Bernard Ingham: Why the real political losers will be Labour

I myself have wearied in the chase. Having just completed my tax return, I am appalled at my loss of investment income since 2007-08. What's another clip to a sheared sheep?

I do not imagine those retired from the private sector are as philosophical as me, a Civil Service pensioner, about the price of Gordon Brown since he single-handedly destroyed their pensions. But I suppose we shall all survive – if we don't kick the bucket first. Instead, what pre-occupies me today are the political consequences of Osborne's enforced handiwork for the Labour Party.

We do not, of course, know how yesterday's Budget will be received, least of all until this winter when the measures really begin to bite into public spending and jobs. But if the coalition can hold together in the face of rising unpopularity, we shall be in another ball game, assuming Dr ConDem's medicine is this time next year showing some signs of working.

Whither Labour then? This is the question party members should be asking themselves as they contemplate the thoroughly undistinguished line-up for the Labour leadership.

The five candidates – the Miliband brothers, Ed Balls Andy Burnham and the token woman, Diane Abbott – reflect Labour's aimlessness since Tony Blair dubbed Labour's new creed "The Third Way" but could not define it, not even with the help of a bunch of eggheads.

Labour has now been floundering about in search of a purpose for

more than 15 years. It is a long time to go in politics without knowing what you stand for, especially when you are governing the country. It is a debilitating disease.

Of course, the Left believes it has a very clear idea of what it is in

business to achieve. Unfortunately, socialism in its several forms has

been tested to destruction. Their big state is seen to be expensive, bureaucratic and inefficient and bent, like Gordon Brown, on

creating a kept – that is, a bribed – electorate. It doesn't even deliver the votes, as the last election proved.

It also serves the purposes of public sector unions – and notably Unite, the leading Labour Party paymaster – who are as ready as in

the strike-ridden 1970s to use the public as pawns in their power

game. If anything demonstrates that it is their attempt to drive a private sector firm, British Airways, out of business.

Much of the rest of Labour do not politically know their posterior from their humerus, to coin a phrase. They are a rather pathetic bunch of class-ridden, politically correct idealists for whom the sun positively shines out of the working class, whether they are gainfully employed or exploiting the system as ruthlessly as any bloated plutocrat. They certainly cannot organise a booze-up in a brewery, still less run a whelk stall, as their last 13 years in office proved.

Balls's concept of governance – micromanaging the education system with virtually weekly diktats – is just about the most destructive of morale and performance anyone could imagine.

The five candidates can seek to disagree with the Government they served or supported until they run out of puff. But not one is capable

of articulating a new 21st century purpose for a movement grown unattractively lax in its morality – as its almost total

reliance through three Parliaments on spin, manipulation and downright deceit exposed.

A Labour Party reduced to these straits – and with such bleak prospects – is in no condition to cope with even a modicum of coalition success in remedying some of its failures. If I am right, its inability to challenge the coalition in this Parliament will be as damaging as the Tory failure to nail the Blair/Brown governments.

This also raises the question as to where ambitious pragmatic Labour moderates with no remnants of socialist chips on their shoulders will go if the coalition succeeds in improving the nation's financial condition at an acceptable price.

Is a realignment of politics staring us in the face? It's a bit early yet. But we cannot rule out endless centrist governments of all the so-called talents – apart from the crucial one: a burning conviction.

Was yesterday's Budget the first step along the road to comfortable political boredom for this sceptred isle? Was Margaret Thatcher the last of the Mohicans? After all, I'm hanged if I know what David Cameron or Nick Clegg really stand for either.