Coffee House

Miliband’s big speech challenge isn’t Mark Carney

17 January 2014

10:45 AM

17 January 2014

10:45 AM

Even though Labour is quite clearly rather peeved by George Osborne’s minimum wage announcement, it is, in one way, a compliment to Ed Miliband that the Chancellor felt it strategically important to try to sabotage the Labour leader’s speech on banking, which he will deliver shortly. The Conservatives are aware that even if Miliband has a knack of coming up with policies that sound potty, he also has a knack of framing them in a way that disrupts the political debate. Thus a pledge by a party leader in the autumn to control prices in a market where he has no control of worldwide wholesale markets still managed to cause significant trouble.

It is significant this morning that Labour is trying to tussle with Mark Carney, who earlier this week dismissed talk of a bonus cap and breaking up the banks. Chuka Umunna popped up on the BBC to complain that Bank of England governors shouldn’t be involved in ‘big political debates’. He said:

‘I think it’s not healthy for us to involve governors of the Bank of England in big political debates and I don’t want to drag him into that. He was asked a leading question by a Conservative MP who put it to him whether crude caps on the share of a market that banks have are a good thing or not. We’re not proposing a crude or arbitrary market cap, we’re proposing something that would be set by the Independent Competition and Markets Authority.

‘But I actually had an exchange in July 2010 with Mark Carney’s predecessor, Sir Mervyn King, and he made it very clear to me that its not a good thing for governors in the Bank of England to be involved in political matters.’

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Carney was Osborne’s hire, so Labour isn’t being unduly paranoid in worrying that the Bank of England governor is more impressed with the current Chancellor than he is with anything the Opposition is putting out. But aside from the Governor’s reluctance to appear enthusiastic at the prospect of a Miliband government, there is a bigger challenge for the Labour leader which he knows he needs to address today.

Talking about the need to reform banks is by no means a bad subject, but Miliband is trying to do it as part of his ‘relentless focus’ on the cost of living. His challenge is to try to link the big, long-term reforms that he will be talking about today to this narrative. Talking about a long-term plan that will in time relieve the pressure on the cost of living is precisely the method the Conservatives use to wrong-foot the Labour leader: if he can’t do that himself in a way that is as tangible as the ‘hard truths’ narrative that George Osborne has set up, then he’ll have more immediate things to worry about than whether he’d get on with Mark Carney once in power.

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Show comments
  • Chris lancashire

    Is Miliband completely and utterly economically illiterate?
    As the excellent Times analysis showed yesterday this is a mirror image of the Conservatives sell off of pub estates in the 80s and what happened then is that breweries took the opportunity to get rid of all their unprofitable pubs. So whole communities will lose their local branch.
    Secondly, who does he expect to buy these branches? Lloyds have been trying for two years to comply with the instruction to sell off branches.
    Thirdly, this further unwarranted intrusion into banking merely puts back the day when taxpayers can start getting back the money invested to prop these banks up.
    The bloke is a complete moron.

    • telemachus

      Split the companies by edict
      Half to each set of shareholders
      Simple

      • Colonel Mustard

        It was Brown the Destroyer who consolidated them in the first place.

      • MikeBrighton

        When I last looked most of the banks were not state owned, so exactly how will this edict work? I hope Milliband’s government will have good lawyers as they will be in court for years with this. Laughably dim-Ed things it can be done in 6 months. Lloyds Verde (sale of its branches took years and never concluded!).

        Ed has blown it big time

      • Chris lancashire

        I can see that economic illiteracy isn’t confined to Miliband.

        • telemachus

          Cadbury’s did it and split into chocolate and drinks(Orangina)

          • Chris lancashire

            Cadburys got bought by the Yanks.

            • telemachus

              But before that it split into two
              Both that and the Yank purchase enhanced shareholder value
              Do not lecture me in economics

              • Chris lancashire

                Well it’s at least pleasing to note that you’re in favour of the free market and don’t oppose the sale of iconic British businesses to foreigners. (By the way, it took you long enough on Wikipedia).

              • Colonel Mustard

                Go and do some work and stop wasting taxpayers money writing so much tripe here. It’s Friday afternoon but you must have some diversity training or other PC tripe that could occupy that tiny pea brain.

