Alice Thomson and Rachel Sylvester have interviewed the Shadow Chancellor for today's Times. I'm delighted to see that he takes up the issue of the collapsing value of Sterling, which he attributes to the government's borrowing frenzy.
“Sterling has devalued rapidly against the euro and the dollar. We are in danger, if the Government is not careful, of having a proper sterling collapse, a run on the pound. The danger of a run on the pound . . . is that it pushes up long-term interest rates, which is a huge burden on the economy. The more you borrow as a government the more you have to sell that debt and the less attractive your currency seems.”
Bang on. Labour are now hilariously trying to blame the collapse of Sterling on George Osborne. You couldn't make it up. I predicted a few days ago that Sterling was about to become the big political and economic news story. I'm almost sorry to be proved right.
There are two things the Conservatives now need to constantly remind the electorate about.
1. Unemployment is always higher at the end of a Labour government than when it came into office. Cecil Parkinson discovered this astonishing fact just before the 1983 election and used it to good effect. History is about to repeat itself.
2. Virtually every Labour government suffers from a Sterling crisis - think back to 1967 and 1976. Tory governments haven't been immune either (yes, 1992 before anyone says anything), but sterling crises seem to be in Labour's DNA.
The next fortnight is a crucial one for George Osborne - slap bang in the middle of it comes the pre budget report. Osborne is as resilient as his leader and I fully expect him to bounce back from the difficulties of the last few weeks. If he shows resilience, the ability to streetfight and a clear strategy demonstrating how the Conservatives would handle the current difficulties, then he will silence his critics and emerge as the political heavyweight many of us believe him to be.