In a passage which prompted one member of the shadow cabinet to lambast Blair as "so right wing", Blair wrote: "If governments don't tackle deficits, the bill is footed by taxpayers, who fear big deficits now mean big taxes in the future, the prospect of which reduces confidence, investment and purchasing power. This then increases the risk of a prolonged slump."
The former prime minister offered some support for Alistair Darling, the former chancellor, who won a battle with Gordon Brown in government to pledge to halve the deficit in four years.
"Fiscal consolidation has to proceed with care," Blair wrote. "I agree entirely that a precipitate withdrawal of stimulus packages would be wrong."
But Blair wrote that Brown lost the election after abandoning New Labour by raising the top rate of tax to 50%, signalling a "return to tax and spend", and increasing national insurance to tackle the deficit. "We should have taken a New Labour way out of the economic crisis: kept direct taxes competitive, had a gradual rise in VAT and other indirect taxes to close the deficit, and used the crisis to push further and faster on reform," he wrote.