Balls confirms that Labour will vote against Osborne's welfare bill

Shadow chancellor says his party will oppose any bill that unfairly hits working families.

Appearing at Treasury questions in the Commons, Ed Balls has just confirmed that Labour will vote against the government's Welfare Uprating Bill, which would cap benefit increases at 1 per cent for the next three years. "If he [George Osborne] intends to go ahead with such an unfair hit on mid-and lower-income working families, while he’s giving a £3bn top rate tax cut, we will oppose it, Mr Speaker," Balls said. In response, Osborne declared that Labour would have to explain "to the hard-working people of this country" why it planned to oppose "yet another measure to deal with the deficit".

It is Osborne who starts with the advantage. A YouGov poll at the weekend found that 33 per cent of voters think it was right to limit increases in benefits to 1 per cent, 19 per cent think the government should have gone further and frozen them completely, and 35 per cent think they should have been increased in line with inflation or more.

But Labour believes the Chancellor has miscalculated by announcing a measure that will largely fall on working households. Sixty per cent of those families affected are in work and, according to the Institute for Fiscal Studies, the average one earner couple will be £534 a year worse off by 2015. Expect Labour to also constantly remind the public that Osborne is simultaneously reducing the top rate of income tax from 50p to 45p, a measure that will benefit the average income-millionaire by £107,000. One challenge for the party, however, will be explaining why it opposes a 1 per cent cap on benefit increases but supports a 1 per cent cap on public sector pay.

In an eventful session, Osborne also announced that the 2013 Budget will be held on 20 March.

Labour leader Ed Miliband and shadow chancellor Ed Balls. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.