What motivates Ed Balls? He needs to tell us

The shadow chancellor must answer the question, "what made you want to do this in the first place?"

Ed Balls is caught in a pincer movement, although not a very coordinated one. The left pince is applied by trade union leaders, appalled by the shadow chancellor’s increasingly assertive commitment to budget discipline. Paul Kenny was on the radio yesterday mocking Balls’s acceptance of the need for public sector pay restraint. “He would give an aspirin a headache,” the head of the GMB union said.

Ed Miliband has communicated exactly the same austerity-lite message and, although he comes in for similar criticism, dissenters on the left are not quite despairing or self-destructive enough to go all out for the Labour leader. (Perhaps the really wanton sabotage is being saved for closer to an election). Besides, the major unions backed Miliband for leader. Their bosses now need to think of reasons why the candidate they plugged isn’t speaking the language they want to hear. Identifying villains who might be steering the Labour leader away from the path of righteousness is safer than admitting to union members that they were (from a staunch left perspective) ill-advised by their chiefs.

Then there is the right pince. This consists of shadow cabinet ministers and MPs who are frustrated with what they see as Balls’s small “c” conservatism on economic policy and, especially, public sector reform. The criticism is that the shadow chancellor, while suitably diligent in signalling future spending restraint, will not permit any specific policy discussion of how Labour’s ambitions for effecting social progress can be achieved when splashing cash isn’t on the menu.

In fact, this complaint divides into three sub-gripes. First, there is the way Balls insists on vetting shadow cabinet announcements for any hint of fiscal profligacy. The stated intention is to avoid surrendering political hostages to the Tories, in the form of uncosted spending pledges. But Balls’s message-discipline gatekeeper function also serves as a device for exerting control over colleagues and for stifling policy initiatives generated by underlings. (Interestingly, in that respect a certain generation of Conservatives voice private sympathy for their shadow cabinet peers, remembering how George Osborne used the same device in opposition.) 

The second sub-gripe is that Balls is cautious in his attitude towards the City and the financial services sector. He is pointedly reluctant to throw his political weight behind the Miliband theme of “responsible capitalism” and to engage with the project to “rebalance the economy.” This is partly the natural and reasonable response to a professional lifetime spent in and around the Treasury, where grandiose ambitions for UK plc to find something new to do for a living rub up against the practical obligation to nurture and protect the few things we are good at already – and on a global scale. Balls will also have noticed that the Tories are not as popular with the business community as they would like to be. When that support – and the economic credibility that it brings - is up for grabs, why risk frightening everyone with loose  talk of re-engineering the whole of capitalism?

Balls’s wariness of the new economic vision leads to the third sub-gripe. This is the fear that the shadow chancellor is too closely associated in the public imagination with the last Labour government and with Gordon Brown in particular. Miliband was as much at Brown’s side as Balls, but was a lesser known figure. He has also made more effort to distance himself from the whole New Labour operation, speaking (somewhat implausibly) as if he is a maverick outsider, thrust into leadership despite his earnest and modest demeanour. He seems to picture himself as Moses confronted by the burning bush; the prophet onto whose shoulders unexpectedly falls the burden of leadership to a brighter future. He would like to be seen as the flag-bearer for a new generation, opening a new chapter in Labour history. It is an optimistic pitch; a fantasy some would say. Miliband loyalists worry that the whole page-turning, paradigm-shifting portrait of the leader is spoiled when Balls keeps popping up in the frame.

Up against all of that there is the indisputable fact that Balls is one of the most intelligent, financially literate, motivated, effective and substantial figures in British politics. He also made one of the toughest economic calls of recent times – that the economy would double-dip - and got it right. (That he gets little credit for this outside the party could either be because the public mood hasn’t fully turned against the coalition, or because too many voters, seeing him as an emblem of the bad old days, just don’t want him to be right.) Balls is also powerful and influential within the party, having built up a network over many years working in the engine room of the Labour machine. But that kind of loyalty is based on patronage and power. It is a different kind of political glue to the shared set of ideas or vision that binds followers to effective leaders.

One of the lessons of Gordon Brown’s bungled transition from Chancellor to Prime Minister was the way that his support base melted away once the going got tough. There were plenty of people cheering him on and when he looked certain to be leader. He managed to get himself anointed unopposed. But as soon as he looked weak and the power started draining away, the loyalty evaporated. He was left friendless. There was no consolidating mission of Brownism around which a wounded party could rally. There was no shared purpose; just Gordon.

Balls is in danger of falling victim to a similar dynamic. He is formidable and powerful and, in person, engaging and impressive. Those characteristics all sustain each other in a feedback loop. The vulnerability lies in questions that probe what really drives this political phenomenon forwards, aside from raw ambition. Why did Ed Balls become an MP, join up with Gordon Brown, stand for leader, stick around in Ed Miliband’s shadow cabinet?

Miliband is justifiably coming under pressure this week to tell the Labour party a bit more about who he is and what he believes. That, as I wrote in my column last week, is an essential step towards making people more comfortable with the idea of him their Prime Minister. By all accounts, filling in those gaps is the explicit ambition of his speech to Labour conference later this week. It is one of the most penetrating questions in politics: What made you want to do this in the first place? What is it all for? David Cameron and George Osborne have never found an adequate answer. Ed Miliband is making a start, filling in some of the blanks. Perhaps it is time Ed Balls had a go too.

Shadow chancellor Ed Balls plays in the Labour Party vs media football match. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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North Yorkshire has approved the UK’s first fracking tests in five years. What does this mean?

Is fracking the answer to the UK's energy future? Or a serious risk to the environment?

