George osborne

Breaking: Ed Balls has a point

The games have started a day early, folks. The latest quarterly growth figures are set to be released tomorrow morning, but already Ed Balls is waxing insistent about what they have to be: “Simply to stay on track for the Office for Budget Responsibility’s most recent forecast, already downgraded three times, we will need to see growth in the third quarter of 1.3 per cent. And to reach the OECD’s latest and more pessimistic forecast, we will need to see a figure next week of 0.9 per cent.” To be fair — and this is not something you’ll read often on Coffee House — the Shadow Chancellor has a point,

Fraser Nelson

Clegg’s tall tales won’t boost growth

“The Deputy Prime Minister, Nick Clegg, will today announce proceeds from the government growth fund which will protect or safeguard 200,000 jobs.” This sentence contains everything that’s wrong about this government’s schizophrenic approach to economic recovery. Rather than cut taxes and let the economy grow, they increase tax — and then give people back a portion of the cash, expecting to be thanked as they do so. And, for good measure, dropping in a spurious jobs number. Nick Clegg was on the Today programme this morning, showcasing the phenomenon that retards so many economies: politicians seeking credit for giving one man’s money to another. He started off by announcing that

The Great Repatriation Question

And the word of the weekend is ‘repatriate’. Not only do we have yet another poll showing that the British public, when asked, would prefer to tug powers back from Brussels, but there’s also this eyecatching story in the Daily Telegraph. No.10, we’re told, is pushing Whitehall departments to determine just exactly where Europe’s influence could be counteracted. There is also a backbench group of Tory MPs providing covering ideas.  So why hasn’t this been happening before now, particularly given how frustrated those around David Cameron have become with the constant torrent of EU directives? Part of the answer is that the events of the past week have made all

The government’s European tribulations continue

It has been a fraught and ill-tempered week in Westminster. And — whether it is the rumour that Tory backbencher Andrea Leadsom told George Osborne to “f**k off”, or David Cameron’s dismissal of Ed Miliband as a “complete mug” — most of it has had Europe at its root.  So it is, too, with the latest news of government strife. Iain Duncan Smith, it’s reported, had a ferocious row with the Tory chief whip, Patrick McLoughlin, over the EU referendum . Apparently, he warned that, “If you ever put me in this position again, that’s it”. As it happens, there is more on IDS’s disgruntlement in Charles Moore’s column for

Cameron battles it out

David Cameron came out swinging today at PMQs. Knowing that Ed Miliband would try and exploit the Tory rebellion over Europe on Monday night, Cameron went for the Labour leader. He called him a “complete mug” and mocked him as being detached from reality. At the end of the exchange, Osborne gripped Cameron’s shoulder in congratulation – a sign that the pair knew that they needed a strong performance today to calm their backbenches. The other notable aspect of PMQs was its emphasis on the new political battleground: women. The Labour MP Gloria Del Piero asked the PM why the government was more unpopular with women than men, which gave

Cable’s latest embarrassment

“None of this will stop me talking out against tax avoidance.” So says Vince Cable, rather hilariously, in response to being fined £500 for failing to pay £25,000 of VAT on his media work. You’ve got to hand it to the Business Secretary: it is an ingenious, if convoluted, way to top up the public finances. Although there are questions about whether other people would have got off quite so lightly.    You might say, as Vince’s people are this morning, that this is the sort of mistake that can befall anyone — particularly someone so busy as a Cabinet minister. But this isn’t just anyone. This is Vince Cable,

How to untie the tax knot

Yet another HMRC scandal this week, as a new HMRC computer discovered millions who have paid too much or too little in tax. A letter from the tax man will land on their doorstep in the next few months. Some will enjoy the dubious pleasure of getting money back that should never have been taken in the first place. Others face the painful task of finding the money to catch-up on tax they didn’t pay before.   As Pete said in his post on Wednesday, this isn’t the first time. When the House of Commons Public Accounts Committee looked at similar problems last year, they said that the Department had

Fraser Nelson

The austerity myth

CoffeeHousers may remember an odd New York Times editorial recently where they tried to blame the evaporation of British economic growth on austerity. Perhaps the newspapers’s famed fact-checkers had taken the day off, because the slightest piece of research would have exposed the premises of the piece as bunkum. This morning, the ONS has produced monthly public finance figures, showing current spending is still rising in Britain. But first, let’s get to the New York Times editorial: “Greece, which has been forced into induced recession by misguided European Union creditors, Britain has inflicted this harmful quack cure on itself… Austerity was a deliberate ideological choice by Prime Minister David Cameron’s

The government’s never-ending European problem

We thought CoffeeHousers might appreciate an advanced viewing of James’ political column from tomorrow’s issue of The Spectator, so here it is: In the hours after the coalition was formed last May, a minister and a group of Tory MPs sat around a table in a parliamentary cafeteria discussing what it all meant. One new MP said to the minister that it was a pity that, in the course of the talks, the Tories had agreed to ‘park Europe for the next five years’. The minister, high on the Panglossian spirit of the early days of the coalition, reassured her that this was for the best. The party could devote

Fraser Nelson

Competition: Help Osborne to explain his growth strategy

Yesterday, Lord Wolfson — the new Tory peer and CEO of Next — made an extraordinary offer: £250,000 of his own money to whoever comes up with the best plan to break up the Euro. It’s the second biggest prize in economics, after the Nobel, and a great and patriotic idea from Wolfson, an original and forceful thinker with plenty real world experience from whom I hope we’ll hear more. Inspired by this, we at Coffee House would like to make our own offer: a bottle of Pol Roger, our house champagne, to whoever can explain George Osborne’s growth strategy. The chancellor needs some help on this front, with some unkind

