George osborne

Osborne and Balls are playing high stakes on Libor

The exchanges between Balls and Osborne just now are some of the most heated and most personal in parliamentary memory. I suspect that Balls would now not offer to cook Osborne ‘my 14-hour pulled pork South Carolina barbecue. I’d know he, as an American aficionado, would truly appreciate it’. The cause for this row is George Osborne’s interview in the new issue of The Spectator. The following paragraphs have sent Balls into a rage: ‘If exonerating the Bank is his first priority, his second is tying this scandal to the last government. He starts by blaming the regulatory system devised by Brown and Balls for allowing these abuses to happen.

Exclusive: Osborne, ‘They were clearly involved’

After a subdued PMQs, the politics of the Libor scandal has just been ratcheted up another notch. In an interview with The Spectator for this week’s issue, George Osborne has said that those around Gordon Brown ‘were clearly involved’ in the discussion about how to keep Libor down during the 2008 financial crisis. In the interview, George Osborne gives short shrift to Barclays’s accusation that the Bank of England urged it to get its Libor down. Osborne stresses that this change has been ‘specifically addressed, not just by our own investigators at the Financial Services Authority but also in the US Department of Justice and they are not people who

Osborne savages Balls on Libor

The Osborne/Balls clash today was one of the most brutal I have seen in parliament. Osborne, leaning across the despatch box, mockingly enquired, ‘who was the City Minister when the Libor scandal happened? Put your hand up if you were the City Minister?’ Balls looked increasingly cross as Osborne continued down this path, demanding that the shadow Chancellor take ‘personal responsibility’ for the failures of the regulatory regime. Labour argues that the public are turned off by this kind of stuff; that they want to see answers rather than point-scoring. Even Darling — hardly an admirer of a man who coveted his job for so long — offered a partial

Of bankers and bartenders

It suits a great many people to blame the banks. The ministers (like Ed Balls) who oversaw the debt-fuelled credit bubble; the Tories (like George Osborne) who signed up to Labour’s debt-fuelled spending binge; the regulators who failed so appallingly (a global crisis but how many collapsed banks in Australia and Canada?); and Mervyn King, who oversaw this hideous asset bubble and didn’t sound the alarm. When George Osborne told the Commons that banks ‘brought our economy to its knees’ he suggested that, even now, he has not worked out what caused the crisis. The theory that wicked, greedy bonus-seeking bankers caused the crisis has been repeatedly debunked, but it’s

Lawson: I would not have U-turned

I’m presenting Radio Four’s Week in Westminster tomorrow at 11am and discuss George Osborne’s U-turn with former chancellors Alistair Darling and Nigel Lawson (the latter pictured above when editor of The Spectator). I put to them that it is unwise for a chancellor to perform a U-turn because it undermines his credibility – a very precious commodity in such turbulent times. Darling said that the great risk is that Osborne doesn’t look like he’s in control. Lawson replied:   ‘That is my concern; that it might be thought that the main thrust of policy is no longer secure. And once the financial markets – let alone anyone else – think

Osborne goes for Balls over Libor scandal

The Libor scandal is yet another blow to the reputation of the City of London. Alistair Darling may have been right when he told George Osborne that we’re ‘kidding ourselves if we think this was the only country where this happened.’ But there’s no getting away from the fact that an uncomfortably large number of financial scandals start in London.     In the Commons, Osborne seemed keen to move towards a more American-style system of regulation with more prosecuting powers for the FSA and new criminal offences. But he was also keen to make a political point, this happened under the last government and a regulatory system set up

Osborne’s double dose

As Isabel reported earlier, today’s public finance statistics contained a double dose of bad news for George Osborne. Not only did borrowing in May come in higher than expected at £17.9 billion — £2.7 billion higher than May last year — but the borrowing figures for the last two years were revised up as well. Before today, we thought the government had borrowed £136.8 billion in 2010/11 and £124.4 billion in 2011/12. Today, we learn it was in fact £140.6 billion and £127.6 billion respectively. That means we borrowed £3.2 billion more than we thought last year, and £11.6 billion more than the £116 billion Osborne told us we would

