The part of the Blair piece the Tories don't want you to read

In his NS article, Blair says Labour is right to reject the argument that it "created" the crisis by overspending.

As you'd expect, the Tories have seized on Tony Blair's declaration that Labour must not "tack left on tax and spending". Conservative chairman Grant Shapps said:

Tony Blair is right to warn that Labour aren't a credible party of government under Ed Miliband. Ed Miliband and Ed Balls have opposed every single difficult decision this government has taken to fix the problems that Labour left behind - on welfare, on immigration and on the deficit. The only plan Labour have is more of what got us into this mess in the first place - more spending, more borrowing and more debt.

It is worth noting, however, that in his piece Blair explicitly rejects the argument that it was overspending by Labour that "got us into this mess". While conceding that there was a case for "a tightening around 2005", Blair argues that Labour is right to be "very robust in knocking down the notion that it 'created' the crisis." As he points out, the current structural deficit was less than 1 per cent in 2007/08 and the national debt was lower than in 1997. It was the crisis that caused the deficit, not the deficit that caused the crisis. 

Conservative chairman Grant Shapps speaks at last year's Conservative conference in Birmingham. 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.