Gordon Brown’s statement: full transcript

“I have no desire to stay in my position longer than is needed.”

Gordon Brown, 5pm, Monday 10 May 2010:

We have a parliamentary and not presidential system in this country, and as I said on Friday, with no party able to command a parliamentary majority arising from the general election, my constitutional duty as Prime Minister is to ensure that government continues while parties explore options for forming a new administration with majority support in the House of Commons.

The business of government has continued, including concerted action in Europe today to avert the financial crisis in the euro area. Alistair Darling, the Chancellor, spent much of his time yesterday in the European finance ministers' meeting in Brussels.

This morning I have had conversations with the president of the European Council, the managing director of the International Monetary Fund and the president of the European Central Bank. I have said I would do all I could to ensure that a stable, strong and principled government is formed, able to tackle Britain's economic and political challenges effectively.

As we know, the Liberal Democrats felt that they should first talk to the Conservative Party. Mr Clegg has just informed me that while he intends to continue his dialogue that he has begun with the Conservatives, he now wishes also to take forward formal discussions with the Labour Party. I believe it is sensible and it is in the national interest to respond positively.

The cabinet will meet soon. A formal policy negotiating process is being established under the arrangements made by the Cabinet Secretary, similar to the negotiations between other parties. The first priority should be an agreed deficit reduction plan, to support economic growth and a return to full employment. I know that both parties recognise the importance of ensuring economic stability in the markets and protecting Britain's standing, and both are agreed on the need for a strong and full deficit reduction plan over the coming years.

There is also a progressive majority in Britain and I believe it could be in the interests of the whole country to form a progressive coalition government. In addition to the economic priorities, in my view only such a progressive government can meet the demand for political and electoral change which the British people made last Thursday. Our commitments on a new voting system for the House of Commons and for the election of the House of Lords are clearly part of this.

I would however like to say something also about my own position. If it becomes clear that the national interest, which is stable and principled government, can be best served by forming a coalition between the Labour Party and the Liberal Democrats, then I believe I should discharge that duty, to form that government, which would in my view command a majority in the House of Commons in the Queen's Speech and any other confidence votes.

But I have no desire to stay in my position longer than is needed to ensure the path to economic growth is assured and the process of political reform we have agreed moves forward quickly. The reason that we have a hung parliament is that no single party and no single leader was able to win the full support of the country. As leader of my party, I must accept that that is a judgement on me. I therefore intend to ask the Labour Party to set in train the processes needed for its own leadership election. I would hope that it would be completed in time for the new leader to be in post by the time of the Labour party conference. I will play no part in that contest, I will back no individual candidate.

I believe that the British people now want us to focus on the economy, the continuing fight against terrorism -- the terrorist threat to our country -- they want us to continue to pursue the economic recovery, and I will do so with my usual vigour and determination and I will do all in my power to support the British troops whose service and sacrifice create a debt of gratitude we can never fully repay. And I believe on Thursday the country was also telling us that they want a new politics and that the political reforms we seek will help deliver that change. I now intend to facilitate the discussions that the Liberal Democratic party has asked for. Thank you very much. As you will understand, I will take no questions this evening. Other discussions can be had later. Thank you very much.

Jon Bernstein, former deputy editor of New Statesman, is a digital strategist and editor. He tweets @Jon_Bernstein. 

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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.