Let’s all get excited about Richard Branson’s support for cuts…not!

By James Valentine

Several of today’s papers reported Richard Branson’s pronouncements about the economy, saying that the deficit should be cut this year. The Bearded One has stated:

“We are going to have to cut our spending and I agree with the 20 leading economists who said we need to start this year. The next government, whatever party that is, must set out a plan to reduce the bulk of the deficit over a Parliament by cutting wasteful spending and must not put off those tough decisions to next year.”

The Mail in particular is excited about this “significant coup for the Tories”, saying “The Conservatives were cock-a-hoop last night at the endorsement on an issue which could decide the election.”

The problem is, David Cameron and George Osborne have already backtracked from their promise to make immediate cuts, apparently now accepting Labour’s argument that the upturn is still too fragile to be put at risk. So what Branson is endorsing isn’t current Tory policy; it’s last week’s Tory policy.

And in any case the Tories never claimed they would cut the bulk of the deficit over a parliament – they merely claim to have a credible plan to get the deficit under control. Well, so too does Labour’s Alistair Darling – and his plan will be enshrined in law.

But that doesn’t stop a somewhat beleaguered Osborne finding Branson’s overtures “hugely welcome“. He said:

“As Britain’s best-known entrepreneur, he knows more about creating jobs and building an economic recovery than the entire Labour Cabinet put together.”

Or, as he might otherwise have said:

“I’m not quite sure what my policy is, but hey, this famous fellow supports me anyway.”

It’s all good for the Tories because the jumpered guru’s endorsement will, they hope, be remembered -rather than their reversal. And it’s perhaps not too cynical to think that, should the Tories win the next general election, Mr Branson – like many other businesspeople – wants to be seen on their side.