Ed balls

Here's what to expect 52p top rate of tax Ed Balls won’t be looking for money when he says the ‘additional’ top rate of tax will go back up — there’s no evidence it will raise any. Top-band income tax will be 50p, which added to the extra 2p National Insurance would give Britain an effective top tax rate of 52 per cent. If it’s a temporary measure, as Balls has hinted, one-percenters will defer bonuses and disappear from the statistics (a problem, when they pay £1 in every £4 of income tax). If it’s permanent, they may scarper. If Balls really wanted to raise money from the rich he’d cut the 45p rate. But what he’s really after is banking public support by banker-bashing.

The editor of The Spectator isn’t the only person thinking about the prospect of Ed Miliband becoming the next Prime Minister. Eighty educationalists have signed a letter in the Daily Mail today warning about the danger of a future Labour government curtailing academy freedoms. They’re concerned about Ed Miliband’s pledge that Labour would reintroduce 'a proper local authority framework for all schools' – which sounds a lot like placing all taxpayer-funded schools back under local authority control. The letter-writers flag up two freedoms they are particularly concerned about: the freedom that academies and free schools have to set their own pay and conditions and the freedom they have over the curriculum. They’re right to be worried.

'You aren't listening to what I'm saying,' said a rather rattled Lucy Powell, Labour's election chief, whom the party put up for BBC Sunday Politics today. I suspect that, by now, she'll have wished that we weren't listening. Because in a commendable moment of candour, she admitted that the Labour Party intends to keep debt rising should it win power – and has no real deficit reduction strategy. Ms Powell dispensed with Ed Balls tricksy language and told it how it is. Here she is, talking to BBC Sunday Politics (11 mins in, after complaining about a 'Paxo-style interview'). 'Andrew Neil: You would borrow more, wouldn't you? Andrew Neil: To bridge the deficit you have to borrow more.

Ed Miliband had a disastrous PMQs today after the Labour leader claimed the Tories would raise VAT, only to have David Cameron deny that he would increase the tax. Besides leaving Miliband lost for words, Cameron's pledge has also left a massive hole in Labour's election campaign. It was only yesterday that Ed Balls unveiled a snazzy new poster, which contained a big ‘VAT’ swinging into a warning about the Tories’ plans. With their key line now discredited, will someone find a landfill stuffed with Labour posters in a few days time?

If there's one major takeaway from this morning's Budget interviews, it is that voters won't get the opportunity to make as informed a choice as many would like in May. George Osborne refused to set out the detail of the £12 billion of welfare cuts he will make in the next Parliament and gave a classic politician's answer on defence spending, which was that 'we are promising to keep our country safe'. Meanwhile Ed Balls ended up telling the Today programme that he wouldn't reverse anything from the Budget, claiming it was pretty 'empty'. He said what he was worried about were those spending cuts in what the OBR calls the 'roller coaster' planned for the next Parliament.

While the nation is on tenterhooks for the 2015 Budget, the Tories have filled the news gap this morning with a new attack video. As you can watch above, Conservative HQ has dug up 18 year old TV footage from the Treasury, featuring Messrs Miliband, Balls and Brown promising to spend money wisely and keep unemployment down. As we now know, this didn't quite go to plan so the Tories are keen to remind voters: ‘don’t let them do it again.’ This ad has been viewed just under 10,000 times, which is pretty good for a political video. The tone is one of an attack ad, crafted to scare voters away from Labour and the two Eds. The timing is odd, coming days after David Cameron denied the Tories were 'going negative'.

George Osborne and Ed Balls have just done their pre-Budget interviews with Andrew Marr. The show, though, was dominated by talks of post-election deals rather than the contents of the Budget. Ed Balls said that Labour had ‘no need, no plan, no desire’ to do any kind of deal with the SNP. But, as Andrew Marr kept pointing out to him, he wouldn’t rule it out. While when George Osborne was asked about any kind of arrangement with Ukip, he simply took the opportunity to repeat the claim that ‘voting for Nigel Farage makes Ed Miliband the likely Prime Minister’. It was a pity, though, that more time wasn’t spent on the Budget as I suspect it will be more substantive than expected. One Downing Street source described it to me as ‘interesting’.

