Ed Balls declares: Labour’s cuts would have been too savage

Balls is right. Labour’s spending plans would have meant cuts of 20 per cent.

The coalition may be planning to cut all non-ring-fenced budgets by 25 per cent but it's worth remembering that Labour's cuts wouldn't have been much less savage. The Brown/Darling pledge to halve the deficit by 2014 would have seen cuts of 20 per cent to all non-protected departments.

So Ed Balls's declaration that this promise was a mistake deserves to be taken seriously. It's a more credible position than those campaigning against "Tory cuts" while refusing to accept that this means a slower pace of deficit reduction.

Balls told the BBC:

I always accepted collective responsibility but at the time, in 2009, I thought the pace of deficit reduction through spending cuts was not deliverable, I didn't think it could have been done.

This leaves open the possibility of a more even split between spending cuts and tax rises (George Osborne currently envisages a 77:23 ratio, Darling favoured 67:33). After all, during the last big fiscal tightening undertaken by a Conservative government, Ken Clarke split the pain 50:50 between tax rises and spending cuts. But Balls goes on to suggest that major cuts shouldn't take place until the economy has recovered fully:

We'll have to wait and see where we are once this huge risky experiment has been tried on our economy by the Conservatives and the Liberals. I can't start pre-empting how things will be in a few years' time but, you know, in my department I set out a third of a billion pounds of cuts, so obviously I'm not unafraid to make difficult decisions.

With confirmation today that growth in the first quarter of this year was just 0.3 per cent, the cautionary principle suggests that dramatic cuts should not take place until the economy is out of intensive care.

Balls, like some of his rivals for the Labour leadership, has belatedly adopted a clear line on the deficit. David Miliband has let it be known that he still supports the original pledge to halve the deifict by 2014, while Andy Burnham has come out against the coalition's absurd pledge to ring-fence the £110bn NHS budget.

I've heard remarkably little from either Ed Miliband or Diane Abbott on the deficit, but perhaps Balls's move will stir them into life.

George Eaton is political editor of the New Statesman.

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland