Financial Times FT.com

Don't be fooled by lollipops: the outlook is tight

By Ed Crooks, Economics Editor

Published: March 18 2004 04:00 | Last updated: March 18 2004 04:00

To hear Mr Brown talk yesterday you would have thought he had money to burn. There were generous-sounding commitments to spending on defence, law and order, transport and especially education, a billion pounds for councils and a £100 bonus for older pensioners - known in the trade as a "lollipop". There were, it seemed, no limits to the chancellor's largesse.

Compared with the Conservatives' plans, certainly, Mr Brown has been liberal with his spending. That was exactly the contrast he was trying to draw. But by his own lavish standards, this year's Budget and its accompanying spending review offer meagre pickings.

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