Sir Alan Budd’s past criticisms of the Tories

Budd warned against early spending cuts and accused Thatcher of waging class war.

There may or may not be a political motive to Sir Alan Budd's surprise resignation as head of the Office for Budget Responsibility. But what one can say with certainty is that claims that his independence was compromised will have hurt him.

A leading economist and a founding member of the Bank of England's Monetary Policy Committee, Budd has long prided himself on his willingness to highlight uncomfortable truths.

Earlier this year, as the clamour for spending cuts grew, he warned:

If you go too quickly, then there is a risk that the recovery will be snuffed out and we will go back into a recession -- I mean what the Americans say: "Remember 1937."

There is now growing evidence that George Osborne's decision to reject the counsel of figures such as our own David Blanchflower, Robert Skidelsky and the chairman of the Federal Reserve, Ben Bernanke, is tipping Britain back into recession.

It was also Budd, as my colleague Daniel Trilling has previously noted, who correctly argued that the Thatcher government raised unemployment for political purposes.

Here's the key exchange from Adam Curtis's 1992 documentary series Pandora's Box:

Curtis: For some economists who were involved in this story, there is a further question: were their theories used to disguise political policies that would have otherwise been very difficult to implement in Britain?

Budd: The nightmare I sometimes have, about this whole experience, runs as follows. I was involved in making a number of proposals which were partly at least adopted by the government and put in play by the government. Now, my worry is . . . that there may have been people making the actual policy decisions . . . who never believed for a moment that this was the correct way to bring down inflation.

They did, however, see that it would be a very, very good way to raise unemployment, and raising unemployment was an extremely desirable way of reducing the strength of the working classes -- if you like, that what was engineered there in Marxist terms was a crisis of capitalism which re-created a reserve army of labour and has allowed the capitalists to make high profits ever since.

Now again, I would not say I believe that story, but when I really worry about all this, I worry whether that indeed was really what was going on.

The argument that the Thatcher government used unemployment as a weapon of class war is not an uncommon one. It's just that the sort of people who make it don't tend to move on to advise a Conservative chancellor. I expect we'll learn more about the real reasons for Budd's departure later this week.

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George Eaton is political editor of the New Statesman.

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PMQs review: Theresa May shows again that Brexit means hard Brexit

The Prime Minister's promise of "an end to free movement" is incompatible with single market membership. 

Theresa May, it is commonly said, has told us nothing about Brexit. At today's PMQs, Jeremy Corbyn ran with this line, demanding that May offer "some clarity". In response, as she has before, May stated what has become her defining aim: "an end to free movement". This vow makes a "hard Brexit" (or "chaotic Brexit" as Corbyn called it) all but inevitable. The EU regards the "four freedoms" (goods, capital, services and people) as indivisible and will not grant the UK an exemption. The risk of empowering eurosceptics elsewhere is too great. Only at the cost of leaving the single market will the UK regain control of immigration.

May sought to open up a dividing line by declaring that "the Labour Party wants to continue with free movement" (it has refused to rule out its continuation). "I want to deliver on the will of the British people, he is trying to frustrate the British people," she said. The problem is determining what the people's will is. Though polls show voters want control of free movement, they also show they want to maintain single market membership. It is not only Boris Johnson who is pro-having cake and pro-eating it. 

Corbyn later revealed that he had been "consulting the great philosophers" as to the meaning of Brexit (a possible explanation for the non-mention of Heathrow, Zac Goldsmith's resignation and May's Goldman Sachs speech). "All I can come up with is Baldrick, who says our cunning plan is to have no plan," he quipped. Without missing a beat, May replied: "I'm interested that [he] chose Baldrick, of course the actor playing Baldrick was a member of the Labour Party, as I recall." (Tony Robinson, a Corbyn critic ("crap leader"), later tweeted that he still is one). "We're going to deliver the best possible deal in goods and services and we're going to deliver an end to free movement," May continued. The problem for her is that the latter aim means that the "best possible deal" may be a long way from the best. 

George Eaton is political editor of the New Statesman.