Cameron is the spectre at Gordon's feast

SO Gordon presented his last Budget. Even if he doesn't become Prime Minister, any successor to Tony Blair is unlikely to keep him on in the Treasury. And as he himself said yesterday, the days when the PM could also be Chancellor are long gone - in fact, Mr Gladstone was the last holder of the two offices of state.

A memorable last Budget? He obviously thinks it will be, given the fluorish with which he announced the 2p cut in income tax. It looked like the perfect riposte to the Tories, who are somewhat split over the benefits of promising cuts in taxation before a General Election. Nevertheless, David Cameron was able to paint it as a triumph for his mantra that the proceeds of the nation's increased wealth should be shared between investment in public services and the a cut in taxes.

Labour MPs predictably enjoyed the occasion. I have yet to witness a Budget delivered in silence and greeted like Mary Whitehouse at a gay wedding. But on the scale of joy and order paper waving, it was fairly well received by Gordon's own side.

There was the usual point scoring against the Tories, with the Chancellor gleefully telling MPs that under Conservative plans for increasing taxes on domestic flights, most companies would be able to reclaim the VAT.

Mr Cameron could have been wrong footed on the 2p cut in taxes. But showing how much he has grown into the role of Tory leader, the surprise announcement did not catch him off guard. He crowed: "You have finally given us a tax cut. You normally do that before a General Election, but you are in such a deep hole that you had to do something before the leadership election.

Honours even. But Cameron's easy style will have worried Labour MPs who believed Gordon would have knocked Cameron aside. That he didn't shows just how delicious the prospect of a Brown v Cameron election campaign promises to be.

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