Shale gas operation has been approved in North Yorkshire, the first since a ban introduced after two minor earthquakes in 2011 were shown to be caused by fracking in the area. On Tuesday night, after two days of heated debate, North Yorkshire councillors finally granted an application to frack in the North York Moors National Park.

The vote by the Tory-dominated council was passed by seven votes to four, and sets an important precedent for the scores of other applications still awaiting decision across the country. It also gives a much-needed boost to David Cameron’s 2014 promise to “go all out for shale”. But with regional authorities pitted against local communities, and national government in dispute with global NGOs, what is the wider verdict on the industry?

What is fracking?

Fracking, or “hydraulic fracturing”, is the extraction of shale gas from deep underground. A mixture of water, sand and chemicals is pumped into the earth at such high pressure that it literally fractures the rocks and releases the gas trapped inside.

Opponents claim that the side effects include earthquakes, polluted ground water, and noise and traffic pollution. The image the industry would least like you to associate with the process is this clip of a man setting fire to a running tap, from the 2010 US documentary Gasland

Advocates dispute the above criticisms, and instead argue that shale gas extraction will create jobs, help the UK transition to a carbon-neutral world, reduce reliance on imports and boost tax revenues.

So do these claims stands up? Let’s take each in turn...

Will it create jobs? Yes, but mostly in the short-term.

Industry experts imply that job creation in the UK could reflect that seen in the US, while the medium-sized production company Cuadrilla claims that shale gas production would create 1,700 jobs in Lancashire alone.

But claims about employment may be exaggerated. A US study overseen by Penn State University showed that only one in seven of the jobs projected in an industry forecast actually materialised. In the UK, a Friends of the Earth report contends that the majority of jobs to be created by fracking in Lancashire would only be short-term – with under 200 surviving the initial construction burst.

Environmentalists, in contrast, point to evidence that green energy creates more jobs than similar-sized fossil fuel investments.  And it’s not just climate campaigners who don’t buy the employment promise. Trade union members also have their doubts. Ian Gallagher, Secretary of Blackburn and District Trade Unions Council, told Friends of the Earth that: “Investment in the areas identified by the Million Climate Jobs Campaign [...] is a far more certain way of addressing both climate change and economic growth than drilling for shale gas.”

Will it deliver cleaner energy? Not as completely as renewables would.

America’s “shale revolution” has been credited with reversing the country’s reliance on dirty coal and helping them lead the world in carbon-emissions reduction. Thanks to the relatively low carbon dioxide content of natural gas (emitting half the amount of coal to generate the same amount of electricity), fracking helped the US reduce its annual emissions of carbon dioxide by 556 million metric tons between 2007 and 2014. Banning it, advocates argue, would “immediately increase the use of coal”.

Yet a new report from the Royal Society for the Protection of Birds (previously known for its opposition to wind farm applications), has laid out a number of ways that the UK government can meet its target of 80 per cent emissions reduction by 2050 without necessarily introducing fracking and without harming the natural world. Renewable, home-produced, energy, they argue, could in theory cover the UK’s energy needs three times over. They’ve even included some handy maps:


Map of UK land available for renewable technologies. Source: RSPB’s 2050 Energy Vision.

Will it deliver secure energy? Yes, up to a point.

For energy to be “sustainable” it also has to be secure; it has to be available on demand and not threatened by international upheaval. Gas-fired “peaking” plants can be used to even-out input into the electricity grid when the sun doesn’t shine or the wind is not so blowy. The government thus claims that natural gas is an essential part of the UK’s future “energy mix”, which, if produced domestically through fracking, will also free us from reliance on imports tarnished by volatile Russian politics.

But, time is running out. Recent analysis by Carbon Brief suggests that we only have five years left of current CO2 emission levels before we blow the carbon budget and risk breaching the climate’s crucial 1.5°C tipping point. Whichever energy choices we make now need to starting brining down the carbon over-spend immediately.

Will it help stablise the wider economy? Yes, but not forever.

With so many “Yes, buts...” in the above list, you might wonder why the government is still pressing so hard for fracking’s expansion? Part of the answer may lie in their vested interest in supporting the wider industry.

Tax revenues from UK oil and gas generate a large portion of the government’s income. In 2013-14, the revenue from license fees, petroleum revenue tax, corporation tax and the supplementary charge accounted for nearly £5bn of UK exchequer receipts. The Treasury cannot afford to lose these, as evidenced in the last budget when George Osborne further subsidied North Sea oil operations through increased tax breaks.

The more that the Conservatives support the industry, the more they can tax it. In 2012 DECC said it wanted to “guarantee... every last economic drop of oil and gas is produced for the benefit of the UK”. This sentiment was repeated yesterday by energy minister Andrea Leadsom, when she welcomed the North Yorkshire decision and described fracking as a “fantastic opportunity”.

Dependence on finite domestic fuel reserves, however, is not a long-term economic solution. Not least because they will either run out or force us to exceed international emissions treaties: “Pensions already have enough stranded assets as they are,” says Danielle Pafford from 350.org.

Is it worth it? Most European countries have decided it’s not.

There is currently no commercial shale-gas drilling in Europe. Sustained protests against the industry in Romania, combined with poor exploration results, have already caused energy giant Chevron to pull out of the country. Total has also abandonned explorations in Denmark, Poland is being referred to the European Court of Justice for failing to adequately assess fracking’s impact, and, in Germany, brewers have launched special bottle-caps with the slogan “Nein! Zu Fracking” to warn against the threat to their water supply.

Back in the UK, the government's latest survey of public attitudes to fracking found that 44 per cent neither supported nor opposed the practice, but also that opinion is gradually shifting out of favour. If the government doesn't come up with arguments that hold water soon, it seems likely that the UK's fracking future could still be blasted apart.

India Bourke is the New Statesman's editorial assistant.