I wouldn't gloat just yet... Contrast these two things if you will?

1. The Exchequer had doubtlessly made certain forecasts in regards of North Sea revenues and fuel duties (plus the VAT) some months ago when drawing up the Budget. Since that time, as we all know, the price of oil and the product we buy at the filling station have continued to increase by quite a margin. We could assume therefore a revenue surplus over forecast of a not insignificant amount?

2. The Budget is only a couple of weeks old and yet we find ourselves with a Chancellor and PM explaining they cannot now afford to reverse the abolition of the 10p tax band.

So, how come there's no money left... surely they haven't spent those surpluses already?  And clearly the kitty is indeed empty because the Government just had to borrow £2.7 huge ones to pay for the 10p tax U-turn.

The question then is where will the money come from to fill these pockets and purses of which you speak?  Certainly the Government can't afford it. The ink on the Finance Bill isn't even dried yet but given the above is true (either they've spent the money already or the price of oil/gas has dropped) it doesn't look like they'll be any more funds this year nor next year or the year after if you can believe the Government's forecasts. Not unless they raise it from some other means... taxes principally but I guess they could flog off the Navy if needs must.

As they say, two years is a long time in politics but as Labour is unlikely to be able to dish out any more cash during that period its going to feel like a very long two years. And what will you tell these people on their doorsteps? That "thats your lot", or will you ply them with false hope and promises you know you cannot afford?

I think its time you came clean and admitted its all gone. You're going to be found out anyway because the Government will have no choice now but to raise taxes for everyone rich or poor. After all, there's a little matter of 2.7bn of debt they've just added to our nations account. Some good that'll do us when the recession hits (September 2008).

I believe though, that we can win back the middle classes, while becoming more social-democratic. Here's why. Mild redistribution of wealth has shifted money from the middle-classes to the lowest earners, with scant pressure on those at the top. The government could reap in hundreds of billions by going after the rich on tax, while cutting taxation on the poorest, and the middle-classes, but by leveling out the complexities in the tax system, that sees billions of pounds wasted through beaurocracy, and tying the tax system up in knots. It costs money to move money around in any way other than direct redistibution.

Also, the government must play up it's progressive achievements. Like, cutting homelessness by two-thirds. That is an achievement that they should be screaming from the rooftops. They have made progressive achievements, they should tell people more.

But, we need to crackdown on low pay. Many are not being paid properly, nor do they have equal rights. This isn't a lone case, or a couple of cases. I can think of, in three categories, AT LEAST 2 and a half million people this is occuring for. One) the illiegal immigrants who are easily blackmailed by employers. Two) agency worker's. And three) homeworkers. There are many more. One measure that could improve pay for the lowest-income earners, is introducing co-determination in the workplaces.