Labour party

Mervyn King’s evidence to the Treasury select committee has Westminster’s tired tongues wagging this afternoon. King re-iterated his long-held position that market confidence will imperil long-term recovery unless the deficit was confronted immediately. Nick Clegg has said that a personal conversation with King changed his mind on cutting the deficit early. Paul Waugh, Jeremy Warner and James Macintyre have varying takes on the Governor’s remarks and their bearing on the coalition's formation. I’d just observe that King may have been Cameron and Clegg’s unwitting matchmaker. But equally, no party was honest about cuts during the election.

Oh look, Gordon Brown has continured his return to public life with a sizeable interview in today's Independent.  It's a generous portrait which seems designed to dispel any rumours about the former Prime Minister's wellbeing. Apparently, he "looks healthy and fit … seems quite cheerful." And we're treated to descriptions of his face, "like a map of a man's soul." For those who can read any further, there are accounts of his constituency work and his aspirations to "do more on international development". The world shudders. Despite his claims to the contrary, there are ominous signs that Brown is keen to impact upon our national politics.

Springtime for Ed Miliband, curtains for Balls. Or at least it should be, following the news that Unite will back Miliband for the leadership. It is rumoured that Balls will pull out of the race and support David Miliband in an attempt to secure the shadow chancellor’s post. But only Brown does seemingly blind defiance better than Balls. This morning, Balls has assaulted the airwaves with the full complement of Brownite clichés: ‘I fight on; I fight to win. I’m in it to win it. I am the best person to fight this coalition.’ You get the impression that he means it, and he’ll fight on in hope rather than expectation. It will take a miracle for Balls to win from here.

Ed Miliband has secured a clean sweep of the major unions. That poses Miliband a problem in the future – centrist opponents can characterise him as ‘the union candidate’ with all its negative connotations. In the meantime, Miliband’s chances of becoming the next Labour leader have been greatly enhanced.   Ed Balls, however, is effectively finished. Balls will recognise this, and will be considering his next move. Now his ambition is to be shadow chancellor, and, as Paul Waugh argued yesterday, David Miliband is the candidate most likely to offer him that, or so the theory goes.  It is, if you'll excuse the expression, all eyes on Balls.

Paul Waugh sees it as his duty to pass on little drops of intrigue, and this one’s a dollop. If, as is expected, Unite back Ed Miliband tomorrow, the clapped-out Balls juggernaught will finally croak: there is no chance of him winning without Unite’s backing. There is a widespread rumour that Balls will pull out and back David Miliband. Waugh explains why: ‘The scenario painted to me is this: by dropping out and backing David M, his chances of becoming Shadow Chancellor are greatly enhanced. (The assumption here is that Ed Mili can't offer him Shadow Chancellor because the top of the ticket would just look too unbalanced...that's an assumption some will challenge).’ Only time will tell.

Anne McElvoy’s report for the Today Programme on the Labour leadership this morning is well worth listening to. It featured all the usual suspect and some classic moments—Tessa Jowell damming Ed Miliband with faint praise and Ed Balls’ henchmen Charlie Whelan going out of his way to praise Andy Burnham—but the really memorable bit came when McElvoy asked Abbott about her decision to send her son to private school. As with her infamous interview with Andrew Neil, Abbott simply refused to answer. There was just a period of dead air.

A little odd, and certainly inconvenient, that al-Megrahi still lives and breathes. Then again, Scotland's a notoriously unhealthy place and a bit of desert air probably did him some good. Ensconced in Washington, David Cameron will have taken some flak for the Lockerbie bomber’s compassionate release, for which he has the perfect riposte: terrible business, but nothing to do with me. His second line of defence is constitutionally watertight: the decision was Holyrood’s alone. The Lockerbie Papers suggest that al-Megrahi’s inclusion in a Prisoner Transfer Agreement was a precondition of any deal between the UK and Libyan governments, as Saif al-Islam Gadaffi maintains.