The woman who saved us from President Blair

If there is a single word that has come to define David Cameron's premiership over the past two years - and one that is likely to continue to define it long into the future - it is almost certainly the word ‘austerity.’

But although circumstances have decreed that the administration which he leads is overwhelmingly focused on economic matters, this almost certainly wasn’t the way the Prime Minister originally planned it.

A few years back, the then opposition leader could be heard opining somewhat heretically that perhaps the role of policy-making should be more focused on making people happy than on making them rich.

Alas, after a couple of outings, the so-called ‘happiness agenda’ sank without trace in the face of the financial crisis that gripped the nation from 2008 onwards and which has continued to set the parameters of current day political debate.

Perhaps this week's Diamond Jubilee celebrations, however, have shown that Mr Cameron remains at heart much more of a social cavalier than the economic roundhead his opponents would sometimes like to depict.

Asked on Thursday whether other European countries would benefit from having Jubilee days off like Britain's, Mr Cameron replied with disarming honesty: ''It is not good for the economy, but it was good for the soul.''

The first point is pretty much unarguable, with the £700m boost from overseas tourism barely registering against the estimated £6bn in lost economic productivity over the course of the long bank holiday weekend.

But what the heck, we have all had a damned good party, and after what already seems like years of economic doom and gloom, perhaps that's just what we needed.

Mr Cameron is a not entirely disinterested observer, of course. Historically the ‘King’s Party,’ the Tories invariably enjoy a boost whenever the red, white and blue bunting comes out.

Furthermore, as I noted in last week’s column, the government was pretty much relying on this Jubilee weekend to draw a line under the post-Budget ‘omnishambles’ that has seen it stagger from crisis to crisis in recent weeks.

As the Tory blogger Harry Cole put it: “As a big shiny distraction from our economic woes and the political disaster that David Cameron’s government is perilously close to becoming, the Royal Jubilee weekend was pretty good.”

Whether it will work remains to be seen. But if a new ‘feelgood factor’ can emerge from the Jubilee and Olympic celebrations that will book-end this summer, then perhaps the Coalition can look forward to some sunnier times ahead.

What of the monarchy itself? Well, despite being given a frankly puzzling degree of prominence by the BBC, the Republican cause was pretty much routed by this week’s show of public affection for the Queen.

Left-wing commentators who blame the Monarchy for the decline in social mobility in the UK are forgetting that the first two decades of the Queen’s reign saw the biggest upsurge in social mobility in our history.

On a personal level, surely no monarch could be more deserving of the adulation that has been heaped upon her this week than Queen Elizabeth II.

As the historian Dominic Sandbrook put it: "We have had more exciting, more effusive and more colourful monarchs. But we have never had a sovereign who worked harder, served her country with more devotion, or better represented the innate decency of our national character."

For me, though, as has often been said, the importance of the monarchy lies primarily not in the power that it has but in the power that it denies to others.

And as such, my own debt of gratitude to the Queen is not so much for her devoted life of public service, nor even for the way she has held this country together in a period of unprecedented social change.

No, it is for the fact that, by her very presence at the pinnacle of our political system, she saved us from the baleful prospect of President Thatcher or, even worse, President Blair.

And for that, if for nothing else, I gladly join with the rest of the country in wishing Her Majesty a very happy Diamond Jubilee.

The end of the beginning

Honeymoon period is doubtless an overworked term in politics – but all governments to some extent or other tend to enjoy a period of time in which the prevailing public attitude towards them is one of general goodwill.

Tony Blair was lucky enough that his lasted nearly five years, though that was in part down to the general uselessness of the Tory opposition of the time and the benign economic climate which he had inherited.

The public enthusiasm generated by the formation the Coalition government in 2010 was never quite on the scale of that which greeted Mr Blair’s arrival in 1997, and hence was never likely to last quite as long.

Nevertheless until relatively recently, the government was still widely seen as competent, and though its economic policies may have polarised opinion in some quarters, the press and public were still tending to give it the benefit of the doubt.

All that started to change with the Budget. The granny tax, the pasty tax and the row over tax relief on charitable giving combined to make this the biggest PR disaster to come out of the Treasury since Gordon Brown’s 75p pension increase.

There followed the woeful mishandling of the prospect of an Easter fuel strike, leading to what turned out to be a quite unnecessary spate of panic buying.

The government’s difficulties continued with the fiasco over the attempted deportation of Abu Qatada after the Jordanian terror suspect’s lawyers ran rings round Home Secretary Theresa May.

And by the end of last week, the run of mishaps had even acquired a name: omnishambles.

Things got no better at the start of this week as outspoken Tory backbencher Nadine Dorries tore into Prime Minister David Cameron and Chancellor George Osborne, branding them “arrogant posh boys who don’t know the price of milk.”

Then Jeremy Hunt, one of David Cameron's closest Cabinet allies and a potential future Tory leader, found himself accused of operating a ‘back channel’ of communication with the media mogul Rupert Murdoch during his bid for BskyB.

His special adviser took the rap and resigned, but this failed to quell opposition demands for Mr Hunt himself to fall on his sword.

It brought forth the wounding jibe from Labour’s Dennis Skinner: “When posh boys are in trouble, they sack the servants.”

But all of this really pales into insignificance besides the news that was delivered by the Office for National Statistics on Wednesday morning: that the government had, after all, led us into the dreaded double-dip recession.

Months of Labour warnings that the government was cutting too far, too fast were suddenly and dramatically vindicated.

It is too early to say whether it will prove to be a political game changer on the scale of, say the 1992 ERM debacle or Mr Brown’s election-that-never-was in 2007.

But it does, almost certainly, mean the end of a period in which the government’s claims about the economy have generally been given greater credibility than the opposition’s.

The politician whose personal fortunes have most closely mirrored those of the government over the past six weeks is Mr Osborne.

He has gone from being seen as the strategic genius of the Tory benches to being widely blamed for many of the government’s current difficulties.

The corresponding beneficiaries are Boris Johnson – Mr Osborne’s main rival for the future Tory leadership – and of course the Shadow Chancellor, Ed Balls.

As the former Labour special adviser Dan Hodges put it in the Daily Telegraph: “Ed Balls has won the right to be listened to now. That doesn’t mean people will automatically agree with what he says. But they will listen.”

In the light of the ONS figures though, perhaps the most damaging attack on the government last week came not from Mr Balls or even Mr Skinner, but from Ms Dorries.

The particularly lethal nature of her comments is that they play into a growing preconception about Messrs Cameron and Osborne that is being heightened by the worsening economic conditions.

A Prime Minster can get away with being a posh boy so long as he is competent on the one hand, and empathetic to the plight of those worse off than himself on the other.

On both of those scores, Mr Cameron is currently being found wanting.