Cameron was for a public inquiry into the banks before he was against one

Ed Balls reveals the Tories' past backing for a public inquiry.

After George Osborne's evidence-free assertion that Labour ministers were "clearly involved" in the rate-rigging scandal, Ed Balls has come out fighting. Speaking in the Commons, the shadow chancellor has just revealed that Osborne and David Cameron once supported a public inquiry into banking regulation (something they now oppose).

Here's the November 2008 Tory press release quoted by Balls:

David Cameron has repeated calls for Gordon Brown to hold a public enquiry (sic) into failures in the system of banking regulation.

Speaking at Prime Minister's Questions, David asked Mr. Brown if he agreed with Lord Myners, the Government Minister who this week agreed that a public enquiry (sic) was needed.

David warned that, with unemployment and repossessions on the rise, the public must be told how we came to be in this position and added:

"On the day the American people voted for change, people in Britain will ask how much longer do we have to put up with more of the same from a government that’s failed"

And here's what Osborne had to say on the matter:

The whole point of having a public inquiry is that it must cover the behaviour of everyone responsible: the bankers, the regulators and of course the ministers, past and present.

Because so much public money has been spent rescuing the banks, any inquiry must interview witnesses in public and one of the central witnesses must be the man who was Chancellor of the Exchequer for ten years and presided over the age of irresponsibility: Gordon Brown.

Advantage Balls.

Separately, Balls has confirmed that Labour will vote against the government's proposed parliamentary inquiry. Given that Andrew Tyrie, the Conservative chair of the Treasury select committee, has indicated that he will not chair an inquiry without cross-party support, one may not take place at all.

In 2008, David Cameron called for a public inquiry "into failures in the system of banking regulation". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.