The key contradiction in the Tories’ deficit spin

Was there a Labour plan, or not?

Various half-truths, lies and myths about the deficit have been peddled by the Tories, the Liberal Democrats and their supporters in the press in recent months. Right-wing deficit hawks pretend that the deficit had already ballooned prior to the 2008 banking crash when, in fact, as Labour's new shadow chancellor, Alan Johnson, pointed out in the House of Commons yesterday, this country entered the financial crisis with the second-lowest Budget deficit in the G7.

They also claim that the Blair and Brown governments spent excessively and unwisely in the run-up to the crash, omitting to mention that Messrs Cameron and Osborne backed Labour's spending plans right up until November 2008. (See Jonathan Freedland's excellent column in yesterday's Guardian for further details and observations.)

But the biggest contradiction (lie?) at the heart of the Con-Dem spin strategy concerns their (mis)representation of the Labour Party position on deficit reduction.

In a round of interviews this morning, George Osborne claimed:

People keep saying, "Where's your plan B?" I've got a plan A – this country didn't have any plan at all a few months ago.

Yesterday, however, in his Spending Review in the Commons, he concluded:

I am pleased to tell the House it has been possible – and the average saving in departmental budgets will be lower than the previous government implied in its March Budget. Instead of cuts of 20 per cent there will be cuts of 19 per cent over four years.

So, let me get this straight. The Tories have been saying for months that Labour left the country in a mess, without a deficit reduction plan, that Labour frontbenchers are "deficit deniers", blah, blah, but then, yesterday, Osborne suddenly claims that Labour had planned for 20 per cuts in departmental spending and his 19 per cent cuts were therefore lower than those. But then, this morning, he reverts to form and starts droning on about the alleged absence of a deficit reduction plan until, God bless them, the Con-Dem coalition came to office in May.

This is as absurd as it is dishonest. They cannot claim, on the one hand, that they are making these draconian, swingeing and severe cuts because Labour didn't have the balls or the brains to do so, but then, on the other, claim that Labour's cuts would have been worse than theirs.


You can watch me debating the Spending Review with the Tory blogger Iain Dale and the Chatham House economist Vanessa Rossi on al-Jazeera's Inside Edition here.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage