IT is rapidly becoming clear that the handling of Britain's economic black hole is to be the key issue at the forthcoming election.

Labour's strategy is to spread as much fear as possible that Tory slashing will drive us back into recession.

Lord Mandelson insisted yesterday that a Conservative administration would "strangle the recovery at birth", likening David Cameron and shadow chancellor George Osborne to "Laurel and hardy" who had not done the work needed for government.

The Tories, of course, will point to the fact that the financial mire has come after more than a decade of Labour control: "Another fine mess you've got us into."

There is, however, a danger for David Cameron that he looks indecisive on the economy. His announcement at the weekend that there would be no swingeing cuts in the first year of a Tory government isn't quite in keeping with the earlier impression that the Tories stood for swift and severe cuts to get the country back on track.

There is also a sense of dithering over the Tories' rethink over regional development agencies such as One North East and Yorkshire Forward.

Up to now, it has been a loud Tory boast: the RDAs are a waste of money and we'll get rid of them.

It appears, however, that business organisations don't agree. They take the view that strategic bodies capable of pulling regions together are necessary.

The view from the North-East is that the region has one of the country's most effective RDAs - so why change something that's working for business?

The Tories had better make their mind up quickly.