Economy

Jeremy Corbyn hasn’t even been elected Labour leader but the campaign to undermine him begins today. David Cameron will give a speech on the economy, in which he will warn that Corbyn will threaten Britain's security — a strategy I wrote about earlier this week. According to today’s Times, the Prime Minister will make his first significant attack on a Corbyn-led Labour by focusing on the threat to Britain’s financial security: ‘I have watched with some bewilderment the Labour leadership election of the past few months. 'Whoever wins . . . this is now a party that has completely vacated the intellectual playing field and no longer represents working people.

[audioplayer src="http://rss.acast.com/viewfrom22/theosbornesupremacy/media.mp3" title="Isabel Hardman and George Parker discus how George Osborne rules Westminster" startat=38] Listen [/audioplayer]Against the heavy artillery fire of the Labour leadership battle, the struggle of the Conservative leadership contest goes almost undetected outside Westminster. It is no less intense, even though the Conservatives will not elect a new leader for at least three years. After a week of the parliamentary recess, there is no question about who is winning. This week, for the first time, George Osborne overtook Boris Johnson as William Hill’s favourite. Not so long ago, Osborne was a mere limpet on David Cameron’s wetsuit, clinging on thanks to the patronage of his boss.

George Osborne had a ringside seat for New Labour’s dominance of British politics and you could see the influence that this has had on him in the Budget. First, there was Osborne’s determination to unpick the structural changes that Gordon Brown had made to move British politics to the left. So, Osborne took the axe to tax credits not only limiting the numbers who’ll receive them in future, down from nine out of ten families with children in 2010 to five in ten by 2020, but he also attacked the intellectual rationale for them, arguing that they have actually kept wages down. But the Budget also owed something to Tony Blair.

During the election, Ed Miliband's opponents regularly criticised the Labour leader for naming his life experience outside the Westminster bubble as 'teaching at Harvard'. Still, the naysayers haven't put his former sidekick Ed Balls off returning to the university he once studied at. Today the ousted Labour MP has confirmed reports that he is joining the Ivy League establishment as a senior fellow. In a statement John Haigh, the executive Dean of the Kennedy School, announced the appointment: 'We’re delighted to welcome Ed Balls to the Mossavar-Rahmani business and government centre.

David Cameron will take to the stage in an hour to launch the Conservatives’ 2015 manifesto. Before he does, a short video will roll to introduce the themes of the document. We can bring you a teaser of that video now — watch above. The message in the short clip is based on how the Tories have turned around the economy over the last five years: 'When Labour left power it left a note. It read: "there is no money". 'Five years on, notes of a different kind are turning people's lives around. Job offers. Lower tax bills. Apprenticeship offers. Mortgage approval letters. Confirmation of school places. 'These notes are the result of a plan that's about giving you security of every stage of your life.

Ed Miliband gave a good, forceful, well-received speech at Labour’s manifesto launch this morning. It couldn’t have been anything else, given how close we are to polling day. There were some very well-delivered moments, particularly when it came to zero hours contracts and non-doms. The peroration was particularly energetic, with the Labour leader saying: ‘Over the last four and a half years, I have been tested. It is right that I have been. Tested for the privilege of leading this country. I am ready. Ready to put an end to the tired old idea that as long as we look after the rich and powerful we will all be OK. Ready to put into practice the truth that it is only when working people succeed, that Britain succeeds.

This is supposed to be the week when people start thinking about the General Election. George Osborne certainly thinks voters are only just switching on as he used his press conference this morning to reiterate a number of claims about Labour’s economic policies that the Tories made last week, including one that the Institute for Fiscal Studies politely described as ‘unhelpful’. The Chancellor launched something called ‘Labour Party Fiscal Plans: An Analysis’, which he presented with the help of a nifty PowerPoint that splashed the words ‘SPENT’ over every funding stream Ed Miliband’s party has come up with so far.

The Tories want to frame this election as a straight choice between David Cameron and Ed Miliband. So, today Cameron delivered some of his most direct attacks on Miliband yet. Anticipating criticism, he said, ‘Some might say “don’t make this personal” but when it comes to who’s Prime Minister, the personal is national.’ Cameron warned that Labour could reverse everything that has been achieved in this parliament, the ‘painstaking work of the last 5 years – they could undo in just 5 months.’ He attacked Labour as ‘the welfare party’ and derided Miliband as a ‘Hampstead Socialist’.

George Osborne usually tells his aides to prepare for each Budget as if it were his last. This time round, the Chancellor and those around him needed no reminding of what is at stake. They knew that this statement had to boost the Tory election campaign and define the choice facing voters in May, otherwise it really will be the last Budget he gives. As one Tory MP put it, ‘The Budget’s got to deliver some political momentum or we’re done for.’ Osborne has long been aware of the importance of this Budget for his career. If David Cameron returns to No. 10 after the election, Osborne will take the applause. His stock will rise in the party; recollections of his disastrous 2012 Budget will be put aside. He will be hailed as the pilot who weathered the storm.