The UK Budget

I think there's only one thing that needs to be said about yesterday's budget. The whole thing is predicated on the willingness of markets to finance the debt. The 240 billion available from the IMF (we are being gently softened up for this, aren't we?) isn't enough to finance a 170 billion a year borrowing habit for very long. So it's credibility in the markets, or the whole pack of cards comes tumbling down.

Now, you don't need to be any kind of financial expert to understand this: lenders expect borrowers to pursue policies such that their loans are going to be repaid.

And Mr Darling is not pursuing such policies. He's still playing politics, hoping to trick the Tories into complaining about a 50% tax band which will raise no new revenue.

Cameron and Osborne now need to look as if they've got a plan, because if they haven't, the jitters will start.