Year in review: March

With Gordon Brown's 10th Budget, more revelations about the loans-for-peerages affair and the financial dealings of Tessa Jowell, March was dominated by money.

 

Labour's previously fairly united front on how it raised its pre-election war chest was blown apart when the party's treasurer Jack Dromey publicly claimed he was kept in the dark over loans apparently paid in return for peerages.

 

Dromey, husband of government minister Harriet Harman, called on the Electoral Commission to investigate the arrangements amid claims that Downing Street was trying to run the party.

 

The Conservatives were remarkably quiet during the turmoil facing their opponents -probably because they knew the investigation was about to probe into their own less than straightforward financial affairs.

 

Meanwhile culture secretary Jowell had financial troubles of her own with questions being asked about her knowledge of an alleged bribe paid to her international lawyer husband David Mills.

 

Jowell later separated from Mills with some commentators claiming this was a "sham" designed to limit political damage to her career.

 

Cash questions were also being asked about NHS deficits and Tony Blair had to deny that the health service was in crisis with the Conservatives claiming that he had "sacked" its chief executive Sir Nigel Crisp.

 

NHS trusts' budget deficits were threatening thousands of jobs according to the opposition and health unions.

 

Brown faced some criticism for failing to bale out the trusts with extra cash in his 10th Budget.

 

In contrast education was a winner with schools spending at the heart of his statement on the economy.

 

The chancellor set himself a goal of increasing per pupil state capital spending from £5,000 to £8,000 per year, matching the level of private sector investment.

 

This new investment in schools followed the education bill's passage through the Commons which was only passed with Conservative support.

 

It was another damaging episode for the prime minister and commentators continued to suggest that Tony Blair was now badly lacking in authority.

 

Blair all but acknowledged this when he said it had been a "mistake" to announce 18 months previously that he would not seek a fourth term in office.

 

As one party leader seemed to be on the wane another, in the form of Sir Menzies Campbell, was beginning his time in charge.

 

The 64-year-old vowed to reform the Liberal Democrats - after polling 57.9 per cent of the vote, compared to 42.1 per cent for Huhne once Hughes' second preference votes had been transferred.