PUBLIC FINANCES: IT has become clear that Gordon Brown is no longer in possession of the economic good news he inherited in 1997.

When New Labour was elected, unemployment was falling and there were fewer taxes. Today we can see that Gordon Brown, despite introducing new taxes and fees, still hasn't got enough money to meet the public spending commitments he has made.

There are two reasons for the shortfall. Firstly, despite trying to be seen as "prudent", he grossly overestimated the amount of money he would receive in tax revenues by predicting higher growth than the world economy would allow. Secondly, he planned to spend too much on public services and has ended up with outrageous pay claims fuelled by house price inflation.

It is typical of Labour's approach. They spend more money than they have and wreck the economy. The result is that we now have to pay more in taxes and charges just to bail the Government out of a hole.

It would have been better for Gordon Brown to do what every sensible household in Britain does - to live within his means by keeping taxes and charges down and get better services through reform and modernisation.

It is easy to govern and to be popular when taxes are flooding in. The real test is when money is too tight to mention.

At the moment it is by no means clear that Labour will pass the test and not make things worse with unsustainable taxes and spending. - Roderick Burtt, Hurworth.

REGIONAL GOVERNMENT

THE letter from Mr Oliver (HAS, Nov 27) is exactly right to point out than an elected regional assembly with its extra politicians and additional tiers of bureaucracy will increase the costs for taxpayers across the region.

The Government's proposed legislation would involve increased council taxes, all paid for by North-East residents to the tune of £25m a year. In addition, there is also the estimated £3m costs of the referendum, all money which should be targeted at the priorities facing the North-East, the need for new hospitals, schools and transportation links.

A regional assembly would impose another tier of government on the North-East. It would take decision-making power away from local people right across the region and place it in a costly and bureaucratic structure based in Newcastle.

The Conservatives believe in retaining our existing structures of local government, with measures to return power and freedom to local councils, rather than imposing another bureaucratic tier of government on the region. - Martin Callanan MEP, Conservative, North East Region.

SINGLE CURRENCY

THERE is a simple reason why Britain has not been as successful as it should have been in projecting its interests within Europe: vacillation. Britain joined the EU 15 years late and was an unwilling and sometimes hostile partner for much of the 1980s and 1990s. The current Government has done much to repair the damage, but we are still held back by our isolation from the euro.

Europe is far from unreformable. Enlargement and the convention are driving political reform; the euro is driving substantial economic reform. The past few years have seen Europe's record in job creation match, and even surpass, that of the US.

That some countries have done better than others is a sign that the euro does not remove the power of sovereign governments to effect different national economic policies. The key is to harness the possibilities for trade and the opportunities for competition the euro unleashes.

Weakening ties with Europe now would be self-defeating and pointless - an act of "revenge" of which British interests would be the only casualty.

The issue for Britain is to shape this reconfiguration in a way that serves its national interest. That can only be done from within the euro. - R Ashby, Secretary, North-East in Europe.

POLITICAL FUNDING

STUART Hill's obsession with every citizen paying towards political parties (HAS, Nov 22) beggars belief.

Are we so naive as to think our easily-claimed tax is not already used by political parties?

Elections are never won by people of dedicated political persuasions. The winner is the one who can appeal and thus gain votes from the engine room of Britain, the floating voter who normally belongs to hard-working Middle-England.

Only 50 per cent of Britain bothered to vote in the last election and local elections can see a pitiful 20 per cent turnout. 'None of the above' wins by a landslide!

Mr Hill's Britain would force the 80 per cent to give more money to political parties, when they would prefer to vote for 'none of the above'. I pay my £15 membership to the Tory Party through choice, a good starting point in a free nation.

Whilst I agree that big donations should never buy influence, this is about the Labour Party's £10m debt. Don' t ask the non-political public to help, simply balance the books.

As a Sunderland fan, would you expect me to donate money for Newcastle to get two new centre-backs? - J Tague, Chairman, Conservative Party, Bishop Auckland Branch.

TOM MCGUINESS

AFTER visiting the exhibition of works by Tom McGuiness in the gallery named after him at Bishop Auckland Town Hall, I ask why Spennymoor does not pay a similar tribute to a man recognised as one of the North-East's greatest living artists, Norman Cornish.

Here is a man with a unique talent who has given great pleasure to countless people.

At all times a gentleman, he has brought nothing but credit to the town.

Come on Spennymoor, isn't it time we recognised the genius on our own doorstep by following the example of our neighbours and showing our appreciation? - John Thompson, Spennymoor.