Balls tries to show that you can trust Labour with your money

The shadow chancellor's pledge to justify "every penny" makes political and economic sense.

"Are you ready to trust Labour with your money again?", asked Nick Clegg in his conference speech. The announcement by Ed Balls that Labour, if elected, would hold a "zero-based spending review" is an admission that he still needs to convince voters that they can answer "yes". The record £159bn deficit may have been a consequence, rather than a cause, of the economic crisis but Balls rightly recognises that Labour didn't always spend wisely in office.

A zero-based review (an idea proposed last December by In The Black Labour) differs from others in that it requires every item of spending to be approved, rather than merely changes to a pre-determined baseline. In other words, nothing is off the table. As Balls says in his interview with the Guardian:

The public want to know that we are going to be ruthless and disciplined in how we go about public spending. For a Labour government in 2015, it is quite right, and the public I think would expect this, to have a proper zero-based spending review where we say we have to justify every penny and make sure we are spending in the right way.

He goes on to add that the review will be subject to three qualifications. First, that Labour will commit to protecting spending in certain areas, such as international development and possibly health, based on its priorities of fairness and growth; second, that it will examine whether "cuts now would lead to higher costs in the future" (for instance, by cutting public health and other preventative budgets); and third, that Labour will seek to achieve a cross-party consensus before the election in specific areas, such as social care and children in care, which may then be excluded from the zero budgeting process. Elsewhere, in an interview with the Mirror, Balls states that Labour will use private firms to run public services if it believes they will offer the taxpayer better value for money. The New Labour mantra of "whatever works" lives on. And rightly so. There is no reasonable objection to any of the above.

But the interview is also notable for what Balls doesn't say. With George Osborne due to announce spending plans for 2015-16 (the first post-election year) in next year's Spending Review, recent speculation has suggested that Balls, in an echo of Labour's 1997 strategy, could pledge to match them. In an interview with the Spectator, however, Harriet Harman poured cold water on this proposal, declaring that there was no chance of Labour "signing up to doing the very thing we think is hurting the economy".

Labour aides have since suggested that she was referring to this spending period, rather than the next one. But, offered the chance to settle the matter, Balls declined. And who can blame him? With Osborne's growth and borrowing forecasts changing so rapidly (and not for the better), few can say what situation Labour would inherit. For now, the priority remains to push for an economic strategy that would, at least, limit the damage.

Shadow chancellor Ed Balls said that Labour would have to "justify every penny". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Xenophobic graffiti at a London Polish centre is a dark sign of post-Brexit Britain

The centre's chairwoman says an incident of this kind has never happened before, and police are treating it as a hate crime. 

Early on Sunday morning, staff arriving at the Polish Social and Cultural (POSK) centre in west London's leafy Ravenscourt Park were met with a nasty shock: a xenophobic obscenity smeared across the front of the building in bright yellow paint. 

“It was a standard, unpleasant way of saying ‘go away’ – I'll leave that to your interpretation,” Joanna Mludzinska, chairwoman of the centre, says the next morning as news crews buzz around the centre’s foyer. The message was cleaned off as soon as the staff took photo evidence – “we didn’t want people to walk down and be confronted by it” – but the sting of an unprecedented attack on the centre hasn’t abated.

“Nothing like this has ever happened before,” Mludzinska tells me, shaking her head. “Never.”

The news comes as part of a wash of social media posts and police reports of xenophobic and racist attacks since Friday’s referendum result. It’s of course difficult to pin down the motivation for specific acts, but many of these reports feature Brits telling others to “leave” or “get out” – which strongly implies that they are linked to the public's decision on Friday to leave the European Union. 

Hammersmith and Fulham, the voting area where the centre is based, voted by a 40-point margin to remain in the UK, which meant the attack was particularly unexpected. “The police are treating this as a one-off, which we hope it is,” Mludzinska tells me. They are currently investigating the incident as a hate crime. 

“But we have anecdotal evidence of more personal things happening outside London. They’ve received messages calling them vermin, scum [in Huntingdon, Cambridgeshire]. It’s very frightening.” As one local Polish woman told the Mirror, there are fears that the referendum has “let an evil genie out of a bottle”. 

For those unsure whether they will even be able to stay in Britain post-referendum, the attacks are particularly distressing, as they imply that the decision to leave was, in part, motivated by hatred of non-British citizens. 

Ironically, it is looking more and more likely that we might preserve free movement within the EU even if we leave it; Brexit campaigners including Boris Johnson are now claiming immigration and anti-European feeling were not a central part of the campaign. For those perpetrating the attacks, though, it's obvious that they were: “Clearly, these kind of people think all the foreigners should go tomorrow, end of,” Mludzinska says.

She believes politicians must make clear quickly that Europeans and other groups are welcome in the UK: “We need reassurance to the EU communities that they’re not going to be thrown out and they are welcome. That’s certainly my message to the Polish community – don’t feel that all English people are against you, it’s not the case.” 

When I note that the attack must have been very depressing, Mludzinska corrects me, gesturing at the vases of flowers dotted around the foyer: “It’s depressing, but also heartening. We’ve received lots and lots of messages and flowers from English people who are not afraid to say I’m sorry, I apologise that people are saying things like that. It’s a very British, very wonderful thing.”

Beyond Hammersmith

Labour MP Jess Phillips has submitted a parliamentary question on how many racist and xenophobic attacks took place this weekend, compared to the weekends preceding the result. Until this is answered, though, we only have anecdotal evidence of the rise of hate crime over the past few days. From social media and police reports, it seems clear that the abuse has been directed at Europeans and other minorities alike. 

Twitter users are sending out reports of incidents like those listed below under the hashtag #PostBrexitRacism:

Facebook users have also collated reports in an album titled Worrying Signs:

Police are currently investigating mutiple hate crime reports. If you see or experience anything like this yourself, you should report it to police (including the British Transport Police, who have a direct text number to report abuse, 61016) or the charity Stop Hate UK.

HOPE not hate, an advocacy group that campaigns against racism in elections, has released a statement on the upsurge of hatred” post-referendum, calling on the government to give reassurance to these communities and on police to bring the full force of the law” to bear against perpetrators.

The group notes that the referendum, cannot be a green light for racism and xenophobic attacks. Such an outpouring of hate is both despicable and wrong.

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.