BRITAIN’S LABOUR government has launched its latest initiative – this time a £2.3 billion (€2.49bn) package of measures for the UK car industry – amid renewed evidence that public confidence in Gordon Brown’s management of the economy is collapsing.
Downing Street is also under renewed pressure over the Iraq war following the decision of the information tribunal to uphold the information commissioner’s ruling that ministers must release details of key cabinet discussions on the eve of the 2003 invasion.
The cabinet office has 28 days to decide whether to appeal to the High Court against the ruling, which threatens to revive controversy about then attorney general Lord Goldsmith’s advice on the legality of the war.
The tribunal’s ruling came as the Conservatives – buoyed by a 12 point lead over Labour – criticised business secretary Peter Mandelson’s plan to unlock loans for car manufacturers and increase investment in “greener” cars as “pretty small beer”.
Mr Mandelson said the package would unlock loans of up to £1.3 billion from the European Investment Bank while the government would guarantee a further £1 billion in loans for investment in environmentally friendly cars.
“This industry is not a lame duck and this is no bailout,” he said. “There is no blank cheque on offer, no operating subsidies. We are committed to ensuring that anything backed by the scheme offers value for taxpayers’ money, enables us to green Britain’s economic recovery, delivers significant innovation in processes or technologies for the long term, supports jobs and skills in Britain.”
Mr Mandelson’s Commons “shadow” Kenneth Clarke, however, suggested the government was “behind the curve” on help for the car industry and “not responding to events which are deteriorating by the week.” Mr Clarke said the Conservatives had suggested loan guarantees for the finance arm of car companies last November – while on the key issue of getting people who could afford credit to get it in order to buy cars, the government was still “looking at steps” to improve the situation.
The latest Conservative/Labour clash over the economic crisis followed reports that cabinet ministers have been ordered to get more involved in the government’s response to the economic downturn amid fears that Mr Brown is carrying “too much of the load” and at risk of being seen as the “minister for the recession”.
The reports coincided with ICM's poll for the Guardiansuggesting voters think Mr Brown's battle to turn the economy around is doomed.
The survey, conducted after last week’s second bank “bailout”, showed a hardening of attitudes against the government, with Conservative support up six points on last month and the Tories regaining their lead as the party most trusted on the economy.
- Calls continued, meanwhile, for radical reform of the House of Lords following allegations that four Labour peers were prepared to help amend laws on behalf of a business client for fees of up to £120,000.