Gordon Brown: The new mood won't last

By Rob Merrick on Sep 24, 08 06:27 PM

IT'S an ill wind that blows nobody any good and the hurricane that swept through the financial markets has proved a godsend for our beleaguered Prime Minister.

Suddenly, Gordon Brown is no longer drowning but has clambered aboard the liferaft of attacking City of London greed and excess - that same greed and excess he indulged for a decade.

Just as important, the Labour faithful have a new cause - taking on the "spivs and speculators" that have brought the banks to their knees - and a new line of attack against the Tories.

It means Mr Brown will walk away from this Manchester conference unscathed and optimistic that no attempt will be made to force him out of No.10 while the economy is in crisis.

Sure enough, yesterday's speech saw the Prime Minister attacking eye-watering City bonuses, and pledging tougher City regulation, in a way that would have been unthinkable just weeks ago.

But the new mood cannot last. Mr Brown's position was quickly turned on its head after last year's conference, which he left as an election winner-in-waiting, and this year's conference atmosphere will prove just as false.

First, a crisis is not, on its own, enough to save him.

After all, Margaret Thatcher was forced out while British troops were massing in the desert preparing to invade Iraq.

Second, a rousing standing ovation from one's party - Mr Brown was rousingly acclaimed yesterday - is no guide to future survival prospects.

Look at Iain Duncan Smith, in 2003.

Third, the Prime Minister has dangerously inflated expectations that he will move against the City.

In reality, there is only a review of excessive bonuses and no sign of a US-style rescue to revive the ailing markets.

It will be impossible to maintain the air of decisive action while reviews grind on and politics moves on - perhaps to a Tory "bounce" after their confer- ence next week and a likely by- election defeat in early November.

It is apt that "short-selling" - that dangerous practice of borrowing shares to drive down their value - was merely suspended for three months, rather than banned outright.

Similarly, short-selling of Brown shares is merely on hold. And perhaps not for as long as three months.

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