MANDELSON ‘DICTATING TONE’ OF BUDGET SPEECH

Treasury insider claims renewed vigour from Darling

What was politely described as ‘discussions continuing over the weekend’ between the Prime Minister and Chancellor appear in reality to have been a series of terse phone calls and one unpleasant meeting, The Slog has learned. But in these exchanges, Mr Darling appears to be holding his own and resisting Gordon Brown’s determination to get at least one popular move (probably deferral of petrol tax) on the agenda.

It seems he is being aided in this endeavour by Lord Mandelson (whom Darling dislikes) in that a theme of ‘paying the debt back more quickly with the windfall’ is now emerging. For the Slog view on this, see What the media missed in the last fnancials.

Mandy’s reappearance accords with the Slog’s Tenmole assertion yesterday that the PM has been worried by the recent adverse publicity afforded to both Charlie Whelan and the BA strike union Unite. Alistair Darling in turn has been emboldened by recent events (See yesterday’s Slog) and is adamant he does not want his legacy to be one of being too soft on the deficit. We also understand he has made some play with the desire of some Treasury officials to be indemnified against Whelanism.

In short, this is looking increasingly like a deadlock Budget from which little if anything will emerge.

“But an hour is a long time here at the moment” said the Treasury source.