Category Archives: Alistair Darling

Bring it on

The office TV set, which perennially displays the green screen of the Parliamentary annunciator, was this morning tuned instead to the BBC News channel and the somewhat anticlimactic drama of the announcement of the general election campaign.

Not that there weren’t some high spots:  the moment, for example, when the Prime Minister’s Jaguar swept through Trafalgar Square and the hovering helicopter picked up the “Vote for Change” placards held aloft by enterprising Tory activists.

The Tories stole a march on Labour, too, with David Cameron’s delivery of a live ten-minute address outside County Hall while Gordon was still occupied with marshalling his cabinet, who ultimately lined up behind him, politburo-fashion, in Downing Street.   They listened attentively, hands clasped in front of them like footballers prepared for a particularly vicious free kick, as the PM delivered a notably wooden, almost Stalinesque, pitch to the British people over an echoey sound connection.  Then they then trooped back inside behind him, assembled together in No 10 for perhaps the last time.

Throughout the day, below my window on College Green, the TV lights burned brightly as a parade of politicians and pundits submitted themselves to interrogation.  I watched sporadically throughout the day, until an almost surrealistic interview with an over-excited John Prescott (who is clearly gagging for a seat in the Lords) convinced me that I had had enough.

My Parliamentary office is now packed away in boxes.  The decks are cleared.  Tomorrow we will have the last PMQs of this Parliament and then it’s back to North Wales, the Land Rover, the walking shoes and the campaign trail.

We’re ready for it.  Bring it on.

Good news for Gordon

In an interview with Nick Robinson today, Alistair Darling has conceded that if Labour are re-elected at the general election, they will be obliged to impose cuts that are “tougher and deeper” than those implemented by Margaret Thatcher.  I’m sure that will go down really well with Gordon “Labour investment v. Tory cuts” Brown.

Today, also, the RMT has announced a series of rail strikes starting on 6 April, the day it is widely expected that the election will be called.

I’ve no doubt Gordon will love that one, too.

Read all about it

Budget day, and the Telegraph publishes a remarkably detailed prediction of the measures to be announced by the Chancellor.

I know that the sensible tradition of Budget purdah was effectively abandoned by Gordon Brown some years ago, but if there has been such an extensive press briefing by the Treasury, there will be very little purpose in Members turning up at the chamber today.

Madness in the Commons

PMQs were even more eagerly anticipated than usual today, given the incendiary allegations published in the Observer on Sunday, the flames of which had been fanned by Alistair Darling’s assertion on Sky News that No 10 had “unleashed the forces of hell” against him in 2008 for daring to predict (correctly, as it transpired) that the recession would be the worst for 60 years.

Would there, we wondered, be a certain froideur evident between the PM and his next-door neighbour? Would they each sit at extreme ends of the front bench, legs crossed in opposite directions, and stare at the rafters?  Would the body language, in short, be bloody?

As it turned out, when Gordon and Alistair arrived they were joined at the hip.  Literally.  They entered the chamber in a curious manner similar to the sub-conga shuffle formerly adopted by the 80s pop group, Madness, Darling almost physically attached to the back of the PM’s jacket, both grinning self-consciously.  You couldn’t put a cigarette paper between them. 

They sat down together.  Very close together.  An ironic cheer erupted and the Speaker had to ask us all to settle down.

Of course, David Cameron asked Brown about the briefings against Alistair.  I mean, he had to.  There was an open goal and it would have been unprofessional, indeed disrespectful of the PM, not to have a crack at it.  Gordon, intensely discomfited, affected a sort of hysterical insouciance by pretending to chat cosily with Alistair, who, in fairness, played along and chatted back.  It didn’t deter Cameron:

Mr. Cameron: Just as we need openness in the health service, we need openness at the heart of Government. After the Chancellor’s extraordinary statement last night, the Prime Minister said this morning on GMTV:

“I would never instruct anybody to do anything other than support my Chancellor”.

Will he try to stand up with a straight face and tell us that that is true?

The Prime Minister: Not only is that correct, but this is the nearest that the right hon. Gentleman has ever got to talking about the economy in the past few months.

Not a terribly good answer, but the Labour backbenchers, heavily whipped, roared.  Not very enthusiastically, you understand, but roar they did.

