Although this week’s report from the new independent Office for Budgetary Responsibility reported UK borrowing to be lower and tax receipts higher than the Labour Government predicted in March’s budget, the ConLibs continue with their fiction that having opened the books they have found things to be much worse than they feared, as an excuse for the cuts the Tories have wanted to make regardless. 

The nobel prize-winning economist, Joe Stiglitz, the Financial Times’ veteran economics columnist, Martin Wolf, and several others have repeated their warnings that the ConLibs’ policy risks stifling growth, reducing demand and tipping us back into recession - as well of course of pushing unemployment far higher than it would otherwise have been. 

This is the crazy policy one expects from the Tories but it is extraordinary that the Lib Dems appear to have meekly swallowed it. Keynes must be turning in his grave! 

Another short-sighted and wrong-headed decision by the Government was their announcement today to abolish the Regional Development Agencies. 

These provided a much needed strategic development body that could rise above the petty turf wars and nimbyism of some local athorities and ensure that investment, particularly in major infrastructure projects, happened in those places where it was most needed and provided maximum benefit to the region as a whole. It looks like a return to the bad old days of “buggins’ turn” or where those local authorities with the loudest voice or closest friends in Government skew decision making. 

In a hotly contested debate on Monday in the House of Lords, an attempt by Liberal Democrat Peers to kill the legislation was overwhelmingly defeated. 

A motion from the Cross Bench Peer Lady Butler Sloss expressing regret at the move and asking for a further delay was passed, but not with as big a majority as had been expected. 

The only other two cross benchers who spoke, supported Exeter’s case, as did the Labour Peers Lord (Larry) Whitty and Baroness (Brenda) Dean. 

The orders was also approved easily both in committee and on the floor in the House of Commons. 

It was a great tribute to the hard work of everyone in Exeter over so many years. An all-party delegation from the city last week, led by Conservative Lord Mayor Cllr John Winterbottom and including Lib Dem, Liberal and Labour councillors did a brilliant job at persuading cross bench and Tory Peers not to support the fatal amendment. 

Now that the orders for both Exeter and Norwich have been approved by Parliament, after lengthy debate in both Houses and are law, it is far less likely that the outstanding legal challenge by Norfolk and Devon will succeed. Parliament is sovereign and the courts are usually very reluctant to overturn such a strong democratic mandate. 

Also, one of the effects of the legislation has been to postpone the city council elections that were due to take place in one third of Exeter wards in May in order to hold all out elections to the new unitary authority next year. 

So those councillors who would have faced elections in May have been told they can continue for one more year. By the time the court sits it will be too late to reinstate those elections so the court will want to be very mindful indeed of the consequences of any ruling on the democratic process. 

Meanwhile David Cameron has been embarrassing his local parliamentary candidate in Exeter today telling local Tories they were wrong to support Exeter’s bid. Cameron is either incredibly ill-informed or astonishingly insensitive or both. 

Exeter Tory leader Yolanda Henson has fought for years for unitary status and was ably supported by John Winterbottom, Norman Shiel and Jeff Coates among others for last week’s lobby of the Lords. 

Cameron said a Tory Government would reverse the decision. But as doing so would require primary legislation could anyone really see an incoming Tory government making this their first priority and upsetting Exeter Conservatives in the process? 

When can we expect the Conservative parliamentary candidate to finally speak up for Exeter, support local Conservative councillors and call publicly for her national party to allow Exeter to fulfil its ambition and call on Tory-run Devon County Council to drop its costly and futile legal shenanigans?

A motion tabled by the Conservatives opposing Government plans to restore unitary government to Exeter and Norwich was defeated comfortably. 

Conservative MPs from rural Devon and Norfolk lined up to criticise the plans. 

But the proposals were strongly supported by Labour members including the former Home Sectretary and Norwich MP Charles Clarke. 

The Chairman of the influential Commons local government select committee, Dr Phyllis Starkey, also supported Exeter’s case pointing out that is enjoys all party support in the city, including from Conservative councillors. 

The Minister, Barbara Follett said the Government was restoring the full local government status Exeter had enjoyed for 800 years until it was taken away by the Conservative Government in the early 1970s. 

It’s ludicrous that councillors from Bideford and South Hams decide how much money to spend repairing Exeter’s roads and which roads to repair when. 

We need Exeter councillors who are accountable to local people making those decisions and given the money to do so. Exeter would then get our fair share of resources, rather than it all going to the rural areas.  

A legal attempt by Devon and Norfolk county councils to thwart Exeter and Norwich’s aspirations was rightly put on the back burner by the High Court who said Parliament should take precedence. 

The House of Lords is full of Conservative and Liberal Democrat supporters of the powerful county lobby in this David and Goliath struggle. A very experienced cross bench Peer tells me the Lords has only rejected a Government order 3 times since 1945 and never one relating to local government organisation. 

It would therefore be a constitutional outrage if the Lords were to block the Exeter and Norwich orders – which enjoy strong support in those two cities. If unelected Liberal Democrat or Conservative Peers try to block the will of the people of Exeter and Norwich and the democratic Commons, all pretence by those parties to support the democratic principle and a reformed Lords would be exposed as a sham. 

It would also create a precedent the Conservatives might regret should they ever form a future Government.

The acknowledgement by the British Chambers of Commerce that both unemployment and borrowing will be far less than people predicted should boost confidence and help further reduce the deficit. 

With Germany going backwards and other EU countries like conservative-run Sweden going back into recession, the next few months are going to be tough. All the more reason for sticking with the support the Government has been giving our economy, rather than withdrawing it prematurely as the Tories advocate. 

Labour are still the underdogs and we must keep fighting like mad, but the narrowing of the polls is certainly putting a spring in people’s step and boosting morale at a vital moment. 

It is extraordinary that after 5 years at the helm, Cameron has failed to change his party or develop a coherent and robust set of ideas and policies. 

Labour must hold our nerve, keep working hard, campaigning hard, reminding people of what we’ve achieved, of Gordon and Alistair’s sound stewardship during the downturn and focus people’s attention to the fundamental choice the country will face when the election comes: the same old Tories or radical and progressive change with Labour. 

It would seem the Trustees came across some past accounting problem that led them to declare the Northcott insolvent on Thursday. 

I hope that with some effort and good will, the problem will be addressed and overcome. From what I hear the theatre management, their main funder the Arts Council and the Adminstrator are working constructively together on both a short and long term solution. 

Meanwhile, the show goes on. Theatre Alibi launched their new national tour of The Ministry of Fear at the Northcott on Friday. It is a great production and was a superb performance. The opening night was packed out with a diverse and quite young audience. That should encourage the Northcott and its fans about its future. 

After the huge sums Devon has already wasted on its own bid for unitary status, which it then withdrew, blowing yet more public money trying to thwart democracy in Exeter is little short of scandalous.

The Tories who run Devon pay lip service to local democracy and devolving power - but not when it comes to one of Englands great historic cities, it would seem! 

If he doesn’t reveal the genuine warmth and humanity of his personality that those of us who know him know he has got in spades he is branded “dour”; if he does it’s “cynical manipulation” of the media in the run up to the election. 

I suspect some of those who watched the Piers Morgan interview will have reacted with less cynicism than the journalists who dismissed it. They will have welcomed the chance to see the PM as they haven’t before. 

I hope there will be more opportunities for the wider public to be introduced to Gordon as those who know him know him to be - warm, funny and engaging.