Political sketch: Chancellor runs out of places to hide

When the Speaker took the muzzle off Ed Balls, George was left eating his own words.

There were times during the Chancellor's Autumn Statement when Dave looked as if he had no idea what George was going on about and there were times when George didn't seem so sure either.

The end of the world as we know came in a speech that you could see came through teeth so gritted that ice-bound drivers would have been envious. It was all meant to be so different.

Just 12 months ago George promised that although we might have to dive into the brown stuff and swim a few lengths, we would be out of the ordure with a cup of tea and a biscuit by 2015, ready to reward him with sacks full of votes at the general election. Earlier today he revealed he had only been joking.

The day started well enough for the Chancellor but it was clearly a sign of things to come that it was deemed safer to drive the 150 yards to the House of Commons from the Treasury than face the more dangerous chance of bumping into a voter.

As he took his seat he was joined, with some apparent reluctance, by the other three members of what we now know is called the "quad", who apparently bear most responsibility for our present state of affairs.

Most embarrassed appeared to be the PM closely followed by his Deputy Nick, who usually manages to look disconnected from any of these occasions. Jammed between Nick and Dave, the Chief Secretary to the Treasury and bruiser-in-training Danny Alexander, who still looks as if he has taken the wrong turning on a school trip.

Having leaked every bit of less than disastrous news from the Statement over the past week, the Chancellor knew he had run out of places to hide. When he moved into Number 11 he had been happy to take praise for establishing the Office of Budget Responsibility to give independent views on Government policies. These were the ones who would enhance his reputation by confirming Plan A was not only the right one, but also that it was on course. But that was before he decided he had to build an extension on to it.

And so it was the OBR which did for him by confirming borrowing would be massively up -- and growth substantially down.

His own side, seeing their own prospects of re-election receding, took the view that if they shouted loud enough they could drown out the bad news. This encouraged Labour to turn up the volume even further by repeating it.

As the Chancellor's voice moved inexorably up the Richter scale his body slumped even further onto the Despatch Box and the other members of the quad adopted the embarrassed look of those on the bus when a drunk gets on.

They seemed particularly pained when George, having already warned that the good times had been out on hold, added to the general misery by announcing he was extending the retirement age to 67 from 2026, which had more than a few MPs reaching for their calculators.

And on the eve of the biggest public sector strike in years he decided to follow up his appeal to them to reconsider with the announcement that, following their present two year pay freeze, he would be restricting future pay rises to 1 per cent. At least that cheered up his side.

As George finally subsided into his seat, the Speaker took the muzzle off Ed Balls and let him at his opponent. Ed took some pleasure in sticking George's words of a year ago up where they would cause most hurt. "Britain needs a new Chancellor or a new plan", said Ed, happy to point out that the Government will now borrow billions more than Labour had planned.

Earlier in the day the opinion polls showed that despite the dire news, Labour's lead over the Tories is still just 2 per cent, and that a large slice of the public continue to blame Labour for our present predicament.

Just one certainty. All MPs will be employed until 2015.

Peter McHugh is the former Director of Programmes at GMTV and Chief Executive Officer of Quiddity Productions.

Peter McHugh is the former Director of Programmes at GMTV and Chief Executive Officer of Quiddity Productions

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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