2008 is likely to prove a make or break year for Gordon Brown and his Government.The Prime Minister cannot expect to stumble from one disaster to another and retain the confidence of his own MPs, let alone the British people.

After the fiasco of the lost personal details of 25 million people, the billions of pounds committed to support the black hole of Northern Rock and the endless chaos of our asylum and immigration system, Mr Brown badly needs to get a grip.

'Not Flash, Just Gordon' was going to be his election slogan before he backed away from a fight with David Cameron's resurgent Conservatives.

Gordon planned to sell himself as a steady hand on the tiller. As the New Year dawns, his administration is buffeted from one crisis to another.

Competent government is our most urgent need. But we also want a sense of national direction.

2008 will be a critical year to establish which party has the vision and original ideas to inject a sense of purpose into the Britain of today, to propose effective reform of the public services at home and to champion democracy abroad.

For Mr Cameron, 2008 is the year to drive forward the Conservative policy review, setting out clearly how he would regain control of tax and spending while modernising health and education services.

Abroad, the cruel killing of Benazir Bhutto has been a shocking reminder of the instability of much of the Islamic world. Her tragic death should spur us on to defeat terrorism and support those like Miss Bhutto prepared to defend democracy.