One thing is clear from this afternoon's Pre-Budget report is that Labour has now comprehensively abandoned the centre ground of British politics.
With prudence thrown to the wind, income tax up, a £1 trillion debt explosion...this was not a party interested in taking difficult decisions to get the country through a recession, this was a party gambling all on a mini-boom to get it past the next election.
Instead of restoring confidence by getting its own finances under control, instead of practical measures to help companies in difficulty (like reducing employers NI, which went up instead), instead of telling people the truth about a long and painful recession, we had a Chancellor still peddling the lines that no one believes, not least that his "made in America" recession would be over by the end of next year.
Sadly today is likely to have made the recession deeper and more painful. How will a 45p top rate of tax help the City get back on its feet? How will a £1 trillion national debt persuade banks that they can trust government guarantees over their debt and start lending? How will a temporary VAT bribe restore consumer confidence when they know higher taxes are round the corner? When it comes to this crisis, what matters for this lot is the election and not the economy.
