Sir John Major attacks the Government's handling of the economy

Update: The report on the BBC website includes extensive quotes and has a video of the interview.

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Sir John Major joined the attack on the Government's handling of the economy this morning, in an interview with Andrew Marr.

He said that we were facing the worst economic situation since the Second Word War and that the Government's actions were now going to make the recession "longer and deeper". He also expressed the view that the unemployment figures were far worse than they appear due to the number of people on long term benefits who could be working and that he expected "an avalanche of job losses" during the first half of next year.

He did add, however, that talking in the same terms as the depression of the late 1920s and early 1930s was over the top, but that depression oratory was being used in order to help ministers justify the high levels of expenditure and borrowing.

"They are over cooking it because they are concerned and they want to justify the amount of debt they are getting into," he said.

Sir John said that the Government was right to recapitalise the banks but declared the VAT cut pointless - "you might as well have burned the money and thrown it away" - and said that he believed savers were currently "appallingly treated" because the amount they are earning in interest has dropped dramatically.

He proposed that the first £5,000 of savings income each year should be exempt from tax and also urged David Cameron to extend his proposed bank loan guarantee to homes as well as businesses.

And he reflected on the difficulty he had in handling the recession in the early 1990s because of a lack of public money to spend:

"We looked particularly heartless just sitting there. We looked very heartless and we paid a heavy political price for it. But we did kill inflation for a very long time."

Jonathan Isaby

Comments

[Malcolm Dunn]

You've missed the most important point he made Jonathan when he said the government were punishing the prudent to aid the imprudent which he thought not only bad politics but bad economics too.

[Iain]

It was also noticeable that the BBC gave Yvette Cooper the opportunity of a rebuttal to what John Major was saying, when did that curtsey become the broadcasting norm for Governments? So the BBC gave her the opportunity to set out the Government case before John Major, then a rebuttal to what John Major had said to ensure the people were left with the Governments spin in their ears. The BBC is a disgrace. The Government has the whip hand in setting the media stories, but that's not good enough for the BBC, they want their Labour Government to set the terms of the debate, as well as having free shots at the end to ensure the Governments message reins supreme.

[Patrick Ratnaraja]

Dear Kettle,

You are don't know how to handle the economy.

Yours

Pot

[Peter Holttum]

Correct John Major, but rather too late. This is a Ponzi scheme to defraud pensioners like me with no inflation proofed public sector benefits, in order to "make off" with the next election on borrowed money. Why are Cameron & Co so fearful of the government - God knows how they will exercise power if they can't do more than agree with Labour. We had Cameron echoing the government in the so called good times, and now much the same. Where is the economic beef in the Conservative Party. I'm giving up on you. I don't think you can come to terms with failure in the City, any more than Labour can - dependent as you have both become on funding from the Casino. Why are we not seeking resignations of the PM, Chancellor, Central Bankers, not to mention the various regulators - all of whom from Equitable onwards have failed every test. It defies belief to think that Blair would not have crucified us for this performance. I'm already over 10% down on my retirement income expectation next year. It's clear to me that the whole of Labour has been a Ponzi scheme since 1997. Just look at the numbers not working - up 2 millions since John Major, the exchange rates, and the FTSE which was 50% higher even in 1997. Where is the anger. Maybe we should hire Blair - he carved us up with his rhetoric to shift us out, and get himself, in. This in spite of being a do nothing know nothing prime minister for 10 years. If our party can't hold its own now, its dead in the water, and does not deserve power.

[Jamie]

Completely agree, Iain -- in the interests of balance we should always just hear one side of the argument and make our minds up on the strength of that. I'm wary that hearing an alternative viewpoint or having two positions to consider is a slippery slope to a police state.

Maybe in future however it might help the Conservative cause somewhat more if our case was put by respected figures from our present rather than discredited philanderers from the past.

[Another Richard]

Curious that the Conservative economic case is being put forward by Cameron, Major, Clarke and others but not by Osborne.

[Iain]

"in the interests of balance we should always just hear one side of the argument and make our minds up on the strength of that"

No, I don't think so, my argument was that the Government shouldn't be given two shots at getting their message across, when they are already in control of the news agenda, have Labour loving luvies interviewing them , and the opposition only has one go at it.

