought with her a bundle of letters from the government asking for tax credits back. He said they were asking her to pay back money she did not have and even threatened to drag her to court. Clegg asked was this the type of help people needed in a recession? Brown said that tax credits had gone up but promised to look at details of individual cases.

Clegg accused the PM of deluding himself. He said: "I know he thinks he's Atlas with the world on his shoulders" but 10 times as many people as last year are being taken to court on this. When will there be fixed payments, the Lib Dem leader asked. Brown replied that if the government used fixed payments then they could not be changed when problems arose. He said a flexible system helped. He said Clegg had to recognise that 6 million families have child tax credits and they had done more than any other measure to raise people out of poverty. Brown said if Clegg was committed to ending child poverty, then he should support tax credits.

VERDICT

Brown - 5 - He will rue saying he "saved the world." Was not on his best robustious form and his constant repetition of "do nothing," "failed policies of the 1980s" answers, although clever politics, are sounding very tired when continually delivered by Brown. It's a case of how you tell 'em, i guess...

Cameron - 7 - Sprightly performance. Was clearly up for it almost jumping up to the despatch box each time. Is making headway each week going on the failure of the banks to lend and is now employing retorts to try and neutralise Brown's "do nothing" attacks. Brown saying he "saved the world" was a gift to Cameron which he duly exploited.

Clegg - 6 - Decent questions about the inadequacies of Brown's tax credit system punishing people in a recession with threats of court action.