According to The Sunday Times today,

“Gordon Brown is planning a final public spending spree to help pull the economy out of recession and put pressure on the Conservatives over their plans for deep cuts….

....Brown also hopes the stimulus package will open a new dividing line between Labour and Conservative plans over the public finance.  “At the next election we need a clear story to tell about how Labour will support the economy through investment while the Tories would choke off the recovery with draconian cuts,” said a cabinet source.”

The report continues,

“However, the proposals have caused alarm among Treasury officials who fear any increased spending could upset the financial markets, making it harder to service the growing national debt.”

Just how much long term damage is the Labour Government prepared to inflict upon the British economy in return for a small amount of political gain against the Conservatives?