Miliband to make major speech on the economy this week

Labour leader will deliver speech on the economy on Thursday as new ICM poll shows his party continues to trail the Tories in this area.

One of the reasons why many Labour MPs remain pessimistic about their party's chances of winning of a majority in 2015 is that, even after a double-dip recession, Labour continues to trail the Conservatives on the economy. While the latest Guardian/ICM poll gives Labour a 12-point lead (its highest since May 2003), it also shows that more voters (29 per cent) blame the "unsustainable spending" of the last government for the slowdown than the Tories' cuts (23 per cent).

For Labour, the concern is that such ratings are often a better long-term indicator of the election result than voting intentions. History shows that at general election time, when the opposition comes under greater scrutiny, voters usually side with the party that they view as the most economically competent. With the economy likely to return to sustained growth in 2014, the danger is that the coalition will increase its advantage in advance of 2015. 

If Ed Miliband is to firmly establish himself as a prime-minister-in-waiting, he will need to improve his party's standing in this area. I'm told that the Labour leader will make a major speech on the economy this Thursday, outlining his party's priorities ahead of the Budget on 20 March. On the same day, Jon Cruddas, the head of Labour's policy review, will deliver a speech on "the condition of Britain" (an echo of the book of the same name by G.D.H. Coleto coincide with the launch of a major new IPPR project on living standards, described to me as the think-tank's most ambitious programme since its famous Commission on Social Justice, which helped shape Labour's 1997 manifesto. 

After Cruddas warned in his Resolution Foundation speech last week that "simply opposing the cuts without an alternative is no good" (interpreted by some as a coded critique of Ed Balls), expect Miliband to say more about his vision of a remade capitalism. 

Ed Miliband speaks at the CBI's annual conference last year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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PMQs review: Angela Eagle cheers Labour MPs against an improved George Osborne

The shadow first secretary of state revelled in the Tories' splits. 

For months, Labour MPs have despaired at their party's failure to exploit the Tories' visceral EU divisions. But at today's PMQs, Angela Eagle gave them cause for cheer. Facing George Osborne in her capacity as shadow first secretary of state (David Cameron is attending the G7 in Japan), she brandished Iain Duncan Smith's description of him as "Pinocchio". "Who does the Chancellor think the public shoud listen to," she dryly remarked, "his former cabinet colleague or the leader of Britain's trade unions?" Eagle later roused the House by noting the scarcity of Brexiters on the frontbench. Her questions were too broad to pin Osborne down, and she struggled to match the impact of her first performance - but it was a more than adequate outing.

After recent reversals, the Chancellor delivered a ruthlessly efficient, if somewhat charmless, performance. When Eagle punched his Google bruise (following the police raid on the company's French offices), Osborne shot back: "She seems to forget that she was the Exchequer Secretary in the last government, so perhaps when she stands up she can tells us whether she ever raised with the Inland Revenue the tax affairs of Google?" 

He riled Labour MPs by describing the party as anti-Trident (though not yet announced, Corbyn will grant a free vote), a mark of how the Conservative leadership intends to use the issue to reunify the party post-referendum. "We look forward to the vote on Trident and he should get on with it," Eagle sharply retorted at the start of the session. But Osborne inevitably had more ammunition: "While she's sitting here, the leader od the Labour Party is sitting at home wondering whether to impeach the former leader of the Labour Party for war crimes." He compared Labour MPs to prisoners on "day release". And he gleefully quoted from Jon Cruddas's inquiry: "In their own report this week, Labour's Future, surprisingly long, they say 'they are becoming increasingly irrelevant to the working people of Britain."

The muted response from the Tory benches demonstrated how badly the EU vote has severed the party. But Osborne will be satisfied to have avoided any gaffes or hostages to fortunes. His performance today, his best to date at PMQs, was a reminder of why he is down but not yet out. 

George Eaton is political editor of the New Statesman.