Clegg shows how the coalition will attack Labour in 2013

The coalition will challenge Labour to say which cuts it would keep and which it would reject, but it shouldn't expect any answers.

Nick Clegg's article in today's Times (£) offers a preview of an attack the coalition will use repeatedly against Labour in 2013: what would you do? In reference to Labour's opposition to the coalition's plan to increase benefits by just 1 per cent for the next three years, Clegg writes: "Labour must show how they’d pay for it. Would they cut hospital budgets? Schools? Defence?" He also demands that Ed Balls and Ed Miliband say which of the coalition's cuts "they would keep, which they would lose and where they would find the money instead."

But the Deputy PM shouldn't expect answers any time soon. In an end-of-year interview with the Times, Ed Balls signalled that Labour would hold back its key tax and spending commitments until 2015. "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."

Balls's argument is a reasonable one. The Office for Budget Responsibility originally expected the economy to grow by 5.7 per cent between the first quarter of 2010 and the second quarter of 2012. It actually grew by 0.9 per cent. As a result, the coalition is now forecast to borrow £212bn more than planned in June 2010. In view of this record, it would be unwise for Labour to make any hard and fast commitments until the latest moment possible. Balls has gone as far as banning shadow cabinet ministers from saying which cuts they would keep for fear of creating the impression that Labour will be able to reverse all of the others.

But with a Spending Review due to be held later this year, the coalition will begin to challenge Labour to say whether it would match its post-election spending plans, as it did with the Conservatives' in 1997. With little fanfare, the Liberal Democrats have accepted George Osborne's fiscal envelope (which now extends to 2018), if not all of his proposed cuts. For instance, while Clegg successfully rejected Osborne's bid to secure £10bn of additional welfare cuts, limiting the Chancellor to £3.8bn, he did not question the assumption that £10bn of further austerity was necessary, merely that all the savings needed to come from welfare. Whether or not Labour should adopt the same approach is the biggest decision Balls and Miliband will make before the election. A pledge to match the Tories' spending limits would insulate Labour from the charge that it is planning a tax or borrowing "bombshell" but it would enrage the left and the trade unions. I'll have more on this in my column in tomorrow's magazine.

Nick Clegg delivers a speech to the think-tank Centre Forum at The Commonwealth Club on December 17, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The problems with ending encryption to fight terrorism

Forcing tech firms to create a "backdoor" to access messages would be a gift to cyber-hackers.

The UK has endured its worst terrorist atrocity since 7 July 2005 and the threat level has been raised to "critical" for the first time in a decade. Though election campaigning has been suspended, the debate over potential new powers has already begun.

Today's Sun reports that the Conservatives will seek to force technology companies to hand over encrypted messages to the police and security services. The new Technical Capability Notices were proposed by Amber Rudd following the Westminster terrorist attack and a month-long consultation closed last week. A Tory minister told the Sun: "We will do this as soon as we can after the election, as long as we get back in. The level of threat clearly proves there is no more time to waste now. The social media companies have been laughing in our faces for too long."

Put that way, the plan sounds reasonable (orders would be approved by the home secretary and a senior judge). But there are irrefutable problems. Encryption means tech firms such as WhatsApp and Apple can't simply "hand over" suspect messages - they can't access them at all. The technology is designed precisely so that conversations are genuinely private (unless a suspect's device is obtained or hacked into). Were companies to create an encryption "backdoor", as the government proposes, they would also create new opportunities for criminals and cyberhackers (as in the case of the recent NHS attack).

Ian Levy, the technical director of the National Cyber Security, told the New Statesman's Will Dunn earlier this year: "Nobody in this organisation or our parent organisation will ever ask for a 'back door' in a large-scale encryption system, because it's dumb."

But there is a more profound problem: once created, a technology cannot be uninvented. Should large tech firms end encryption, terrorists will merely turn to other, lesser-known platforms. The only means of barring UK citizens from using the service would be a Chinese-style "great firewall", cutting Britain off from the rest of the internet. In 2015, before entering the cabinet, Brexit Secretary David Davis warned of ending encryption: "Such a move would have had devastating consequences for all financial transactions and online commerce, not to mention the security of all personal data. Its consequences for the City do not bear thinking about."

Labour's manifesto pledged to "provide our security agencies with the resources and the powers they need to protect our country and keep us all safe." But added: "We will also ensure that such powers do not weaken our individual rights or civil liberties". The Liberal Democrats have vowed to "oppose Conservative attempts to undermine encryption."

But with a large Conservative majority inevitable, according to polls, ministers will be confident of winning parliamentary support for the plan. Only a rebellion led by Davis-esque liberals is likely to stop them.

George Eaton is political editor of the New Statesman.

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