              • Nicholas chuzzlewit

                You have absolutely no understanding of economics you brainless idiot so there is no point in lecturing a moron like you.

      • Holly

        Splitting the Labour party, by bitter & twisted arguments, would be more advantageous to this country…
        Under the fantastic ‘leadership’ of Idiot boy it may happen a lot sooner than you thought.
        I live in hope!

        • telemachus

          You may be prophetic
          Miliband will ensure victory before Balls accedes

          • Colonel Mustard
            • telemachus

              I did not even click on this but I can tell you there will be great joy throughout the land when this happens

              • Colonel Mustard

                And great misery if it happens. Check the Tory and UKIP polling. It far outweighs your precious Labour party in England. If Labour win it will by cheating the electorate – as usual.

  • Bert

    I’m so sick of the empty vessel that is Wallace.
    No inspiration
    No vision
    No leadership
    No real experience
    Nothing but scorched earth both in and out of office.
    To think this empty vessel could win a general election by default is nauseating.

    • telemachus

      Is it not inspired to actually resolve to split up the banks that have failed us?
      Is there not vision in a future for small businesses where they can have a non predatory relatioship with their banks?
      Is it not inspired leadership that finally ditches the financial stranglehold of the Unions on a grat party?
      Is not the Ministerial experience not evidenced in spades as compared with the failed PM?
      *
      We salivate for the day he takes over

      • Colonel Mustard

        You’ll be salivating a long time then you half-wit.

        • telemachus

          I will be satiated in 16 short months

          • Holly

            I hope you realise you are the only one pointlessly raving about Miliband.

            • telemachus

              Chum

              It matters not that only one is correct

              Come May next year we will see what the Sun and Mirror readersip do

              ‘We can make the long-term changes Britain needs only if we take on powerful vested interests, from energy to banking, and reform broken markets. And tackle the cost of living crisis with a Labour Government that fights for you.’

              http://www.mirror.co.uk/news/uk-news/ed-milibands-banks-speech-words-3030346

              • Holly

                Is there a General Election in the UK next May??

                The last time I looked Idiot boy was NOT standing for the EU elections, so the Sun and Mirror readers can do whatever they like….Unless of course Idiot boy puts a cap on how many voters each party can have….

          • Nicholas chuzzlewit

            When the Eds are thrown into the dustbin of History with the rest of the democracy hating leftist scum.

          • Colonel Mustard

            We’ll see.

      • MikeBrighton

        Exactly what problem will it resolve? The issue in 2008 was the investment banks were stuffed full of sub-prime debt ie huge losses, not that they had er too many branches. Dim-Ed is economically illiterate so wouldn’t know this.

        All being said I usually agreed with you that Ed would win the next election. Not now. He’s blown it and is going to get eviscerated over this laughable policy. Notice Balls is invisible today. Even he knows this policy turkey won’t fly.

        For the first time I can actually see the Tories winning the next election with Ed snatching defeat from them

        • Makroon

          Yes, this “policy” looks like “all my own work” from Chuka the pretender.

  • El_Sid

    The basic problem is that Labour thinks bank regulation is a political matter, which is how we ended up with the disastrous tripartite system in 2000 that led to the first bank runs in over a century. You would have thought they had got the message by now, that the BoE might know a little bit more about bank regulation than the resident of No 11.

    • telemachus

      Rubbish
      This is about competition in the private sector

      • Alexsandr

        Bank branches are a dying breed. just shows how Millipede hasn’t done his homework.
        I never go to my branch, most of my banking is done on the internet. You even apply for a loan on the internet now.
        And banks are getting more and more competition from peer to peer lending.
        Any interference in the bank branch network will inevitably lead to a contraction.

        • telemachus

          But branches hold the customer files

          • Alexsandr

            no, they use computers

          • gcowks

            They hold computers which are connected to the internet, which is where customer information is available, which is why the focus on branches is so strange and dated. The last time you had to enter your own branch in order to access your account details was around 1995.

            • telemachus

              May be strange but this is how the divide will happen

              • Alexsandr

                have you ever worked on separating an IT system? Its very complex and costly.
                It wont be millipede who pays, it will the customers through their charges.

