Today's Financial Times (p.3. Gordons 6bn tax grab) reports that the Institute for Fiscal Studies says that the money announced for refurbishment of schools in the PBR was not new money. David Davis suggested as much on question time last night to be rebutted by Ruth Kelly who claimed to have specifically double checked this issue with the Treasury, and could confirm that this was 'new money'.
So is it new money or not? I didn't see Ruth Kelly's defence, and she's quite adept at being economic with the truth when it suits and may have played with the English language, but if she is wrong, she is in big trouble. Time for my financial blogger friends to come up with the definitive answer?