[StevenAdams]

Jamie:

Rubbish, the govt's case case given, answered and then given right of rebuttal. Iain's point is that the BBC goes to lengths to ensure that Labour's voice is heard that it NEVER goes to for the Conservatives. It's a difficult concern to illustrate but the drip drip effect is a massive coverage bias.

You have every right to whatever political view you like, but don't tell me the BBC has no bias.

[Jane]

The raid the Tory MP's office has shown everyone quite clearly that we are heading for a Police State and that the apparatus has almost been set up.

Cameron needs to show that he is against it. We don't have much time - he needs to show that this is an urgent issue and that he cares deeply about our freedom - that all the horrible bullying that councils are conducting against people for such things as non payment of council tax where vulnerable people have the demands posted outside their door for all to see, how children are being stolen from there parents under the slightist pretext, etc, etc, all the horrible bullying and nastiness that the overmghty state is conducting against the people. Cameron needs to show how he will dismantle it.

Also the Tories need to show quite clearly why Brown's money flushing is wrong. Senior Tories need to come our fighting. So this interview with Major is very important but there needs to be much more of it.

Why haven't we heard from Ken Clarke? The man who gave Labour a wonderful economy and look what they have done to it.

We need to show how other countries manage to keep their affairs in order without going down this ruiness path.

The other thing everyone needs to do this Christmas and now is pray for England and for Britain that this destruction of our country stops. This is the month of miracles, a miracle can happen to protect our beautiful country with its thousands of years of history, pray for it.
God Bless.

[Jack Stone]

Jane have you completly flipped.Firstly this country is not heading for a police state and secondly the country is going through a downturn not a terminal decline.

[Mark Fulford]

It was also noticeable that the BBC gave Yvette Cooper the opportunity of a rebuttal to what John Major was saying...

Yes, Iain, it was. I would love to hear Marr the Unbiased explain why he broke with the show’s normal format and gave Yvette Cooper a second bite of the apple – especially since it must have been agreed in advance.

[What did Ken Clarke think?]

Ken Clarke, 22nd November, The Times:

Government should, he says, consider cutting VAT to 15 per cent in the Pre-Budget Report on Monday - an idea that is certainly not Tory party policy. “If it's possible to afford a fiscal stimulus I would go for VAT because the only case for a fiscal stimulus is to stimulate spending and consumer demand, so the tax on spending is the one to go for. But it should be temporary.”

[Will S]

A statesmanlike interview. Needs to be more in the public eye.

[SuperBlue]

Jane, you are quite right - please ignore the Labour troll as the rest of us do. Even "Not now, Darling" acknowledged that this will be this country's worst economic conditions for sixty years i.e. a depression, although it may be an average recession in the rest of the world.

[Sally Roberts]

Yvette Cooper was certainly given a rebuttal - but she blew it in my opinion and did herself no favours!

[gfen]

Stephen Adams is quite correct. For the steady "drip, drip, drip," look no further than Radio 4. For the last 2 days every news bulletin has begun with the words "Gordon Brown".

[David_at_Home]

Please will someone ask Sir John Major what happened to the accounts of Mayflower plc when he was a director of that company and a member of the audit committee?

I see no reason why anyone should take his remarks about the economy seriously until he can give a satisfactory answer to the above.

[Julian L Hawksworth]

Firstly, ignore the "Labour troll".

John Major was merely describing the realities of our economic crisis, as well as some possible solutions. Good for him!

I also believe in the so-called "drip drip effect" (mentioned more than once in this post). As "StevenAdams" says, this is "a massive coverage bias".

[Eveleigh]

I am always impressed by the gravitas John Major has discovered since he left office.

[Jack Stone]

Ken Clark would make a great Shadow Chancellor if the party allowed him total freedom in that position of course. I suspect if he become Chancellor the first time he repeated his support of the Euro all hell would break out and the party would be split again from top to bottom.
The membership of the party is so obsessed by Europe and have such a hatred of the EU it is impossible for anyone pro-european to take any part in the leadership of the party and not cause divisions and arguments.

[bill]

John Major talks a lot of sense. He should know. It is a shame his premiership coincided with so much economic havoc in this country.

[William Blake's Ghost]

What's up Jack couldn't think of anything snide to say about John Major so like Labour always does you answer the question you fancy instead of the one in front of you?

