Rethinking the role of the state
The longer-term challenge for the Labour and Conservative parties is to define a path for the state which both respects markets and acknowledges their shortcomings
With government expenditure soon to account for almost half the UK economy and one in five Britons working in the public sector, politicians are vying to fight the next election on the size and boundaries of the state
Public spending will soon account for almost half the UK economy. Only in world wars or when it owned the commanding heights of industry has the British state assumed such importance. A consensus exists on the need to shrink the state but there is little detail on how to effect this, reflecting a lack of understanding of what the modern British state does
Gordon Brown and David Cameron clashed over plans to tackle Britain’s budget deficit on Monday, as the party leaders sought political advantage on an issue that is set to dominate next year’s election
David Cameron can expect an enthusiastic reception at the CBI’s annual conference on Monday, reflecting the transformation in the Conservatives’ relations with business since he became party leader
If the panoply of bills outlined in the Queen’s Speech were intended to reinforce Labour’s message that it was serious about controlling government spending, the lack of clarity about the likely price tag did little to offer reassurance
The Treasury says a fiscal responsibility bill will reassure financial markets and put pressure on ministers to identify public spending savings, though the Tories view the bill as little more than a gimmick
The proposals for the government to pass laws to make it act responsibly have drawn scorn, not least because the bill contains no legal sanction should a chancellor fail to meet the targets laid down
The longer-term challenge for the Labour and Conservative parties is to define a path for the state which both respects markets and acknowledges their shortcomings

The move by the children’s secretary has some narrow political merit, but the Treasury should not be deflected from deficit reduction
Universal benefits could be frozen when times are hard. Putting them on a less generous basis does not detract from their intrinsic value: they have a role even in a straitened welfare system
If he is elected, David Cameron will need to find cuts equivalent to scrapping all spending on the police, foreign office, transport and six more departments – just to match Labour’s secret plans, writes George Parker
At the current rate, Armageddon, financial or otherwise, will arrive before Britain’s two main parties have decided where the blade will fall
Sensibly, if slowly, Gordon Brown, the British prime minister, is moving to a position that accepts cuts but distinguishes them from the Conservatives in timing and scope
For all the gusto with which David Cameron promises to swing the axe, he is decidedly cagey as to where the blade will fall, writes Philip Stephens
UK politics: With the dire state of Britain’s finances set to define next year’s general election, government and opposition are competing to portray themselves as the better axe-wielder