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From The Sunday Times

December 16, 2007

Gordon Brown in ‘crisis of morale’

Bank reveals demoralisation as Tories take biggest lead for 15 years

Irwin Stelzer

Click here to read the YouGov poll results in full

THE Bank of England is trying to push through reforms to the banking system to prevent another Northern Rock crisis but is being frustrated by a prime minister and a chancellor who are said to be too demoralised to take action.

City sources say Mervyn King, governor of the Bank, would like to introduce fundamental reforms but believes that recent political setbacks have left Gordon Brown and Alistair Darling distracted. They are said to be “unable to focus because morale throughout the government is so low”, according to one senior Bank official.

The government has been thrown off balance by several disastrous polls. The one in today’s Sunday Times shows it trailing the Tories by 13 points; it has been left reeling from a series of blunders, including a row over political funding and the loss of personal records of 25m people.

Today’s YouGov poll of nearly 1,500 people shows that the Tories are in their strongest position for 15 years.

The Tories are on 45%, against 32% for Labour and 14% for the Liberal Democrats, compared with 41%, 35% and 13% a month ago. It appears to be women voters in particular who are deserting Labour. The Tories enjoy a 20-point lead among female voters, compared with six points among men.

The poll also shows an unprecedented drop in Brown’s personal ratings. At the height of the Brown “honeymoon” in August, the prime minister had a net approval rating of +48%, the difference between those saying he was doing a good job and those saying he was doing badly.

In October, when he was agonising over whether to call an early election, his approval rating was still a healthy +30%. It dropped to –10% last month and to –26% this month.

The lowest point reached by Tony Blair was –34% in April 2006, which was at the height of the cash for honours scandal.

The Bank of England’s criticism will cause surprise at the Treasury, where Darling has given public support to the Bank throughout the crisis. It comes as the Treasury and Downing Street are considering whether to offer King a second term. His five-year term in office expires next summer.

It also follows a dispute last month when the Treasury was irritated by comments made by King in a radio interview in which he appeared to blame Darling for not acting more urgently over Northern Rock.

King denied that he had apportioned blame but his remarks were seen as “naive” by Treasury insiders.

The Treasury is still trying to put together a deal for Northern Rock to be sold to one of two private sector bidders. However, ministers concede that nationalisation might be the only feasible option.

The Bank feels there are still big holes in the regulatory system that need to be plugged. King favours better protection for savers and apparently believes that this would prevent a run on any other bank.

He is understood to want the government to introduce a US-style insurance system that would enable savers to get up to £100,000 immediately if a bank was in trouble. At present they are guaranteed only £35,000 and could have to wait up to a year to get their money.

The Bank argues that this reform would stop a run on a bank because savers would feel their money was safe. Darling agrees, but so far has made no move to introduce these reforms. The main opponents have been the banks themselves.

The governor is also believed to be unhappy that he could not act swiftly to arrange a reorganisation or merger of Northern Rock because it is a public company. He accepted a ruling by the Financial Services Authority (FSA) that a prolonged process of obtaining shareholder approval would be necessary and this would have led to the closure of the bank.

Bank officials say the US system would have bypassed the problem. One joked: “There are times when we can learn things from others, even America.”

The US Federal Deposit Insurance Corporation insures deposits and also has the power to take early action to prevent banks going under, including forcing the kind of reorganisation that King would like to have imposed on Northern Rock.

In addition to better insurance and greater powers to intervene earlier in a troubled bank’s affairs, the governor is said to be “begging the chancellor and the prime minister” to give the FSA or a new agency the power to regulate bank liquidity.

The Treasury has made it clear that it will bring forward reforms to the tripartite framework for regulating banks and financial markets after the Commons treasury committee has made its recommendations. King and his colleagues are due to give their final evidence to the committee on Tuesday.

How the parties stand

Who would you vote for in a general election?

45% Conservative
32% Labour
14% Liberal Democrat

— is the biggest for 15 years
— rating has slumped from +48% in August to -26%
— there will be a recession

Source: YouGov

Gordon Brown, Lord roberts, Dunblane, D-Notice Masonic friendships forged by evil, Jack Straw still active in Home Office as high protector... Say no more!!!

fremount, York, UK

32% would still vote for labour?

Who are these people?

Can't they read? Don't they have television?

They can't all be relatives of labour MPs surely?

R Bingham, Lauzun, France

Eye from Philadelphia - We don't. Our government,however, does. One more reason why they aren't the government for me.

Jim, Bakewell, UK

Try being a small business owner is you want to talk about low morale!

Chantel, UK,

20% lead in female voters?
That's because David Cameron is sexybum!

Keith Murray, Brighton, Zimbabwe

Boy, did Tony Blair decide to leave the stage at the right moment.