Cameron was still undeterred:

Mr. Cameron: If the Prime Minister wants to talk about the economy, we can talk about the Prime Minister trebling the deficit, about wrecking the pension system, about ruining the tax system and about bringing this country to its knees. Right now, six weeks before an election, with a record Budget deficit, at the end of a long recession, I want to ask why the Prime Minister and the Chancellor are at war with each other. This is what we are told—

Gordon and Alistair were continuing their animated love-in, pretending not to listen to the beastly man, their heads almost touching.

Mr. Cameron: If they get any closer, they will start kissing. We are told that Damian McBride, Gordon Brown’s spin doctor, was “spreading poison against Darling” and that he

“told every journalist who had access to a pencil that Alistair’s interview was a disaster.”

We are also told that there was the most poisonous briefing against him. Last night, the Chancellor said that after he had said what he had said, No. 10 Downing Street unleashed “the forces of hell”. Why does the Prime Minister think that he said that?

Gordon rose wearily:

The Prime Minister: I have already answered the right hon. Gentleman’s question. I never instructed a briefing against the Chancellor.

And perhaps he didn’t.  But he did look extremely uncomfortable.

The session was leavened at its very end by the House’s jester-in-residence, Stephen Pound, Labour Member for Ealing North, who, with a grin spread wide across his Punchinello countenance, asked in stentorian tones:

Stephen Pound (Ealing, North) (Lab): I enjoy a pint of porter and a game of darts as much as any old Etonian, but there the similarity ends. Can I ask my right hon. Friend to strain every sinew to try to achieve an international agreement on a Robin Hood tax, bearing in mind that we all know who in this House speaks for the Sheriff of Nottingham?

Even we laughed at that.

The friendly question had clearly come as a huge relief to the embattled Prime Minister:

The Prime Minister: I cannot beat the humour which my hon. Friend brings to this occasion.

Very true, Gordon.  But I’m sure you did your best.

The ghost of Gordon Brown

Nothing could underline more vividly the political irrelevance of Gordon Brown than this morning’s economic news.

Inflation has jumped from 1.9 per cent in November to 2.9 in December – the largest rise on record.  Mervyn King has warned that it may rise above 3 per cent, and that the patience of Britons will be “sorely tried”, with stagnant pay levels causing a real-terms decline in living standards.

Meanwhile, Fitch, the credit ratings agency, says that Government plans to halve the deficit in four years are too timid and that it is looking for more positive proposals to cut spending, failing which the UK’s triple-A credit rating will be threatened.

Peter Mandelson understands that there must be deep cuts in expenditure: he has warned that Britain and Europe face a period of “rapid relative economic decline” if governments fail to reduce spending.

Alistair Darling realises that, too: he is to propose spending reductions of around 17 per cent in areas outside health, policing and international aid.

And all the while, Downing Street is haunted by the poor, deluded ghost of a Prime Minister, still gibbering distractedly about “Labour investment” while the real world gets on with real life.

Gordon in la-la land

Alistair Darling has wasted no time in capitalising on Gordon Brown’s impotence in the wake of Wednesday’s attempted coup.

The Chancellor has briefed both the Times and the Guardian that Britain faces the “toughest spending cuts for 20 years” if Labour continues in office.

Darling – supported, no doubt, by Peter Mandelson – clearly recognises that the electorate won’t buy the Prime Minister’s line that “investment” can continue simultaneously with “halving the deficit”; indeed, the only individual who still appears to accept that fantasy is the PM himself. 

Such a very public disavowal by Darling of the Prime Minister’s stance would, as the Times observes, have been unthinkable a few weeks ago.  His new boldness simply serves to underscore the extent to which Brown is now, post-putsch, in thrall to the cabinet members who lent him their muted support earlier this week.

Labour’s big continuing problem, however, is the very fact that Brown is still there and it’s too late to get rid of him.  Expressions of new realism from Mandelson, Darling and others will be of no electoral advantage to a party whose leader – apparently now about to ask voters for a “full second term” – continues to inhabit a political la-la land. 

