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Bringing back Peter Mandelson is the last nail in Gordon’s coffin
George Osborne, Shadow Chancellor10 Nov 2008
Later this week new figures on unemployment will add to the growing sense of gloom about the economy. The recent drastic rate cut was a sign of how worried the Bank of England must be. Its concern is borne out by the new independent forecast from the International Monetary Fund. Far from Britain being well prepared to weather the economic storms, as Gordon Brown has repeatedly claimed in recent months, both the IMF and the EU now predict that the recession in Britain is likely to be deeper than in any other major economy in the world.
As our Prime Minister heads off on yet another foreign visit, he leaves behind him at home the innocent victims of his economic mistakes. There is the father who has just lost his job, the small business that has had its loan called in, the family whose home is being repossessed and the pensioner whose income has plummeted. Many thousands of Britons struggling to cope in this recession are living proof that Gordon Brown's claim to have "abolished boom and bust" was one of the cruellest political frauds of all time.
As you would expect in a democracy, the harsh economic facts of life will create new political debate. The outlines of that debate are becoming more apparent and they offer Conservatives the chance now speak for the country at a time of national anxiety. It is right for us now to be the party of change and of responsibility.
There is now an overwhelming popular demand in Britain for change. Change was the theme of the American election and it will be the theme of the next British election. That is no coincidence. In both the US and the UK a near identical, and overwhelming, proportion of voters believe that their country is on the wrong track.
Mr Brown was acutely aware of the hunger for change when he became Labour's leader last year. It was always going to be a problem for the man who had been Chancellor for 10 years but "let the work of change begin" was his message on the steps of Downing Street. He forfeited his claim to be the agent of change when he cancelled the general election and tried his old stealthy tricks on the 10p tax rate.
Bringing back Peter Mandelson to the Cabinet for the third time, and attacking his opponents for being novices was the final nail in the coffin. He has made his fundamental strategic choice for the next election. He will be the candidate offering more of the same. And by deciding not to ditch him this autumn, the Labour Party has also made that choice. I believe together they have made a huge mistake.
The country doesn't want more of the same. The Conservative Party can now answer that desire by being the undisputed voice of change in British politics. We are doing that with our radical social agenda in areas such as education and prison reform. Now we will show that Conservatives, too, can offer change for people suffering from recession.
We have already said that we will help freeze the council tax for families. To help small businesses we would introduce a VAT holiday for small firms, reverse Labour's rise in their corporation tax and cut employer national insurance for the smallest businesses.
But much much more needs to be done. We will not stand by as jobs are lost and homes are repossessed. In the next few days you will see a modern Conservative Party offering real help and positive change to the innocent victims of Mr Brown's recession.
If the next election is clearly going to be a battle between change and more of the same, it also looks like being a battle between fiscal responsibility and gross irresponsibility. Mr Brown has again made a big strategic choice, and a huge economic mistake. He has abandoned not just the reality of prudence but its language, too. Gone is the talk of fiscal rules and the evils of unfunded promises. Government spin these days is all about spending splurges, unfunded tax cuts and the virtues of ever higher borrowing.
Don't underestimate what a departure this is for the man who for 15 years made prudence his rhetorical companion. Everyone now sees that it was never matched by reality. At the end of a 10-year boom, Britain finds itself with the highest budget deficit of any major world economy and the fiscal rules unceremoniously dumped. Given the state of the public finances, borrowing beyond what the recession requires without being clear how the bills would be paid would, in the words last week of Mr Brown's first Treasury Permanent Secretary Lord Burns, be "very dangerous". That is not language mandarins use lightly.
What should the Conservative response be? Some think we should follow Mr Brown down the road of irresponsibility. If we did, we would give carte blanche to the Prime Minister to risk still further Britain's reputation in financial markets, burden this country with a mountain of debt that could take a decade to pay off and strangle any future recovery with huge tax rises. That is the wrong thing for our country.
Starting three years ago, we have argued against unfunded promises, insisted that tax cuts such as inheritance tax be paid for and have proposed an independent Office for Budget Responsibility. Now we will become the only party of fiscal responsibility and prudence. We argue that borrowing has its limits, that spending splurges never work and unfunded tax promises mean higher taxes later.
And we can rely on the common sense of the British people who can spot the difference between a tax cut and a tax con. Lower taxes would help families and businesses in these difficult times but they should be properly funded. We should do the hard and honest work of identifying how lower taxes can be paid for.
