Balls would "retire to the back benches" if Miliband tried to move him

Allies of the shadow chancellor tell Kevin Maguire that he won't accept another job in the shadow cabinet.

Commentators have recently taken to suggesting that Ed Balls could be replaced as shadow chancellor before the next election, with David Miliband and Alistair Darling touted as possible replacements. The latest round of speculation began after Balls revealed that Miliband hadn't guaranteed his position. He told the Times (£): "I’ve never asked him. It’s a bit arrogant thinking about what sort of job you do."

In tomorrow's issue of the NS, Kevin Maguire offers a spirited defence of the shadow chancellor and reveals that Balls would "retire to the back benches rather than swallow demotion to another portfolio". He also reports that Miliband would "face a revolt by MPs if he offered the post a third time to his big brother, David". Here's the story in full.

The political “advice” to Ed Miliband to reshuffle the bruiser Ed Balls out of the shadow chancellorship is naked special pleading by the Tory camp and Labour’s Blairite rump. Balls repeatedly hurts the Conservatives. He predicted that austerity would create a double-dip recession and is smart at opposition guerrilla tactics, proposing that money saved on the Olympics should be siphoned off to cancel a petrol-tax rise. His biggest rave reviews are from David Cameron, who has abused Balls as a “muttering idiot” and “the most annoying person in modern politics”: backhanded compliments from Flashman.

Both Eds insist that there’s no deal to keep Balls in the Treasury brief, yet Miliband would face a revolt by MPs if he offered the post a third time to his big brother, David. Allies of the shadow chancellor whisper that he’d take his bat and balls away and retire to the back benches rather than swallow demotion to another portfolio.

Shadow chancellor Ed Balls speaks at the Labour conference in Manchester last year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Why the Labour rebels have delayed their leadership challenge

MPs hope that Jeremy Corbyn may yet resign, while Owen Smith is competing with Angela Eagle to be the candidate.

The Eagle has hovered but not yet landed. Yesterday evening Angela Eagle's team briefed that she would launch her leadership challenge at 3pm today. A senior MP told me: "the overwhelming view of the PLP is that she is the one to unite Labour." But by this lunchtime it had become clear that Eagle wouldn't declare today.

The delay is partly due to the hope that Jeremy Corbyn may yet be persuaded to resign. Four members of his shadow cabinet - Clive Lewis, Rachel Maskell, Cat Smith and Andy McDonald - were said by sources to want the Labour leader to stand down. When they denied that this was the case, I was told: "Then they're lying to their colleagues". There is also increasing speculation that Corbyn has come close to departing. "JC was five minutes away from resigning yesterday," an insider said. "But Seumas [Milne] torpedoed the discussions he was having with Tom Watson." 

Some speak of a potential deal under which Corbyn would resign in return for a guarantee that an ally, such as John McDonnell or Lewis, would make the ballot. But others say there is not now, never has there ever been, any prospect of Corbyn departing. "The obligation he feels to his supporters is what sustains him," a senior ally told me. Corbyn's supporters, who are confident they can win a new leadership contest, were cheered by Eagle's delay. "The fact even Angela isn't sure she should be leader is telling, JC hasn't wavered once," a source said. But her supporters say she is merely waiting for him to "do the decent thing". 

Another reason for the postponement is a rival bid by Owen Smith. Like Eagle, the former shadow work and pensions secrtary is said to have collected the 51 MP/MEP nominations required to stand. Smith, who first revealed his leadership ambitions to me in an interview in January, is regarded by some as the stronger candidate. His supporters fear that Eagle's votes in favour of the Iraq war and Syria air strikes (which Smith opposed) would be fatal to her bid. 

On one point Labour MPs are agreed: there must be just one "unity candidate". But after today's delay, a challenger may not be agreed until Monday. In the meantime, the rebels' faint hope that Corbyn may depart endures. 

George Eaton is political editor of the New Statesman.