Labour agrees with me, says Clarke
Monday 22 May 1995
Kenneth Clarke, the Chancellor, yesterday claimed that Labour has ceased to oppose his economic policies, in advance of Tony Blair's Mais lecture on economic policy today.
"I must be the first Chancellor who has a Shadow Chancellor who is not criticising what I am doing. Gordon Brown's problem is he thinks what I am doing is working. He has not for some time opposed anything I have done," he told BBC's On The Record.
"He knows it is working, he knows he could not do any better. He knows I have not persuaded the public of this yet, but he believes over the next two years this could get very worrying indeed."
In a speech at City University in London, Mr Blair will today reinforce Mr Brown's recently expressed "iron resolve" to be "tough on inflation and tough on the causes of inflation".
His words will be watched closely by City economists, who want to see how the Labour leader follows Mr Brown's suggestion last Wednesday that he was prepared to give the Bank "operational independence" - in other words allow it to decide the timing and size of interest rate changes, to meet an inflation target set by the Chancellor.
They will also study his words on Labour's attitude to a single European currency, for which new conditions have been set out in recent months by Robin Cook, shadow Foreign Secretary.
In his interview yesterday, Mr Clarke contradicted the Bank's forecast that inflation would be over 2.5 per cent by 1997, which is the Government's target. "If the British economy can carry on having a recovery of the strength that we have now, and in 1997 inflation is 3 per cent, or as I believe ... 2.5 per cent or below, that would be a fantastic performance compared with the British economy since the war."
But he played down their disagreement: "What the Governor of the Bank of England and the Chancellor currently have in common is we are confident we can deliver low inflation and we are both determined to do so. No two people ever agree, no two economists ever agree from one month to the next exactly what to do."
Meanwhile, media tycoon Rupert Murdoch continued to hold out the possibility of backing Tony Blair: "We'll have to find out what the difference is between Mr Blair and Mr Major before we make that decision," he told the BBC's Money Programme yesterday.
- 1 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 2 Smartphones are making children borderline autistic, says psychiatrist
- 3 Why this father didn’t hide his daughter’s heroin overdose in her obituary
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
Smartphones are making children borderline autistic, says psychiatrist
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
Nepal earthquake: The race is on to help thousands trapped under rubble around Kathmandu, while remote villages face a long wait for help
Royal baby: Live updates as superbug closes ward at St Mary's Hospital where Duchess of Cambridge is due to give birth
Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
£26000 - £28000 per annum + benefits : Ashdown Group: Senior Accounts Assistan...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£22000 - £40000 per annum: Recruitment Genius: This company is part of a Group...
£16000 - £18000 per annum: Recruitment Genius: Are you a a young, dynamic pers...