Kicking the coping classes

The pre-Budget report was delivered by Alistair Darling in his customary hypnotic monotone.  Darling is now such a master of mind-numbingly boring declamation that you almost fail to appreciate how truly awful is the state of the British economy:

Because of the severity of the recession, my forecast for this year’s borrowing is £178 billion. Next year it will fall to £176 billion. As the economy recovers and the deficit reduction plan starts to take effect, it will fall to £140 billion and then to £117 billion, and will reach £96 billion in 2013–14—a slightly lower level than I forecast in April—before falling to £82 billion in 2014–15. As a share of GDP, borrowing will be 12.6 per cent. this year, 12 per cent. next year, then 9.1 per cent, then 7.1 per cent., and 5.5 per cent. in 2013–14. It will fall to 4.4 per cent. in 2014–15. If we exclude public sector investment, or capital spending, and take the economic cycle into account, the budget deficit is expected to fall to 1.9 per cent. at the end of the forecast period.

And so it went on, one grim statistic after another. 

The eye-catching measures – well trailed – were the windfall tax on bankers’ bonuses and the freezing of inheritance tax thresholds, all part of Labour’s core vote strategy of being seen to punish the City fat cats and the landed toffs.

Yet drill down in the PBR and you will see that the real targets of Labour’s attack are the middle-income coping classes.  In 2011, national insurance contributions of both employers and employees earning over £20,000 will be increased by a further 0.5 per cent – a tax both on jobs and on moderate earners.

Labour’s tax increases amount in total to about £7.8 billion, or £370 per annum more per family – all postponed, of course, until after the general election. 

So today’s PBR was indeed a declaration of war.  But, so far as Labour are concerned, the real enemy are the aspirational middle classes.  New Labour really is dead.

Ageing Guardian

The Guardian’s Steve Bell has a very strange cartoon in today’s edition. 

It depicts Mervyn King and Alistair Darling shaking bottles of Pepsi-cola over a grave marked “The British Economy RIP”.   Darling is saying: “Where am I? What are we doing?”, while King is singing: “Come Alive! Come Alive!”

Come alive! was a successful advertising slogan for Pepsi.  But they stopped using it as long ago as 1967. 

So what are we to conclude when the Guardian’s cartoonist makes an arch reference that will be understood only by people well over the age of 50?  Something about the age profile of the paper’s readership?

Brown: still stuck in the old politics

Gordon-BrownIn a particularly intelligent article in today’s Telegraph, Frank Field declares that the forthcoming general election will be wholly different from all other post-war elections, in that the parties will be judged on their proposals to cut the public deficit, and not on how they plan to “bribe voters with their own money”.

Pointing out that the recession has destroyed five per cent of our national wealth, Field observes that, even when the economy is growing again, there will be a monstrous gap of £80 billion between revenue and expenditure by 2013. 

So the rules of the game have changed, says Field:

Here is the basis of the next decade’s politics. Whoever wins the election will have to plan to hand over an increasing share of our national wealth, first to meet interest payments, and then to repay the debt itself. These transfer payments will cut our country’s living standards.

Hence the importance of spelling out the nature of those public expenditure cuts. The sooner they start, the lower the long-term interest rates, and the smaller the amount of our future income that will have to be impounded for debt repayment.

Field’s analysis is correct; furthermore, evidence of growing public support for expenditure cuts appears in today’s Times, which carries details of a YouGov poll’s findings that, by a majority of almost three to one, voters support cuts in public spending, rather than increased taxation, as the preferred means to address the deficit.

Alistair Darling, too, understands  that the rules have changed; in his speech in Cardiff this week, the Chancellor confirmed that his pre-Budget report will contain measures to reduce the deficit and went on to say:

Public spending is not a goal in itself.  What matters is the results, what you get with your money – and how they help people meet their aspirations and ease their concerns.

The first priority has to be to look for areas where we can achieve greater efficiency. Some seem in a hurry to cut services. We are focussing on cutting costs.

So what the electorate will wish to know in the approach to the next election will be: how do the two principal parties propose to cut the deficit and restore budgetary rectitude?  David Cameron and George Osborne know that;  Alistair Darling has shown that he now gets it, too.

Sadly, however, Gordon Brown still doesn’t get it; in his speech to the TUC on Tuesday, the Prime Minister is likely to repeat the familiar fiction that yet further “investment” – his favoured euphemism for borrowing – is the only way to ride out the recession.