This autumn the Conservatives can become the undisputed party of "change" and "responsibility". In doing so we will speak for a country crying out for both.
Reader views (37)
George, you've been spending too much time watching McCain and Palin. In the UK hurling abuse at your opponents suggests that you have nothing sensible to propose. Perhaps you should put your party first and resign and let a more constructive politician take over. It worked for Obama.
- S Lloyd, Acton England, 12/11/2008 10:10
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Alex I see you managed 6% of the votes when you stood for Labour at Wandsworth. Not much of a vote of confidence for Labour then. There will be even less come the election, unless of course Brown cancels it in "the national interest".
- Albert Hall, kettering, 11/11/2008 18:09
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Alex Lisinge, Putney London
Was Blair from a poor background? No! And neither was your precious Mr Brown...his father was a middle class preacher, and Brown has absolutely no consideration for the poor. I have no idea where you acquired information that he helps the poor. Obviously a besotted fan who can't see the light.
Let's have some constructive arguments here rather than labour party spin and propaganda. It just doesn't wash and is becoming tiresome as reality tells a very different story.
- Tom W, London, 11/11/2008 16:36
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Alex Lisinge, Putney London...dream on Alex...labour is finished for one reason... the total destruction of a once great economy; how do you lie yourself out of that one? Unfortunately for you, a lot of people in this country are so much better informed these days (with the internet etc), so labour's lies and propaganda will only last so long before people see them for the lying, cheating lot they are. I agree the tories need someone stronger than Cameron, but if your adored leader, the numpty Brown, called an election tomorrow, he would NOT win!
- Tom W, London, 11/11/2008 16:14
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George Osborne, you might fool some people sometime, but you can't fool all the people all the time. The onus would be for the conservatives to beat Labour in the next general election. I predict a Brown win and the obliteration of the Tory party. Michael Howard thought change means putting young Cameron and Osborne to head the Tory party bearing in mind that they are empty vessels.We need substance. History has proven politician could be taken seriously not only from what they say but from their past. Look at Obama he was working for the poor. Brown the Preachers son comes from the same background. Cameron can not tell us if he has used drugs and expect us to trust him. If the Tories really want to change. then they should join the Labour party
- Alex Lisinge, Putney London, 11/11/2008 15:27
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Final nail in the coffin, eh? This from the Party that has thrown away a 25% lead over Labour in barely six weeks. The Party whose share of the vote went down at the Glenrothes by-election, the type of electoral form only William Hague would be proud of. The truth is that Cameron is the Tory Kinnock not the Tory Obama. He might have manouvered the Tories away from oblivion but he is way, way off being considered for Government. The earliest Tory victory is at least two terms away - ie a decade - and it's likely to be a new leader, the Tory Blair, who achieves it and not David Cameron, the Tory Kinnock.
- Ian London, London, 11/11/2008 15:01
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Johnny Fiston-Hewes, United Kingdom
Johnny, you couldn't be more wrong. Mandelson is hated by the people of this country and I reckon he will bring Brown down with his crooked and dishonest practices. He lies and the press choose to print his lies. And then we come to the loony Brown; he lies aswell and is getting away with an awful lot at the moment, but soon the press will turn....just you wait. Brown caused this 'global' crisis (along with the US politicians)with his greed and bad economic policies, and well he knows this. He has nothing more to lose by continuing to lie and decieving the public as he knows his days are numbered. He will go down in history as the chancellor/PM who totally destroyed the economy of this country.
And regarding poor naive George and Tory policies; in the past few years, whenever the tories have announced a new policy, the prudent Mr Brown or the crook Blair have unashamedly stolen it!!(another of labour's traits). If I was the tories, I would keep my policies quiet until the election or the low life labour scum will nick their policies.
- Tom W, London, 11/11/2008 14:02
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"Undisputed party of change" - then why aren't you proposing any.
What we need now is not empty promises of change and political bickering (I'd say the dark lord has won his feud with you hands down) but some actual ideas.
The Populus poll today shows that people have realised that you're not coming up with any.
- Johnny Fiston-Hewes, United Kingdom, 11/11/2008 11:14
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“In this battle of the Black Arts, Boy George is no match for a Mandy scorned.”
