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Tony Blair: Gordon Brown
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Blair insisted the increased funding would have to be matched by internal reforms. The government introduced the Foundation Hospitals scheme to allow NHS hospitals financial autonomy, although the eventual shape of the proposals, after an internal struggle with Gordon Brown, allowed for less freedom than Blair had wished. Several healthcare trusts established under the foundation hospitals scheme are now in severe financial difficulties, having spent large proportions of their funding increases on pay rises for staff and on expensive drugs. As a result, with supply of healthcare services increasing less quickly than demand, benefits from the NHS have not increased to the same degree, and the NHS had an £800 million deficit for the 2005/6 financial year.
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Gordon Brown has launched his campaign to be Britain's next prime minister, a day after Tony Blair announced he would stand down in June. Earlier, Blair delivered a ringing endorsement of Brown, who has served as his finance minister since 1997.
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Underpinning the Blair government's increase in public spending on education and health without raising the level of income tax was a sustained period of economic growth, sometimes credited to the Chancellor Gordon Brown. A key element of this is believed to be the early decision of the Blair government to devolve the power to set interest rates to an independent body - the Bank of England, subject only to politically determined objectives for the rate of inflation and the overall level of public spending. This decision meant in practice that interest rates could no longer be manipulated by the government in power to produce a 'false' economic boom for mere electoral reasons, and led to a steady low level of inflation, and a steady, stable rate of economic growth. [70]
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Members of the House of Commons gives Tony Blair a standing ovation during his final Prime Minister's Questions in the House of Commons in this frame grab June 27, 2007. Gordon Brown succeeds Blair on Wednesday to become Britain's 52nd prime minister, charged with healing wounds over Iraq and restoring public faith in a Labour government in order to win a fourth consecutive term. (BRITAIN) REUTERS/PARBUL
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When Kinnock resigned after Labour lost again in the 1992 general election, Blair became Shadow Home Secretary under the new leader, John Smith. Recognising that the Conservatives' reputation for being "tough on crime" was electorally popular, he adopted Gordon Brown's summary that Labour's approach would be "tough on crime, and tough on the causes of crime".
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When Neil Kinnock resigned as party leader after Labour's fourth successive election defeat, Blair became Shadow Home Secretary under John Smith. The Labour Party at this time was widely perceived as weak on crime and Blair worked to change this, accepting that the prison population might have to rise, and bemoaning the loss of a sense of community, which he was prepared to blame (at least partly) on "1960s liberalism". On the other hand, he spoke in support of equalising the age of consent for gay sex at 16, and opposed capital punishment. He defined his policy, in a phrase coined by Gordon Brown, as "Tough on crime, tough on the causes of crime".
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