Balls bites back (with mixed success)
Peter Hoskin 1:08pm
You certainly can't fault Ed Balls for chutzpah. After the weekend he has just
experienced, the shadow chancellor has an article in today's Mirror
accusing George Osborne of "spinning out of control". It is pure, triple-distilled Balls: a fiery attack on both his political opponents and their policies. So let's sup deep and read the
whole thing, alongside my comments:
A strange, protracted metaphor, to be sure, and probably not even the right one. I assume Balls is suggesting that Osborne is the "fastest driver" on the track by dint of cutting faster than anyone else, but that's not even true. As any CoffeeHouser kno, Obama is planning to cut faster (if not, eventually, further) than Osborne — yet Balls doesn't generally attack the President of the US for going "too far, too fast," etc. And as for Osborne spinning off "in the rain" by ignoring advice, which pit team should he listen to: Balls or the IMF? The Chancellor is receiving lots of advice in his headset, he has to ignore some of it.THIS is the most exciting Formula 1 season for decades. Because it is not just about who has got the fastest car – it’s about race strategy, overtaking and adapting to the changing conditions.You can be the fastest driver on the track for 40 laps – but that’s no use if, by ignoring advice, you spin-off in the rain or run out of fuel.
That’s my worry about the Chancellor George Osborne.
Here starteth Balls' strongest attack, about the pressures facing the striving classes. The Times has a superb graphic today (£) which shows how everything from energy bills to the price of carrots has risen tremendously over the past five years. It is, of course, disingenuous of Balls to equate this with Osborne's "deficit reduction plan" (although not entirely, as tax hikes are having their effect on the cost of living), but it is cunning politics. Moreso than any abstract cut in a departmental budget, people will notice the miseries writ in black-and-white across their bills and store receipts. And governments tend to pick up the blame, whatever the cause.The voices are getting louder and louder, warning him of the dangers facing the economy – the threat to jobs and family budgets from his recklessly fast deficit reduction plan. But he isn’t listening. He just keeps his foot to the floor.This is a very dangerous strategy – dangerous for families and businesses who are struggling to get by, worried about their jobs and unwilling to spend and invest. And it is dangerous for Britain’s long-term future too.
Take out the bit about cutting "too far and too fast," and much of that is uncontroverisally true. Yet you might take issue with the one-sidedness of it all: slower growth is not the double dip recession that Balls once prophesised, even if it isn't particularly encouraging; countries like India and China have been powering ahead of us for years; and forecasts changed, for the worse, even when Labour were in power. Balls, naturally, has to work with the ammunition he before him — and some of this is fairly high calibre stuff. But what really matters, for the country and for our politics, is what actually happens in the years to come. The government would argue that the sluggishness of recent months is a result of the uniquely misshapen economy that they inherited. Beating it into shape, they say, will take time, but will be worth it.George Osborne’s decision to cut too far and too fast has seen the economy flatline – and we are now set for slower growth and higher unemployment than forecast a year ago.Britain is falling behind other European countries, while countries like India and China power ahead as our economy stalls.
One of the most pungent passages in the whole article, and not least because it wallows in the stench emanating from Balls's own filing cabinet. The shadow chancellor's clear implication — and it is a vicious one, without proof — is that the release of his private papers was all down to the Tories. But it's what follows that's even more noxious. No Tory I know claims that the "global recession" was Labour's fault. It is Balls who is "rewriting history" here. The Tory charge is instead that Labour left our country, and the public finances, particularly open to the draining effects of that recession. Which brings us on to...But George Osborne thinks that if the economy goes wrong, it doesn’t matter because he can just blame Labour. Over recent days we have seen my private papers taken and given to the Daily Telegraph.The Tories and their supporters are misrepresenting their contents and using them for a very clear political motive: to attack me, Ed Miliband and the Labour Party and try to promote a Tory lie that the global recession, and the deficit we now have, are all Labour’s fault.
Whatever the Tories and their supporters claim now, whatever the dirty tricks, we cannot let them rewrite history.
The global financial crisis happened in every country – it was not a recession made in Britain.
It was caused by the irresponsible actions of the banks, though Labour accepts that we should have been tougher on them.
This is an argument that Ed Miliband has made before, but — as it is central to Labour's defence of their own record — it is worth dwelling on now. The suggestion, sometimes made more explicitly, is that Labour actually paid down the debt and reduced the deficit, and that the crash was solely to blame for their subsequent rise. But, unsurprisingly, this suggestion is equal parts wishful and misleading.Before the crash, Britain’s national debt and deficit were both lower than Labour inherited from the Tories.And at that time David Cameron and George Osborne were pledged to match our spending plans.
I've thrown graphs and more detail at this before, such as here, here and here. So suffice to say that the MiliBalls argument doesn't account for something that is very important when it comes to the public finances: trajectory. When New Labour swept into Downing Street, the debt and deficit had been put on decelerating — or even downwards — trends by Ken Clarke's spending plans. So long as Labour followed the plans they inherited, the debt and deficit continued to fall. But as soon as they departed from them, around 2000-01, and started to splurge, the debt and deficit started to rise once again. By the time the crash crashed Labour's party, debt-fuelled spending had gone on for so long that both the deficit and the national debt were already on accelerated trajectories. This is not what Balls, with his illusions of prudence, would have us believe.
Nor do Balls and Miliband account for what happened next. Yes, in some very specific senses — e.g. as a percentage of GDP — the debt and deficit may have been lower in 2007 than in 1996. But that's when Labour's new trajectory really started to bite. Even discounting the measures to support the banks (as well as PFI and other off-balance sheet ruses), our debt rose by over 20 percentage points of GDP between 2007 and 2010, the second fastest rise of any major economy. The deficit that the Tories inherited was the highest in our history.
As for Balls's observation that the Tories were committed to Labour's spending plans at the time, he can have that. David Cameron has since, rightly, admitted that it was his worst mistake in Opposition.
Funny what Balls omits here. The fact that our deficit is among the worst of any developed economy? The revenue-raising prospects of the 50p rate? Nothing to be said on either. But my favourite omission relates to the last sentence. G20 countries pledged to halve their deficits last year, Balls says. But the pledge was to do so by 2013 — quicker than Labour's plan.But the crash pushed up deficits in every major country as governments took action to stop recession turning to depression, to keep people in jobs and in their homes and Labour cut VAT to get money into people’s pockets and keep the economy going.So now, like every other country, we need to get the deficit down and that means cuts and fair tax rises – like the 50p top rate for those on over £150,000. In government, Labour set out a tough plan to halve the deficit over four years – in line with last year’s pledge from G20 countries.
In which case, I guess Balls doesn't regard the US as a major economy.And going at that balanced and steady pace was starting to work. Last spring the economy was growing again, unemployment was falling and so the Government borrowed £21billion less than expected.But last June, George Osborne made a political choice to cut the deficit further and faster than any other major economy.
The Office for Budget Responsibility may have pushed some of its unemployment forecasts upwards since last year, but it still expects unemploment to fall. In fact, by the OBR's calculations, unemployment has already peaked:That decision is hurting families: the VAT rise alone will cost a family with children £450 this year. But by cutting too far and too fast – hitting families and costing jobs – the Tories are also creating a vicious circle in our economy. That’s because more people out of work and on benefits will make it harder to get the deficit down. Our economy has not grown at all in the last six months.The Government’s independent watchdog says the economy will now grow more slowly, with 200,000 more people on the dole each year.
In part, this is one of Balls stronger attacks: in the last Budget, the government did slow its forecasts for deficit reduction, which means more borrowing than it envisaged. (Osborne, though, is confident that he still has enough leeway to meet his pledge to abolish the structual deficit by 2015.) But it also muddies the shadow chancellor's position: he appears to be attacking the Tories for not cutting the deficit as fast as they said they would, while also attacking them for cutting the deficit too fast.That’s bad news for families and businesses, but it’s bad for the deficit too.This slower growth and higher unemployment means that the Government is now set to borrow £46 billion more than they had planned. And it’s not what the Tories promised.
Another caricature of the Tories' position, albeit one fuelled by David Cameron. Even Alan Johnson, when Home Secretary, declined to guarantee that police officers wouldn't lose their jobs under Labour — and no doubt because it is a decision for local police forces.They claimed they would cut the deficit by cutting waste but they are cutting the police and jobs instead.
"And that’s why we know every Labour Party member will get behind Ed Miliband and back him 100%." It's wonderful how Balls makes even his words of encouragement sound like a threat.One in five young people is now looking for work, yet the Tories don’t seem to understand this is a waste of money and their potential.That’s why it’s now time for the Government to get a Plan B – and they should follow Labour’s balanced deficit plan, which puts jobs first.
Of course we need tough decisions on tax and spending cuts, but getting people off the dole and into work is the best way to get the deficit down.
Instead of cutting too far and too fast, if Labour was in government we would be cutting the deficit in a tough but balanced way, halving the deficit over four years.
And instead of giving the banks a tax cut this year the Government should adopt Labour’s plan for a bankers’ bonuses tax and use the money to get young people into work and build more affordable homes.
This is a key part of Ed Miliband’s focus on the “Promise of Britain” – that each generation does better than the last – which the Conservative-led Government’s policies are undermining at every turn.
And that’s why we know every Labour Party member will get behind Ed Miliband and back him 100%.
With the economy not turning out as they had hoped, it’s no wonder the Tories are getting worried. But, however much the Conservatives and their supporters sensationalise these papers and try to rewrite history, they will not divide the Labour Party.
These kinds of dirty tricks will never distract or dissuade us from taking the fight to the Tories for the damage their misguided policies are doing to jobs, our economy and our vital public services.
That’s why this week I will press George Osborne to use his Mansion House speech to change course.We won’t allow him to leave Britain stuck out on the track and out of fuel while the rest of the world races ahead.
Previous
R.McGeddon
June 13th, 2011 1:25pm Report this comment'Too far, too fast'. This cliche was only used three times in today's Labour rant. As usual, total Balls.
Perry
June 13th, 2011 1:31pm Report this commentBrings a whole new meaning to the expression 'a complete balls-up'.
Ho-hum.
Perry
June 13th, 2011 1:33pm Report this commentIt's ... NEO-ENDOGENOUS BALLS!
Hugo Chav
June 13th, 2011 1:35pm Report this commentMervyn King is Knighted for:
~ZIRP.
~QE.
~Crashed currency.
~Overseeing a colossal property bubble.
~Overseeing millions of consumers take on way too much debt.
~Deflation propaganda (lying).
~Intentional plan to inflate away government debt.
~Negative real interest rates.
Only in bloody Britain do you get rewarded for failure.
RCE
June 13th, 2011 1:43pm Report this comment"And at that time David Cameron and George Osborne were pledged to match our spending plans."
Everything you need to know about the lot of 'em.
frosty the polar bear
June 13th, 2011 1:45pm Report this commentAs a mere bear,
i would think that after the recent revelations, it seems odd that anyone, including journalists, ever believe a single word Balls, and co, say about anything.
Leaving aside dodgy dossiers, broken promises about referenda,just recall how many times, all of the labour party, time, and time, again denied any frictions between Blair and Brown.
The now public proof of their plotting, just days after a major terrorist outrage here in London, shows that not one of them can be relied upon to be truthful, and honest, ever.
Every time one tries to make a point, they should simply be told, " as you lied to the nation over so many things, over so many years, why should anyone even dream of believing you on this"?
paul
June 13th, 2011 1:49pm Report this commentBalls was discredited long before the weekend and the less said about the Mirror, the better
Perry
June 13th, 2011 1:57pm Report this comment@ Hugo C ... agreed, - but my greatest worry is whether or not (Sir) Merv's pension and entitlements have safely come through the turmoil.
T'would be such a shame if such a paragon of outspoken virtue lost even a fraction.
David Lindsay
June 13th, 2011 2:06pm Report this commentAlternatively, the Labour Party couldn't care less what the Telegraph says. With a comfortable poll lead even before the cuts are really felt, and a rapidly rising membership, plus the daily abandonment of another Coalition policy, why would it? Have you thought of that? No, of course not.
paul
June 13th, 2011 2:06pm Report this commentWell - the guiness book of world records will have a new entry in stupidity regarding all this. First, we're in protracted wars that look like their not abating based on the false ideaology of a war of civilizations which is the biggest quagmire one could ever enter into and grossly ignorant of the inter-relations in the world; and secondly, the global elite are warring amongst eachother now for their cock-ups. The best solution to this is put these people into 'reservations' and prevent them using poverty to de facto hire soldiers. The dragons inevitably end up eating eachother that's for sure (Ourborous consciousness manifest in individual humans) but how much of the world they damage in the process is something the people can limit by playing the game of nodding dog (up until a point) and entertaining these fantasies until they realize they have no suppport.
tb
June 13th, 2011 2:08pm Report this commentIf Balls advice is so good, why are we here?
normanc
June 13th, 2011 2:14pm Report this commentAnd yet spending increased by 5% (from already astronomical levels) in the year just ended.
Perhaps Balls thinks it should have increased by 10%?
The only argument that holds any water is that government isn't cutting spending but is cutting private sector spending power by raising taxes and I doubt we'll see the Labour Party putting that one forward any time soon.
Simon
June 13th, 2011 2:22pm Report this commentAnyone remember Balls last Plan B? Install Gordon Brown as PM. They should have stuck with Plan A then too.
Scotty
June 13th, 2011 2:23pm Report this commentWho with any sense will listen to the shady chancellor. The deficit denier and the Great Ballon's right hand man - no more boom and bust, throw away our gold, destroy our pensions, 10 p tax fiasco. He has only one plan - say too far too fast over and over again in the hope we are stupid enough to mean repitition means accuracy.
The Laughing Cavalier
June 13th, 2011 2:37pm Report this commentLife on Planet Balls is just that.
Sir Everard Digby
June 13th, 2011 2:57pm Report this commentThis quote was made for him:
'Politics is the art of looking for trouble, finding it whether it exists or not, diagnosing it incorrectly, and applying the wrong remedy.'
Ed Balls is the master of this.But nothing else. I suggest Grand Prix is an excellent description of him. The x is not silent.
David Parker
June 13th, 2011 2:57pm Report this commentThe popular refrain amongst Labour politicians is now " We are proud of what we achieved over the past 13 years, but..."
This is just typical of the arrogance of the modern political class.
Doubtless they are indeed proud of the fact that after 13 years of misrule they left Britain practically bankrupt, riddled with illegal immigrants, racially and socially more divided than ever before, impoverished by ever more stealth taxes, and with health and education systems that were failing the people. That is, after all, what socialism usually achieves.
But please don't insult our intelligence by suggesting that we should be grateful to either the government or the opposition for what they both failed to achieve during those years.
TrevorsDen
June 13th, 2011 3:15pm Report this commentWhatever Labour achieved in the last 13 years they achieved it by spending money they did not have, that the nation was not earning.
In 2002 the national debt was £315 billion. In 2008 it was £525 billion. That should say it all about Brown and Balls' competence.
What anyone says in the Mirror is a complete irrelevance.
REPay
June 13th, 2011 3:18pm Report this commentWhen it comes to being the fastest driver that was surely Ed himself & Gordon and the fastest credit card in the west.
toni
June 13th, 2011 3:19pm Report this comment"No Tory I know claims that the "global recession" was Labour's fault."
Could have fooled me.
Perhaps you should have a stroll through your comments Mr.Hoskins, where you’ll discover that many 'Tory's you know' who comment here on these very pages have blamed GB and EB for the world wide financial collapse, and Tory MP's during PMQ's and during some Minister or others questions, can be guaranteed to pop up and mouth off the same guff.
Noxious and vicious? Who?
Tory MP's and commenters here?
You said it.
Woody
June 13th, 2011 3:40pm Report this commentThis man is just the absolute pits. He pollutes politics just like his mates, Brown, McBride and Whelan.
My personal view about his leaked documents has all the hallmarks of his own side but then who cares.
