Tonight:
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THE PRIME Minister, Gordon Brown, tellingly remarked in the House of Commons this week of his role in the economic downturn: "Not only have we saved the world ...". Unfortunately, the world begs to differ, or at least, the German finance minister does. In an interview with Newsweek, Peer Steinbruck launched a devastating attack on the Government's prescription for spending its way out of the crisis. He asked why Britain was "tossing around billions" in "crass Keynesianism". And he took issue with the main plank of the Prime Minister's recovery programme, a cut in VAT from 17.5 per cent to 15 per cent. "Are you really going to buy a DVD player because it now costs £39.10 instead of £39.90?" he said witheringly. Quite so.
Inevitably, sources close to Downing Street have let it be known that Germany is "out of step" with the majority view on economic recovery. Mr Steinbruck's view, however, is precisely that of the Tories. It is by no means guaranteed that a cut in VAT has boosted spending, rather than provided a slight, welcome, decrease in the cost of what people already intended to buy. But his view is damaging because it dents the Prime Minister's messianic view of himself as the only leader with the vision to take the world out of the downturn.
There are, of course, other indicators that the Government's view of its economic policy is not universally shared. The fall in the value of the pound against the euro may be good news for manufacturers but it is hardly a vote of confidence in the British economy, already over-burdened with debt and cheerfully undertaking far more. At present, opinion polls suggest that the Government enjoys a substantial lead in terms of management of the economy, but if the pound and the euro reach parity, this may not last.
Gordon Brown has never spoken about the recession except as "global" or as US-derived. But the truth is it is both global and home-made. And his prescription for ever-greater indebtedness is looking increasingly shaky, not just to the Germans.
Knives out
IT IS THE best possible news to learn that the numbers of people killed in knife crime has, at last, gone down. In London, the numbers have fallen by nearly a fifth since the introduction of stop and search and the use of metal scanners in public places in June. At Halloween, there was a 30 per cent reduction in the number of injuries from knives compared with a year ago. And in the period between June and October, the proportion of people found in searches to be carrying knives fell from one in 30 to one in 65. This is likely to be because young people are increasingly concerned that they might be caught if they do.
This is a vindication of the robust anti-knife policy that has been adopted by the Met and by the Mayor and is reflected in nine other parts of the country affected by the problem. Of course stop and search is an intrusive and controversial policy, but if it works as well as these figures suggest, it may find increasing acceptance among young black teenagers and their parents. But the statistics may also reflect a tougher approach on the part of the Crown Prosecution Service and the judiciary to knife crime and a greater willingness to adopt prison penalties.
We shall see if this welcome trend continues. The signs are that the police are getting it right.
And celebrating...
MICHAEL GRANDAGE. Last night's admirable performance of Twelfth Night, with Derek Jacobi's unmissable take on Malvolio, is another vindication of his decision as artistic director to take the Donmar to Wyndham's Theatre as a West End outpost . As the title suggests, this is a Christmas comedy, and it will help cheer up London during a season which could do with a bit of Christmas spirit.
Reader views (6)
For me Mr Steinbrück´s view appears arrogant.
You are not Britain´s finance minister!
- The Bavarian, Germany, 12/12/2008 21:13
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They are right.
To be a good 'king', first you need to be humble.
Global Gordan is not humble.
- Tess Nash, HELSTON, CORNWALL, 12/12/2008 09:39
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He's not the Messiah. He's a very naughty boy.
- Andy, woking, 11/12/2008 21:39
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perhasps the VAT cut helps to keep inflation figure down? It is calculated from a set of groups including VAT isn't it?
- Jimmy Two Times, Enniskillen, 11/12/2008 12:12
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And why are Labour so incompetent?Not to mention all other career politicians,including Cameron?Because they have never held down a proper job,I`m afraid all you lawyers out there,the law is to put it politely,only a narrow form of business.Unfortunately for Labour the only direct business experience they could call upon was Geoffrey Robinson`s,and as a supplier and unsecured creditor of his defunct Transtec company,not much use in the succesful advice dept.Many years ago,about 1979,I had the chance to stand as a local counciller in Westminster but running a full time business and bringing up a family really ruled politics out.This experience must be commonplace.Hence the ignorant career politicians,Blair,Brown,Cameron(but not Mrs Cameron actually)and the trail of cockups they leave behind.
- Nick Woods, Caterham,England., 11/12/2008 12:07
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Messiah? Gordon Brown? That'll be the day. Sadly the Germans are right. He inherits a flourishing economy in 1997 and 11 years later, we've gone from being comforatbly in the black, to deep red, the gold he sold off at a rock bottom price, taxes have gone stellar, manufacturing has gone west (or rather east) and now with the fiscal lash up he's busy saddling the people with even more debt which will take 20 years plus to pay off. The man's a buffoon pumped up with ego. He's inept. At least the Conservatives in the last government learned by their errors and put things right. Brown will never learn and his arrogance will keep telling him he can't be wrong.
- John, London, United Kingdom, 11/12/2008 11:11
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