Ed balls

Outgoing head of the CBI slams the government on growth

Richard Lambert has launched an uncompromising but constructive assault on the government’s growth strategy, or lack of it. He said: “The government is…talking about growth in an enthusiastic and thoughtful way… But it’s failed so far to articulate in big picture terms its vision of what the UK economy might become under its stewardship. “What I feel is that a number of their initiatives – I’m thinking of the immigration cap, I’m thinking about their move on the default retirement age, about the carbon reduction commitment – have actually made it harder for companies, or less likely for companies to employ people. And what we want, actually, is a sense

The coalition needs to address bonuses

Much ado about bankers’ bonuses this afternoon. Tim Montgomerie reports that the proposed banking deal has run aground in Whitehall. The timing is inconvenient: Cameron and Clegg are due to fly to Davos to attend the World Economic Forum. The government hopes to allay public resentment by coercing banks into increasing their lending; which is also a crucial part of its nascent growth strategy. It adds to the impression that the government is failing to make progress in any other realm than cuts. For the time being, Tory spinners are content to distract attention by telling anyone that will listen about Ed Balls’ record on bank regulation and boundless enthusiasm

Re-introducing Ed

We already knew Ed Balls was behind Gordon Brown’s economic policy. He devised the policy on spending that left Britain with the worst deficit heading into the crisis, and wrote the bank regulations that his colleague Douglas Alexander attacked earlier today.   What we have discovered today, from Balls’ first foray into economic policy as Shadow Chancellor, is that he was also behind the old Brown ploy of twisted facts and absurd assertions.   First, he claimed the public finances are better than the Treasury forecast. Yet the independent Office for Budget Responsibility found that the structural deficit – the hole we have to fix – was worse than Labour

Fraser Nelson

Exposing the con man

  To the chagrin of CoffeeHousers, I have long rated Ed Balls and his abilities. He has a degree of brilliance, albeit tragically deployed in the services of a destructive economic agenda. But as we welcome him back, it’s worth reminding ourselves that his abilities are of a specific type. He understands economics (even though he did PPE) but his speciality is in creative accounting. His only tactic is to spend, borrow and cover both up by cooking the books. He is a trickster, not an economist. More Arthur Daley than Arthur Laffer. In my News of the World column today (£) I say he is dangerous to Labour as

And what about the Lib Dems?

After the gales of recent weeks, the past few days must have been relatively blissful for the Lib Dems. No fake constituents with hidden dictaphones. No massive student protests. No especial focus on their opinion poll ratings. But, instead, a mephitic heap of problems, or at least embarrassments, for Labour and the Tories. Warsi, Johnson, Coulson, even EMAs – Clegg & Co. have been spared the worst of it. Which isn’t to say that the Lib Dems will be unaffected by recent events. For instance, as Paul Goodman suggests, Andy Coulson’s departure unsettles the delicate balance of the coalition – and that will always have ramifications, however minute, for the

Two days, two major resignations

Of the two resignations of the past 24 hours, it is Alan Johnson’s that will change the contours of politics. The appointment of Ed Balls makes the dividing line on the economy far starker. But the Coulson resignation is still a highly significant moment. Those Tories who worked with Coulson are downcast today and will brook no discussion of what the whole episode says about Cameron’s judgment. But there’s little doubt that the PM has been harmed by this episode. Not in any limb-threatening way but harmed nevertheless. Cameron also needs a find to way to organise his operation to both ensure that there is someone at the table who

How things are different now that Balls is shadow chancellor

The timing could hardly have been more resonant. On the day that Tony Blair is paraded, once again, in front of the Iraq Inquiry, Team Brown is firmly back in charge of the Labour party. For, I’m sure you’ve noticed CoffeeHousers, three of the four great shadow offices of state are occupied by former members of the Brown coterie: Ed Miliband, Ed Balls and Yvette Cooper. The fourth belongs to someone who doesn’t sit easily in either half of the TB-GB divide: Douglas Alexander. The question, of course, is what this means for Labour’s economic policy. And the answer according to Miliband is “nothing much”. The Labour leader has been

