The Steamie

Wednesday, 7 January 2009

Ross Lydall: What's Next for Darling and the stagnant economy?

Gordon Brown, being the tribal politican that he is, was always found wearing a plain red tie. He has since gravitated, guided no doubt by his wife, Sarah, to purple.
Alistair Darling tries to express himself with the occasional stripey, multi-coloured number. That plan was slightly derailed around the time of the Pre-Budget Report when Jack Straw, the Justice Secretary, sported the same tie - as they sat virtually side by side on the green benches of the Commons, looking like a couple of schoolboys.
Still, this was not as bad as a recent Prime Minister's question time, when Hazel Blears, the Communities Secretary, and Chief Treasury Secretary Yvette Cooper wore identical black and while skirt-suits. It is difficult to know which woman felt more embarrassed.
None of the above appears to shop in Next, and after the comments this morning from its sharp-suited chief executive, none is likely to be keen to patronise its stores.
Simon Wolfson, whose profile has risen dramatically over the last year, shared the prestigious 8.10am slot on the Today programme with Marks & Spencer chairman Sir Stuart Rose.
What would have made uncomfortable listening for the Cabinet was Mr Wolfson's assessment of the impact of the 2.5 point cut in the rate of VAT, announced in November by Mr Darling and due to last 13 months.
“I think it was a missed opportunity," Mr Wolfson said. “If it was designed to boost expenditure, then it really has had no effect whatsoever."
'Nuff said. The VAT cut is costing £11.1 billion (£12.4 billion less the extra duty on booze and fags). According to Mr Wolfson, it's money down the drain.

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