Labour party

More details of the split Eds have emerged. As Guido reports, Balls has never been to the pub with Miliband, nor knows ‘if he likes the pub or not’. And, in her Times column today (£), Rachel Sylvester reveals that High Speed 2 is another diving line between Labour’s big beasts: ‘There is clear disagreement over HS2 — although Mr Balls’ conference speech, in which he raised concerns about the cost, was approved by Mr Miliband, there was irritation in the leader’s office about the briefing afterwards that emphasised the Shadow Chancellor’s skepticism about the high-speed line.’ After Balls’s conference speech, Brighton was aflutter with rumours that Labour was going to withdraw support for HS2.

It has long been suspected that there are tensions between Ed Miliband and Ed Balls. The pair fell out badly over the third runway at Heathrow in government and when Miliband was elected leader, he conspicuously didn’t offer Balls the job of shadow Chancellor. But since Balls became shadow Chancellor the pair has largely succeeded in keeping their differences under wraps. But the leaked emails revealed by Simon Walters in the Mail on Sunday today, show what Miliband’s team privately thinks of Balls. Torsten Bell, one of Miliband’s most influential aides, calls Balls a ‘nightmare’ and complains about how complicated his message on the economy is. Tellingly, he isn’t rebuked for his tone by the other Miliband advisers on the email.

Somehow I managed to miss Iain Martin's praise for the manner in which David Cameron has "handled" the referendum on Scottish independence. Happily, John Rentoul has prompted me to take a keek at Iain's article which, somewhat uncharacteristically, concludes that the Prime Minister has "played a blinder". This, as Mr Rentoul cautions, is premature praise. We are asked to believe that Cameron has pursued a policy of masterly inactivity. It is also suggested that securing a single-question referendum was a masterstroke rather than, well, the obvious outcome of a negotiating process between Edinburgh and London that was much less dramatic, and much less important, than everyone agreed at the time to pretend it was.

Nick Clegg’s blast at Labour today is just the opening salvo of a Lib Dem offensive against Labour on the economy. It is another reminder that coalition unity is strongest on the economy. Clegg’s jibe ‘Do you know why Ed Miliband suddenly wants to talk about the cost of living? Because they’ve lost the bigger economic argument’ could easily have been said by Cameron. While his argument that ‘healthy household budgets flow directly from a healthy economy. The two go hand in hand’ echoed George Osborne’s response to the GDP figures. At the top of the coalition, they are immensely frustrated that Labour has managed to change the conversation from the economy to energy prices.

David Cameron’s speech at the Lord Mayor’s banquet yesterday evening rehearsed some basic political arguments that will be honed between now and 2015. Cameron made a decent assault on Labour over the cost of living: ‘There are some people who seem to think that the way you reduce the cost of living in this country is for the state to spend more and more taxpayers’ money....At a time when family budgets are tight, it is really worth remembering that this spending comes out of the pockets of the same taxpayers whose living standards we want to see improve.’ The logical corollary of that statement is pretty obvious: smaller government and tax cuts are the solution to the cost of living crisis.

It is great to be here in Battersea with you today. Last Friday, I was in my constituency, at the local Citizens Advice Bureau. And I talked to some people who had been preyed upon by payday lenders. There was a woman there in floods of tears. She was in work. But she took out a payday loan for her deposit so she could rent somewhere to live. And then disaster followed. A payday loan of a few hundred pounds became a debt of thousands of pounds. She still faces bullying, harassment and threats from multiple payday lenders. Like the young mum I met who described sitting at home with her daughter and seeing an advert on the TV for a payday lender. She said she was down to the last nappy for her baby. She took out the payday loan.

Will Ed Miliband's pledge on the Living Wage, made in today's Independent on Sunday, work? Actually, that's not really the most important question: the experience of the weeks following the autumn conference season is that you don't actually need a workable pledge to be able to set the terms of debate. The Labour leader's plan is for private and public sector employers to receive a tax rebate - on average £445, but up to £1,000 - for 12 months for every employee whose pay is lifted to living wage level of £7.45 an hour. He says this will be paid directly through increased tax and national insurance receipts. The big question now is how the Conservatives respond to this.

One of the odd things about the polls at the moment is that the Tories lead on economic competence and leadership, traditionally the two most important issues, yet trail overall. There are, I argue in the column this week, three possible explanations for this polling paradox. The first possibility is that Ed Miliband is right, that the link between GDP growth and voters’ living standards is broken. A consequence of this is that voters put less emphasis on economic management in the round. Instead, they want to know which party will do most to help them with their cost of living. Then, there’s the possibility that the traditional political rules don’t apply in this era of coalitions and four party politics in England.

It was quite strange yesterday that Michael Gove's allies were quite so happy to concede ahead of his first proper scrap with Tristram Hunt that it was going to be a tough fight. They'd never given Stephen Twigg quite so much credit, although the complications of the Al-Madinah free school row and Nick Clegg's wibbling and wobbling over qualified teachers have made life a little more difficult for team Gove. But the strategy was partly to add to the expectations on the new Shadow Education Secretary, and then to bring them crashing down when he actually appeared.

Yesterday marked the first reasonably good day that agitators for HS2 have had in a while. Northern business leaders started the day with a call to David Cameron to hold firm on the project, followed by Labour leader of Birmingham City Council Sir Albert Bore warning Labour of 'protracted public conflict' in the run-up to the general election if it continued to 'put out such a negative message on HS2'. This morning's Guardian story that Labour will support HS2 provided the project's chairman Sir David Higgins is given the power to bring down its costs appears to be damage limitation. But party sources are today rowing back from that line, which means Labour's support or otherwise is no clearer than it was yesterday.