Uk politics

Bear with me, CoffeeHousers, while I return to the Labour leadership contest. You see, the GMB has this afternoon announced that it is backing Ed Miliband for the job – which is a fairly significant intervention. This is first endorsement from one of the major trade unions, and it overshadows the support that David Miliband has received from lower league organisations. The question now is whether Unite and Unison will follow GMB’s lead. Many expect that they will. The influence of the unions in internal Labour elections has, in the past, been overstated. But there’s reason to believe that they’ll wield quite some power over this contest.  As Medhi Hasan

Emblazoned across the Times is the headline: ‘Europe warns Obama: this relationship isn’t working.’ The piece is teeming with quotations from diplomats and representatives of major European governments, voicing their concern that post-Cold War America no longer offers Europe a privileged relationship. The goodwill that Europe offered Obama has entirely evaporated. Few diplomatic spats are ever one-sided, and the Americans are deeply frustrated with the European Union. A White House official condemned the EU’s ‘non-existent foreign policy apparatus’, and Richard Haass of the Council on Foreign Relations said: ‘Europe created these posts (EU President and EU Foreign Minister) to speak for the collective as a whole. But from the perspective

If only PMQs were more like select committee sessions. Sure, the latter aren’t completely free from tribalism, even if it takes a subtler hue – but they are still considerably more insightful than Wednesday’s pantomime in the chamber. Frequently, they play like a demonstration of how democracy can, and should, work. Such was the case with George Osborne’s appearance before the Treasury Select Committee this morning.  The questions, particularly those on whether the Budget hits the poorest hardest, were generally measured and insistent.  But Osborne stood up well through it all, pointing out how any party in power would have to implement hefty spending cuts and tax rises.  And he

Much ado about the Office for Budget Responsibility’s growth predictions in the Treasury Select Committee earlier, especially as an OBR official admitted that the cuts and tax hikes in the Budget could conceivably tip us into a double-dip recession. So are the OBR’s official forecasts too optimistic, as some are now claiming? Only time will tell, but we can get a decent sense of things by comparing them with the independent forecasts that the Treasury collect here. And this is the result: In other words, the OBR growth forecasts stick pretty closely to the average independent forecast, although they are a touch more optimistic. Admittedly, these independent forecasts were collected

A tough morning for the government at the hands of Tyrie, Fallon and rest of the Treasury Select Committee. Sir Alan Budd apologised for his naivety, Robert Chote described the Budget as ‘regressive’ in the main and the banking levy has been criticised on the grounds that is de-stabilising banks’ capital bases, which will affect lending. The government would prefer silence on these issues but the damage was far from total. Budd was an interim figure and the spat that has developed around him is largely political – there is no question that Budd was ‘nobbled’. Robert Chote deserves his reputation but he is not infallible. And Treasury Chief Economic

Asks Iain Martin, and I suspect he’s back in Rentoul territory. It is, nonetheless, a question that merits more than a cursory no in reply. For all his egregiousness, you know where Balls stands: in the crude but distinctive colours of the old left. He is convinced that any approach to spending cuts other than his own will precipitate a double-dip recession. As Iain puts it: ‘Balls is also calculating that the second half of a double-dip recession is on the way and is staking out ground on which he can be the one to proclaim to the country: I told you so.’   In terms of Britain’s economic debate,