Blairites plotting to sink Brown over the economic downturn


C

Crowley

Yes alright. I know The Sun is a comic and a Murdoch rag but its
political editor Trevor Kavanagh is well in with No 10 and I suspect
there may be something in this story..........

LABOUR PARTY CONFERENCE

Plot to keep Brown down
By TREVOR KAVANAGH
Political Editor 26th Sept

TONY Blair's allies are counting on an economic downturn to derail
Gordon Brown's bid for the Labour crown, a former minister claimed
yesterday.

The warning by ex-pensions chief Frank Field came amid signs the
Chancellor's eight-year run of luck at the Treasury may be running
out.

Blairite ministers gathering in Brighton for the Labour conference are
publicly vowing to give Mr Brown a clear run for the top job.

But Mr Field claimed they are privately plotting a challenge if the
economy goes sour.

And he predicted the PM will stay on as long as possible, leaving his
rival to carry the can for any economic bad news.

He told GMTV: "The inner core of Blairite ministers might have a game
plan which is separate from what they are actually spinning at the
present time.

"The more cynical might be saying the Blairites are playing a
slightly longer ball game and within two years Gordon's position may
look very different to what it is today."

"Whenever the economy has had a dip there have been people emerging
from the wings, looking as the candidate who would actually be
challenging Gordon."

The Chancellor's mastery of the Treasury has been rocked by figures
showing:

UNEMPLOYMENT is up for the seventh month in a row.

INFLATION is rising even before the leap in oil prices.

GROWTH forecasts have been slashed from 3 per cent to barely 2 per
cent.

TAX rises now look inevitable.


Meanwhile, public sector borrowing has exploded, the NHS faces a
financial crisis - despite a massive boost from taxpayers - and
pension reform has been kicked into touch.

A shake-up in council tax, which would glean more cash, has been
delayed for five years to save Labour from the wrath of householders at
the next election.

Mr Brown is also under fire for failing to carry out a Budget vow to
slash public sector jobs by 80,000.

And the bill for publicly-funded pensions for state workers has
ballooned to a shocking £700billion.

Mr Brown has reacted by blaming a surge in oil prices and a sluggish
Europe.

But City experts say the Chancellor shares the blame for allowing state
and consumer spending to explode.

Now workers who have seen their disposable income CUT for two years in
a row have stopped shopping.

They have been hit by dearer mortgages, higher council taxes and big
hikes in gas and electricity prices that started before oil prices
began rising.

High street chains warn of a "catastrophic" fall in sales, sparking
fears of more lay-offs.

Economists are wary of criticising a Chancellor who has outsmarted them
in the past and has an unmatched record for getting his forecasts
right.

They also give him credit for putting the economy on a stable footing
by giving the Bank of England power to set interest rates and rules for
state borrowing.

But Neil Parker, of the Royal Bank of Scotland, said: "Consumers are
the key to the economy and they have got a lot on their plates.

"They are paying more in tax, mortgages, heating and the cost of
filling up.

"Problems for the UK economy are compounded by state spending and
this is the Chancellor's biggest challenge.


"He is not going to be able to cut spending significantly and he is
going to have to find that money by raising tax."

The Treasury is under heavy fire from global big guns for excessive
borrowing and spending. The World Bank and the International Monetary
Fund warn taxes must rise or state spending must be cut to balance the
books.

Even Brussels had the nerve to criticise Mr Brown for going into the
red. For the first time in eight years as Chancellor he will be unable
to boast to Labour fans about soaring growth.

He is already preparing to slash his budget forecast of 3 to 3.5 per
cent growth to around 2 per cent.

The Treasury says this is DOUBLE the EU average of 1.2 per cent.

But every percentage point means less money for the Treasury in tax.

Mr Brown will blame soaring oil prices, the slothful EU economy and
uncertainty over house prices.

But the City fears most of the problems are home-grown. They predict Mr
Brown will have to raise taxes by at least £10BILLION to plug the gap
- at the worst possible time for the economy.

Nobody is shouting the word "slump". But shops, manufacturers and
business believe the outcome will be determined by house prices and the
value of the Pound.

Merrill Lynch's Ian Stewart warned: "Housing booms traditionally
end in bust. We haven't had that but consumers have built up debts
that will force them to cut back. There are problems ahead. I don't
think we are heading for a collapse, but I am not optimistic about UK
plc."

http://www.thesun.co.uk/article/0,,2-2005440637,00.html

http://www.housepricecrash.co.uk/forum/index.php?
 
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I

Ian Bailey

Crowley said:
Yes alright. I know The Sun is a comic and a Murdoch rag but its
political editor Trevor Kavanagh is well in with No 10 and I suspect
there may be something in this story..........
Regardless of the Sun's position, there has to be some truth in the
story. If you were in the cabinet would you be happy not to contest the
succession?

Ian
 
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D

davidof

Ian said:
Regardless of the Sun's position, there has to be some truth in the
story. If you were in the cabinet would you be happy not to contest the
succession?
I noticed that Blunkett had a huge smirk on his face when he endorsed
Brown - and his fingers crossed behind his back.
 

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