Government

Ok, so identifying the heroes of the New Labour era may not sit well with CoffeeHousers - but I'd still recommend you read through the latest Bagehot column in the Economist, which does just that.  It identifies five figures from the past 12 years who have "done the state and country some serious and lasting service," and whose "virtues [are] not be clouded or cancelled by grave mistakes or misdemeanours".  They are: Lord Adonis, Donald Dewar, Lord Mandelson, Sir William Macpherson and Robin Cook.  James Purnell, Alistair Darling and, strikingly, Bill Clinton finish in the runners-up list. You can debate the merits and demerits of those names all day long, but I'd rather suggest another person for the list: John Hutton.

One of the Tories’ favoured lines recently has been that they are acting like a responsible government while Labour is behaving like an irresponsible opposition. But I wonder if this attitude is entirely healthy for an opposition, or whether it ends up blunting its campaigning edge. For example, the Tories’ refusal to say for definite that they will repeal Labour’s planned increase in national insurance stems from their view that they aren’t certain where they would find the £8 billion from. But given the number of black holes and blanks in the PBR and that the deficit is over £170 billion this seems slightly absurd.

There were two possible strategic approaches Labour could have taken to the PBR. One option was to surprise everyone by actually making cuts. They then could have said, "we've made all the cuts we can. Anything else would really hurt frontline services". This would have put them in position to challenge the Tories as to what they would cut to reduce the deficit faster. The other was to be really populist. They could have carried on spending, bashed the bankers, soaked the rich, and hope that they could get away without a crisis in the markets until the election. Instead, they’ve fallen between two stools.

Well, it seems like Paul Richards – a former aide to Hazel Blears – wants to corner the market in quietly persuasive demolitions of his own party's strategy.  If you remember, he wrote a perceptive piece on Labour's shortcomings in the aftermath of the Norwich North by-election, which we highlighted here on Coffee House.  And, today, he's at it again, with a very readable article in PR Week on why the class war won't work.  His three reasons why are worth noting down: "First, it is hypocritical. The Labour Party has a disproportionately far higher number of former public schoolboys and schoolgirls in parliament and in the government than a random sample of the public they serve.

I will sign off tonight with this sickening graph from the earlier IFS presentation – showing the extent to which Gordon Brown’s economic incompetence has transformed the public finances for a generation. Servicing this debt will absorb money that would otherwise be spent creating jobs, lifting people out of poverty, advancing education, promoting prosperity. The leading article in the magazine this week finishes with these words, which came to mind when I saw the above graph: “It will be no surprise if UK public debt has been downgraded by the election; if so, a gilt buyers’ strike will become more than a theoretical possibility. The new government will face a Sisyphian financial task, so formidable as to make almost every other issue of the day look trivial.

There are a couple of noteworthy snippets in today's FT interview with George Osborne: the claim that the Tories may not take corporation tax as low as it is in Ireland; the outline of a "five-year road map" on business tax policy, etc.  But, I must admit, it's this passage which jumped out at me:    "[Osborne] says his Tory conference speech in October, which included plans for a public sector pay freeze and an increase in the state retirement age, 'was an important moment' that showed a mental leap to being 'an alternative government, not just an opposition'." These self-bestowed titles – "alternative government," and the like – are silly, really.  The only thing that actually matters is whom the public regards as governing material.

Ed Balls has given an interview to The Times Educational Supplement which contains a comically audacious attempt to rewrite history. When asked about whether he really wants to be in his current job, Balls tells the interviewer, “I have resisted moving”. Now, I suspect this will come as a bit of a shock to Alistair Darling who fought off an effort by Balls to take his job.