Are we seeing the rusting of the Iron Chancellor? A fiscal conundrum

Last Modified: 18 Jul 2008
By: Newsroom blogger

Inside the morning news meeting...

Reports that the Treasury is about to go on a big borrowing binge - and break Gordon Brown's much vaunted (by prime minister, at least) fiscal rules in the process - dominates the first half of this morning's editorial.

Opposition politicians are lining up to declare the end of the Brown era, the end of prudence and - in the words of a senior editorial voice here - "perhaps the rusting of the Iron Chancellor".

Cue the arrival of the economics correspondent. There follows a detailed discussion of some of the possible consequences of big borrowing. Furrowed brows all round.

It's worth noting that the Treasury has denied reports. "No they haven't," points out a member of the team. "They've just dismissed it as speculation, a very different thing."

Cue the arrival of the economics correspondent. There follows a detailed discussion of some of the possible consequences of big borrowing. Furrowed brows all round.

The government could, it is suggested, use some of the money borrowed to cut taxes. Apparently, a classic way out of stagflation (that's stagnant growth and high inflation) is to raise interest rates and cut taxes.

"It would only cost £4bn to take a penny off the basic rate of income tax."

A left-field take perhaps but possibly a different 'in' to a story that's everywhere today.

More economic wonkery follows before a weary editor cuts to the chase:

"What's the pre-title?"

"This is the day to trot out 14 clips of Gordon Brown saying this is the end of boom and bust," suggests another senior voice. "After all, this is a political story."

"I don't know about that," says a slightly hurt looking economics correspondent.

"Shall we move on?" asks the programmed editor.

"Yeeesss," comes the editor's reply.