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Monday, 26th September 2011

New Balls?

Fraser Nelson 9:10am

Given that Ed Balls’ strategy has backfired on his party so far, with Labour ten points behind the Tories on economic credibility, something has to change. Either the policies, or the shadow chancellor. Read between the lines of Balls’ speech today, and you can see a man backtracking – and trying to hold on to his job. Even when Balls tells porkies, he does so with imagination and élan. He is always worth listening to. He had the 8.10am slot on Today this morning. Here’s what jumped out at me:

1) Mea Culpa, kinda.
The other day in the Commons, Balls said sorry – you could tell then that it’s the first of many.  He repeated it again, while making clear that he is no more guilty than any finance minister anywhere around the world. "The banking crisis was a disaster. All over the world, banks behaved irresponsibly and regulation wasn’t tough enough. We were part of that. I’m sorry for that mistake, I deeply, deeply regret it. What we failed to see, around the world, was the scale of those risks. I’m sorry about that."

2) But he still repeats “too far, too fast” line about cuts.
Albeit he now bolts on the end that going slower would not avert “tough decisions in the future” which will be his appeal for credibility.

3) Then he says Cameron/Osborne cuts are “clearly not working”.
He slips back into form, drawing a false link between government cuts and the evaporation of the recovery. In fact, 2010-11, the coalition’s first year in power, saw the highest state spending in British history. I’d say that the return of inflation had more to do with undermining confidence and growth, but Balls’ ideology means he has to blame cuts.

4) “America is in a very difficult place”
– yes, because Obama rejected austerity and put in its place a trillion dollar stimulus which didn’t work. I wonder what Balls learned from that. Ireland, by contrast, is growing at 1.6 per cent this year, almost twice the rate of Britain. I suspect that soon, the ambitious fiscal reformers will be doing better than the UK’s moderate fiscal reformers. So Balls will have more awkward international examples disproving his theory.

5) “If there is a profit from the sale of the bank shares, don’t use that for a tax cut.”
– I blogged earlier about this. The bank sale may haul a one-off delivery of £3.4bn, enough to accelerate the seven-year programme of deficit reduction by about a week. So you can’t use that for a tax cut. Balls’ point here, which he’ll repeat all day, depends on his interviewer not knowing how little the bank sales will raise.

6) And his mysterious five-year plan.
He’ll save it for his speech at noon – we’ll report back here on Coffee House.

Balls also gives an interesting interview to Andy Grice in the Indy this morning where he comes up with the quote of the day: “My instinct is that you should always try to reduce every tax if you can,” he says in the Indy interview. His instinct, demonstrated in government and through the last year, is that you should always increase spending if you can. He had it paid for not by tax, but by running up the national debt – which is why the UK last balanced its budget in 2000/01. This unfunded profligacy, not just inept and fractured banking regulation, is what Balls should be apologising for.

Filed under: Barack Obama (257 more articles) , Conservatives (2312 more articles) , Debt (191 more articles) , Economy (1023 more articles) , Ed Balls (366 more articles) , Labour (2143 more articles) , Labour conference (29 more articles) , Spending plans (81 more articles) , Tax cuts (99 more articles) , UK politics (5407 more articles)

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tb

September 26th, 2011 9:26am Report this comment

So what...

xenophon

September 26th, 2011 9:38am Report this comment

The inference which Balls wants us to draw, presumably, from his faux apology is that the deficit and the debt are really entirely the fault of those unprincipled bankers; pretending to be sorry for not regulating them adequately is a way of blaming them for irresponsibility and avoiding any of the blame himself.

Baron

September 26th, 2011 9:46am Report this comment

So essentially the man said what he’s said before, used few different words in mildly different order, is that it? And you’ve felt an irritable urge to tell us about it. Hmm

canonalberic

September 26th, 2011 9:48am Report this comment

What was really remarkable about the Today interview was the collegiate chummy (even sycophantic) atmosphere. Balls was basically allowed to attack the coalition unchallenged. When the idiotic "sir" Nick Robinson cropped up at the end offering his banalities one got the impression they were all chastely in bed together like Morecombe and Wise.

It will be interesting to compare this to the glacially toned hectoring cross examination given to the evil tories next week.

GDT

September 26th, 2011 10:07am Report this comment

@canonalberic 9:48am: -
I noticed the "collegiate chummy atmosphere".
It made me wretch. BBC is so biased it beggars belief.

arnoldo87

September 26th, 2011 11:01am Report this comment

@ canonalberic

You misunderstand Nick Robinson's role.

When the BBC news shows a political speech extract lasting less than 60 seconds, Nick's job is to spend six minutes explaining to us what the politician was trying to say.

salieri

September 26th, 2011 11:06am Report this comment

The Balls ‘interview’ on Today mirrored all the features noted under Rod Liddle’s latest CH thread. The questioning was perfunctory, lazy, fact-free and chiefly devised not to probe but to encourage self-justification - along with shameless and unchallenged mendacity.

Of course there was no alternative point of view. On some topics - paedophilia, the EU, climate change, Tory cuts - there just isn’t one. More precisely, in the BBC’s judgement there isn’t a reasonable contrary point of view, ergo none that should be allowed air-time: so that, in the result, the BBC is the self-appointed arbiter of what is and is not reasonable.

It’s easy to be impartial when you yourself define partiality.

Meanwhile it wastes license-payers’ money on incurably meretricious self-advertisement, usually showing black people in wheelchairs not falling off tall buildings.

Added to that, now that the government is in the wrong hands, is the ghastly, sniggering, joshing matiness which attends any subject on which ‘liberal’ philosophy might, even theoretically, be said to have strayed. The BBC’s unconscious approach is to ensure that the perceived error is marginalised, trivialised and literally laughed away. Peter Oborne’s treatment on air last week was an egregious example. Aided by the inarticulate wheezing chuckles of that intellectual Titan, Dennis McShane, Oborne was actively prevented from developing his thesis (that the BBC had been one of the 3 most consistently partisan supporters of the Euro): the supposed interview was simply taken over and then shut down by three hysterically guffawing, self-congratulating luvvies. Deliberate or not, it is a disgusting trick.

Percy

September 26th, 2011 11:11am Report this comment

@canonalberic

Yes, it was truelly pathetic.

But to cheer yourself up just take a look at the disturbing photos of fatty Balls trying to play football in a football kit several sizes too small; he's clearly trying to convince himself he's still only xxxl.

(http://www.dailymail.co.uk/news/article-2041660/Ed-Balls-labours-football-pitch-tackling-real-issues.html)

Simon Stephenson.

September 26th, 2011 11:59am Report this comment

salieri : 11.06am

"Of course there was no alternative point of view. On some topics - paedophilia, the EU, climate change, Tory cuts - there just isn’t one. More precisely, in the BBC’s judgement there isn’t a reasonable contrary point of view, ergo none that should be allowed air-time: so that, in the result, the BBC is the self-appointed arbiter of what is and is not reasonable."

Yes, but at its heart is the assumption that no one in the mainstream can possibly be behaving in a Machiavellian way. So, for an immoral or amoral politician with an unpopular agenda, the crucial thing is that he passes himself off as being part of the mainstream, where he will be acquire the accolade of "always acting in good faith, even though his judgement may on occasion be wrong". Whatever he proposes must be complimentary to his avowed aims and intentions, so an inability to see quite how this link is drawn is assumed to be a failure to understand the intricacies of the argument.

This is critical to modern political strategy, and everything else descends from it. It means that it is impossible for "straight" politics to survive, or for "straight" politicians to gain any momentum, because the Machiavellians have so much stronger weapons - for as long as the mainstream refuses to acknowledge their existence.

Ryan

September 26th, 2011 12:33pm Report this comment

Ed Balls is an electoral asset.. for the Tories. He is the Mark Latham of British politics.

Publius

September 26th, 2011 1:25pm Report this comment

"He is always worth listening to."

So, no doubt, was Hitler. So what?

...At least Balls doesn't simper and prevaricate.

Tiberius

September 26th, 2011 1:48pm Report this comment

"Even when Balls tells porkies..."

When does he not?

Publius

September 26th, 2011 2:07pm Report this comment

"porkies"

I note that I am censored when I dare to criticise the Editor's prissy choice of vocabulary.

So I say again, if Nelson thinks Balls is lying, say so. If he doesn't think Balls is lying, then stop using timid little terms like "porkies".

Deal with it, or shut up.

se1man

September 26th, 2011 2:19pm Report this comment

@Publius - me too, but I was censored for daring to point out that the sainted Editor had got something wrong: it's a five-point plan, not a five-year plan.

Rhoda Klapp

September 26th, 2011 2:35pm Report this comment

""Of course there was no alternative point of view. On some topics - paedophilia, the EU, climate change, Tory cuts - there just isn’t one. More precisely, in the BBC’s judgement there isn’t a reasonable contrary point of view, "

Here's a prediction. The BBC will give a favourable hearing to paedophilia before any of the others. In fact if Paedo was not tied to the RC church and therefore Christianity in their minds, they would be pushing it now.

I've been reading Machiavelli. I do not think he is so bad as to be compared with Ed Balls.

Simon Stephenson.

September 26th, 2011 2:59pm Report this comment

Publius : 2.07pm

Yes, I agree.

But this is all part of the mainstream refusal to see the possibility of immorality in men of power. Balls can only ever be telling little white lies, porkies, to advance the cause of the greater truth - he's doing no more than making it easier for us to get to the right answer. The mainstream stance is that he so believes that his recommendations are a superior way of regenerating the capitalist economy that he sometimes stretches a point in order to save time winning an argument that he would have won anyway, in the fullness of time.

There's never a thought that it's all claptrap, and that he's got no more intention of doing anything to give succour to the capitalist economy than he has of making a recording of Danny Boy in Welsh.

Writeangle

September 26th, 2011 3:35pm Report this comment

"All over the world, banks behaved irresponsibly and regulation wasnâ™t tough enough" It wasn't all over the world but the brainless US and EU. You are to blame if you deregulate, keep interest rates low and stand aside whilst banks go on a lending spree. Years before banks crashed Labour could have increased interest rates to control lending but were too stupid to do this.

Cynic

September 26th, 2011 5:05pm Report this comment

New Balls, old Balls, he still spouts a load of balls. Even somebody as economically illiterate as he is can see that the "drastic cuts" are only slightly deeper than Darling would have done and that actually, spending is still rising - just not as fast. The man has no credibility, but don't expect the BBC to do anything but give him an easy ride.

Paddy

September 26th, 2011 5:28pm Report this comment

canonalberic and GDT:

"The BBC were all chummy".

I think that's because they have given up with the Labour party. They are a joke and no serious interviewer can keep a straight face.

In other words they "can't be arsed".

michael

September 27th, 2011 4:03pm Report this comment

more pork less elan.

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