Political Focus, with Bill Jacobs

BECOMING Chancellor seems to have given new life to Gordon Brown.

Labour's election victory seems to have lifted the Shadow not just from his title but from his shoulders.

Admittedly there were no jokes, but the gloom and introspection which characterised the Dunfermline MP for so long before May 1 has gone.

His Budget speech was confident and measured.

Old Westminster hands remembering previous rookie Chancellors muffing their lines and rushing the speech were amazed and admiring at the assurance of it all.

And they were also impressed by the way he had resolved conflicting priorities.

Scottish Secretary Donald Dewar - a sober and acute judge of such things - felt it was an excellent balancing act between meeting Labour's priorities and keep control of the public finances.

A more cynical observers: "It was excellent. Fiscally prudent with lots of dosh for schools and hospitals to keep the Old Labour battalions happy. He's penalising the middle classes a but not so much that their pips squeak or they start to squeal."

Treasury committee veteran Giles Radice was deeply impressed at the way he had kept fulfilled the first duty of a Chancellor by being financially prudent yet still given plenty of good news.

The decision to find extra cash for schools and health from the contingency fund - which everyone had forgotten about - was a masterstroke, he said.

Former Tory Treasury MInister Michael Jack saw it rather differently as a trick with "smoke and mirrors". While it looked impressive, he felt there were big holes in it that time would find out.

The cut in Corporation Tax was a screen to offset the inevitable interest rate rises that the newly independent Bank of England would bring in to damp down an economy the new Chancellor admitted was overheating.

The cost of these would dwarf the benefit of the tax cut, the Fylde MP predicted.

But certainly, Mr Brown was impressive.

He did take some gambles - not least with his prediction that he could find £1.7 billion from cracking down on tax loopholes.

Treasury figures indicated that the balance of payments deficit is destined to rise suggesting possible rocks and stormy waters ahead for the New Labour Ship of State.

There is a risk that in the North of England and the more far-flung parts of Scotland that measures to damp down the housing market in London and the Home Counties could be bad news.

But overall he seems to have got the balance write in a speech of just 60 minutes. He is raising more than expected from his windfall tax on privatised utilities and the indication are now that they will accept the levy and not risk the wrath of a government that may be in power for years by challenging it.

The government lived up to its promises to find more cash for health and education. The smoker gets hit hard - but not just yet so he can stock up with 200s from his local supermarket.

The drinker gets off lightly with the prospect of relief to come from the review of duties in the light of cross channel European Single Market trade.

The motorist suffers, but there is the promise of better public transport to come.

The Green credentials are, however, impeccable and fashionable (rather like penalising smokers).

And by cutting Corporation Tax he still manages to seem like the businessman's friend - although Mr Jack suspects interest rate rises in the next few months will more than wipe out any benefit to firms.

His attack on mortgage interest tax relief and increase in stamp duty on executive mansions shows enough of the Old Labour politics of Mr Brown's Scottish Socialist roots but not enough the scare the middle class.

And the ever maverick Tam Dalyell sees a hidden benefit for the pro-European's - it keeps the UK on track to join the European Single Currency from Day One if the government wishes to do so.

But my main worry is that it looks just too successful.

The late Ian MacLeod - a former Tory Chancellor - remarked that Budgets that look good on the day rarely kept their gloss six months later.

For all Mr Brown's confidence and panache, I just can't help feeling that Mr Jack may be right and there isn't the meat in this Budget to sustain its healthy look until the next one in the Spring.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.