                • telemachus

                  Worked for Cadbury

                • Chris lancashire

                  Filling Turkish Delight?

                • telemachus

                  That or not splitting IT is simple
                  Adaptation and passcodes

                • Chris lancashire

                  Hang on, 10 minutes ago you were a small businessman in the North, now you’re filling Turkish Delight in Birmingham. You’re telling porkies aren’t you?

                • Alexsandr

                  so you have all the customer account data on 1 server. You have to write programs to split the account detail into 2 discrete databases. and all the history and linkages (like mortgages to current account, and personal accouts to business accounts. er – what if someone has personal at one branch and business at another, and they end up in different banks?) Then test it. then move the divested data onto another server. and test. while keeping the existing service working and making any necessary changes to live.
                  investigate any interfaces to outside companies work. So splitting the links to BACS into 2 interfaces.
                  then on cut over day you have to make sure the right people have access to the right servers and denied access to the wrong ones. Then make internet banking work (Lloyds tsb got that wrong).
                  Then customers contact the bank and say they are in the wrong half of the bank.
                  Little bit more complicated than separating Turkish delight from pop.

                • Alexsandr

                  so what divestment did you do?

                • Colonel Mustard

                  As a fruit and nutcase?

                • oddball1776

                  http://youtu.be/z-CqFh7xvDQ

                  Classic Colonel. 10/10.

                  (Either learn something new or pee pants laughing with every comment. My Hero!).

      • Colonel Mustard

        No it is about state intervention in matters that should not concern them. Red Ed is not even in government yet and is already f***ing up the economy.

        • telemachus

          The friend of the small business man
          Unlike Osborne the friend of the Greedy Bankers
          *
          You types are all jealous of Eds ability to set the agenda

          • Chris lancashire

            I’ve already told you; he’s no friend of mine.

            • telemachus

              You then comrade are a very lucky man

              • Chris lancashire

                It’s one of those things – the harder you work the luckier you get.

          • Nicholas chuzzlewit

            He couldn’t set the table,

          • Colonel Mustard

            He couldn’t set jelly.

      • MikeBrighton

        No it’s about labour slipping to a 3% (and falling) lead in the polls so time to “bash those bankers” again for the 97th y a w n time

      • Nicholas chuzzlewit

        There is plenty of competition in the private sector. What Britain needs is competition in the public sector where Labour’s voters hide leeching off the rest of us.

  • RavenRandom

    Labour now looks to the old 70s favourite of state intervention in industry to wreck us in a nice retro way. What this political inbreed Miliband knows about the private sector, or a real job outside seeking power is exactly zero.

    • telemachus

      Nonsense
      This is all private sector stuff

      • Holly

        Maybe the public sector should stay out of it then.
        Especially after the god awful mess they made of the banking sector under the watchful eye of Bozo’s chief wrecker…Balls.

      • RavenRandom

        Yes and it’s why know nothing fratricidal political inbreeds should stay away from it.

        • telemachus

          Needs to be a catalyst

      • Nicholas chuzzlewit

        That would be the private sector that pays for everything would it not?

    • Holly

      Labour have ALWAYS looked like that.

      • telemachus

        Only to promote equality
        What is so very wrong with that?

        • Colonel Mustard

          The fact that it is tripe and creates problems that never existed before to solve problems that never existed before.

          Your creed is on big lie for the benefit of liars like you.

        • Holly

          So why did EVERYTHING end up so unequal?

        • Nicholas chuzzlewit

          Because equality is impossible while equality of opportunity for those willing to work hard is desirable. Equality of opportunity cannot be accessed by the feckless idiots who vote Labour.

    • Makroon

      Ms Hardman makes the mistake of looking at Red as if he is well-meaning but poor at presentation. No !
      He is an intelligent man with few principles, who is intent on inventing soundbites and stunts, which might capture the votes of the tribal, the resentful malcontents and the unwary.

    • 2trueblue

      They wrecked the Banking sector, public sector, and the energy sector and now want to get back in to fix it.
      Great soundbites aided by the BBC, and they will try again. This time they will bury us.

  • HookesLaw

    Miiband’s complaint is totally bogus and you fail miserably to expose it. One wonders what possible use a supposedly independent media can be.

