The Chancellor should admit in his statement that his rules were misconceived from the start

Autumn Statement wishlist.

Unless he can find some dodge to circumvent them, George Osborne’s fiscal rules are likely to require him to tighten policy in the autumn statement through some combination of spending cuts (such as freezing welfare payments) and tax increases. At a time when the economic recovery is so weak and economists are speculating about the possibility of a ‘triple-dip’ recession this would be folly.

The Chancellor should admit in his statement that his rules were misconceived from the start. The first is, in theory, no constraint at all because it only requires him to forecast that the deficit will be eliminated in five years time, not to ever actually eliminate it. But in practice, he interprets the rule as forcing him to take action now in order to demonstrate he is still on track to achieve his five-year target. The second rule – that debt should be falling by 2015-16 – is a bigger problem; it can only be achieved by more tax increases or spending cuts.

George Osborne should adopt a new rule specifying that the scale of spending cuts will vary according to the strength of the economy. When growth is weak, spending cuts should be scaled back; when it is strong, they should be speeded up. This would increase the credibility of fiscal policy and allow the Chancellor to relax policy in the autumn statement. This should be done through what is clearly a one-off boost to spending, and the best way to do that is by providing additional resources for infrastructure spending in 2013-14.

Tony Dolphin is from the Institute of Public Policy Research

When growth is weak, spending cuts should be scaled back. Photograph: Getty Images

Tony Dolphin is chief economist at IPPR

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Tom Watson rouses Labour's conference as he comes out fighting

The party's deputy leader exhilarated delegates with his paean to the Blair and Brown years. 

Tom Watson is down but not out. After Jeremy Corbyn's second landslide victory, and weeks of threats against his position, Labour's deputy leader could have played it safe. Instead, he came out fighting. 

With Corbyn seated directly behind him, he declared: "I don't know why we've been focusing on what was wrong with the Blair and Brown governments for the last six years. But trashing our record is not the way to enhance our brand. We won't win elections like that! And we need to win elections!" As Watson won a standing ovation from the hall and the platform, the Labour leader remained motionless. When a heckler interjected, Watson riposted: "Jeremy, I don't think she got the unity memo." Labour delegates, many of whom hail from the pre-Corbyn era, lapped it up.

Though he warned against another challenge to the leader ("we can't afford to keep doing this"), he offered a starkly different account of the party's past and its future. He reaffirmed Labour's commitment to Nato ("a socialist construct"), with Corbyn left isolated as the platform applauded. The only reference to the leader came when Watson recalled his recent PMQs victory over grammar schools. There were dissenting voices (Watson was heckled as he praised Sadiq Khan for winning an election: "Just like Jeremy Corbyn!"). But one would never have guessed that this was the party which had just re-elected Corbyn. 

There was much more to Watson's speech than this: a fine comic riff on "Saturday's result" (Ed Balls on Strictly), a spirited attack on Theresa May's "ducking and diving; humming and hahing" and a cerebral account of the automation revolution. But it was his paean to Labour history that roused the conference as no other speaker has. 

The party's deputy channelled the spirit of both Hugh Gaitskell ("fight, and fight, and fight again to save the party we love") and his mentor Gordon Brown (emulating his trademark rollcall of New Labour achivements). With his voice cracking, Watson recalled when "from the sunny uplands of increasing prosperity social democratic government started to feel normal to the people of Britain". For Labour, a party that has never been further from power in recent decades, that truly was another age. But for a brief moment, Watson's tubthumper allowed Corbyn's vanquished opponents to relive it. 

George Eaton is political editor of the New Statesman.