I find it astonishing that anyone would laud the anti-politics for which Mandelson is famous. In America we’ve just seen the electorate vote for the guy who tells people what he will do, not what the other guy won’t, and I hope and pray the British electorate will follow suit when given the chance, leaving these masters of spin and, bizarrely, heroes to some because of that, out on their ear and facing the remainder of their careers in opposition.
We saw from the catastrophically backfiring attempts by Mandelson and Rothschild to stitch up Osborne, however, that Mandy has clearly lost his “skills”– I think he is under the assumption that the British people have not wised-up to his very obvious attempts to spin and distract his ways out of trouble. I guess a few years in an EU-funded ivory tower is to blame for his misunderstanding of us.
- St, London, 11/11/2008 09:49
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Well, Labour have actually won something since Mandelson's return... I don't think that's coincidence, far less the last nail in Gordon Brown's coffin.
- Callum, Chiswick, 10/11/2008 21:33
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The question to ask is do you want another five years of the Labour Party and Gordon Brown in charge of your money having blown it for 10 or more years of the past and for the future? If the answer is yes then you will get what you deserve. For me I will be off before Gordon calls the next election and avoid paying for his mistakes with my money.
- Albert Hall, hove england, 10/11/2008 20:45
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Come on George. You are supposed to be focussing on Tory tax policy, not on prolonging your feud with Mandelson. He happens to be a pretty good guy when it comes to spin, and he is working very well - objectively speaking - for the Labour government. You would be better writing about what the Tories would do in government and how you would go about sorting the country out, not whinging about the opposing team's line-up when you yourself were found wanting a few weeks ago.
Get off your bottom and get going, otherwise you might find yourself out of a job in 18 months' time.
- Louise Stanley, Reading, UK, 10/11/2008 19:40
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What did we expect from Gordon with a Phd in the history of the labour party in Scotland between 1921 and 1928?
He wouldn't be qualified to run my household budget.
- David, London, 10/11/2008 18:01
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"Bringing back Peter Mandelson is the last nail in Gordon’s coffin"
Could well be,but I daresay this preening, ululating creep (I'm talking about Mandelson here, not Osborne) has a battery of sharp weapons in his pneumatic nail-gun.
He doesn't strike me as a one-shot sort of fella.
- Karli, Tottenham, London, 10/11/2008 17:41
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Those economists seeking a way out of the current mess would do well to review the strategy of Adolph Hitler during the years running up to WW2. Public works involving the autobahns and Forestry projects were just two of his initiatives, as was excluding those aliens then residents in Germany who did not contribute in any way to the progress of the country, In the UK we have matters such as coastal erosion and land reclamation shouting out for attention. Areas of the country now subject to yearly flooding are a and political worry, and then we have at our disposal vast reserves of coal which is said will be available well into the next century. Surely such National projects as those would considerably reduce our unemployment figures, and thereby inject vigour into out stuttering economy which, bringing another serious point into play, is now sadly disrupted by the vast chasm existing between the working classes and the thousands of mega-rich individuals monopolising many areas of life such as banking, commerce and entertainment, who should now be severely taxed on their earning in order to strengthen our welfare system.
- Robert El-Cid,, Hull, East Yorks.,, 10/11/2008 17:28
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In this battle of the Black Arts, Boy George is no match for a Mandy scorned.
- R James, Bristol, 10/11/2008 17:25
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"Last week the 'cupboard was bare', and offering tax cuts was a con. Now all of a sudden he is proposing to offer unfunded tax cuts as well."
Except that's not what he's offering, Val. He is offering funded tax cuts - paid for by cutting some waste from our bloated government. Offering unfunded tax cuts - which is what Brown is likely to do - most certainly is a tax con because it will most likely have to be paid back. It's a sign that the cupboard is indeed bare that Brown has to borrow to offer said cuts as well. Brown has a history of tax cons; this is no different.
- David, Kent, UK, 10/11/2008 17:20
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It beggars belief that reading these comments there are still sheep out there who seriously believe Brown is doing a good job. You either have very little fiscal knowledge or choose to believe lies fed to you via the govt media machine. Either way, it's a sad state of affairs when an unelected PM destroys a countries' once good economy and continues to dig a deeper hole just to appease the electorate. Brown is an absolute disaster who should be tried for crimes to the state. He has no idea what he is doing...apart from bankrupting the country.