One of the really striking claims that Ed Balls made in his speech today was that the Tories would end up cutting more from the defence budget than Labour. This is not the sort of thing that you’d expect to hear: Labour saying it would end up spending more on defence than the traditional party of the armed forces. The Shadow Chancellor said: ‘First of all, our cuts, in any part of public spending, are not going to go nowhere near the huge scale of defence cuts you are going to see under the Conservatives on the basis of these plans.’ Balls also said that it was ‘absolutely impossible on the Conservative trajectory’ to meet the target for defence spending to remain at 2 per cent of GDP.

In recent weeks Ed Balls has been offering a new reason to vote Labour: it was his party, he says, that saved Britain from joining the euro. Now, the shadow chancellor is free to say what he wants — and in a way, I’m pleased that he feels the need to convey such an impression. But the true story of how Britain was saved from the euro is somewhat different. It all happened nearly a generation ago, between 1995 and 1997, when I was in my very early twenties. It was my father, James Goldsmith, who set out to ensure that Britain would never join the euro without the consent of the people. He dedicated the last years of his life to the cause. My mother campaigned in his constituency for 12 hours every day.

Naturally, when George Osborne and Ed Balls squared up in the Commons this afternoon for a showdown on the HSBC tax row, it wasn’t a particularly pretty affair. There was shouting, heckling, yowling - and the backbenchers were pretty aerated, too. Indeed, the Tories had turned up intending to throw the Shadow Chancellor off pace before he’d even started, shouting ‘ANSWER’ at him every time he tried to say a single word. Balls had clearly turned up thinking that dragging the Chancellor to the Commons to answer his urgent question was victory enough. But an urgent question is only a victory if the minister responding leaves the Chamber thinking that he or she needs to get onto their officials for a more detailed briefing because the row has got bigger.

Presumably as a way of getting out of an endless debate about receipts, Ed Balls has issued a letter with some detailed questions about tax evasion and HSBC (as opposed to tax avoidance and window cleaners). The letter asks three questions: 1. Why has there only been one prosecution out of 1,100 names? Was the “selective prosecution policy” a decision made by Ministers? 2. When were you first made aware of these files, what action did you take and did you discuss it with the Prime Minister? 3. Why did you and David Cameron appoint Lord Green as a Conservative peer and Minister months after the government received these files? 4. Did you and David Cameron discuss tax evasion at HSBC with Lord Green, or did you turn a blind eye?

Stephen Green — the former trade minister Lord Green of Hurstpier-point, who became this week’s political punchbag— was always a rather Olympian, out-of-the-ordinary figure at HSBC. This was a bank that traditionally drew its top men from a corps of tough, non-intellectual, front-line overseas bankers typified by the chairmen before Green, Sir John Bond and Sir Willie Purves. As the dominant bank in Hong Kong and a market leader throughout Asia and the Middle East, it was habituated to dealing with customers who took big risks, hoarded cash when they had it, and did not necessarily regard paying tax as a civic duty.

Why isn’t Ed Miliband at the British Chambers of Commerce annual conference? Ed Balls tried to defend his boss this morning as he arrived at the event, saying it was ‘getting a bit trivial’ to ask who was attending which conference. The Shadow Chancellor said: ‘Ed Miliband has spoken at this conference a number of times… They’ve got me and Chuka Umunna and this has been tabled and agreed for months and months and months. We’re setting out Labour’s position. As I said it’s the position of me and Ed and Chuka and the whole of the Labour party. Ed has spoken at the conference many times before.

After being told by the Tories that he has ‘questions to answer’ on the BBC story about HSBC, Ed Balls has decided to tell the Tories that they have ‘questions to answer’ on the story too. The Speaker has just granted Shabana Mahmood an urgent question in the Commons demanding that the Chancellor answer Labour’s questions about the story. The Shadow Chancellor said that ‘there are very serious questions for George Osborne and David Cameron to answer today’. His questions are why has there only been one prosecution out of 1,100 individual implicated in allegations about tax evasion and why Stephen Green, former Chairman of HSBC, was appointed a minister after the government was informed of the bank’s activities.