As Contract Journal went to press on Monday this week, media speculation was rife about Alistair Darling's first Budget as Chancellor. Firmly under Gordon Brown's thumb, it seems unlikely that the Budget will deviate much from Brown's previous prudent approach. But Labour are now dealing with a markedly different economy than the one enjoyed by Brown during his time as chief financial plate spinner.
Rising input prices, the global credit crunch and general market uncertainty mean that, for the first time, government is dealing with a situation that is outside its previous comfort zone. No longer can it take advantage of a rising market and plenty of consumer and business confidence to push through its latest ideals. Money is more difficult to come by and more costly - and that makes for a difficult balancing act.
With at least a couple of years to go before the next General Election, Brown will be keen to make the most of any fiscal breathing space. If I were him, I would pull back on spending now, only to ratchet it up in the run-up to an election - announcing it as new money building a new Britain.
You could call me cynical, but during its 10 years in power, this government has become a master of managing the public and media. But construction has done well under this government, with spending on health, education and roads helping the industry achieve a decade of steady, healthy growth.
Let's hope that Brown and Darling stick to their promise of being a "transparent" government, and one which doesn't manipulate spending and the media for its own ends. The future success of the construction industry - one of the country's biggest employers - depends on their approach.
Look out for our Budget coverage on Wednesday and Thursday this week on contractjournal.com as we dig below the headlines to see just how it affects construction.
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