In doing so, the Prime Minister will demonstrate beyond doubt that he is still in the old business of seeking to bribe voters with money the country hasn’t got.  But voters, if the YouGov poll is anything to go by, have decisively rejected that approach. 

They, also, understand the new politics; Gordon Brown doesn’t.

Gordon makes it clear

In a speech in Cardiff today, Alistair Darling acknowledged that the NHS will not be immune from spending cuts.

During the course of his speech, the Chancellor said that the Government was determined “never to risk the fiscal sustainability of our economy” and continued:

“This will mean, as Gordon Brown and I have already made clear, hard choices on public spending.”

Could someone please remind me precisely when it was that Gordon “Tory cuts v Labour investment” Brown provided the degree of clarity asserted by Mr Darling?

Darling tells Gordon the facts of life

Alistair Darling continues to assert himself in his new position of strength following Brown’s climbdown at the time of the June reshuffle.

In an interview in this morning’s Times, the Chancellor makes it clear that there will have to be spending cuts under a Labour government and that Labour “must declare which areas would be cut and which spared after the next election”.

The Times understands that:

Gordon Brown has accepted the need to recast his favoured “Labour investment versus Tory cuts” strategy as voters are faced with evidence that spending must fall whichever party wins the next election. Within days, the Prime Minister is expected to acknowledge publicly for the first time that Labour must ditch some spending programmes.

Why is it that Gordon Brown is always so stubbornly slow to recognise the screamingly obvious facts of life – the most important being that he is entirely unsuited for the office of Prime Minister?

Brown being candid with the press

Gordon BrownAlistair Darling commences his week’s stint as Gordon Brown’s locum today. 

Coincidentally (or, more probably, not) the Times reports this morning that it has “learnt”, from what would appear to be an unimpeachable source,  that Darling retained his job as Chancellor during the June reshuffle only after telling the Prime Minister that he would leave the Government rather than accept another office.  Brown wanted to appoint Ed Balls to the Chancellorship, but was so weakened after the haemorrhage of cabinet ministers in the persons of Jacqui Smith, Hazel Blears and James Purnell that he was unable to do so.

The report, in fact, tells us nothing new, or, at least, nothing we had not already suspected. 

It does, however, throw an interesting light on the following exchange at the PM’s post-reshuffle press conference on 5 June, as recorded in the transcript on the Number 10 website (the questioner is ITN’s Tom Bradby):

Question:

Prime Minister, you say you want to be candid so can I ask you a very simple straightforward question? Do you acknowledge today that you wanted to sack your Chancellor and were simply unable to do so?

Prime Minister:

No, no. Alistair Darling, as I said in the House of Commons only two days ago, is a Chancellor who has served the country, not only well domestically but is internationally acclaimed for much of the work he did in relation to the G20. And I was asked this in the House of Commons only on Wednesday, and I paid tribute not only to his work in the past through to his work in the present, and the work that he’s doing to bring about the economic recovery…

Question:

You said you were going to be candid and you’re just not being candid, are you? Because everyone in this room knows that that is what you wanted to do. All your closest aides have been going round Westminster this week saying that you wanted to sack the Chancellor and at the last minute you just haven’t been able to do it.

Prime Minister:

No, Alistair Darling is not only, as I said in the House of Commons, a very good personal friend of mine and I’ve known him for many years, and you can talk to him as well, but he’s also been a great Chancellor. Look, we’re going through an economic crisis; it’s unprecedented. The idea that we would split over this issue of working through the economic problems and getting solutions is just ridiculous. Alistair and I are not only friends, colleagues but have been working in the G20 to get answers together. So the respect that he has in the rest of the world is something that I hope the rest of the country will soon be able to acknowledge.

Darling bites back

DarlingIt would seem that Alistair Darling, sick of being kicked around by Gordon Brown and Peter Mandelson, has decided to make his presence felt.

Only a month ago, it was confidently predicted that Darling would be given the chop, or at least demoted, after the Euro election, to make way for Brown’s Mini-me, Ed Balls; indeed, the Prime Minister was already referring to him in the past tense.   However, after the resignations of Hazel Blears and James Purnell, together with a gaggle of junior ministers, cabinet mathematics made it impossible for Darling to be moved.

Then, only three short days ago, Lord Mandelson loftily announced on the Today programme that Darling had “made the judgment” that there would be no comprehensive spending review until after the general election, which prompted Tory criticism that the Prime Minister was engaging in a “relaunch without a price tag”.

Now Darling has given an interview to the Independent in which he makes it clear that he has made no such judgment at all:

Mr Darling insists the uncertain economic position means he cannot decide now whether to go ahead with the scheduled comprehensive spending review (CSR). He will announce his decision in his pre-Budget report, due in November. “To do detailed allocations running up to 2013-14 at the moment, with all the uncertainty, just does not make any sense,” he says.

He promises that, one way or the other, Labour will make its spending priorities clear before the election, in an attempt to flush out the Tories. One option might be a mini-CSR. Another is to announce before the election which budgets would be ring-fenced, challenging the Tories to do the same.

Darling is becoming increasingly assertive in cabinet.  He pointedly refused to rule out spending cuts at a time when the Prime Minister was identifying “Tory cuts v. Labour investment” as the dividing line between the principal parties.  Now the PM has apparently decided to follow Darling’s line and has admitted that there will have to be cuts in public spending, even if Labour wins the next general election, which leaves him in the unfortunate position of having to find a new dividing line.  Game to Darling.

In taking on Mandelson,  Darling is playing a much more dangerous game.  Over the past few weeks, Mandelson has made it reasonably plain that he is effectively in charge; Brown has acknowledged his former adversary’s importance by massively increasing his departmental responsibilities, as well as conferring on him a panoply of ludicrously grandiose titles.

In his Indy interview, however, Darling has as good as told Mandelson to take a hike.  He knows that his position is secure, at least for the time being, so he can afford to do so.

The prospect of an escalating feud between Darling and the Lord High Panjandrum must be causing a significant degree of discomfort to Gordon Brown, but, given his present weakened position, there would appear to be little he can do about it, at least in the short term.

Who runs the country?

mandelsonPeter Mandelson has today  made clear beyond doubt who runs the country.  The answer, as if you didn’t already know, is: Peter Mandelson, of course. 

Ahead of Gordon Brown’s umpteenth relaunch this afternoon (more relaunches than the Rhosneigr lifeboat, as one wag put it), Mandelson has unequivocally decreed that:

  • No spending plans will be set out before the general election (got that, Alistair?); and
  • “We have to live within our means as a Government” (taken that on board, Gordon?).

And finally, as if to underline the fact that the Blairites are back in charge, the deployment of the killer phrase: 

“Being fiscally responsible is an important principle of New Labour.”

Hear that?  Not “Labour”.  New Labour. 

And if you don’t like that, Gordon, just think:  who else is there you can trust, or who even has the inclination, to try to save your bacon?

Blurring the line

hilarybennGordon Brown’s declared dividing line between the parties of “Tory cuts versus Labour investment” was further blurred by Hilary Benn on Radio 4’s Any Questions yesterday evening.

Benn acknowledged that his Department of Environment, Food and Rural Affairs would face future budgetary cuts and would have to make spending adjustments:

“If I look at my department’s budget, it is going to go down a bit and therefore we will have to prioritise.”

Mr Benn went on blithely to add that the Government faced “real choices” ahead and “when times are tough you need to tighten your belt”.

This will certainly cause extreme displeasure to the Prime Minister, whose strategy has already been undermined by Cabinet colleagues, most notably the Chancellor, who has steadfastly refused to play along with it.

At PMQs last Wednesday, David Cameron highlighted the tensions within the cabinet over the issue:

Mr. Cameron: Let us first of all be clear about the Prime Minister’s claims about Conservative policy. Even his own colleagues do not believe him. This is the report that we had from last week’s Cabinet:

“Darling pointed out that Brown’s Tory cut figures did not represent the”—

Conservative—

“party’s policy but were merely extrapolations”—

[Hon. Members: “Ah!”] It gets more interesting:

“Cooper, previously the Treasury minister responsible for public spending, echoed his concerns”,

and:

“According to one source who was present, Brown was visibly irritated at the way he had been undermined, and brought the meeting to an early close”.

He says that he wants to be a teacher, but it sounds like he has lost control of the classroom.

Looks like it’s now poor Hilary Benn’s turn to stand in the corner.