Brown stuffs 2p tax cut up Clarke's backside

Without desisting from anything I wrote earlier - the Blairites and Fleet Street would still find a reason for forcing a contest even if Gordon Brown was revealed as the second Son of God - today's Budget was a stormer. For years, governments of right and left have dreamed of a 20p standard rate of income tax. It is Gordon Brown who has finally delivered that and for that and many other reasons he will go down as the greatest Chancellor since Gladstone, whatever happens next in his career.

It was absolutely typical of Gordon that after presenting eleven Budgets himself he went and stole the next Chancellor's first Budget as well by announcing the 2p standard rate cut. His successor probably won't thank him for that but I can't help but admire his chutzpah.

Charles Clarke and Alan Milburn had been calling on Brown to say more about what he would do as Prime Minister, and today Gordon gave them the perfect answer. He not only said what he would do, he actually did it, by pre-announcing a decision that didn't actually need to be announced for another year.

Indeed, he has gone even further than that and announced another major tax cut to take effect in April 2009 - just before the likely date of the next general election - rsising the threshold for the 40p top rate of tax to £43,000 and so free millions of middle-income earners from the pernicious effects of "fiscal drag."

David Cameron tried to make the best of it by claiming Brown had adopted his agenda of "sharing the proceeds of growth," but Cameron knows that he too has been stuffed, and that any room for manoeuvre for further crowd-pleasing tax cuts has been absolutely closed-off.

I wrote earlier today that although Brown's enemies will deny him a coronation, the crown remains his to lose and a good Budget performance would make it all the more certain he would win a serious contest. On that score, the Chancellor certainly delivered.

Welcome to the Thog

I was pleased to learn today via Paulie that I have been described as a thogger or "thinking blogger" for those unfamiliar with the term. I will do some thogging on the Budget later.

Meanwhile, I am supposed to nominate five other thoggers, so here goes: Skipper, Unity, Shaphan, Femme de Resistance and Jonathan Calder

Whatever happens today, Gordon will be challenged

Today is Gordon's Day, and by the end of it we will be probably be hearing all the usual stuff about how the Chancellor has once again underlined his status as a political colossus of modern times and how, as Labour MPs reel from the sheer force and brilliance of his intellect, the likelihood of a leadership challenge has now diminished. But much as I would like to believe that to be the case, I'm afraid I won't believe a word of it.

I make no bones about the fact that I am in the Margaret Beckett camp of people who do not believe a Cabinet-level challenge to Brown for the Labour leadership is either necessary or desirable. I think Gordon has demonstrated over the past 10 years that he is the outstanding candidate, and to hold an election now strikes me as rather akin to the common sporting practice of making the club that finishes top of the league by a wide margin play off against the one finishing a distant second for the sake of generating a bit more excitement for the spectators.

But I readily accept that is not how most people see it - even among visitors to this blog. My current POLL shows that only approximately one sixth of respondents think there should not be a Cabinet-level challenge, and some of them are people who support Michael Meacher or John McDonnell rather than Gordon. There seems to be a consensus in the Labour Party - which I happen not to share - that a serious contest would be useful as opposed to a potentially divisive distraction.

And if that view is becoming widespread in the party, it is even more so in the media. Slowly, the pressure has been building - even among left-leaning pundits - for a serious challenge and when Blair actually goes, that pressure will become intolerable.

The campaign to question Gordon Brown's credentials has been conducted mainly through opinion polls designed to show that he would do worse than Tony Blair in a straight contest with David Cameron, even though practically no-one disputes that Labour's position in the polls is bound to improve when Blair finally quits. This has been accompanied by regular guerilla activity questioning Brown's methods and ways of working with colleagues, culminating in yesterday's Gordon the Stalinist attack by former Cabinet Secretary Lord Turnbull.

Its aim was to create the conditions in which a challenge became viewed as desirable and I think it has now succeeded in that. In other words, it has created a need for someone to step forward and fill a vacuum, and human nature being what it is, sooner or later someone will do so.

If not David Miliband, then John Reid or Alan Johnson. If not Reid or Johnson, then John Hutton or Hazel Blears. If no member of the Cabinet, then Charles Clarke or Alan Milburn. Even Jack Straw could come into the reckoning as a compromise candidate if the current run of bad polls continues.

The crown is still Brown's to lose, and a good Budget performance this afternoon would make it all the more certain he would win such a contest. But I think he can forget the coronation now. The Blarites - and more importantly their friends in Fleet Street - simply aren't going to let it happen.