- Tom W, London, 10/11/2008 16:52
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I think the public's perception of smarmy Osbourne and his oily best friend Cameron is pretty unanimous. The public may want change but this pair of overrated pompous chancers are simply a pale imitation of the; insufferable, religious zealot and right on guy, Blair. Conjuring up a shining vision, the beacon on the hill and the rest of the clap trap the lumpen masses crave has done the trick for Obama, just like it worked for Blair. Unfortunately for Osbourne and Cameron they are no Blair or Obama. They simply lack personality and are a pair of shallow ambitious clubbers. Their past experience of any thing worthwhile is nil. If they persuade the masses to suspend belief long enough to pull of the vision scam then anything is possible. Obviously the Tories past record of destroying manufacturing and replacing it with unskilled minimum wage call centers, cleaners, shelf stackers and door openers etc, will not be brought up and used as part of the vision for the future.
- Sid, London, 10/11/2008 16:48
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You can’t have a VAT holiday, because it’s set by the EU. This is the official opposition – sheesh !
- Alanw, UK, 10/11/2008 16:47
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Carl, London
The tories have never had much success in Scotland.....it is a labour stronghold, or perhaps you didn't know that. Without Scotland, labour would never have won in 1997. I don't think it worries the tories too much when they lose their deposit in a labour safe seat. What will be hilarious will be the next general election when we shall see members of this inept and incompetent government losing their seats and deposits....I can't wait. I even hear that the numpty Brown is considering a May election next year!! When he finally goes, he'll have an awful lot to answer for...not just in the UK but worldwide, as his economic policies and actions (not to mention his lies and deceit) have contributed hugely to what he keeps calling a 'global' recession.
- Tom W, London, 10/11/2008 16:43
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Terry Devlin [Camden] should realise that his Comic Book Hero is now suddenly transformed to Crash Gordon.
George Osborne, you should be patted on the back for stumbling upon our 'Lord of the Flies' in Corfu, thereby revealing his dark web of international intrigue and exposing his habitual mendaciousness.
Well done.
- Dave, cumbria, 10/11/2008 16:36
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Is this the best Gideon can manage? It's about time he followed in the steps of his hero, John Redwood, and became Shadow Welsh Secretary. Here's a tip Gideon, learn the Welsh National Anthem.
- Tommy Cockles, Acton England, 10/11/2008 16:36
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So Good time George is still alive. I was beginning to think that his mate Dave had locked him in a cupboard. Talking of the undead we seem to have echoes of Thatcherism with the Tories promising Tax cuts and trickle down economics to solve the recession. It would be nice this time if they would promise not to put VAT up to pay for massive tax cuts for the very rich. Last time they increased from seven and a half percent to fifteen percent to pay for income tax cuts which go mainly to the highest paid. Thatcher like Camoron believed that VAT and the Community Charge were not Taxes.
- Arthur Atkins, ealing England, 10/11/2008 16:30
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Tax cuts are not natural Labour instruments, but in this environment it probably is necessary, but not an exclusion Labour intitiative.
The difference will be in how to fund the cuts.
Labour:increased borrowing.
Conservative:Cutting public sector waste.
Liberal Democrats:taxing the richest.
We'll see how they make their cases and who are more convincing.
- Michael, Surbiton UK, 10/11/2008 16:14
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Terry Devlin, camden
Super Gordon!!.....you're having a laugh aren't you? He has single handedly destroyed this country.......you numpty!
- Tom W, London, 10/11/2008 15:42
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If the Conservatives are the "undisputed voice of change", why is it that you lost your deposit in Glenrothes? You really need to work on something that they call "a policy" and come back when you have finished it.
- Carl, London, 10/11/2008 15:31
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Good old Val in sunny Spain, so quick with the clap-trap, take my advice Val and listen to what Cameron is saying -NO UNFUNDED TAXES--cannot be clearer can it. I.E: NO MORE BORROWING. You are living in the right place Val where once Facism flourished and now you display your facist tendancies by trying to pin the blame for your Socialist Labour Party with its crooks and shysters and its distruction of a once great country onto the conservatives who have been out of power for nearly 12 years:- shame on them and pity on you. ADIOS
- Brian Hunwicks, Spain and glad to be a Conservative, 10/11/2008 15:25
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It a pity that people like St. did not learn British Constitution at school as in this country we have a prime minister who is chosen by his party and NOT a president elected by the people.
And as Labour still have a working majority Gordon Brown can remain PM until the full 5 year term is up, if he want to. Just like John Major (remember him he became leader after Lady Thatchers Tory party forced her out, no call for General elections then!).
