Has the bottom fallen out of Cameron's boat?

A few months ago, Gordon Brown was on the ropes...no, worse,he was half way through the ropes heading for a knock out at the next general election. His handling of the government was criticised, local election results were dreadful for Labour and the knives were out. David Cameron, on the other hand, was basking in the sure knowledge that he was Prime Minister-in-waiting, the British public certain to hand him the next election on a platter. The Tories were riding high in the polls. In a thriving economy, Cameron's arguments about Labour overspending and how his Tories could match the government's spending plans on necessary health and educational improvements without resorting to more borrowing - in fact robbing Peter to pay Paul - had met sympathetic ears.

Then came the credit crunch and the failure of the banks. Out of a financial disaster came Gordon Brown's hopes of salvation. Although the public blamed the government for some mistakes - not least the shilly shallying over the future of Northern Rock - it has bought Labour's contention that the problem is world-wide and needs extraordinary financial leadership. And, amazingly, despite being the party of government, and the Prime Minister being the man who has presided over Britain's fiscal policies for 11 years, it was to Brown the public has turned for leadership.

Suddenly Gordon was in his element. More, he was bestriding the globe like a financial colossus, hectoring, nagging, bullying governments - and especially America's - to follow his lead and spend their way out of trouble. Incredibly the United States Republican government has flirted with a form of socialism, baling out Wall Street to keep the banking system alive, intervening to pump money into the economy - policies which America would never have contemplated once.



And suddenly Cameron looks out of touch, caught off guard. He has had to do a series of U turns on what Conservative policy now is. They wont try and match the governments spending plans, they don't believe in spending our way out of a recession. The trouble is it's not clear what they do believe in. The situation seems to have caught them completely on the hop and at present Cameron is floundering.



I'm not for a minute suggesting that the Conservatives are now a busted flush. But certainly their serene stroll to power which not too long ago seemed inevitable is no longer the case. The budget of Alistair darling yesterday is a mind-boggling gamble which, if it fails, could plunge Britain into the level of recession not seen in decades. But if it works and the financial repayment strategy works to plan we could see, come the next election, one of the greatest revivals since Lazarus.