Margaret Thatcher has become the Labour Party’s favourite economic garlic sprig to ward off preying Tories.

For the second time in a week, Gordon Brown invoked the Conservative matriarch’s name to cast George Osborne and his allies on the wrong side of the sterling debate.

With the Opposition benches licking their chops in anticipation of another week’s good hunting at PMQs, Conservative MP Philip Dunne drew first blood by quoting a Brown mantra from 1992, that “a weak currency arises from a weak economy which arises from a weak government”.


This is the kind of banter Brown relishes. “I would advise the Conservatives not to talk down the pound,” he pronounced lustily, instantly winning a roar from his side of the House. He carried on:

And I would advise Conservative members to take the advice of Lady Thatcher, who said that trying to help the speculators and talk sterling down is the most un-British way.

Raising the spectre of Thatcher always seems to have the desired effect. The jeers from backbench Tories took on a momentarily confused note at the mention of the Iron Lady, as if they were suddenly flummoxed by the ideological conundrum her legacy represents for Cameron’s centrist reinvention of the party. It’s a shortcut to a pressure point within the Conservative ranks.

Gordon and Dave’s exchanges started on a contrite note following last week’s slanging match over Baby P, but it wasn’t long before the mud started flying. Brown accused the Tories of being the “do nothing party”. Cameron said Brown had forgotten the difference between fiscal and monetary policy. Incredulously shaking his head, Brown leaned forwards to the dispatch box.

 Let me tell him the difference between monetary and fiscal policy.

 Jacqui Smith, usually a sober presence at Brown’s right hand, let out a giggle. Cameron is being daring in taking the fight to Brown’s doorstep, but he risks being outgunned. The Tories have had to wheel their economic battleship around significantly in a matter of weeks, and they need to be more careful and more consistent.

You get the feeling the next few months are going to be crucial for the Conservatives. A recent poll by Politics Home shows public confidence in Osborne has plummeted, and Cameron’s ratings are beginning to drop off too.

An election at some point in the second half of 2009 is a safe bet. As Cameron told the Commons on Wednesday: “On this side of the House we’ve made our choice. It’s called spending restraint.”

The challenge Cameron faces between now and autumn 2009 is convincing the British electorate this is the right thing to do, not just another short-term political tactic.