    We are coming out of a terrible labour induced recession. That is bound to hit living standards.

    Its always been said of the ‘Great Depression’ that if you were in a job you never felt the effects, It was the mass of unemployed who suffered.

    In this instance, when Miliband, Balls and Labour draw attention to low pay rises and a supposed ‘cost of living crisis’ they ignore the fact that this has helped to ensure that unemployment has been far lower than might have been expected and indeed we see job numbers rising. Workers have looked over the edge of Labour’s precipice and seen that the best way to stop falling off is to limit their pay rises.

    Labour cannot have it both ways – Miliband’s words are calling for wage rises, inflation busting and inflation fuelling wage rises which would hit jobs and job creation.

    Where would the cost of living be then for all the people that Labour would put on the dole?

    • telemachus

      Come on
      As Chuka said small businesses have been waiting for this since Osborne got in and began to again feed big bonuses to his mates in the bank for enhancing profits by unnecessary foreclosure

      • El_Sid

        Actually one of the problems at the moment is that the banks aren’t pulling the plug on companies that are technically bankrupt, because it will be bad publicity to pull the plug until the company gets their compensation for interest rate swaps. The compensation won’t be anything like enough to save the company, but the media environment is such that the banks won’t pull the plug until the compensation has gone through, even though they lose more money by waiting.

      • Chris lancashire

        As a small business owner I can assure we haven’t been waiting for this

        • telemachus

          You must have a very good relationship with your bank
          I am a small businessman in the North of England and am astonished at the hoops I had to go through in July to fund a very simple business transaction

          • Chris lancashire

            Well we do run a decent business with prompt and transparent accounting – that helps. In the past ten years, crisis or no crisis, I have never had any difficulty in raising funds, short or long term. What did stop us for a while was confidence in the economy (self imposed) but, happily, that is now returning.

            • telemachus

              And will accelerate when Ed injects some equality

              • Chris lancashire

                Equally happily it’s looking increasingly likely he won’t get the chance to inject anything. Aided, it has to be said, by idiotic speeches like this. Who on earth advised him to come out with this one?

          • Nicholas chuzzlewit

            What you had to borrow money to buy a bar of chocolate!!!!

          • Holly

            I have a great relationship with my bank.
            Money goes in.
            I immediately withdraw everything up to the last £1.50.
            Works a treat.

      • Alexsandr

        do you really think that bank bonuses actually affect the amount they lend? The big bonuses are from the investment arms of the banks and have little to do with retail banking.
        The banks are averse to lending cos they don’t want to lend money to people who cant pay it back.

      • Nicholas chuzzlewit

        That idiot could not run a whelk stall let alone understand what small, medium or large businesses require.

  • LadyDingDong

    Miliband’s challenge is not Carney, it’s his own credibility. His pot-brained nonsensical feeze on energy prices cost shareholders in the energy companies billions and he has just done the same to the government’s (taxpayers’) holdings in Lloyd’s and RBS. The feckwit is a one man wealth destroyer on a par with his French mate, the philanderer Hollande. Anyone who takes seriously what this clown has to say is a fool.

    • HookesLaw

      Correct and we must do all we can to keep him and his europhile party from government. In these circumstances campaigning against the Conservative party is tantamount to treason.

    • telemachus

      Go away with your misplaced moral rectitude
      No doubt you approve of Closer sending his partner into hospital

      • Holly

        Maybe it was Hollande’s betrayal that had the biggest hand in his partner’s hospitalisation.
        But hey, why change the habits of a lifetime, the left ALWAYS blame everyone, except the one’s who are REALLY to blame.
        And what has this got to do with Miliband being cr@p?

      • Colonel Mustard

        I wish you’d go away with your misplaced moral superiority.

        Red Ed has just blown it big time with his silly speech. Bank share prices down, £ down.

        • Holly

          I hate to tell you this, but Miliband through his ‘advisor’, is making these announcements DELIBERATELY! to stop anything good developing in our economy.
          It is all they have left, their only means of ‘defence’.
          Labour supporters,(NOT the militants) growth supporters, and anyone wanting to see this country genuinely improve, should be showing their rage at the (Labour) machine.
          The likes of Telemachus, will of course be chuffed to bits.

