So, after saying for months that his priority would be to cut the deficit, George Osborne announces that he will reverse much of the already inadequate fiscal squeeze planned by Labour.
He will pay for it by cutting £6 billion from public spending, mainly by freezing recruitment, which will of course be excellent news for the labour market. Just so we know what £6 billion means, it is rather less than the error in last year's budget deficit forecast, so another wrong forecast in a negative direction would make this a deficit-increasing tax cut.
There is really nothing left of Britain's economic policy credibility. Labour refuse to say what they will cut, and the Conservatives refuse to say what they will cut and offer tax cuts. They must be getting nervous about their inability to open up a significant polling lead.