The dawdling eurozone

For all the attention that is being focused in Westminster on the publication of the Cabinet Secretary’s report into the links between Adam Werritty and Liam Fox tomorrow, the real story is the countdown to Cannes. It is now three weeks since George Osborne declared that the eurozone countries had three weeks to save the Euro. So far, they haven’t done anywhere near enough. There’s also little sign that this weekend’s summit will see them make much progress. The Germans are already busy playing down expectations. From a British perspective, the intriguing question is: what does the coalition do if the eurozone continues to show no sign of getting its

Trust in bricks and mortar

If George Osborne is serious about growth, a relatively easy decision awaits him: to stimulate the economy by spending more on housebuilding. David Cameron knows there’s a problem, and during Tory conference announced a “Tory Housing Revolution” to tackle the failing housing market, and plans to boost Right to Buy and release more land for house building that will deliver 200,000 new homes and create 400,000 jobs. All welcome, suggesting the government has recognised the role that housing can play in creating growth. But if the Treasury is looking to stimulate demand in the short term, there’s still much more that could be done. Investment in housing can happen fast.

Labour failing to regain economic credibility

Labour may have a narrow leads in the polls, but they continue to lag behind the Tories on the public’s number one issue: the economy. Today’s ComRes poll finds that just 18 per cent trust Eds Miliband and Balls “to make the right decisions about the economy”, compared to 30 per cent for Cameron and Osborne. Worse, the two Eds don’t even have the confidence of the majority of Labour voters: only 48 per cent trust them on the economy. YouGov also find Labour behind when it comes to the economy. 30 per cent think the Conservatives would handle it best, while just 26 per cent think Labour would. And

What will Osborne’s offer to the IMF amount to?

George Osborne’s allies may be filtering across government, but what of the man himself? He was at a meeting of G20 finance ministers in Paris yesterday, and trying to maintain a difficult balance over the imploding eurozone. In part, our Chancellor was firm about Europe’s troubles — the area, he said, “remains the epicentre of the world’s current economic problems,” and he urged its leaders to come up with something “quite impressive” at next weekend’s European Council meeting. But he also tried to sound understanding — the UK, he suggested, would consider shuffling more cash into the IMF’s bailout account. The offer of more funding for the IMF was arresting

The new Tory generation

The final reshuffle moves have now been announced. Chloe Smith, the winner of the Norwich North by-election, moves from the Whips office to become economic secretary to the Treasury. Expect Smith to, in time, do a lot of media. Greg Hands, Obsorne’s PPS moves into her slot as a whip. From this position, he’ll be able to continue running the parliamentary side of George Osborne’s highly effective political operation. Sajid Javid moves from being PPS to John Hayes to being PPS to the Chancellor. I suspect that Smith’s promotion will be seen by those Tories who held frontbench positions in opposition but missed out on jobs in government because of

James Forsyth

Greening’s rapid promotion

David Cameron has sent the Cabinet’s safest pair of hands to the Ministry of Defence. Philip Hammond, a robust Euro-sceptic with a belief in firm fiscal management, will bring calm and stability to the department. He’s also the Cabinet minister most likely to be able to sort out the longstanding problems of defence contracts going hugely over budget. As a close political ally of George Osborne, Hammond will be well placed to win extra funding for the department in the, sadly increasingly unlikely, event of the public finances having been put back on a sound footing by the end of the parliament. Hammond is followed at Transport by Justine Greening.

Miliband and Balls, in tandem

So, CoffeeHousers, are Eds Balls and Miliband a gruesome twosome or the most sparkling partnership since Torvill and Dean? I ask only because they’re really pushing the double-act shtick today. There’s their first-ever joint interview in the Evening Standard, for instance, in which they reminisce about the Shadow Chancellor’s 30th Birthday party, among other things. And then there was their joint appearance to officially launch Labour’s ‘plan for growth’ campaign this afternoon. They were talking policy, but there was also a strong emphasis on their personal relationship: eye contact, anecdotes, that sort of thing. Blair and Brown we are not, they seemed to be saying. As for the policy, if

Fox in the clear?

Liam Fox demonstrated today why he’ll be staying in Cabinet. He’s a tough, eloquent and effective Commons performer who does not fall to pieces when the going gets tough. George Osborne and Michael Gove were both on the front bench with him. One MP told me he saw Eric Pickles in the corridors, giving Fox a hug that almost killed him. All this reflects well on them: in politics, it’s always worth noting who stands by colleagues, and who scarpers, when it hits the fan. Fox has, finally, made the two steps required to get on top of this scandal: an apology, and full disclosure to stop the drip, drip

In defence of Liam Fox

The feeding frenzy over Liam Fox tells us a great deal more about what is wrong with the Conservative Party than it does about Dr. Fox. The Defence Secretary has been an ass. He admits that he allowed “distinctions to be blurred” between his “professional responsibilities and [his] personal loyalties to a friend”. But if someone has known you and counselled you and worked for you over the years it is all but impossible to maintain such distinctions when you are in power. You just have to cut them off, brutally. Fox’s biggest weakness, and one which was well known before this, is that he is too kind. You might

Brendan Barber’s champagne habit, and other stories

The Tory conference was so forgettable that it’s hard now to remember it took place earlier in the week. But, for what it’s worth, here are my conclusions from the whole conference season: 1. The search for Osborne’s growth strategy has been called off. This ‘leadership’ theme was short for ‘leadership in the crisis, which we’ve now decided is inevitable’. Printing £75 billion will be  prelude to printing £400 billion, the inflation tax is back. Osborne perhaps thinks this new magic gold will bring economic recovery. So did the Emperor in Faust, when the devil suggested that printing money would avert fiscal crisis. This scheme ended in tears in Goethe’s