Tory demand for an Osborne apology is growing

Tory MP Andrea Leadsom says the Chancellor "should apologise" for his attack on Balls.

The increasingly impressive Conservative MP Andrea Leadsom won't have done her career prospects any good with her call for George Osborne to "apologise" to Ed Balls but she has won the respect of Labour MPs as well as a sizeable number of Tories.

Asked by Radio 4's The World Tonight whether Osborne should apologise to Balls after Bank of England deputy governor Paul Tucker said no ministers asked him to "lean on" Barclays over Libor rates, Leadsom said:

Yes I do. I mean I think obviously he made a mistake and I think he should apologise.

She added:

I think it was a very valid discussion at the time about who knew what and that's now been completely squashed by Paul Tucker and that is a valid conversation to have had, and now at a personal level he probably would want to apologise.

But Osborne and his aides are refusing to back down. A friend of the Chancellor tells the Telegraph's James Kirkup that Osborne's suggestion was never that Labour ministers had lent on the Bank of England, rather that they had influenced the banks directly. That may or may not be the case, but one notes that Osborne has yet to supply any evidence to support his account. Nor has he even laid out the alleged "questions" Balls needs to answer.  As one Tory MP observed last week, "Before we went into the chamber on Thursday, George's people were saying 'Nudge, nudge, wink, wink. George is going to get Ed Balls'. They were indicating that there was a silver bullet that was going to kill him. It was never fired.

Challenged on the Today programme to defend Osborne, William Hague insisted that "there remain questions to answer" and that there was "no reason" for him to apologise. But as the Foreign Secretary's voice quivered one could tell his heart wasn't in it. Osborne's dramatic assertion that Labour ministers were "clearly involved" in the rate-rigging scandal has become the banal claim that they have "questions" to answer at the forthcoming parliamentary inquiry. Whether or not the Chancellor apologises, he has blinked first in this duel.

Chancellor George Osborne is facing calls to apologise to Ed Balls. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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