Treasury

Ed Balls had two great lines of attack today at Treasury questions, but didn’t really manage to get any traction with either. He started his stint in the Chamber by trying once again to push the Chancellor on when the Treasury knew about the ‘surprise’ £1.7 billion EU bill, then moved on to the Conservatives’ failure to meet their net migration target. The first attack simply led to George Osborne saying this: ‘First of all, may I say that it is very good to see the shadow Chancellor in his place? We had heard disturbing rumours that there was going to be a shadow Cabinet reshuffle. We waited nervously by

Improving the supply of new housing, adjusting the Help to Buy scheme if necessary, revaluing council tax bands and accepting that universal credit won’t solve all of Britain’ welfare ills: all ideas batted around in domestic political debate in this country by politicians and commentators who manage to secure a reasonable hearing each time they suggest them. But the problem with this latest list is that it comes from the European Commission: poorly supported by last week’s European elections and not preaching from a position of runaway economic success. The EC has published recommendations for each EU member state which are ‘designed to strengthen their growth potential, increase competitiveness and

Chris Leslie’s speech today is intended to show that Labour is very fiscally responsible. It’s a noble task, and one the party knows it needs to hammer away at as much as it does on the cost-of-living, otherwise voters may not see that Labour is the trustworthy solution to the problem the party is highlighting. That said, the meat of this speech is very technical, and given it was delivered to the Institute of Chartered Accountants, perhaps not quite aimed at swing voters. Leslie is shouldering a big burden here, because the main thrust of his speech is that his party could not get elected in 2015 and promise unicorns

Yippee! The number-crunching boffins are at war again. The UK and Scottish governments have today released rival forecasts for life in an independent Scotland. It will not surprise you that the UK government’s projections run towards the pessimistic side of the ledger while their opponents in Edinburgh take a sunnier view of Scotland’s future economic circumstances and performance. Fancy that! The Scottish government suggests there might be £5bn windfall from independence; the UK government reckons each Scot receives a ‘Union dividend’ worth something like £1,400 a year.  They can’t both be right. In fact the probability is they are both wrong. That is, Scotland’s fiscal and economic position would be

Treasury Questions today was rather formulaic. George Osborne spent a little while congratulating himself on today’s growth figures (only to be cut off by Bercow, who complained his answer was ‘far too long’), and loyal Tory MPs congratulated him too. Many of them chanted the phrase ‘long-term economic plan’. Some Labour MPs helped out by saying it too, which Osborne thanked them for. He has his own new phrase, which sounds a bit like a Backstreet Boys single: ‘Britain is coming back’. ‘Britain is coming back, alright,’ he (nearly) told MPs, before demanding that Labour congratulate him on the GDP figures. When it came to Ed Balls’ turn, he dispensed

Today’s borrowing figures are, on the surface, not good for the Tories. The surplus on the public finances in January 2014 was lower than for the same month in 2013, at £4.7 billion compared to last year’s £6.0 billion figure (although it’s worth pointing out that the difference could get even smaller with subsequent revisions). That disappointing figure means that over the year, Osborne has borrowed just £4 billion than at the same point last year:- These figures give Labour the opportunity to remind voters that George Osborne has failed to meet his own targets. But there is an easy way to spin this, which is that there is still

In a speech in Edinburgh today, the Chancellor launched an attack on the ‘yes’ campaign’s intention to keep the pound as the currency of an independent Scotland. Here’s what he said:- In just over 7 months people in Scotland will decide whether or not to walk away from the United Kingdom. The stakes couldn’t be higher, or the choice clearer. The certainty and security of being part of the UK or the uncertainty and risk of going it alone. At the very heart of this choice is the pound in your pocket. Why? Because the currency we use is about so much more than notes and coins. It’s about the value of our savings. Our power to

‘Do you know what they used to call us?’ asked Theresa May ten years ago. ‘The nasty party.’ No one used that phrase, but ‘they’ had a point. The Conservatives seemed to be a group of efficient mercenaries, useful for fighting the economic war that broke out in the 1970s. But in the good times they seemed robotic, Spock-like and heartless. The message was: if you work, we’re with you. If you shirk, you’re the enemy. This was summed up by Peter Lilley’s infamous ‘Little List’ skit, above. ANd again in George Osborne’s 2012 Tory conference speech, where he invited his audience to imagine the anger of a worker passing

Now that the economic statistics are looking better, people are beginning to rediscover the once-fashionable thought that George Osborne is a great strategist. Things are coming together before the 2015 election in a way which makes life uncomfortable for Labour. I am not sure that ‘strategist’ is the right word, but I do think Mr Osborne deserves praise for something else. If you compare this government with the last, you will see that it is not dysfunctional in its internal relations. The coalition has constant frictions, but these are, as it were, built into the system. After nearly four years, there is no serious split or even known personal hatred

George Osborne has not been a complete disappointment as Chancellor. He has, it is depressing to note, ended up giving Britain a leisurely ten years to get back in the black while the national debt soars. He has a worrying enthusiasm for finding new ways of hawking underpriced debt to business and homebuyers. But the British recovery is now gathering pace, Britain has more jobs than ever, and if you trawl the small print of his Budget statements, you can find a number of things that Osborne is getting right. He has stuck to his plan to shed hundreds of thousands of public sector jobs. And what Ed Balls dismissed

Congratulations to Mr and Mrs Treasury. HMT has today announced the appointment of Sharon White, the current Director General over at Horseguards, as Second Permanent Secretary. Who she? Well, she’s none other than the wife of Robert Chote, the chief of the Office of Budget Responsibility. The OBR was set up in 2010 by George Osborne to provide independent analysis and advice on Treasury policy. It is meant to be completely independent, so no pillow talk please.

Now the latest on the Politicians Keeping In Touch front. It’s funny how it’s the wives who take the brunt of the endeavour. It was Samantha Cameron yesterday who had to parade at the Tory party conference in a teal £42 polyester dress from Asos.com…no question, then, of Mr Cameron being asked to take a turn in an M&S suit. Alas, Mrs C did what every sensible person does who has to wear something from Asos or Florence and Fred (and may I say, given their modest cut when it comes to fabric only skinnies can carry this off) and replaced their belt with one of her own. It was a

Listen to Osborne and Balls’ exchange at Treasury questions here:- listen to ‘Osborne at Treasury Questions: ‘We’re enjoying this’’ on Audioboo ‘I hope this is not our last encounter across this despatch box,’ George Osborne said rather slyly to Ed Balls this morning at Treasury questions. ‘Because we are enjoying it.’ The Tories were in a good mood, because they’ve decided that they can now start to talk about the economic clouds lifting, and this means that they can say that everything Labour has ever said is wrong, wrong, wrong. ‘Cheer up Ed!’ Sajid Javid shouted cheerily at the shadow Chancellor as another Tory MP used their question to say