The Labour party can thank its lucky stars that its conference does not clash with the regular monthly updates on inflation or GDP. No one wants hard evidence of spiralling prices or recession overshadowing their carefully planned speeches. Unfortunately, they haven't got off scot-free. Not only are eyes constantly swivelling away from Manchester to the US where Congress is set to meet over the $700 billion bailout which could determine how long the current financial torment continues, but figures out today from British Banks are a further reminder that Britain's housing market is in a dire state. The discomfiting thing about the British Bankers Association figures is that the government brought August's dismal house purchase figures on itself. The endless speculation over reforms to stamp duty encouraged buyers to wait and see, rather than hand over their cash. They were right, as the Chancellor finally announced a 1-year increase in the threshold at which 1 per cent stamp duty becomes payable from £125,000 and £175,000, saving some buyers thousands of pounds.

The government has found time and time again that speculation often damages rather than helps its cause. Off the record briefings are all very well, but by failing to confirm the rumours quickly, it exacerbated the slowdown in the housing market -something it was actually trying to reverse. Maybe it will take this as a lesson. When Sir James Crosby files his report on the housing market, the government needs to talk less and act more quickly.

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