Johnson story takes another turn 

Both The Mail and The Sun are running on their front pages that Alan Johnson’s wife is allegedly having an affair with his bodyguard. There are, though, other rumours referenced in other papers. The Tory view this evening is that they now face a tactically harder fight but a strategically easier one. They fully expect Balls to snap at Osborne’s ankles more effectively than Johnson did. But they think that Balls’ previous on the economy and his oft-expressed views on a double dip and the Darling plan will help them overall. One thing worth noting this evening is that Liam Byrne’s appointment to shadow Iain Duncan-Smith shows that Ed Miliband

James Forsyth

The Tories waste no time in getting stuck into Balls

One thing worth noting before we discuss Balls’ appointment is that the reasons Johnson have resigned are personal. It is not about his competence or otherwise. The Tories are wasting no time in getting stuck into Ed Balls. One just said to me, ‘the man who created this economic mess is back. He designed the fiscal rules that failed, he designed the FSA that failed…’ Certainly, the Tory attempt to make Labour’s economic record the premier political issue has just become a lot easier. Balls will be a more aggressive opponent for Osborne. But I suspect that he will prefer facing Balls to Yvette Cooper. I expect we will hear

Fraser Nelson

Renaissance Balls

Balls is back. The author of Gordon Brown’s economic policies for 15 years. The man who bears more responsibility for anyone else – other than Brown – for the asset bubble and the consequent crash. But I suspect that, right now, Theresa May is doing cartwheels and George Osborne cursing. Balls, for all his many drawbacks, is the most ferocious attack dog there is. His brilliance (and I hate using that word) at using numbers as weapons far surprassed anything the Tories could manage in Opposition. His policies are reckless: to borrow, and to hell with the consequences. His modus operandi is to launch around-the-clock attacks. He has powerful media

James Forsyth

Balls replaces Alan Johnson

Ed Miliband has just taken the biggest risk of his leadership in appointing Ed Balls as his shadow Chancellor. Balls’ is not a man who take orders and his view on the deficit is noticeably different from Ed Miliband’s. He is also the person most closely associated with Gordon Brown’s economic record. George Osborne will relish this fight. During the vacuum between Ed Miliband winning the leadership and the shadow Cabinet elections, Osborne prepared for facing Balls. He told friends, ‘we’ve circled around each other long enough. It is time to get on with it now.’  

Exclusive – Adonis: I back Gove

Is Michael Gove’s school reform a hideous distortion of the Labour Academies programme, as Ed Balls put it, or the fulfillment of that agenda? Until now Lord Adonis, the architect of the Academies programme, has kept silent on the issue. But he’s interviewed in The Spectator tomorrow by Matthew Smith, editor of Attain magazine. Here is a brief extract: ‘Ed Balls has declared Gove’s plans for academies as ‘a total perversion of Labour’s policy, which was about turning round under-performing schools in disadvantaged areas’. Adonis’s response is rather different.  ‘Neither I nor Tony Blair believed that academies should be restricted to areas with failing schools. We wanted all schools to

Clegg: time to air our differences

Why vote Lib Dem? Even Nick Clegg is now asking that question. After 8 months of broken pledges, deep cuts and atrocious polling (due to reach its nadir tomorrow in Oldham East and Saddleworth), Clegg worries that his party is losing its identity. Speaking to the Guardian, Clegg reveals that he hopes to arrest decline by expressing publicly his private differences with David Cameron. This is not defiance from Clegg but a statement of positive intent. Taking brave decisions, he says, has proved that the Liberal Democrats can govern and that coalition works; the government’s strength is sufficient to withstand disagreement. That’s all very well, but Clegg needs more than

Will Balls and Cooper capitalise from Johnson’s mistakes?

