Uh, where are the socialists in New Labour, wonko? Let’s not forget that UK corporations and citizens are also heavily indebted, so presumably we are all socialists

On spending, Brown is always clear to say spending on planned projects has been brought forward – that capital expenditure for coming years will happen now rather than later to act as a reflationary measure to increase demand in the economy and thus return to growth. This isn’t what people understand as a cut in spending, so Milibliar isn’t dissenting on this point.

A cut is usually understood to be a reduction in funding which results in job losses and less provision of goods or services. Projects being brought forward means the government purchasing goods and services from private sector companies now rather than later.

Spending can be reduced without negatively impacting front-line staff or service provision – for example, if we bring the troops home from Afghanistan then the MoD will make savings, as wars are expensive. No personnel have to be laid off, and we’ve still got armed forces to defend us. A government of whatever stripe would be able to say the MoD had made savings.

On Labour’s credit rating – they’ve got 200,000 members and big donors in the unions. So in future years, their debts could conceivably be paid back, which is why they can still borrow money. Strangely enough, the party’s funding problems come about because the membership has halved since Bliar came to power and started ditching socialist policies…