Peter Koeb, Geneva, Switzerland

I thought the BoE was supposed to be "independent" - one of GB's great achievements, according to him. Seems that wasn't true, either, along with the "tax cut" that will see the lowest paid paying twice as much tax next April. I can scarcely believe ANYBODY, let alone 29%, still believes this lot are doing a good job!

Andy, Whitchurch, England

No wonder the number of people in Scotland in favour of independence is increasing.

Dick, Aberdeenshire, Scotland

Surely a mistake? 32% would vote for this goverment if thee was an election? In the last 5 yrs I havent been able to find anyone who admits to being a supporter of this goverment, so maybe its different when people are polled..?

It does make you wonder just what the turnout would be at the next election..

Michael, Weston super Mare,

Any views on who will be the Prime Minister by the end of March 2008 ?

A.Seton, London, UK

How on earth is changing Government going to do any good? I am no fan of New Labour, but do keep in mind that several Tories wrote letters to the judge in the Conrad Black case asking for a lighter sentence.

If the Tories come back in again, then all that will happen is higher VAT which punishes the lower-middle income earners, schools with water pouring in through the roof and cash for questions. Add to that people dying while waiting for cancer treatment and I really fail to see the attraction of voting Conservative.

rod, Formerly the UK ,

Day by day Gordon Brown digs himself into an even bigger hole. I predict the shambolic signing of the Treaty on Thursday and all the bad press he and his Government continue to get will escalate further. If the electorate arenâ€™t given a Referendum this will be his downfall. Therefore I would like to suggest to the PM that he resigns before his own party give him the boot. In turn he will then be able to spend some quality time with his family and write another book. With an advance from his publishers it might be a prudent investment to buy a nice London town house. Why not cheer up his former neighbours and bag a bargain in Connaught Square!

Andrew Busson, Epsom Surrey,

Love him or hate him Tony Blair really did a good job judging from what Brown is doing. The polls look bad and Labour look shattered and worn out.
The best thing to come out of the last 4-8weeks is Miliband. I made a comment over a year ago that he should be the one to replace Tony and i feel vindicated now. He seems to be doing all the right things a future prime minister should do. Signing the treaty, handing over Basra and being seen all around the world for Britain. Miliband V Cameron in an election battle is a mouth watering prospect. Gordon is dead. Long Live the King

Francis Puni, Cheshunt, UK

and this shower called the Tories sleazy......IF Bottler McBrown leaves it right to the last possible minute before he goes to the country.....NuuLabour will be out for generations if not for ever....so we don't need to give McBrown he will do it all on hos own...but I hope that voters will remember when we sling this sleaze ridden shower out at the next GE he & the rest of them will be sitting pretty with their Gold Plated Pensions !!
PS Don't forget there is an E-Poll on the No 10 website calling for an election now.......
Have you signed ??

Tom, Bristol,

Why do Brits think governmental power defines their happiness.

Eye, Philadelphia, USA

I'm no fan of Gordon Brown. His inability to handle the media is embarassing. However he has not actually done that much wrong. It's amazing how he can go from being respected to ridiculed in such a short period, most decision's he has made since taking over as the occupier of No.10 have been good. Nevertheless if the media don't like you the negative aspects are always going to be concentrated. If anybody believes that voting conservative is going to help or make any difference then think again. you will still pay a fortune in various taxes, still be part of an over dominant EU, troops will still be in Afghanistan and the credit crunch will still be there. The expat in Malaga states that British voters are either to lazy or too drunk to care, not so. The reality is that it does not matter whether we have a Conservative or Labour government, those parties only care about getting and staying in power it is about time we had real change. Perhaps this is Meryn King's last parting shot!

Liam Johnston , Ipswich , Suffolk

I can't fathom why 32% of those that responded would still vote Labour.

Who did they talk to for this poll?

Alex, London,

The true nature of the pickpocket who ruined our pensions is at last being revealed.

john, louth,

I can hardly say I'm surpised- at least Brown and Darling have the humility to acknowledge the consequences of their ineptitude.

We all know that the economy and indeed the country at large is in a state of flux- its going from bad to worse. And where to start? The biggest DPA breach ever. The first ever run on a bank (with the possibility that other banks may also go the wall). Housing crisis. Prison population full to breaking point. Social inequality worsened.

The problem however is this- Northern England and Scotland will never forgive the conservaties for the industrial destruction and unemployment forced upon them in the 1980's. And does this poll- or any poll, for that matter- account for a likely poor turnout at the next election? With this in mind, you should not be surprised to a see anolther term of Labour government.