You’ve probably heard about Alan Johnson’s latest slip-up yesterday. But it’s still worth highlighting the response made by a Labour spokesman – as Dizzy has – because it’s simply extraordinary. Here it is: “We have a Shadow Chancellor who lives in the real world. He knows the difference between a progresive and regressive tax. He knows what it takes to get on in the real world. That is more important than taking part in a Westminster quiz game.” Extraordinary that Labour should already have to make excuses on behalf of Johnson. But even more extraordinary that they should be made in this manner. The shadow chancellor errs, in quick succession,

Balls strikes at delicate Clegg

Ed Balls has been biding his time on Control Orders, but now he has struck. Writing on his blog, he appealed for consensus on this ‘sensitive issue’. ‘I have told Theresa May that, wherever possible, I will support her over the counter-terrorism measures that must be taken in the national interest – and we will play our part in building a new consensus for the future… that’s what a responsible Opposition should do.’ Balls knows that May favours retaining Control Orders, so perhaps this is a subtle endorsement of her position against the Lib Dems. He continues, conceding that he does not possess the facts. (The Home Secretary, of course,

Miliband’s first hundred days in five points

Ok, so Ed Miliband’s one hundred day anniversary actually falls on Tuesday – but what’s a couple of days between bloggers? Besides, even with two days to go, it’s safe to say that his will be a peculiar century. By some scientific measures, Labour are doing alright; sucking up Lib Dem voters to push ahead of the Tories in opinion polls. But that belies what has been an unconvincing start from their new leader. Here’s my quick five-point guide to his bitter honeymoon: 1) What’s the economy, stupid? One of Miliband’s boldest moves to date was his appointment of Alan Johnson as shadow chancellor. Indeed, at the time, I suggested that it could be

Miliband’s Oldham dilemma

Joy. It will be a campaigning Christmas, now that the Oldham by-election is likely to be held on 13th January. The Labour party is much exercised. The permanently outraged Chris Bryant says it is a ‘disgrace’ that politics will sully the ‘major Christian festival of the year’ – the lapsed cleric seems to have forgotten the election’s proximity to Easter. More importantly, fewer students will be in Oldham on 13th January to serve ‘judgement’ on the government, as Hilary Benn put it in the Commons this morning before adding that the government is ‘running scared’. By-elections are determined by local issues, as one would expect. But Benn’s statement perhaps reveals how

How the OBR measures up

There are only so many Labour interviews a blog can take, so I’ll skip over Yvette Cooper in the Guardian (sample: “I did think about standing, and Ed said he thought I should stand and if I wanted to stand he would not stand”). Instead, another catch-up on how the Office for Budget Responsibility’s growth forecasts are shaping up against those made by other institutions. Since I last did this, two new documents have been processed into the public domain: the OBR’s latest economic and fiscal outlook, of course, as well as the the Treasury’s round-up of long-term independent forecasts. So here’s how the panorama of forecasts looks now:

Time for the real Ed Miliband to speak up

There is talk of Ed Miliband’s ‘New Generation’, but no indication of what it stands for. It has no clear views on the economy, student finance, defence and electoral reform. Despite his party’s lead in the polls, Ed Miliband is an inert political entity (and it did not help him that the party peaked in his absence). Tim Montgomerie has rightly diagnosed a leadership vacuum. Miliband is timid before a parliamentary party that did not select him, and is struggling to acclimatise to a political discourse that the coalition government is moving beyond the terse liturgy of left and right. So far, Miliband’s banal default tactic has been to seek

Labour’s terror u-turn doesn’t lessen its authoritarianism

It is a day for about turns. First, the Pope has taken a historic decision to approve the use of condoms to fight AIDS; second, Labour has vowed to change its position on terror legislation and law and order. The party feels its record in government has damaged its reputation as a guarantor of liberty. Generation Ed wants to make another break from the past. Ed Balls has masterminded a cunning sleight of hand. The proposal is nowhere near as dramatic as headlines suggest. Labour will support the government’s proposed reduction of detention periods from 28 days to 14, provided the police and security services are not impeded by the change. Balls