Cuts vs investment: the argument is over

The union leaders don’t want to admit it. Brendan Barber argued this morning that Labour should keep on borrowing and spending until unemployment is on the way down – which could be several years away. But the simplistic debate between cuts and investment is now over.

We’ve now heard Alistair Darling and (today) Peter Mandelson both spell out the new message; that the UK is heading for difficult choices in public spending.

Earlier this summer Gordon Brown was maintaining the illusion that Labour would be able to preserve spending increases in the coming years. Here is what I wrote at the time, as a reminder. (Brown said “They (Tories) would cut savagely by 10 per cent and that is not going to be allowed to happen.”)

Now Downing Street is briefing that Brown has always been fiscally conservative over two decades; an attempt to erase the “investment” message of June.

Nick Robinson argues on his blog today that Labour is trying to rewrite history. Francis Elliott wonders just how great the difference is between the two parties.

Not a lot, you might think. In effect, Labour has been reduced to painting the Tories as maniacal small-state ideologues who – in the words of Mandelson – are “salivating about wielding the axe”. Will the public agree?

Westminster blog

on the UK political scene

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Jim Pickard and Kiran Stacey, FT Westminster correspondents, share the latest news and analysis on the UK's political scene.

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Contact the Westminster blog team: Jim Pickard, Kiran Stacey, Nicholas Timmins, Elizabeth Rigby and Helen Warrell.

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The authors

Jim Pickard joined the lobby team in January 2008. He has been at the Financial Times since 1999 as a regional correspondent, assistant UK news editor and property correspondent.

Kiran Stacey is an FT political correspondent, having joined the lobby in 2011. He started at the FT as a graduate trainee in 2008, working on desks including UK companies and US equity markets before taking over the FT's Energy Source blog.

Contributors

Elizabeth Rigby, the FT's chief political correspondent, joined the lobby team in September 2010. Elizabeth has worked at the FT for more than a decade and was most recently its consumer industries editor.

Helen Warrell is the FT's UK reporter, covering home affairs, crime and policing. She joined the FT in 2008 and has spent time as a reporter in the Brussels bureau and more recently, editing the paper's Asia coverage on the world news desk.

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