Darling's Big Mini-Budget

The quiet man gets the tone right for the statement of his political career

Prime Minister's Questions has been increasing in volume recently, making me think that parliament is already in election mode.

But even the most hostile recent Brown-Cameron exchanges were as nothing compared to the atmosphere surrounding this afternoon's pre-Budget report.

Alistair Darling began very low-key, almost sotto voce to early chortles about his claims that the government was "living within our means".

But the jeers began in earnest as the chancellor stated that the present crisis began in the US housing market.

Somehow such conduct felt inappropriate here. Vince Cable later described the situation as a national emergency and he is right. His party leader, Nick Clegg, sat through the proceedings in respectful silence, as did his Liberal Democrat colleagues - respectful not of the government, but of the gravity of the situation.

David Cameron would have done well to order his backbenchers to sit through the statement in silence. Such an approach would have spooked the government and, in the end, the chancellor drove them into submission with his relentless, quiet monotone anyway.

This was an assured performance from Darling, who appears to be genuinely unflappable in what he can now say is an "unprecedented global crisis" without being accused of talking down the economy. Indeed, such was the hyperbole flying around the house that this seemed like something of an understatement.

Darling won the battle with Downing Street to be honest about the fact that a fiscal stimulus now would have to be paid for later. This didn't stop George Osborne from punishing him for his frank approach, but it rather spiked his guns.

The chants from the Labour backbenches of "What would you do?" seemed to unsettle the shadow chancellor.

It was striking that Darling's economic forecasts were so optimistic: 1.5-2 per cent growth to return as early as 2010. I do hope he's right. There's clearly no point whatsoever in putting a set of emergency measures in place if you don't think they will work.

George Osborne said this marked the greatest failure of public policy in a generation. Like Margaret Thatcher before him, his voice has lowered a register and his righteous fury was at times impressive. At key moments, however, his voice cracked including when he described plans to increase National Insurance as "not just a tax bombshell but a precision guided missile".

Osborne's attack went down well with the Tory backbenchers, but it did not wound his opponent, who was able to engage what now must be Labour election narrative: where the government acted the Tories would have done nothing. "What would you do, George?" is a slogan of some resonance.

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Is defeat in Stoke the beginning of the end for Paul Nuttall?

The Ukip leader was his party's unity candidate. But after his defeat in Stoke, the old divisions are beginning to show again

In a speech to Ukip’s spring conference in Bolton on February 17, the party’s once and probably future leader Nigel Farage laid down the gauntlet for his successor, Paul Nuttall. Stoke’s by-election was “fundamental” to the future of the party – and Nuttall had to win.
 
One week on, Nuttall has failed that test miserably and thrown the fundamental questions hanging over Ukip’s future into harsh relief. 

For all his bullish talk of supplanting Labour in its industrial heartlands, the Ukip leader only managed to increase the party’s vote share by 2.2 percentage points on 2015. This paltry increase came despite Stoke’s 70 per cent Brexit majority, and a media narrative that was, until the revelations around Nuttall and Hillsborough, talking the party’s chances up.
 
So what now for Nuttall? There is, for the time being, little chance of him resigning – and, in truth, few inside Ukip expected him to win. Nuttall was relying on two well-rehearsed lines as get-out-of-jail free cards very early on in the campaign. 

The first was that the seat was a lowly 72 on Ukip’s target list. The second was that he had been leader of party whose image had been tarnished by infighting both figurative and literal for all of 12 weeks – the real work of his project had yet to begin. 

The chances of that project ever succeeding were modest at the very best. After yesterday’s defeat, it looks even more unlikely. Nuttall had originally stated his intention to run in the likely by-election in Leigh, Greater Manchester, when Andy Burnham wins the Greater Manchester metro mayoralty as is expected in May (Wigan, the borough of which Leigh is part, voted 64 per cent for Brexit).

If he goes ahead and stands – which he may well do – he will have to overturn a Labour majority of over 14,000. That, even before the unedifying row over the veracity of his Hillsborough recollections, was always going to be a big challenge. If he goes for it and loses, his leadership – predicated as it is on his supposed ability to win votes in the north - will be dead in the water. 

Nuttall is not entirely to blame, but he is a big part of Ukip’s problem. I visited Stoke the day before The Guardian published its initial report on Nuttall’s Hillsborough claims, and even then Nuttall’s campaign manager admitted that he was unlikely to convince the “hard core” of Conservative voters to back him. 

There are manifold reasons for this, but chief among them is that Nuttall, despite his newfound love of tweed, is no Nigel Farage. Not only does he lack his name recognition and box office appeal, but the sad truth is that the Tory voters Ukip need to attract are much less likely to vote for a party led by a Scouser whose platform consists of reassuring working-class voters their NHS and benefits are safe.
 
It is Farage and his allies – most notably the party’s main donor Arron Banks – who hold the most power over Nuttall’s future. Banks, who Nuttall publicly disowned as a non-member after he said he was “sick to death” of people “milking” the Hillsborough disaster, said on the eve of the Stoke poll that Ukip had to “remain radical” if it wanted to keep receiving his money. Farage himself has said the party’s campaign ought to have been “clearer” on immigration. 

Senior party figures are already briefing against Nuttall and his team in the Telegraph, whose proprietors are chummy with the beer-swilling Farage-Banks axis. They deride him for his efforts to turn Ukip into “NiceKip” or “Nukip” in order to appeal to more women voters, and for the heavy-handedness of his pitch to Labour voters (“There were times when I wondered whether I’ve got a purple rosette or a red one on”, one told the paper). 

It is Nuttall’s policy advisers - the anti-Farage awkward squad of Suzanne Evans, MEP Patrick O’Flynn (who famously branded Farage "snarling, thin-skinned and aggressive") and former leadership candidate Lisa Duffy – come in for the harshest criticism. Herein lies the leader's almost impossible task. Despite having pitched to members as a unity candidate, the two sides’ visions for Ukip are irreconcilable – one urges him to emulate Trump (who Nuttall says he would not have voted for), and the other urges a more moderate tack. 

Endorsing his leader on Question Time last night, Ukip’s sole MP Douglas Carswell blamed the legacy of the party’s Tea Party-inspired 2015 general election campaign, which saw Farage complain about foreigners with HIV using the NHS in ITV’s leaders debate, for the party’s poor performance in Stoke. Others, such as MEP Bill Etheridge, say precisely the opposite – that Nuttall must be more like Farage. 

Neither side has yet called for Nuttall’s head. He insists he is “not going anywhere”. With his febrile party no stranger to abortive coup and counter-coup, he is unlikely to be the one who has the final say.