He promised to win back votes and joked the other candidates were borrowing his ideas for reorganising the party.

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Indeed, Mr Reinfeldt came to power in 2006 only by moving his Moderate party towards the centre and borrowing freely from social-democratic ideology.

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Labour, he said, was a "party of one notion: more borrowing".

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It is an attempt at ventriloquism, if you will, borrowing the voice of a rather cynical bunch of Tory party strategists.

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Not only has the little-guy investor joined the stock party, but they are doing so with gusto and borrowing money to do it, lured by the prospect of Dow 20, 000.

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Conservative Party chairman Grant Shapps said the plans meant more spending, more borrowing and higher debt levels and this was "exactly how Labour got us into this mess in the first place".

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Labour, he said, was a party not of one nation, but of one notion, namely borrowing more to try to stimulate the economy, a notion that the prime minister claimed was a massive gamble that would lead to higher interest rates.

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Interviewed on the Today programme, Labour's deputy leader Harriet Harman confirmed that under the party's economic plans there would have to be a temporary rise in borrowing to fund a cut in VAT.

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