On Monday the cam belt snapped and the wheels came off on Wednesday

The New Labour project is dead. That's not to say that the Labour Party are definitely lame ducks a full year before the next general election* but that a number of the key values of the Anthony Giddens-inspired Third Way were broken, neigh shattered, yesterday in the face of the grim reality of our current economic conditions. To quote the BBC's Nick Robinson, “Britain is in the sharpest recession, has the highest borrowing and is about to experience the biggest public spending squeeze since the war.”

To increase the tax rate for the highest earners is to go against one of the key tenants of New Labour, not penalising high achievers. To break Gordon Brown's golden rules and announce yet another target completely missed goes against their 'end of boom and bust' boast. The net debt forecast is double what Gordon Brown deemed acceptable for a western economy, it's hit a whopping 79 per cent of GDP. You don't need to understand the figures to realise that an overhaul is needed on what it is to be a power-seeking social democratic party.

Granted, Alistair Darling did not have an envious job to do, whatever he was gonna say was not gonna be music to our ears but the sheer magnitude is simply staggering. David Cameron's reaction to the budget was clearly that of a prime minister in waiting and Nick Clegg's reaction made me chuckle too. Considering the magnitude Darling was remarkably daring to suggest that we'd be on an upturn by this time next year, certainly Labour will be banking on this being the case if they have any chance of once again holding off the Conservatives.

There were a couple of other eye-catching moments, one being supposedly we'd get two grand if we scrapped our ten-year old motors in favour of a new one. The fact is that the government would only meet half of that figure and the dealers will do everything in their power to not let that eat into their own overheads too much. For one thing, you're not gonna see so many people being able to barter down new cars from their initial ticket price.

Perhaps the most New Labour element to their budget was their claim to either find a job or train up an under-25 who has spent more than one year out of work. It's commendable but is surely one of those things that's easier said than done and would soon be full of loopholes. Gordon Brown would suggest that New Labour is all about aspirations, making sure people make the most of their potential and increasing opportunities for people to go out and achieve but now he's taxing more those who have achieved.

For the record, the cam belt refers to my car. On Tuesday I had to say goodbye to Oscar the Octavia.

* Under the assumption that the next general election is spring 2010.