Isabel Hardman

Osborne’s handbrake turn on fuel duty

George Osborne’s U-turn today on fuel duty seems both canny and confusing. It comes just 48 hours after a denial from Transport Secretary Justine Greening that the Government would scrap the 3p rise in August, but appears to be warding off the threat of a backbench rebellion in the Commons next week on a motion submitted by Labour to the Finance Bill.  Ms Greening told the Sunday Telegraph:  So more power to the backbenchers, led by Robert Halfon, whose campaign against fuel duty increases now looks to have succeeded in part, although he might want to continue to push retailers to push costs down anyway. But it is still surprising

Isabel Hardman

Osborne borrows his way out of a debt crisis

This morning’s borrowing figures from the Office for National Statistics are a blow for George Osborne, showing public sector borrowing up £2.7bn on the same time last year. The stats show the government borrowed £17.9bn in May, while the 2011-12 deficit is now £127.6bn, up £3.2bn. Labour have seized on the figures, saying it’s the ‘nail in the coffin of David Cameron and George Osborne’s failed economic plan’. It’s worth remembering, though, that Labour would be borrowing even more in this Parliament than the Coalition is, with the Institute for Fiscal Studies estimating that under Labour, borrowing would be closer to £76bn in 2016-17 than the £26bn forecast in the

The Osborne question

There is a simple rule in Tory politics: do not cross Lord Ashcroft. There is little love between the Conservative leadership and Ashcroft, the man who sustained the Tories through the wilderness years but was left high and dry in 2010 during the furore over his tax affairs. Admiration curdled into contempt, epitomised by Ashcroft’s weighty critique of the Tories’ disastrous 2010 election campaign. Tax is back in the news and so, by chance, is his lordship. Ashcroft has written a short but devastating piece on the Tories’ present strategy. He writes: ‘It is depressing to hear that plans are afoot to paint Miliband as the Michael Dukakis of British

Osborne’s latest ‘defining moment’

It is always sensible to pay attention to Ben Brogan’s Telegraph column, if only because it so frequently seems to have been dictated by friendly chaps at the Treasury. Today’s is no exception. Cunning Wee Georgie Osborne has had another one of his master-wheezes that, with a fair wind, will seal the next election for the Conservatives. Again. You see: ‘Conservatives yearn for red meat policies to please the voters. They want a political Plan B for a Tory majority in 2015 to replace the one based on the assumption of economic recovery and tax cuts that blew up in George Osborne’s hands last year. MPs wondering how to achieve

The pernicious myth of powerlessness

‘Corruption,’ wrote Edward Gibbon in his peerless Decline and Fall of the Roman Empire, is ‘the most infallible symptom of constitutional liberty.’ I was reminded of this phrase when thinking about the Eurozone crisis. Commentators present a dichotomy between the discipline of northern Europe and the frivolity of southern Europe, which is characterised by bureaucratic, judicial and political corruption. Brussels has already imposed technocratic governments on Italy and Greece, and seeks to force Teutonic virtues on those economies. Constitutional liberty is to be limited in the hope of eradicating corruption (both in a literal and figurative sense) in southern Europe. Unsurprisingly, this new imperium is not universally popular: witness the

Debt as a threat to national security

Today’s papers carry news that British nuclear submarines are going to be replaced: a strong indication that the government will replace Trident with a like-for-like deterrent in 2016, contrary to the wishes of the Liberal Democrats. Philip Hammond appeared on the Sunday Politics earlier today to answer questions from Andrew Neil on Trident and manpower cuts to the army. Hammond said that the Trident decision has not been taken. The government is, he said, simply ensuring that Britain can implement whatever decision is taken. On army cuts, he said, ‘We [Britain] will still be able to make a major contribution to a cross-alliance operation.’ The rum suggestion being that Britain’s

