AN autumn offensive by Gordon Brown to revive his premiership with a package of economic measures risks being overshadowed by the leak of a Home Office document which spells out how the downturn will lead to an increase in crime and greater support for extremist political parties.
Days after the Chancellor, Alistair Darling, warned in a Guardian interview on Saturday that the economic conditions are “arguably the worst” in 60 years, the Home Office paper gives an insight into the government`s detailed preparations for the downturn.
The document, a draft of a letter from Jacqui Smith, the home secretary, to Downing Street, warns that a downturn may lead to
— An increase in support for “far right extremism and racism”;
— a possible increase in the support for radical Islamist groups from people who experience racism and possible unemployment;
— an “upward pressure on acquisitive crime”, property crime, which increases during a downturn;
— an increase in public hostility to migrants as the job market tightens;
— a fall in the use of cocaine and less drunken disorder in town centres unless drinks companies respond to the downturn by aggressive price cutting.
The leak of the document, which shows the government acknowledges there will be serious social consequences from a downturn, will irritate Downing Street after a difficult weekend.
Darling was forced to record an unscheduled television interview on Saturday to calm the atmosphere after his Guardian interview prompted speculation of a rift between the two most senior members of the cabinet. His frank remarks about the state of the economy, contrasting with the prime minister`s mild language, prompted Tory claims that the government was “dysfunctional”.
Downing Street and the UK Treasury insisted there was no tension between Brown and Darling, claiming they were focused on measures to help people struggling with the downturn.
The first initiative will be announced tomorrow when the government unveils plans to help millions of less well-off people gain — or at least not lose — a place on the housing ladder. This is likely to include a “shared equity” plan in which local authorities and housing associations help borrowers in return for a stake in their homes. Next week ministers will unveil plans to help people with rising fuel bills when the first cabinet of the new season will be held in Birmingham. This is expected to include measures to improve energy efficiency.
The Tories are likely to maintain the pressure on the government after the leak of the Home Office document which shows there could be a twin threat from the far right and radical Islamists. It says “There is a risk of a downturn increasing the appeal of far right extremism and racism which presents a threat as there is evidence that grievance based on experiencing racism is one of the factors that can lead to people becoming terrorists ... The relationship to radicalisation is complex.”
— The Guardian, London
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