In a sense Labour has been hoist by its own petard: in 1997 it secured a letter signed by numerous eminent businessmen praising its policies – and thus underlining its electability.
Now, a similar letter from 23 leading company executives threatens to do the exact reverse by criticising Labour policy just weeks before the general election. Executives from industry and the City like to back winners. (And while some of these are Tory donors, most are not).
This time the executives are backing the Conservative plan to partially reverse next year’s National Insurance increase, at the cost of about £5bn (found through efficiency savings across Whitehall).
At first glance the letter does appear to be a bombshell – and has certainly been written up in this way across the media. As George Osborne said: “This is proving to be a significant day. Gordon Brown now finds himself at war with business.”
But don’t be fooled, however, by any suggestion that the letter, now backed by the CBI, Institute of Directors, and British Chamber of Commerce, is not born of self-interest. Read more
The Brown team assembled today for the last full cabinet photo before the election. Two ministers were notably absent: Alistair Darling and David Miliband. They both had good excuses. But somehow it seems fitting. Was this as close as Brown will ever get to his fantasy cabinet? You have to wonder whether Ed Balls assumed the chancellor’s place. Smiles everyone!
Blair is looking even more orange than usual, and rather thin around the face. Maybe it is the bright red “A future fair for all” Labour wallpaper behind him. Rhetorically he hasn’t changed much: still lots of pregnant pauses and persuasive hand movements. Read more
9pm (JP) Scheduled against Eastenders and Coronation Street, this was always going to be a warm-up to the main event; the leaders’ debates. But instructive nevertheless. A big thanks here to Ian Mulheirn from the Social Market Foundation for providing intellectual ballast. (He moved house only yesterday and may have some apologies to make when he arrives home. Heroic).
8.58pm (AB) It’s all over. A lively if completely unenlightening debate. Who would have thought there was an election on? In picking a winner, it is always worth remembering that it is not relative performance that is important. It’s about what the public thought of you before the debate — and whether that changes. Darling made no big mistakes. There were a couple of decent gags and some flashes of passion, which may have surprised some viewers. Osborne stood his ground and certainly looked calm. The negative side was that he made little of the National Insurance announcement and sometimes looked like he was being ganged up on. Cable threw and landed the most punches. But the fact the other two didnt even bother to discuss Lib Dem policy was telling.
8.55pm (AB) Some thoughts from Chris Cook, a star FT leader writer:
Vince is winning, so far, cementing his place as the cabbie’s favourite politician. Smashed MPs and bankers in his intro minute, and clobbered Osborne over the (beserk-in-a-recession) IHT cut.
8.53pm (JP). They are wrapping up. Darling boasts (sotto voce) about having made the right calls. Job opportunities are the main thing, he says. Vince says “who can you trust?”. Labour led Britain into “this mess” and wasted money on over-centralised public services, argues Cable. He doesn’t like the Tories either. “Now they want another chance to get their noses in the trough and reward their rich backers.” St Vince isn’t being so saintly right now. Don’t hold back chap. Last but not least, Osborne is summing up. He points out, rightly, that Labour has been in power for 13 years. “They took one of the strongest economies in Europe and now we have one of the weakest.” It’s a powerful argument. You only have one chance to get Labour out, he says. Read more
Clearly the Conservatives felt the need for a new, more positive policy and have come up with the old Tory favourite: a tax cut. George Osborne has just spelled out a pledge to partially reverse a 1 per cent rise in national insurance due to take place in one year’s time. It is likely to be welcomed by some business groups. Read more
I’ve just had a freedom of information request back from the Cabinet Office giving me the dates of Tony Blair’s visits to Downing Street since he quit in June 2007. Read more
The Tories are likely to go on the attack tomorrow morning on the freezing of the income tax allowance. This isn’t new, of course; it was in the pre-budget report.
However, the personal allowance for anyone under 65 will remain frozen at £6,475. In other words, if you’re income is rising, you will pay – proportionately – more tax. Read more
It’s just that I tried the site second ago.
And it had this response: Read more
It is perhaps telling that there were no big, last-minute fights over the content of this reassuringly dull Budget. The bulk of it was wrapped up more than a week ago.
Given December’s Pre-Budget report was still being negotiated in the early hours of the morning, this is quite a feat. This time Ed Balls’ emissaries weren’t on the phone at 3am arguing about the GDP deflator. Darling and his team managed to get some sleep, which is not something chancellors on Budget day are used to. Read more
As delivered by Alistair Darling on March 24. With “Mr Deputy Speaker” removed. Click on the image to see in full.
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As I predicted this morning, the stamp duty holiday for first time buyers up to £250,000 has come with a major “sting” – an increase on the levy for people exchanging £1m-plus homes. Read more
Chancellor sits down at 13.30 – FTSE 100 unchanged at 5,673.26. Sterling is down 0.75 per cent at $1.4920 and the yield on the 10-year gilt is up 3.1 basis points at 3.94 per cent.
Please see www.ft.com/budget for all the news and analysis of the Budget – thanks for joining us. Read more