James Forsyth

The return of Osborne’s good spirits — and his cat

The most important event today is the Greek election, with its huge implications for the future of the Eurozone. But this morning, the political class is chattering about George Osborne because of the poll which Fraser blogged about earlier. Osborne is one of the more self-aware politicians that you’ll meet. One colleague says, only half-jokingly, that Osborne’s mood is the best guide there is to the future prospects of the government.  In recent weeks, Obsorne has not been in good form—his post Budget woes and the never ending crisis in the Eurozone appeared to be getting him down. As one person who works closely with him remarked to me recently,

Fraser Nelson

Osborne, class and competence

The Sunday Mirror and the Independent have jointly commissioned an opinion poll which finds that George Osborne is ‘too posh’ to be chancellor. This just happens to fit the prejudices of both newspapers, and I for one do not believe it. Poshness certainly obsesses Tory strategists, and Gordon Brown sometimes played the class card because he saw how much agony it caused them. But Brown’s card was not the winning trump he hoped for because the British public is not as obsessed about class as the British elite. That’s why it backfired when Labour tried a class strategy in the Crewe by-election campaign. That by-election suggested that the average British

Language, politics and debt

The myth that George Osborne has held firm on his deficit reduction plan persists. When I was on Question Time last month, Alan Duncan said that Osborne may have changed some policies but he had not budged an inch from the deficit reduction programme. This was not a porkie; he genuinely believes this to be true. And even in today’s FT, economics editor Chris Giles describes the government’s strategy as ‘maxing out on stimulus measures, short of relaxing deficit reduction.’  In fact, Osborne tore up his deficit reduction plan ages ago, but to minimum press comment.   The single largest decision Osborne has taken since his first Budget was to

Osborne leans on King

What we saw at the Mansion House last night gave us some hints of where British economic policy will go if the Eurozone start to fragment. For the moment, Osborne is persisting in getting the Bank of England to do the heavy lifting using monetary policy rather than attempting a fiscal stimulus. The first line of defence is what one source described to me as ‘highly active monetary policy.’ The fact that the chancellor has persuaded the notoriously prickly Bank Governor to offer loans against weaker security is a definite success for him and a sign that he’s developed a far better relationship with King than either Brown or Darling.

Fraser Nelson

Osborne’s debt spiral

‘If we lose sight of the central role of debt in this crisis, we will come to the wrong conclusions about how to respond,’ said George Osborne last night — before announcing another massive tranche of debt. The Mail and The Telegraph put it at £140 billion, the Times and the FT at £100 billion and Bloomberg at £5 billion a month. ‘The government, with the help of the Bank of England, will not stand on the sidelines and do nothing as the storm gathers.’ CoffeeHousers may hear an echo of Gordon Brown’s language here, contrasting advocates of a Keynesian spending plan with the ‘do nothing Conservatives.’ Now it’s Osborne,

Osborne, competitiveness and confidence

George Osborne will formally unveil the government’s banking reforms in a speech at Mansion House later this evening. The reforms are in line with the recommendations of Sir John Vickers’s Independent Banking Commission (ICB), as laid out by the Treasury, which published this White Paper earlier today. For those who’ve forgotten, Vickers suggested splitting retail and investment banking through a Glass-Steagall-type ‘ring-fence’ mechanism that would protect retail, SME deposits and overdrafts while commanding that the ring-fenced part of the bank is not dependent on other departments for liquidity. This, it is hoped, will ensure that the taxpayer is insulated from bailouts in the future, which is, obviously, a key political

The View from 22 – is HS2 the rail to nowhere?

Is High Speed 2 headed for the sidings? In our cover feature this week, Ross Clark examines why the ambitious infrastructure project — designed to boost Northern cities — has all but disappeared from the government’s agenda. Despite the chancellor’s ‘boyish enthusiasm for fast trains’, the project has lacked the essential support from private business. Now, more pressing issues have taken charge.   In our View from 22 podcast this week, Ross explains why the Tories were once so enthusiastic about the High Speed link to the North: ‘It was a way for the Tories to say — as part of their decontamination  of the Tory brand — look, we’re