Darren, Greenhithe, Kent,

How Tony carried and put up with Brown's flawed character for so long God only knows. He keeps talking about Labours vision, has he forgotten where he's been for the past 10 yrs. Brown has nothing but contempt for the English - this week he made it clear when turning up late to sign us up to the EU Constitution. It was all manipulated because the man lacks moral conviction - there should have been a huge outcry across the country as he offered up this country to Brussels without giving the people referendum. Now he is depressed and confussed and lacks moral - what does he expect.
Lets have a general election

justin, London,

â€œToo demoralised to take actionâ€ welcome Mr Brown to the world you dumped the English tax payer into. Scrap the handouts and watch the 29% vote drop to zero. Never has the phrase â€œin the land of the blind the one eyed man is kingâ€ been so appropriate.

Cromwell, Leeds, England

You might be able to fool most of the people for most of the time but not for ever. As some predicted things would start unravelling after Brown's 'honeymoon' but very few could have guessed how spectacularly and on so many fronts.
Unfortunately for the Country, we're stuck with this incompetent shower for the forseeable future.

Lily, Truro,

I feel particularly sorry for Darling who inherited a poisoned chalice from Brown and who is certainly limited by his control freak predecessor. Brown's economic 'miracle' (sic) is a fantasy.
What we have is a debt ridden population, (stealth) taxed to the hilt, public expenditure out of control, massive public spending for no real benefit whether in terms of the NHS, Education or any other area.
How can Brown claim that he inherited a lousy economy from Ken Clarke when the only time Brown was an effective and prudent Chancellor was when he continued Clarke's policies. His public spending largesse of the past years means that Brown's legacy will be a catastrophea in future years: insecure computer systems, PFIs that enriched the few at huge cost to the many, ruined pension (I lost with my Equitable Life pension because of Brown), a regulatory system that is not fit for purpose, underfunded and overstretched armed forces etc. etc.
He should do the decent thing and go now!!

WILIAM WARTON, lONDON,

I cannot believe they are still in power? What do we have to do to get rid of these incompetent losers. Brown, do what you were 'not elected' to do by the population. For once do the right thing and fall on your sword. Call an election. Otherwise you will have the unenviable place in the history books as the one person who single-handedly destroyed the economy, postion in the world ranking and the morale of an entire country.

Phil C, London, UK

Who was this clever Chancellor we all heard so much about over the last ten years. What a joke Brown is! But he merely reflects the party he heads, they could not organise a party in Brewery between the lot of them.

D Case, Newquay,

Every top loses its spin eventually

doug, Pretoria, South Africa

Come on guy and gals you 29% posters. We all know that if you pin a red rosette on a donkey in parts of Britain they would vote for it. That's why we have lots of donkeys running the show. By and large the British voter is far too lazy, stupid or drunk to think past the next episode of 'Corrie'.
They, the politicians, know that and use it. They (all of them) have a vested interest in keeping education below the level of Estonia (sorry Estonia).

Ripsnorter (ex-pat), Malaga, Spain

He's not the worst Prime Minister since Addington - he's the worst Prime Minister since the last one. They all are.

eric campbell, harrogate, uk

Unbelievable though it is to say it does look as if Tony Blair carried this man. His complete ineptitude in the job is very scary.

Michael, London, UK

After inflicting 10 years of his disasterious policies especially his great idea to destroy the best pension system in Europe this overachiever deserves everything he gets. I expect he will cling on to power until the very last minute so sadly we will have to put up with him for another couple of years, but it will be wonderful to watch him get his just rewards, what goes round comes round.

gary benjamin, evesham, uk

.......and the EU treaty/constitution is very unpopular.

A majority of voters in all parties who express an opinion do not think the treaty is significantly different to the failed constitution. Similarly a majority of voters in all parties want a referendum. And in a referendum the treaty would be soundly rejected. One shold note that in England these opinions are as strong or even stronger in Labour's heartlands in the North and in the Midlands as in the South.

To renege on the promise to hold a referendum may not improve any Labour MP's chances of reelection.

Mikael Gennser, Stockholm, Sweden

Come back Tony all is forgiven!!! (except Iraq perhaps).

Colin (Expat), Gold Coast, Queensland, Australia

The 29% of those polled who still believe Gordon Brown is doing fairly well are probably those he socialy engineered to be doing well in public sector non-jobs or those who are dependent on state benefits. How else do you think Labour has remained voted in power by the electorate?

George, London,

Please please make Gordon leave the office by calling an election. He has already taken the country on the brink of ruin, and any further interferences are going to cost the country a lot more.

Lets all brace ourselves to the fall out from the miniature collapse of the UK economy

Genco Abbandando, Naples,

I note that the 'You Gov' indicates that 29% of those polled still believe that Gordon Brown is doing 'fairly well' - their tolerance for possibly the worst PM since Addington is astounding.

RHB

Richard Burns, Lutterworth, United Kingdom