Balls reveals that Miliband hasn't guaranteed his position

Shadow chancellor says he has not asked Miliband whether he will be in his post in 2015.

In an interview in today's Times (£), Ed Balls reveals that Ed Miliband has not guaranteed that he will be shadow chancellor at the next election. He tells the paper: "I’ve never asked him. It’s a bit arrogant thinking about what sort of job you do."

There is nothing unusual about this (leaders always give themselves maximum flexibility) but it will encourage speculation that Balls could be moved before 2015. His below-par response to the Autumn Statement, which he compared to a top footballer missing a penalty, has emboldened those in the party who believe Miliband was wrong to give him the job in the first place. One proposal doing the rounds is for Alistair Darling, fresh from leading the unionist camp to victory in the 2014 Scottish independence referendum, to return as shadow chancellor in time for the election. Balls will still almost certainly remain in his post (the right decision, in my view) but it's no longer unthinkable that he could accept a different job.

Elsewhere in the interview, Balls suggests that economic volatility means Labour will hold back its major fiscal decisions until the year of the election. "Until we know the state of the economy, the state of the public finances and how bad things have turned out, it’s very hard for us to know what we can possibly say."

With a Spending Review due to be held next year, George Osborne will begin to challenge Labour to say whether it would stick to the Conservatives' spending plans for the opening years of the next parliament, as it did in 1997. Balls, one of the architects of the '97 pledge, is keen to keep this option open, but his words are an indication that he won't be making a decision anytime soon. With forecast borrowing revised up by £212bn since 2010, it's not hard to see why.

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

George Eaton is political editor of the New Statesman.

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Theresa May raises UK terrorist threat level to "critical"

A further attack may be "imminent" and armed soldiers will be deployed on the streets. 

After last night's horrific attack in Manchester, Theresa May has announced that the terrorist threat level has been increased from "severe" to "critical" - meaning a further attack may be imminent. The Prime Minister, following the advice of the independent Joint Terrorism Analysis Centre, said in a statement from No.10 Downing Street: "The work undertaken throughout the day has revealed that it is a possibility we cannot ignore that there is a wider group of individuals linked to this attack."

The new threat level, the highest available and last imposed in 2007, means that up to 5,000 soldiers will be deployed on the streets to replace armed police, guarding sensitive points such as parliament and railway stations. The intelligence services are likely to have been troubled by the relative sophistication of the Manchester Arens attack, a nail bomb, which murdered 22 people and injured 59 others.

May added: "This morning I said that the Joint Terrorism Analysis Centre, the independent organisation responsible for setting the threat level on the basis of the intelligence available, was keeping the threat level under constant review. It has now concluded, on the basis of today’s investigations, that the threat level should be increased for the time being from severe to critical. This means that their assessment is not only that an attack remains highly likely, but that a further attack may be imminent.”

Operation Temperer - allowing military personnel to take to the streets - had been enforced, May announced. “This means that armed police officers responsible for duties such as guarding key sites will be replaced by members of the armed forces, which will allow the police to significantly increase the number of armed officers on patrol in key locations. You might also see military personnel deployed at certain events such as concerts and sports matches, helping the police to keep the public safe.” 

The terrorist threat level was last raised to "critical" in June 2007 following the attempted bombing of a Tiger Tiger night club in London and the Glasgow airport attack. It was also increased after the failed 2006 Heathrow bomb plot. On both occasions, the "critical" status remained in place for less than a week. 

May will chair another meeting of the government's emergency Cobra committee at 9:30am tomorrow. The Conservatives and Labour have suspended all national and local election campaigning until further notice.

In her concluding remarks, the Prime Minister emphasised: "I do not want the public to feel unduly alarmed." She continued: "We have faced a serious terror threat in our country for many years and the operational response I have just outlined is a proportionate and sensible response to the threat that our security experts judge we face. I ask everybody to be vigilant and to co-operate with and support the police as they go about their important work.

"I want to end by repeating the important message I gave in my statement earlier today. We will take every measure available to us and provide every additional resource we can to the police and the security services as they work to protect the public.

"And while we mourn the victims of last night’s appalling attack, we stand defiant. The spirit of Manchester and the spirit of Britain is far mightier than the sick plots of depraved terrorists, that is why the terrorists will never win and we will prevail." 

George Eaton is political editor of the New Statesman.

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