George osborne

The Treasury received some bad news today, so it sent out Chloe Smith to respond instead of her boss George Osborne. The economic secretary made the same point as Fraser about Labour’s alternative strategy when she responded to the latest borrowing figures this afternoon. She said: ‘Their strategy would be to borrow more and to spend more and we cannot take that kind of decision in these circumstances.’ But she then added: ‘What these figures really show is the importance of sticking to the plan that has won Britain international credibility.’ The ‘international credibility’ line is quite interesting as presumably Smith is referring to Britain’s credit rating, which Danny Alexander

‘Unless you do something now it will be years before we recover.’ This morning those words come from former chancellor Alistair Darling in an open letter to George Osborne, but they could just as easily be from a member of his own backbench, or from Boris. Darling’s letter, published in the Sunday People, accuses both Mr Osborne and the Bank of England of having ‘given up on any plan for growth’. ‘Your policies since 2010 simply haven’t worked, you need another plan – call it plan B, call it whatever you like,’ he writes. He’s essentially saying the same thing as Boris Johnson did this week, but using slightly more

Danny Alexander, the Chief Secretary to the Treasury, is to drop his normally conciliatory voice to attack the Tories at the Lib Dem party conference in Brighton. So what? you may well ask. The mild-mannered Alexander is unlikely to strike the fear of God into his listeners, assuming that anyone beyond the conference hall will be listening, or indeed that the conference hall is full: Brighton being lovely at that time of year. Besides, bursts of splenetic outrage at one’s coalition partners have become a feature of conferences, particularly since last year’s unhappy AV referendum. There is, dare I say it, a suggestion that they are choreographed for the TV

It’s a strange old world when a Prime Minister backing his own Chancellor is worth reporting. But this afternoon the Prime Minister was asked by Sky News whether he was going to reshuffle George Osborne. Naturally, he answered: ‘George Osborne is doing an excellent job in very difficult circumstances and he has my full support in going on and doing that job. He’s not going anywhere.’ Kay Burley then pressed Cameron on whether this meant Osborne would still be Chancellor at the next election. He replied: ‘Yes.’ Now, this was quite obvious anyway. Osborne’s stock is certainly down amongst Tory MPs, many of whom are still smarting after watching the

You’d think that after the bad economic news of the past week, George Osborne might have reverted to submarine mode as soon as he possibly could, moving quietly under the cover of the Olympics. But this afternoon he has stuck a periscope up with this message: the world has confidence that Britain is dealing with its economic plan. It’s a bold statement to make after Wednesday’s GDP figures, and Labour has already mocked him for doing so, but Osborne is responding to the announcement overnight by Standard & Poor’s that the UK will continue to enjoy an AAA credit rating. The ratings agency said: ‘We project that, despite recent weakness,

There’s been a lot of attention over the past few days as to whether George Osborne is too political. But what should really worry Tories is not how political George Osborne is, but how unpolitical Number 10 is. There are far too many Tories who think that politics is something you do in opposition not government. This view is profoundly mistaken. As I say in my column this week, city mayors were a major plank of David Cameron’s vision for reviving England’s cities. Yet all but one of the mayoral referendums were lost. Why? Because voters were never shown that mayors wouldn’t just be another politician. The Number 10 machine

David Cameron’s decision to convene an inner Cabinet of seven Tories to advise him is a sensible move. As I say in the Mail on Sunday, calling this group together shows that Cameron knows he needs help handling his party. I understand that it meets regularly with a particular emphasis on the Conservative party side of coalition management. One Cabinet minister told me recently that the Prime Minister spends more time on coalition management than any other subject. To date, this has too often been at the expense of party management. Inevitably, if you spend most of the time thinking about what the Liberal Democrats will accept you begin to

Announcements from the International Monetary Fund are worded in such a way that everyone reading them comes away with something slightly different. So shortly after today’s report on the UK economy was released, Ed Balls put out a statement saying the report was a ‘very serious warning to the Chancellor that urgent action to boost jobs and growth is needed’. He concluded his press release by asking ‘how much worse do things have to get before the Chancellor finally changes course?’. Now, today’s report from the IMF is not cheery reading for George Osborne. It passes this bleak judgement on the economy: ‘Recovery has stalled. Post-crisis repair and rebalancing of the UK

The coalition’s infrastructure shopping spree to cheer itself up after a miserable few weeks continues today. George Osborne and Danny Alexander are offering guarantees on up to £40 billion of ‘ready or nearly ready’ projects such as transport, communications and energy. They are also announcing a £6 billion temporary lending programme and a £5 billion export guarantee facility, which will give long-term support for British exporters. Today’s announcements are clever because they don’t commit any extra money, using the government’s balance sheet purely to guarantee the projects and get them off the ground. Osborne and Alexander have written a joint comment piece for PoliticsHome, in which they point out that their efforts

So the IMF has revised its forecasts for the UK’s GDP growth downwards — to 0.2 in 2012 and 1.4 in 2013 from the 0.8 per cent and 2.0 respectively it predicted in April. It’s bad news, certainly — not least because we’ve been downgraded more than most other countries, and we’re now forecast to grow more slowly than Germany and (this year) France. But it’s worth bearing in mind that the IMF — for all its ability to drive headlines — is just one of many organisations playing the forecasting game, and these downgrades actually just bring them into line with the average. What’s worrying for George Osborne — and his fiscal

Andrea Leadsom seems to have backed down a little from last night’s suggestion that George Osborne ‘should apologise’ for saying that Ed Balls had ‘questions to answer’ about Libor. This morning, perhaps after a cheery morning phone call from someone at CCHQ, she took to the airwaves to clarify what she had said:  ‘Look, I was talking about a very specific point last night, which is the extent to which the Labour party may have leaned on the Bank of England, which Paul Tucker completely refuted. I want to be very clear here: this is an inquiry about the banks’ behaviour, and Ed Balls still has a huge amount to

So Labour ministers did not ‘lean on’ the Bank of England to encourage lowballing of Libor rates, according to Paul Tucker. The Deputy Governor of the Bank told the Treasury Select Committee this afternoon that he had held conversations with officials about how able Barclays was to fund its operations. This is the exchange between Pat McFadden and Mr Tucker. McFadden asked whether any minister had tried to ‘lean on’ him over Libor: ‘Absolutely not.’ Asked whether Shriti Vadera had leant on him: ‘I don’t think that I spoke to Shriti Vadera throughout this whole process.’ Ed Balls? ‘No’ Other ministers? ‘No’ He confirmed that the ‘senior official’ that he