Cut, cut, cut: Mehdi Hasan reports on Alistair Darling v Greg Barker

The inconvenient truth is that Labour also wanted to cut more than Margaret Thatcher.

Shadow cabinet ministers and Labour-supporting bloggers alike have become excited by this quote [below] from the Tory minister Greg Barker, speaking in front of an American audience:

We are making cuts that Margaret Thatcher in the 1980s could only have dreamt of.

He's right. But the Labour response is, ahem, odd. Angela Eagle, the shadow chief secretary to the Treasury, says:

Greg Barker has let the cat out the bag about the ideological agenda behind this Tory-led government's deep cuts to public services.

Hmm. People in glass houses shouldn't throw stones. The inconvenient truth is that Labour, in the so-called Darling plan for deficit reduction, had also planned to go beyond Thatcher, too -- and were equally keen to "let the cat out of the bag".

Here's the relevant quote from the then chancellor, Alistair Darling, in an interview with the BBC's Nick Robinson in March 2010:

Robinson: "The Treasury's own figures suggest deeper, tougher than Thatcher's -- do you accept that?"

Darling: "They will be deeper and tougher -- where we make the precise comparison, I think, is secondary to an acknowledgement that these reductions will be tough."

That's why the Darling plan was such a bad plan. Halving the deficit over four years is a political decision on a political timetable; it has nothing to do with economics. I can't help but agree with Polly Toynbee, who wrote in her Guardian column on Saturday:

Labour should seize this moment. Increasingly trapped inside Alistair Darling's straitjacket, Labour should embark on a new economic direction. The FT quite fairly analysed the figures: the difference between Labour and coalition deficit reduction plans is just £24bn by 2014. Ed Balls's claim that cutting half as much is "a massive difference" is only true if he offers a route map to explain what tax rises and what growth formulae deliver the same deficit reduction as would Tory cuts. Both Eds sound uncomfortable because sticking to the Darling plan means more painful cuts than they can admit. The argument that they are not in power so don't need a complete budget may be tactically correct, but it doesn't work as a public statement. Labour can only take a commanding lead over the next austerity months by offering a more convincing economic alternative.

Over to you, Mr Balls . . .

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.

Photo: Getty
Show Hide image

Theresa May is paying the price for mismanaging Boris Johnson

The Foreign Secretary's bruised ego may end up destroying Theresa May. 

And to think that Theresa May scheduled her big speech for this Friday to make sure that Conservative party conference wouldn’t be dominated by the matter of Brexit. Now, thanks to Boris Johnson, it won’t just be her conference, but Labour’s, which is overshadowed by Brexit in general and Tory in-fighting in particular. (One imagines that the Labour leadership will find a way to cope somehow.)

May is paying the price for mismanaging Johnson during her period of political hegemony after she became leader. After he was betrayed by Michael Gove and lacking any particular faction in the parliamentary party, she brought him back from the brink of political death by making him Foreign Secretary, but also used her strength and his weakness to shrink his empire.

The Foreign Office had its responsibility for negotiating Brexit hived off to the newly-created Department for Exiting the European Union (Dexeu) and for navigating post-Brexit trade deals to the Department of International Trade. Johnson was given control of one of the great offices of state, but with no responsibility at all for the greatest foreign policy challenge since the Second World War.

Adding to his discomfort, the new Foreign Secretary was regularly the subject of jokes from the Prime Minister and cabinet colleagues. May likened him to a dog that had to be put down. Philip Hammond quipped about him during his joke-fuelled 2017 Budget. All of which gave Johnson’s allies the impression that Johnson-hunting was a licensed sport as far as Downing Street was concerned. He was then shut out of the election campaign and has continued to be a marginalised figure even as the disappointing election result forced May to involve the wider cabinet in policymaking.

His sense of exclusion from the discussions around May’s Florence speech only added to his sense of isolation. May forgot that if you aren’t going to kill, don’t wound: now, thanks to her lost majority, she can’t afford to put any of the Brexiteers out in the cold, and Johnson is once again where he wants to be: centre-stage. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.