George osborne

Clarification or u-turn?

Smarting from the savaging he received in Mo, Peter Mandelson characterised David Cameron’s “no swingeing cuts” comment as a u-turn, and compared Cameron and Osborne to Laurel and Hardy. This is a bit rich considering the government’s obvious confusion over the timing and extent of cuts, and that the immortal line “That’s another fine mess you’ve gotten us into” should be the Tories’ campaign slogan. Cameron’s comments are a clarification, not a u-turn. As Jim Pickard notes, Tory policy has to respond to last week’s withered growth figures. Whilst still recognising that cuts have to be made now to avert a fiscal crisis, a distinction that the government fails to

Out of recession and into debt

The deficit is in the Tories’ crosshairs this morning. George Osborne pens an article in the Times, castigating Brown’s obsession with continuity: ‘We need a new British economic model that learns from the mistakes of the past. First, that new economic model requires government to live within its means. We entered the recession, after years of growth, with one of the highest deficits in the developed world and we leave the recession with our credit rating under threat. That will have potentially disastrous consequences for international confidence. If Britain starts to pay the sort of risk premiums that Greece is paying, the interest bill on a £150,000 mortgage would go

An election victory is only the start of the battle for Cameron

The News of the World has done its poll of marginal seats today (story here, Anthony Wells here) – a hugely expensive operation, but worthwhile because British elections are decided in marginal seats. National polling, while interesting, can be a misleading indicator of outcome. The result is that the Tories have a safe lead of 13 points (take a bow, Lord Ashcroft), but would still end up with just a 38-seat majority due to Westminster’s unfair voting system. As I say in my column, this is nowhere near a ‘safe’ majority, because it means the government can be defeated by 20 rebels. Anyone who thinks that the Tories are more

Darling talks sense on public sector pay

How things change.  A few months ago, Alistair Darling would only go so far as to not rule out a public sector pay freeze.  By the time of the Pre-Budget Report, that became a 1 percent cap on pay rises.  And now, in an interview with the Sunday Times, he’s talking explicitly about public sector pay cuts.  He cites the example of the private sector, where workers have accepted cuts to hang onto their jobs. It certainly makes sense.  Wages make up such a hefty proportion of public spending, that any serious plan to cut the deficit will have to take them into account.  Besides, there’s the fairness point as

Labour have Osborne in their sights (and on their fridges)

It’s only a small thing, but does anyone else find this detail from today’s Times interview with Alastair Campbell a little, erm, peculiar: “On the [Campbell] fridge is a Christmas card from David Miliband, a clipped photo of George Osborne in the Bullingdon Club shooting pheasant, a GCSE revision schedule. It is the type of handsome but unostentatious London professionals’ house that the Blairs once owned in Islington.” I mean, it’s no secret that the Labour hierarchy loathes the shadow Chancellor – but putting what I assume is this photo on your fridge?  Armchair psychologists, the comments section is yours…

Why Osborne is getting it right on banking

Oh dear. After Massachussetts, it seems like the usual sneering about “populist” politicians, and about voters who aren’t happy with the bankers, is back.  So here are a few facts of life for those knocking people who think the banking sector could still do with a lot of fixing: 1) The financial performance of the financial services industry over the past decade, in aggregate, has been shocking. Someone who had invested in the US or UK stock market would have seen their investment in real terms (net of inflation) fall by over a third. Shareholders have been brutalized for the best part of a generation now. 2) The last ten

Will the civil service help Cameron rein-in his frontbenchers’ spending ambitions?

In his Telegraph column today, Ben Brogan asks one of the most important political questions of all: do the Tories have a plan for dealing with the mess they face in government?  They talk tough on debt and spending, for sure, but the details are still kinda lacking.  Is there anything behind the rhetoric?  And, if there is, will they pull it off?   Of course, the only proper answer is: let’s wait and see.  The proof of this particular pudding will come in the event of a Conservative election victory and, then, in the Emergency Budget that George Osborne has pencilled in for June or July.  On that front,

Shining a light into government

I wouldn’t normally start the day by linking to a public sector website – but this one is actually worth your time.  It’s the launch version of data.gov.uk, created with the help of Tim Berners-Lee among others, which aims to present statistics about government performance in a straightforward, easy-to-access way.  You’ll get a sense of what’s there by rummaging around this page: there’s stuff on benefits, deaths, immigration, traffic, and so on. Ok, so it’s not perfect.  You’d hardly call the current crop of data exhaustive, and you could complain that much of it was available previously if you knew where to look for it.  But this is the earliest

Making social reform affordable

Last week we heard that the Tory leadership are considering limiting their £20-a-week marriage tax break to make the policy more affordable.  And, today, Iain Duncan Smith outlines just how that might work.  In his latest report for the Centre for Social Justice, he sets out a range of costings for the policy: For all married couples: £3.2 billion For married couples with dependent children or in receipt of Carers Allowance: £1.5bn For married couples with children under 6: £0.9bn For married couples with children aged 0-3, the most important years for a child’s development: £0.6bn It’s the final option, costing £600 million, that the Tories are said to be

Osborne looks to Sweden, but let’s not turn Japanese

The Tories have said plenty to dismay me in the last few weeks, so I was delighted to pick up the FT today to see George Osborne talking sense – and boldness. Given that we have to increase taxes, it’s an obvious one to raise. The “too big to fail” principle means that the state now provides de facto insurance to banks – so it’s reasonable that they pay for that insurance. The whole tone of Osborne’s interview is reassuring, especially as he indictates he is studing the aggressive Swedish reponse to the fiscal crisis. He indicates Tories are looking at plugging the deficit with 80 percent cuts and 20percent

A sensible Tory rethink on marriage tax breaks

There’s something quite refreshing about David Cameron’s plan to offer a tax break to married couples.  It says, simply: this is what I believe.  And it does so in spite of polling data and strategic arguments to the contrary.  This is one area where you certainly couldn’t accuse the Tory leader of caring too much about what other people think.  But refreshing or not, that doesn’t make it good policy.  Of course, there’s a tonne of empirical data which demonstrates the benefits of marriage.  That’s important and persuasive.  But, as I’ve written before, there are reasons to doubt the efficacy of a tax break in particular.  And I don’t think

Cameron has the positioning right – but fiscal questions remain<br />

Here, CoffeeHousers, is my take on this morning’s Cameron interview: 1. General demeanor: excellent, articulate, confident. The complete opposite from Brown. It does make you think that he should wipe the floor with Brown in the TV debates. 2. “Last week we saw William Hague and George Osborne going to Afghanistan together. First shadow Chancellor, the man who is going to be in charge of the money, on the frontline seeing what is going on in Afghanistan”. Indeed, but the NHS pledge and deficit cut pledge imply deep cuts to the military. To govern is to choose, and Cameron has made his choice: NHS spending before the military. If I

Security and Defence Review 101

Defence geeks are waiting to see how the Conservative Party intends to conduct a Security and Defence Review, if they are elected. By the time a new government comes to power, the Ministry of Defence will in all likelihood have produced a Green Paper, setting out initial thoughts on the future of the military, which is meant to lead on to a more substantive Strategic Defence Review.  But if the Tories want a process (and ultimately plans and ideas) that encompasses not only the MoD, but also the Foreign Office, DfiD, the security services and even parts of the Home Office, then a new kind of institutional vehicle will have

In preparing for war, the Tories differ from Labour in one respect – they would be prepared

In today’s Times, and on the occasion of George Osborne and William Hague’s visit to Helmand, the Tories are publishing proposals for how to improve the Government’s approach to post-conflict operations. Their central idea: to create a stabilisation force in the military, complete with the necessary expertise, training and so on to win the peace after combat. If it was not already abundantly clear, the Iraq Inquiry has shown how ill-prepared the British state – civil service, military and government – was for post-combat reconstruction. Though much has changed since the Iraq War – e.g. a dedicated department, the Stabilisation Unit, has been set up in Whitehall, and General David

Endangering impartiality

Labour’s rapid rebuttal service will respond to the Tories’ policy blitz by questioning George Osborne’s spending pledges, of which more later. No objection can be raised against this action except that the government enlisted the Treasury to deliver very detailed costings under the Freedom of Information Act. The Times reports that the Tories are understandably livid: impartiality has been compromised. A spokesman said: “We are concerned at any collusion and abuse of the FOI system which has involved ministers requesting costings of what are complete misrepresentations of Conservative policies, which were subsequently released. We will be asking questions in Parliament about the cost and use of resources involved, not least

Tensions in the Cameron circle over election strategy

There is a fascinating glimpse at the tensions inside the top echelons of the Conservative party in The Times today. Francis Elliott reports that Steve Hilton is trying to veto the appointment of James O’Shaugnessy, head of policy for the party, as head of the Downing Street policy unit should the Tories win the election. Francis writes that tensions between Hilton and O’Shaugnessy have been exacerbated by disputes about what should go in the initial slice of the Tory manifesto which will be published on Monday. O’Shaugnessy is one of politics’ nice guys. But he has been the focus of negative briefing in recent months. Back in early September, I

The year in cuts

As we’re still in that period of the year for looking back as well as forward, I thought I’d share with CoffeeHousers a political timeline I put together. It’s not everything which happened in the political year, mind – but rather the important events in the debate over spending cuts. This debate has, at very least, been in the background to almost every political discussion in 2009, and it will dominate the years ahead – so this kind of exercise probably has some posterity value. But, aside from that, you can also draw a couple of conclusions from the timeline (and I do so below). Anyway, here it is, starting a bit before

Balls’s election strategy is a hostage to Osborne’s pen

Make a note, CoffeeHousers: Labour won’t be fighting a class war against the Tories, after all.  That’s what Ed Balls tells us in this morning’s Times – so it must be true, mustn’t it?  Erm, well, perhaps not.  This is how the Schools Secretary continues: “‘David Cameron’s and George Osborne’s vulnerability is not their schools or their background but that they are prioritising tax cuts for the richest estates ahead of spending on the key public services,’ he said. ‘They have designed an inheritance tax policy which costs billions but which won’t benefit a single lower or middle-income family in Britain but will benefit themselves and a tiny percentage of

Call yourself a PR man?

The latest Comres poll for the Independent indicates, as if we needed telling, that the Tories are yet to seal the deal. It’s far from panic stations – the lead remains at 9 points – but there are two figures that prove where the Tories are going wrong. The majority of respondents feel that a Conservative government would exclusively represent the interests of the rich, and the contention that the Tories represent an appealing alternative to Labour was rejected. If Cameron is merely a PR man I hope he’s cheap. Aside from Alex Salmond I can’t envisage anything worse than five more years of Gordon, and this suggests to me

Simple but effective?

It’s the most straightforward dividing line the Tories could draw: “Tories good, Labour bad”.  But it’s still striking to see it deployed quite so bluntly as in George Osborne’s Telegraph article this morning.  His point is that four more years of Labour will lead us to ruin, whereas a Conservative government would pull us out of the mire.  Here are some snippets: “Down the path of least resistance lie economic decline, higher interest rates, high unemployment, and more social breakdown. This is the path down which a cynical and exhausted Labour Government tempts us. But there is another path that leads to lasting recovery, rising prosperity, social responsibility and a