George osborne

‘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,

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

Why was David Cameron so lukewarm in his endorsement of HS2 at PMQs today? (In response to a question about the project’s future, he offered, ‘I believe we should go ahead with HS2’, which is rather than different to asserting that it will go ahead.) The project is – as one Tory minister has told The Spectator – ‘effectively dead’. Ross Clark has investigated why in the cover story of tomorrow’s issue. Here’s what he found: 1). George Osborne has turned against it. The chancellor and Tories’ strategic brain was once HS2’s biggest cheerleader, but experience of office has made him realise that Britain’s limited airport capacity is a bigger threat

Gordon Brown, Sir John Major, Ed Miliband, Harriet Harman, Alex Salmond, Nick Clegg, George Osborne and David Cameron will appear before the Leveson Inquiry next week, for what will be the inquiry’s last week of evidence. All eyes, of course, will be on Cameron, who is due to appear on Thursday. He will be embarrassed once again by his past proximity to disgraced News International executives, and his handling of the News Corp BskyB takeover. He previewed his likely answers on BSkyB in an interview with Andrew Marr last week. He said that his intention was for Vince Cable to marshal the bid, but that was scuppered by Cable’s preposterous

Before David Cameron’s trip to Berlin later today, George Osborne appeared on the Today Programme to emphasise that in the event of a Eurozone banking union, Britain would require safeguards.   Given the importance of finance to this country, Cameron and Osborne can’t accept anything that creates a two-tier single market for financial services. The Tory leadership is also acutely aware that it was this issue that led to Cameron vetoing a proposed treaty last year. It would be politically dangerous for Cameron to do anything that could be characterised as undermining his own veto.   One option being floated by some Tory Eurosceptics is a British veto on financial

There is a cracking scoop in today’s Mail on Sunday. An anonymous Tory backbench MP has excoriated George Osborne’s performance as Chancellor. The MP repeats many of the arguments made by Fraser on Thursday, as the latest lines of the Budget were excised. Osborne is, apparently lazy, uninterested in economics and hubristic. The MP implies that Osborne’s mind is not sufficient to pull this off as chancellor. He writes: ”[Nigel] Lawson used to say that he had to work 18 hours a day and virtually gave up alcohol just to keep on top of things when he was Chancellor. And he had a formidable intellect to start with.’ Osborne’s shortcomings,

It’s tempting to see comedy in the government’s 30th U-Turn, but there’s a more serious side to this. It fits a pattern: act first, think later. The lack of special advisers in government is part of the problem. Even in the Labour days, I argued for more and better political appointees to help a reforming government get its agenda through. But the problem this time was George Osborne’s chillaxing approach to being Chancellor, coupled to what seems to be a casual disregard for detail. This approach was embodied in his decision to join Cameron on White House jolly the week before delivering his shambolic Budget. It makes you wonder if

No government likes to u-turn, and particularly not on a Budget measure. So, tonight’s changes to the VAT regime proposed by the Budget for Cornish pasties and static caravans are embarrassing for the coalition. It is also worth noting that they have come after they have taken most of the political heat they were likely to take for the changes, including in the House of Commons where there were decent-sized rebellions on both issues. One of the lessons that I suspect that politicians, and particularly the coalition, will learn from this episode is: don’t try and deal with the anomalies in the VAT system. Voters, for obvious and understandable reasons,

What do Ed Balls and Mitt Romney have in common? They both want you to think that Barack Obama is spending government money like never before. For Mitt Romney, it’s an attack: he wants to make Obama a Big Government bogeyman who’s failing to tackle America’s deficit. ‘I will lead us out of this debt and spending inferno,’ the Republican nominee promises. For Ed Balls, it’s an example for Britain to follow: ‘I will lead us into this debt and spending inferno’, the shadow chancellor promises. Well, essentially. But the Obama camp is pushing back hard against such claims, highlighting a Wall Street Journal article yesterday titled ‘Obama spending binge