Whither George Osborne?

Tory MP calls for the chancellor to be replaced.

Yesterday, it was the future of Conservative co-chairman Sayeeda Warsi that was being questioned by influential members of her own party. Today, it's the Chancellor George Osborne's turn to have his competence impugned by a colleague. In an article in the Mail on Sunday, Tory MP Brian Binley offers a fairly withering assessment of Osborne's record in government thus far. Binley writes:

The economy is in dire straits – even George Osborne must acknowledge that. It is now clear that the Chancellor will not fulfil his Election promise of eliminating the deficit by 2015. His much-trumpeted public spending cutbacks are illusory.
Binley goes on to make the kind of arguments for supply-side reforms that one hears alot both on the Tory backbenches and in the right-wing commentariat. He also says, baldly, that he doesn't think Osborne is up to the job of implementing such reforms.
I believe that George Osborne should be moved from the Treasury to the party chairmanship, to allow him to concentrate exclusively on winning the  next General Election. It would allow a Chancellor to  be appointed who has a deep command of economics, as well as political instincts that chime with the bulk of the party. Top of the list should be Defence Secretary Philip Hammond, who has the analytical strengths and broad commercial experience to become a fine Chancellor.
In an interview on the BBC's Andrew Marr Show this morning, Osborne had a chance to respond to criticisms like this. He gave a blustering, needled performance that compared unfavourably with the preternatural self-assurance and fluency of Shadow Business Secretary Chuka Umunna, who appeared on the programme before him. Asked about critics inside his own party, Osborne invited them to "get behind the government", and he swatted away a question about the wisdom of his continuing to combine occupancy of Number 11 Downing Street with a role as the Conservatives' chief election strategist. "I'm 110 per cent focused on the economy," he said.
 
What that focus will yield when Parliament returns, it appears, is legislation to reform the planning process which Osborne identified as one of the principal obstacles to the kinds of infrastructure projects that would provide a significant stimulus to the economy (which, incidentally, the Chancellor insists, all empirical evidence to the contrary, is "healing"). Marr wondered if that was part of the fabled "Plan B" that the Chancellor's critics have long been urging on him. Osborne demurred. "It's a hard road to recovery," he said. "And there is no alternative [to the government's deficit reduction strategy]."
 
As for a possible reshuffle, the Chancellor suggested that Marr ask David Cameron. One suspects we haven't heard the last of it.

 

On his way? George Osborne outside Number 11 Downing Street (Photograph: Getty Images)

Jonathan Derbyshire is Managing Editor of Prospect. He was formerly Culture Editor of the New Statesman.

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Theresa May knows she's talking nonsense - here's why she's doing it

The Prime Minister's argument increases the sense that this is a time to "lend" - in her words - the Tories your vote.

Good morning.  Angela Merkel and Theresa May are more similar politicians than people think, and that holds true for Brexit too. The German Chancellor gave a speech yesterday, and the message: Brexit means Brexit.

Of course, the emphasis is slightly different. When May says it, it's about reassuring the Brexit elite in SW1 that she isn't going to backslide, and anxious Remainers and soft Brexiteers in the country that it will work out okay in the end.

When Merkel says it, she's setting out what the EU wants and the reality of third country status outside the European Union.  She's also, as with May, tilting to her own party and public opinion in Germany, which thinks that the UK was an awkward partner in the EU and is being even more awkward in the manner of its leaving.

It's a measure of how poor the debate both during the referendum and its aftermath is that Merkel's bland statement of reality - "A third-party state - and that's what Britain will be - can't and won't be able to have the same rights, let alone a better position than a member of the European Union" - feels newsworthy.

In the short term, all this helps Theresa May. Her response - delivered to a carefully-selected audience of Leeds factory workers, the better to avoid awkward questions - that the EU is "ganging up" on Britain is ludicrous if you think about it. A bloc of nations acting in their own interest against their smaller partners - colour me surprised!

But in terms of what May wants out of this election - a massive majority that gives her carte blanche to implement her agenda and puts Labour out of contention for at least a decade - it's a great message. It increases the sense that this is a time to "lend" - in May's words - the Tories your vote. You may be unhappy about the referendum result, you may usually vote Labour - but on this occasion, what's needed is a one-off Tory vote to make Brexit a success.

May's message is silly if you pay any attention to how the EU works or indeed to the internal politics of the EU27. That doesn't mean it won't be effective.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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