Axstane
June 13th, 2011 3:46pm Report this comment"The Tories and their supporters are misrepresenting their contents and using them for a very clear political motive: to attack me, Ed Miliband and the Labour Party and try to promote a Tory lie that the global recession, and the deficit we now have, are all Labour’s fault".
The contents of the Balls papers are what they are. They speak for themselves.
Nobody ever said that the global recession was Labour's fault. They are to blame for careless and foolish management of our own economy and banking regulation, no more.
In future years scrotumologists will analyse this effort by Balls as a herald of his eventual political demise. That will be the brightest star in the labour firmament extinguished. He still has however to instigate Ed Miliband's ousting and then fail once again in a bid for the leadership [against his own wife?].
Jebediah
June 13th, 2011 4:11pm Report this commentThe great liar, lies once more. Who's surprised? This man is unfit for public office.
As said elsewhere... "Goodness gracious great Balls of liar."
Simon Stephenson.
June 13th, 2011 4:36pm Report this commenttoni : 3.19pm
It's one thing to claim it, and quite another to demonstrate it to be true. Perhaps you could give us some examples of people on these threads blaming Brown and Balls for the entire worldwide financial collapse.
And if you can't do this, then why did you assert it?
Verity
June 13th, 2011 5:28pm Report this commentThat headline ... I don't want to dwell on it.
TGF UKIP
June 13th, 2011 5:29pm Report this commentThe problem for the Cameron Tories though is that when it comes to polemics and propaganda they have no one to match up to Balls. Indeed, other than from their media acolytes, there is hardly any frontline Cameron Tory voice in the economics debate at all. Post election as pre election they shrink from any confrontation or making any argument - one of the main reasons, in fact, why voters found Dave & co insufficiently convincincing to vote for them.
Axstane
June 13th, 2011 5:39pm Report this commentTGF UKIP
Sure as hell the voters did not vote for Farage. Tell us again how many MPs UKIP has? How many councils does UKIP control?
toni
June 13th, 2011 5:40pm Report this commentSimon Stephenson. Suggest you look back at the very many threads on here that includes in the title Labour, Brown, Balls or anything to do with the financial crisis and there’ll be instances of ad hominen 'it's all GB'/EB’s fault' without me doing the searches for you.
If you haven’t jumped onto the blame Brown bandwagon yourself I’m not sure why you're being so precious and defensive on behalf of commenter’s here who are quite capable of lashing out on their own behalf.
Professor Bongo
June 13th, 2011 5:57pm Report this commentI support Balls on this one. I think we should forgive and forget his last transgression.
Keep it harmonious though Sir..!!!
SimonStephenson.
June 13th, 2011 6:08pm Report this commenttoni : 5.40pm
Come on, you made the assertion, it's up to you to justify it with specific instances. Exactly where has anyone on this site claimed that the entire worldwide financial collapse is the fault of Brown and Balls?
Otherwise, perhaps you should consider withdrawing it.
Occasional Ostrich
June 13th, 2011 6:45pm Report this commentBilly Connolly, in one of his better shaggy dog stories, came up with a punchline something like, "Once ye've taken a bite oot of your ain balls, ye kin doo anythin'!"
Frank P
June 13th, 2011 7:58pm Report this commentYes a classic story: Dog bites postman's balls, Balls bite back.
Dimoto
June 13th, 2011 9:39pm Report this commentThe "pungent smell" emanating from this excessively long blog-post, is of excessive respect for this dud, discredited, political hack and excessive defensiveness in the face of laughably cobbled together claptrap.
The Mirror is a very minor newspaper these days, whose small remaining readership don't read it for this sort of turgid political self-justification.
I guess all of his usual journalistic allies just weren't interested.
That is progress.
Rob
June 14th, 2011 4:59am Report this comment"That decision is hurting families: the VAT rise alone will cost a family with children £450 this year"
Can anyone figure out where Balls plucked this figure from? The VAT rate went up 2.5% in January, so to cost a family 450 pounds, they would have to be spending 18,000 pounds a year on goods and services subject to VAT. Given that mortgage payments, rent and most foodstuffs are zero-rated, or not subject to VAT, I find it hard to believe that most "normal" families with children actually spend that much out of after-tax income.....
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