Yesterday's pre-budget report by the Chancellor confirms the economic mess in which we are now mired.  But it confirms something else too: that politics is dominated by opportunism.  The supposed handouts will be short-lived and only serve to build up yet more debt, something that will have to be paid for in higher taxes.  The budget deficit is set to rise to some 8 per cent of GDP, making the limit under EU rules of a 3 per cent deficit look somewhat fanciful.

The announcement of an increase in the top rate of income tax is yet another sign of a return to class warfare.  When we take into account previous National Insurance changes and changes to the higher rate threshold, it represents a massive penalty on success. That is not the way forward if we wish to build a prosperous society.  Indeed, some studies suggest that such tax hikes even fail in their stated aim of generating more tax revenue as economic activity is stifled and successful wealth creators move out.  A decrease in VAT is welcome but it is taxes on earnings that do the most damage.

We do not object to measures designed to underpin the stability of the banks at this critical time, although we do deplore the crazy build-up of public and private debt that has helped to bring about this situation.  It is not necessary, however, to squander public money indiscriminately in the way that the Chancellor appears to be doing.  The old-style Keynesian notion of pumping money into the economy to generate economic activity just does not work.  It is far better to ensure that the fundamentals are right - a sound financial system, proper reward for effort through lower taxes and regulation that supports rather than stifles businesses.

So the recent political infatuation with tax cuts has been shown to be little more than headline-grabbing spin.  What we are seeing is more spending and - after the inconvenience of an election is out of the way - higher taxes.  Middle income families will suffer.  And the higher earners?  They will move out if they have the chance.