Economy

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 Labour conference has started badly for Ed Miliband, with David Blunkett criticising the party for allowing the Tories to define the national economic debate. Blunkett was concurring with shadow foreign secretary Douglas Alexander’s view that the Tories had been successful in “framing a public language that made more sense of the economic crisis”. To be fair to Miliband, he made the same point in his recent interview with the New Statesman, but he is yet to provide a coherent or credible alternative to the government’s policies. So, inquiring eyes turn on Ed Balls (and today’s Mail relates another alleged tale of his part in our economic downfall). The shadow chancellor has written an article on economic policy for the Guardian.

There is a strange pre-Lehman feeling in the air right now: the idea that something awful is going to happen, but no one knows what or when. This is laden with political ramifications. The problem for the Tories last time was not that George Osborne had been caught aboard HMS Deripaska. The greater problem was that a crash had arrived and the Shadow Chancellor had nothing to say. Brown, at least, seemed to have an agenda, and the Tory poll lead was reduced to one vulnerable point. I admire Osborne, but he can do far better in making the case for the government’s economic strategy. If there is a second crash, he’ll need all his skills to convey confidence – to sound as if he knows what he’s talking about.

David Cameron’s much trailed speech to the UN is tinged with frustration. He will say, “You can sign every human rights declaration in the world but if you stand by and watch people being slaughtered in their own country, when you could act then what are those signatures really worth? The UN has to show that we can be – not just united in condemnation, but – united in action acting in a way that lives up to the UNs founding principles and meets the needs of people everywhere." That seems to be a fairly thinly veiled reference to the global community’s indifference to oppression in Syria.

Listening to Nick Clegg’s speech today, there was little doubt which party he’d rather be in coalition with. There were some coded slights at the Tories’ expense—the emphasis on how the Lib Dems had been ‘fighting to keep the NHS safe’ and his commitment that the Human Rights Act was here to stay—but they were nothing compared to the full frontal attacks on Labour. Clegg derided Miliband and Balls as the ‘backroom boys’ before warning the country to ‘never, ever trust Labour with the economy again.’ This line reveals something very important, the Lib Dem leadership believes that the more the economy is in trouble the more important it is that they pin the blame on Labour for its problems.

The Telegraph’s splash on Europe indicates that the issue, which proved so toxic to the last Conservative government, has risen again. Writing a stern op-ed for the paper, serial rebel and anti-Cameroon Mark Pritchard calls for a referendum. This will have irritated Downing Street no end, which is understood to have hoped that the whip-sanctioned Eurosceptic grouping that has formed around George Eustice might have contained the party’s factious elements. But some disgruntled MPs on the right privately say that last week’s well attended meeting of Eustice's group turned into something of a disappointment. The insistence that an exit from the EU was off-limits for the moment was apparently met by a singular lack of enthusiasm in some quarters.