Leading article: Mr Brown's revolving in-tray

During his rounds of the new year talk shows yesterday, the Prime Minister was asked to say more about two ways in which the Government might tackle the fall-out from the economic crisis. In the light of the grim outlook for the coming months, the questions were entirely reasonable: they addressed job cuts and the continuing credit squeeze.

Mr Brown was, understandably, more forthcoming on the first – where he could talk about his plan to create 100,000 jobs – than he was about the second: a report, now confirmed, that another bailout was under consideration to encourage banks to increase their lending. Alas, neither inspired particular confidence.

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The jobs plan appears to be a reheated version of earlier proposals to bring forward £10bn of spending on school repairs, digital technology and environmental work. While acknowledging that capital projects cannot be conjured up overnight, so that advancing those already approved has a certain logic, 100,000 is a tiny fraction of the jobs likely to be lost. Now perhaps Mr Brown is waiting to see how far the new US President is prepared to go in his Rooseveltian zeal, before claiming an alibi for a much more sweeping approach. As it stands, however, the plan looks like only a first stab at serious job creation.

As for a new bank bailout, the only logical conclusion to be drawn is that the earlier remedies, including the VAT reduction and the £37bn already spent on struggling banks, have expensively failed to produce the desired result – as the Liberal Democrat Treasury spokesman, Vince Cable, foretold. We taxpayers are being called upon once again to tighten our individual belts in future, so the banks can loosen theirs for the immediate common good.

If, as it appears, the Chancellor is now toying with the Tories' idea of tax-payer funded loan guarantees for small- and medium-sized businesses, this is not the worst option – though it suggests a continuing paucity of new ideas in the Treasury. However, with interest rates lower than ever and savers still stubbornly outnumbering borrowers, the public will need some convincing that the Government is not throwing more good money after bad.