Shame is just like Cooper's response to Major your comment is utter nonsense. Clarked ruled out coming back so it's pure delusional fabrication on your part. But hey what's new about that in your posts?

Please carry on copying Jacqui Smith with your 'if pigs might fly' debates. I'm sure there is someone somewhere who finds them entertaining (in the bunker perhaps?)

[jamie]

Yes Eveleigh - just a shame he didn't "discover" it when he was in office. I'd have thought that he'd still be keeping his head down in view of the other revelations that we have "discovered" since he left Number Ten, but obviously he has no sense of shame.

Had John Major's "attack" on the government been so forceful, thoughtful and well-put, a hundred Yvette Cooper rebuttals would have made no difference. (I admit I didn't actually see the interview because unlike you godless lot fawning at the performance of this shameless philanderer, I was on my way to church!)

[The Bishop Swine]

"John Major talks a lot of sense. He should know. It is a shame his premiership coincided with so much economic havoc in this country."

Absolutly and dare I say so does Ken Clark.
John Major maybe is one beast that is better off on the sidelines however:

. Ken Clark is far from a one-dimensional politician, and even if he was, he still represents the view of a large number of Conservatives, who recognize the reality of our position and our need to be part of Europe. So now the Euro skeptics are open about their non-democratic attitudes, which makes them as bad as the ass’s in the EEC who will not accept the No vote of the Irish. So what exactly is the problem? Do you fear that giving Ken a front bench job would bring the tensions in the party to the fore?” nobody looks less Bullingdon club than Clarke “ and this issue of the Eton “in” group is going to be one that Labour will exploit to the fullest extent in the run up to the next election. I think that far from not daring to use Clark, DC is wasting one of his very best guns to appease the relatively small number of euro-skeptics who believe that only by stifling this debate can they hope to win the next election. When the next election is lost (which is certainly a possibility) and Dave and his cronies have been chased to the backbenches, there will be plenty of people asking quite rightly why Clark and Redbourn were gagged. As it is the very many Europeans within the party, have remained disciplined in the interest of the party . Its time to reward these people with the return of one of their favorite sons. I believe that Clark alone of all of our MP’s, has the gravitas and knowledge to smash Brown in an open debate. He also remains immensely popular with the British public. I suppose you will think I am a Europhile and so feel free to ignore me, but the truth is I am as skeptical as most members of the “better off out” brigade about the EEC. It would be a massive mistake to believe that the Conservative party is only for the likes of the Eton and Oxford few. Nobody demonstrates this more clearly than Ken Clarke who’s Grammer school clout is sadly missing from our front line. Finally how ridiculous is the idea that Ken would undermine the Change agenda of the party? Let me put this bluntly, if you believe that change means giving away the party to a few toffs from Eton you are quite right. I also believe that Labour will likely make out that they are out of touch with the common people, regardless of the noises they make. It is absolutely essential, in the best interest of the party and the Nation, that the Tory front bench is about finding the very best people for the job, regardless of their social background. Leaving Clark out is a massive mistake and one that we may well come to regret. Just a final note, whilst the members of the party and the politically aware may well understand what DC means when he attacks the human rights legislation , the majority of people I talk to think he is trying to undermine the very few rights that Labour have left us with. DC should tread very carefully, around such issues as Human rights and minimum wage legislation, as many working people smell a reactionary rat. We cannot be elected without the support of many working poeple.
Major is one of the most underated PM's in History but many working class people knew that it was not his fault, rather it was a small group around him, that damaged his administration.Lets not underestimate the votes that John Major and Ken Clark can still secure. Use these two men wisely.

[Janet]

Brown has become the Mugabe of the Brtish economy

[The Bishop Swine]

"Brown has become the Mugabe of the Brtish economy"

Brown's policies are like cholera, they are a load of Shi* and they are killing our economy.

[Tim Montgomerie]

Brown is many bad things but he is most certainly not Mugabe. We don't help our case when we compare real evil with what is happening in Britain.

[Julian L Hawksworth]

I think that Tim Montgomerie has made a very valid point. It leaves us open to accusations of being extreme or cranks etc, however tempting it might be to get carried away with the rhetoric.

On the otherhand, the disgraceful treatment of Damian Green does spring to mind, when that comparison with Mugabe is made.....