Osborne's 'sham' spending review leaves Labour floundering
Clever politics by the chancellor leaves Labour's two Eds in a bind over spending cuts
GEORGE OSBORNE'S sham spending review has achieved one aim - it has split Labour and left the two Eds, Miliband and Balls, in total disarray.
The Labour leader and his shadow chancellor look like a pair of motorists arguing about the map. But Miliband's new readiness to embrace austerity has upset Labour dissidents. Right on cue, former Labour cabinet minister Peter Hain and Neal Lawson of the pressure group Compass, have published a letter in the Guardian (also signed by a bunch of academics) warning that continuing austerity measures after the 2015 general election would be "politically and economically disastrous" for Labour.
This is all a great bonus for Osborne and David Cameron. Nick Robinson, the BBC Political Editor, said on the BBC's Today show this morning that one senior Tory minister had told him that it was all "a Baldrick-style 'cunning plan' to wrong-foot Labour". And it has worked.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Miliband announced on Saturday - to Labour consternation - that his party could not pretend to the voters that it could reverse the cuts imposed by Osborne if it comes into power after the general election. His reason: the economy is in too parlous a state.
Then, on the Andrew Marr Show on Sunday, Balls insisted that Labour will reserve the right to borrow more in order to spend more on infrastructure projects to boost the economy. Technically these are not mutually exclusive statements but they succeeded in confusing commentators such as BBC presenter Carolyn Quinn on Westminster Hour last night.
George Parker of the Financial Times said on the BBC's Westminster Hour that Ed Miliband had been forced to accept austerity because Osborne had "won the argument" about fiscal discipline. Miliband is desperate to restore public confidence in Labour's economic competence after years trailing behind Osborne and Cameron on the economy in the opinion polls, despite the Tories' unpopular austerity measures.
Osborne hinted that after the general election, the richest pensioners could lose their pension perks such as free bus passes and the fuel allowance, and added a further hint that he could raise the pension age even higher than 67.
Osborne will sweeten the pill on Wednesday by announcing a raft of projects to boost the economy including HS2 - the high speed rail link from London to Birmingham - and the widening of major A roads such as the A14, which he knocked on the head when he came to power in 2010. This should have been hailed this morning as a U-turn by Osborne, but it wasn't because Osborne has convinced the commentariat that austerity has made room in the economy for more spending.
The truth is that despite the fanfare, Osborne's great spending review for the financial year 2015-16 is for one month. It is to get the Coalition through April 2015 to the General Election which takes place in May. After the election, all the plans to be announced on Wednesday and Thursday by Danny Alexander, the Chief Secretary to the Treasury, are likely to be junked by the incoming government, whoever it is. It is a great sham - but you won't hear the two Eds saying so, because Osborne has won the argument.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Last hopes for justice for UK's nuclear test veterans
Under the Radar Thousands of ex-service personnel say their lives have been blighted by aggressive cancers and genetic mutations
By Sorcha Bradley, The Week UK Published
-
'It may not be surprising that creative work is used without permission'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
5 simple items to help make your airplane seat more comfortable
The Week Recommends Gel cushions and inflatable travel pillows make a world of difference
By Catherine Garcia, The Week US Published
-
Last hopes for justice for UK's nuclear test veterans
Under the Radar Thousands of ex-service personnel say their lives have been blighted by aggressive cancers and genetic mutations
By Sorcha Bradley, The Week UK Published
-
Will Donald Trump wreck the Brexit deal?
Today's Big Question President-elect's victory could help UK's reset with the EU, but a free-trade agreement with the US to dodge his threatened tariffs could hinder it
By Harriet Marsden, The Week UK Published
-
What is the next Tory leader up against?
Today's Big Question Kemi Badenoch or Robert Jenrick will have to unify warring factions and win back disillusioned voters – without alienating the centre ground
By Harriet Marsden, The Week UK Published
-
Is Labour risking the 'special relationship'?
Today's Big Question Keir Starmer forced to deny Donald Trump's formal complaint that Labour staffers are 'interfering' to help Harris campaign
By Harriet Marsden, The Week UK Published
-
What is Lammy hoping to achieve in China?
Today's Big Question Foreign secretary heads to Beijing as Labour seeks cooperation on global challenges and courts opportunities for trade and investment
By Harriet Marsden, The Week UK Published
-
Men in Gray suits: why the plots against Starmer's top adviser?
Today's Big Question Increasingly damaging leaks about Sue Gray reflect 'bitter acrimony' over her role and power struggle in new government
By Harriet Marsden, The Week UK Published
-
Is Britain about to 'boil over'?
Today's Big Question A message shared across far-right groups listed more than 30 potential targets for violence in the UK today
By Sorcha Bradley, The Week UK Published
-
UK's Starmer slams 'far-right thuggery' at riots
Speed Read The anti-immigrant violence was spurred by false rumors that the suspect in the Southport knife attack was an immigrant
By Peter Weber, The Week US Published