Ed balls

We already knew Ed Balls was behind Gordon Brown’s economic policy. He devised the policy on spending that left Britain with the worst deficit heading into the crisis, and wrote the bank regulations that his colleague Douglas Alexander attacked earlier today.   What we have discovered today, from Balls’ first foray into economic policy as Shadow Chancellor, is that he was also behind the old Brown ploy of twisted facts and absurd assertions.   First, he claimed the public finances are better than the Treasury forecast. Yet the independent Office for Budget Responsibility found that the structural deficit – the hole we have to fix - was worse than Labour admitted.

After the gales of recent weeks, the past few days must have been relatively blissful for the Lib Dems. No fake constituents with hidden dictaphones. No massive student protests. No especial focus on their opinion poll ratings. But, instead, a mephitic heap of problems, or at least embarrassments, for Labour and the Tories. Warsi, Johnson, Coulson, even EMAs – Clegg & Co. have been spared the worst of it. Which isn't to say that the Lib Dems will be unaffected by recent events. For instance, as Paul Goodman suggests, Andy Coulson's departure unsettles the delicate balance of the coalition – and that will always have ramifications, however minute, for the yellow half of it. Yet it's the rise of Balls that may prove more significant for the Lib Dems.

Of the two resignations of the past 24 hours, it is Alan Johnson’s that will change the contours of politics. The appointment of Ed Balls makes the dividing line on the economy far starker. But the Coulson resignation is still a highly significant moment. Those Tories who worked with Coulson are downcast today and will brook no discussion of what the whole episode says about Cameron’s judgment. But there’s little doubt that the PM has been harmed by this episode. Not in any limb-threatening way but harmed nevertheless. Cameron also needs a find to way to organise his operation to both ensure that there is someone at the table who understands the instincts and aspirations of C1 voters, can firefight stories and fulfill the strategic communication role.

Both The Mail and The Sun are running on their front pages that Alan Johnson’s wife is allegedly having an affair with his bodyguard. There are, though, other rumours referenced in other papers. The Tory view this evening is that they now face a tactically harder fight but a strategically easier one. They fully expect Balls to snap at Osborne’s ankles more effectively than Johnson did. But they think that Balls’ previous on the economy and his oft-expressed views on a double dip and the Darling plan will help them overall. One thing worth noting this evening is that Liam Byrne’s appointment to shadow Iain Duncan-Smith shows that Ed Miliband remains committed to offering broad support to IDS’s welfare reforms.

Is Michael Gove’s school reform a hideous distortion of the Labour Academies programme, as Ed Balls put it, or the fulfillment of that agenda? Until now Lord Adonis, the architect of the Academies programme, has kept silent on the issue. But he’s interviewed in The Spectator tomorrow by Matthew Smith, editor of Attain magazine. Here is a brief extract: 'Ed Balls has declared Gove’s plans for academies as ‘a total perversion of Labour’s policy, which was about turning round under-performing schools in disadvantaged areas’. Adonis’s response is rather different.  ‘Neither I nor Tony Blair believed that academies should be restricted to areas with failing schools.

You've probably heard about Alan Johnson's latest slip-up yesterday. But it's still worth highlighting the response made by a Labour spokesman – as Dizzy has – because it's simply extraordinary. Here it is: "We have a Shadow Chancellor who lives in the real world. He knows the difference between a progresive and regressive tax. He knows what it takes to get on in the real world. That is more important than taking part in a Westminster quiz game." Extraordinary that Labour should already have to make excuses on behalf of Johnson. But even more extraordinary that they should be made in this manner.

Ok, so Ed Miliband's one hundred day anniversary actually falls on Tuesday – but what's a couple of days between bloggers? Besides, even with two days to go, it's safe to say that his will be a peculiar century. By some scientific measures, Labour are doing alright; sucking up Lib Dem voters to push ahead of the Tories in opinion polls. But that belies what has been an unconvincing start from their new leader. Here's my quick five-point guide to his bitter honeymoon: 1) What's the economy, stupid? One of Miliband's boldest moves to date was his appointment of Alan Johnson as shadow chancellor.

Joy. It will be a campaigning Christmas, now that the Oldham by-election is likely to be held on 13th January. The Labour party is much exercised. The permanently outraged Chris Bryant says it is a ‘disgrace’ that politics will sully the ‘major Christian festival of the year’ – the lapsed cleric seems to have forgotten the election’s proximity to Easter. More importantly, fewer students will be in Oldham on 13th January to serve ‘judgement’ on the government, as Hilary Benn put it in the Commons this morning before adding that the government is ‘running scared’. By-elections are determined by local issues, as one would expect.

There is talk of Ed Miliband’s ‘New Generation’, but no indication of what it stands for. It has no clear views on the economy, student finance, defence and electoral reform. Despite his party’s lead in the polls, Ed Miliband is an inert political entity (and it did not help him that the party peaked in his absence). Tim Montgomerie has rightly diagnosed a leadership vacuum. Miliband is timid before a parliamentary party that did not select him, and is struggling to acclimatise to a political discourse that the coalition government is moving beyond the terse liturgy of left and right. So far, Miliband's banal default tactic has been to seek consensus.