Balls shows he's no "deficit denier" at the TUC

The shadow chancellor was heckled as he warned that Labour would cut too.

Those who denounce Ed Balls as Labour's "deficit-denier-in-chief" should have watched his speech to the TUC conference this morning. While the shadow chancellor made a typically persuasive case for short-term stimulus, he went on to use some of the toughest language we've heard from him on the need for spending cuts and other austerity measures to reduce the deficit in the long-term. To cries of "rubbish!" from trade union delegates (a rebuke that won't have troubled Balls in the slightest), he said:

We must be honest with the British people that under Labour, there would have been cuts, and that – on spending, pay and pensions – there will be disappointments and difficult decisions from which we will not flinch.

Balls went on to reaffirm the position he outlined in January - that Labour, based on current trends, will have to keep "all these cuts". He could not "make any commitments now that the next Labour government will be able to reverse particular tax rises or spending cuts." Unlike Nick Clegg, he quipped, "we will not make promises we cannot keep".

When challenged in the Q&A session on Labour's failure to oppose George Osborne's public sector pay freeze (and the 1% cap from 2013), Balls replied that "you can't say pay before jobs, we've got to say jobs before pay"  ("shame on you!", one delegate shouted). Asked if the party would take the railways back into public ownership (a demand that prompted the loudest cheers of the session), Balls replied that the policy would cost billions and so the answer was 'no'.  "I’m not sure when we come into government in 2015 that expenditure on that scale is going to be a priority," he said.

Balls's speech was a reminder of why the next election will, in some respects, be more difficult for Labour than the Tories. Osborne likes to say that the coalition is cleaning up "Labour's mess" but, if elected in 2015, Labour will need to clean up his. When the Chancellor delivered his "emergency Budget" in June 2010, the newly-established Office for Budget Responsibility forecast a deficit of £37bn (2.1% of GDP) for 2014-15. But the failure of Osborne's plan to deliver growth (indeed, its success in delivering recession) means that, according to the latest independent forecasts, the next government will inherit a deficit of £96.1bn (5.8%), a figure that is only likely to rise as growth remains anaemic or non-existent.

Given these fiscal constraints, the biggest choice facing Balls and Ed Miliband is whether to pledge to stick to the Tories' spending plans for the first few years, as Labour did in 1997, or to offer a distinct alternative.

Shadow chancellor Ed Balls told the TUC, "we will not make promises we cannot keep". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Calum Kerr on Governing the Digital Economy

With the publication of the UK Digital Strategy we’ve seen another instalment in the UK Government’s ongoing effort to emphasise its digital credentials.

As the SNP’s Digital Spokesperson, there are moves here that are clearly welcome, especially in the area of skills and a recognition of the need for large scale investment in fibre infrastructure.

But for a government that wants Britain to become the “leading country for people to use digital” it should be doing far more to lead on the field that underpins so much of a prosperous digital economy: personal data.

If you want a picture of how government should not approach personal data, just look at the Concentrix scandal.

Last year my constituency office, like countless others across the country, was inundated by cases from distressed Tax Credit claimants, who found their payments had been stopped for spurious reasons.

This scandal had its roots in the UK’s current patchwork approach to personal data. As a private contractor, Concentrix had bought data on a commercial basis and then used it to try and find undeclared partners living with claimants.

In one particularly absurd case, a woman who lived in housing provided by the Joseph Rowntree Foundation had to resort to using a foodbank during the appeals process in order to prove that she did not live with Joseph Rowntree: the Quaker philanthropist who died in 1925.

In total some 45,000 claimants were affected and 86 per cent of the resulting appeals saw the initial decision overturned.

This shows just how badly things can go wrong if the right regulatory regimes are not in place.

In part this problem is a structural one. Just as the corporate world has elevated IT to board level and is beginning to re-configure the interface between digital skills and the wider workforce, government needs to emulate practices that put technology and innovation right at the heart of the operation.

To fully leverage the benefits of tech in government and to get a world-class data regime in place, we need to establish a set of foundational values about data rights and citizenship.

Sitting on the committee of the Digital Economy Bill, I couldn’t help but notice how the elements relating to data sharing, including with private companies, were rushed through.

The lack of informed consent within the Bill will almost certainly have to be looked at again as the Government moves towards implementing the EU’s General Data Protection Regulation.

This is an example of why we need democratic oversight and an open conversation, starting from first principles, about how a citizen’s data can be accessed.

Personally, I’d like Scotland and the UK to follow the example of the Republic of Estonia, by placing transparency and the rights of the citizen at the heart of the matter, so that anyone can access the data the government holds on them with ease.

This contrasts with the mentality exposed by the Concentrix scandal: all too often people who come into contact with the state are treated as service users or customers, rather than as citizens.

This paternalistic approach needs to change.  As we begin to move towards the transformative implementation of the internet of things and 5G, trust will be paramount.

Once we have that foundation, we can start to grapple with some of the most pressing and fascinating questions that the information age presents.

We’ll need that trust if we want smart cities that make urban living sustainable using big data, if the potential of AI is to be truly tapped into and if the benefits of digital healthcare are really going to be maximised.

Clearly getting accepted ethical codes of practice in place is of immense significance, but there’s a whole lot more that government could be doing to be proactive in this space.

Last month Denmark appointed the world’s first Digital Ambassador and I think there is a compelling case for an independent Department of Technology working across all government departments.

This kind of levelling-up really needs to be seen as a necessity, because one thing that we can all agree on is that that we’ve only just scratched the surface when it comes to developing the link between government and the data driven digital economy. 

In January, Hewlett Packard Enterprise and the New Statesman convened a discussion on this topic with parliamentarians from each of the three main political parties and other experts.  This article is one of a series from three of the MPs who took part, with an  introduction from James Johns of HPE, Labour MP, Angela Eagle’s view and Conservative MP, Matt Warman’s view

Calum Kerr is SNP Westminster Spokesperson for Digital