THERE are still three-and-a-half years to go the next general election. Yet, already, it feels like the Chancellor’s last roll of the dice.

I’m talking about next week’s dull-sounding autumn statement, more snappily described as the Government’s desperate attempt to kick some life into the comatose British economy.

We will learn exactly what “growth” ideas George Osborne has up his sleeve to prevent a devastating double-dip recession, Thatcher- style mass unemployment and, perhaps, an early bath from the voters.

The stakes could not be higher. Tory sources hint at near-panic in Downing Street at the constant flow of bad economic news, knowing ministers are fast running out of excuses.

Consider that, one year ago, the Chancellor was boasting of growth of 2.6 per cent in 2011, rising to 2.9 per cent in 2012 as he crowed, foolishly, of taking Britain “out of the danger zone”.

Now those predictions are in tatters. The Bank of England thinks growth will limp along at just one per cent next year, after a “made at home” downturn that long predates the Eurozone crisis.

So what can be done? Well, here are some of the ideas known to be in the Chancellor’s mind:

• Credit easing – Mr Osborne’s big idea to lend billions more to small businesses, by allowing companies to sell corporate bonds to the Government;
• A new fund to encourage up to £50bn of private-sector investment in major infrastructure projects, tapping into money held by pension funds;
• Ripping up employment law, especially for small companies. This was announced yesterday, although relegated to a “call for evidence”, after Con-Lib bust-ups;
• After youth unemployment topped one million, a CBI proposal for a £1,500 tax break for companies recruiting under-24s is under consideration;
• A package of measures to help steel and other energy-intensive industries, to ease the impact of green policies to combat climate change.

With the exception of the infrastructure fund, they are all supply-side measures, reflecting Conservative economic ideology that the state’s job is to create conditions for private investment, then get out of the way.

There is a Tory obsession that the lack of growth is explained by red tape, especially regulation flowing from Brussels.

But, increasingly, it is becoming clear that the economy is tanking because of a lack of demand and spending, problems that will not be solved by tax breaks and a more brutal capitalism. Next week is the Chancellor’s last chance to show his ideology can trigger that elusive growth before the clamour to change course becomes deafening.

SO, who said this, back in 2009, when the European Commission approved the proposal for Northern Rock to be split into two separate organisations? This person warned: “I fear that what might come out of this is that the better bits of the bank will be sold off, and sold off cheaply, to a private buyer and the rubbish, the really bad irresponsible loans, the 125 per cent mortgages, they will be left with the taxpayer, which will eventually accrue very large losses.”

Yes, it’s conclusive proof that Vince Cable truly was a financial sage – although he failed to predict he would help sign off the deal, as the Liberal Democrat Business Secretary.