          • telemachus

            Disingenuous comrade
            We wish the economy to prosper which is why we do this to favour small businesses over the City elite

            • Colonel Mustard

              No, you simply wish to gain power, even if it means doing it by breaking the economy. You admitted yourself many times that any means is justified to win. And all of you Labour donkey-kong ignoramuses believe there is a money tree that can be activated by stealing more money from those who actually work for a living to pay for those who don’t.

              Parasites and country wreckers the lot of you.

            • Alexsandr

              sorry. how does splitting retail banking do anything to the city elite. Just doubles the number of overpaid CEO’s. And upsets the customers.

            • Nicholas chuzzlewit

              No typical of the Labour party’s desire to wreck the recovery for its own electoral advantage. A labour the party of filthy lies, filthy lying and filthy liars. Scum.

            • Holly

              Let’s put Idiot boy’s announcement into words that the young would get a gist on…
              Fast food take aways can only have so many outlets, and there will be a cap on how big they can get….So once the likes of McDonald’s get too big for Idiot boys liking, the ‘overspill’ of customers will be forced to go to Burger King…In the end some customers will be forced to go to the rat infested joint down the road.
              Substitute Fast food outlets for supermarkets, and you can see how damaging such a dictatorship would be for the country.
              Miliband has shot himself in the foot by dictating how ‘big’ a business can get, how many customers they can have, and the user will have no choice.
              A sort of half cocked idea of nationalisation by the back door, when you think about it.

            • First L

              Cos taking billions off large businesses at the stock exchange really encourages small businesses to become large businesses.

              You complete ****wit.

        • Chris lancashire

          Try StanChart for investment Colonel, they haven’t got any UK branches. (Decent yield as well – 4%).

        • telemachus

          Oh dear oh dear
          Bank shares down
          What a catastrophe

          • Colonel Mustard

            It is indeed and I am glad to see you concerned about it. Now tell your ignoramus donkey-kong leader.

            • telemachus

              I am not sure
              Was I being ironic?

          • Holly

            Which rather proves the point I made earlier.

          • Holly

            Gloat all you like, this latest stunt by Idiot boy has just cost the nation an estimated £940 million…
            If he carries on at this rate, he will be the only PM in-waiting to have wrecked any chance of a recovery, while not in office.
            Even the over-rated Chuck has admitted Ed’s investment defeating announcements will cause trouble….
            Now Ed and his ‘advisor’ might think that the public will blame the Tories for any lack in growth, but I reckon Labour have a big shock coming to them.

            Maybe Fraser can ask Idiot boy whether he is DELIBERATELY trying to put a halt to any further investment in UK.PLC, in the vain hope that he can then try to blame the Osborne’s policies????
            Do our journo’s REALLY want this fool anywhere near the country’s future economy?
            Ed Miliband is the biggest threat to our economical recovery at the moment, not Europe, or Immigration.

          • Nicholas chuzzlewit

            If you are a British taxpayer yes. If you are an ordinary working person whose pension fund includes bank shares yes. If you are a dissembling benefit scrounger like you, no.

            • telemachus

              The only benefits I ever recall getting were child benefit when received by all and maternity benefit

      • RavenRandom

        Hello remora, what a shock to see you hanging to the top post.

        • telemachus

          And every other

          • RavenRandom

            Got a bit more bile to spew today then. Let’s face it we know how you operate.

          • Colonel Mustard

            Deranged.

            • telemachus

              In the same way that 28% of the electorate are deranged(in 2010)

              • Colonel Mustard

                Yep! By George (Osborne) you’ve got it!

      • Nicholas chuzzlewit

        Yes that is what sensible people do. Would you prefer to send them to mid-Staffs – that monument to Burnham’s arrogant folly?

    • Nicholas chuzzlewit

      Remember your ladyship this lame brained nincompoop learned his trade at the knee of a master. Gordon Brown had powers of destruction that would make an atomic bomb wince. Brown could destroy wealth in his sleep and when awake, could conjure up a structural deficit of frightening proportions and a 7.3% contraction of the economy. It should therefore be no great surprise that his twin lunatics Miliband and Balls show all the promise of being equally disastrous for Britain.

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