As for unemployment and tax well the tories made 3 million unemployed and doubled rates of VAT to 15% so who wants to go back to those disasters again.
Mandleson is good at one thing and that is WINNING ELECTIONS and it is that what frightens the tories as David Cameron and policies is like the contents of ole' mother Hubbards cupboard only with the tories its the whole house that is bare. Well we all remeber all their sex scandals so no change there.
Anyway the best present the tores gave to Gordon was the Bufoon inhabiting City Hall who is showing the mess his old school mates would make in Britain by leading the way in London. I suppose BOJO expects East Londoners to walk on water if they want to cross the river.
- Melvyn Windebank, Canvey Island, Essex, 10/11/2008 15:24
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Val Daniels needs to pay attention. The whole point of the tax cuts the Tories are likely to propose is that they 'are' funded - by reducing government waste. Do you honestly think that the government spends every pound of your money wisely? And offering tax cuts by borrowing - which is what Brown is going to do - is both a con and a sign that there's no actual money left without looking for waste and efficiency savings.
- David, Kent, UK, 10/11/2008 15:17
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"Bringing back Peter Mandelson is the last nail in Gordon’s coffin." - no it's not. While it has casued embarrassment, it's for the Tories not Super Gordon!!
- Terry Devlin, camden, 10/11/2008 15:06
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We have a Prime Minister with no mandate, appointing a twice-disgraced former Minister to the Lords to avoid the need for Mandelson to win a by-election. That's a clear indication of Brown's disdain for our democracy. Mandelson is probably the most loathed politician this country has produced, other than the great Bliar and the current occupant of No.10. I agree that he is no asset to Labour.
This country does need tax cuts, but not by borrowing more money. We need less Government waste, so cut the Quangos. Employers NI should be cut to try and reduce redundancies and personal tax allowances should be raised. The Tories need to start preparing for a fight, because indications are that Gordon is preparing for a General Election next May.
- Wat Tyler, Leatherhead, England, 10/11/2008 14:28
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George Osbourne is absolutely right. The grotesque image of Mandelson making a third appearance in a helpless and hopeless government that relies on his discredited spinning techniques is the saddest spectacle. The truly pathetic effort to spread anxiety in a disenfranchised electorate of a "novice" (hello Obama!)shows how some old class warriors are desperately trying to cling on.
- Delphine, Oxford, 10/11/2008 13:56
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“There is now an overwhelming popular demand in Britain for change”
Great article George and if you can see the above, surely Brown can as well? Instead of giving us our right to vote, he is desperately clinging on to power for no reason other than his own, pig-headed stubbornness. We didn’t elect Gordon Brown and it’s time he put the country’s interests ahead of his own by stepping aside or calling an election.
The Conservatives are right to consider the victory for Obama a positive sign for them – Labour should be left in no doubt that this country wants and needs change, and the man under whose watch the credit crisis unfolded cannot and, perhaps more importantly, WILL not provide it.
As for Mandelson, I think the public’s perception of him is pretty unanimous and doesn’t warrant further comment – suffice to say I, like many other former Labour party members could never vote for a Government with Mandelson at the heart of it.
- St, London, 10/11/2008 13:07
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You're right, Georgie, that we want 'change' - change from nanny-State Socialism, but also from the corrupt egotism of Conservatives that preceded it. Libdems are too Leftie, so where do we find the party of honour? And why, anyway, do we have to support 'Party'-gangland anyway?
- Steve, SW18, 10/11/2008 12:55
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How can anybody take him and the Tories seriously? Last week the 'cupboard was bare', and offering tax cuts was a con. Now all of a sudden he is proposing to offer unfunded tax cuts as well. When, oh when, is he going to have an original idea. When are the Tories going to make a decision and stick to it. We need continuity during a downturn, not the constant flip-flopping the Tories offer as they jump on and off each passing bandwagon.
- Val Daniels, Mijas Costa. Spain, 10/11/2008 11:54
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One has to admire the shadow chancellor's bravery in mounting a fresh media offensive so quickly after being ridiculed by his Corfu Yacht mini-adventure. Carping on about prudence and restraint in the face of an impending slump risks the appearance of not understanding the depth of the current crisis. His timing is off. He is coming with too little too early.
- Blackstone Coke, London, 10/11/2008 11:19
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