Why Labour should be wary of attacking Osborne over borrowing

By repeatedly criticising the Chancellor for missing his deficit targets, the party risks reinforcing the impression that borrowing is always an economic ill.

George Osborne is fond of boasting that the deficit has fallen "each and every year" under the coalition, so it was unfortunate for the Chancellor when revisions made by the ONS last week meant that borrowing was officially higher in 2012-13 (£118.8bn) than in 2011-12 (£118.5bn).

At today's Treasury questions, Ed Balls and the rest of Labour's hit squad repeatedly attempted to force the Chancellor to concede as much, but Osborne gave no ground. He (correctly) pointed out that borrowing was only higher last year (2012-13) because the ONS had revised the 2011-12 figure down (by £2.4bn), "which was actually good news", and that, in GDP terms, the deficit fell from 7.8 per cent to 7.7 per cent. Along the way, the vampiric Osborne suggested that taking lessons from Balls on how to balance the books was like "getting a lesson from Dracula on how to look after a blood bank". 

Still, the facts are the facts: on the measure traditionally favoured by the Chancellor, borrowing rose last year. In a final attempt to force the truth out of him, Balls raised a point of order with the Speaker, warning that Osborne may have "inadvertently misled the House", but Bercow brushed it aside.

In so doing, he may have done the shadow chancellor a favour. Balls might be right when he points out that Osborne has borrowed billions more than expected but this line of attack is less convincing when Labour's Keynesian strategy is explicitly based on borrowing even more. The difference, of course, is that while Labour would borrow for growth (in the form of higher infrastructure spending), the coalition is borrowing to meet the cost of failure (in the form of lower growth and higher long-term unemployment). But while this might be a coherent economic position, politically, it's a tough sell. 

Rather than becoming trapped in a technical debate about the deficit, Labour would be wiser to focus on living standards and growth, but if it wants to continue to attack Osborne on this territory it will need a much better explanation of its own approach. Without clearly setting out how and why it would borrow for growth, the party merely reinforces the impression that borrowing is always and everywhere an economic ill. And that only strengthens Osborne's hand. 

George Osborne and Ed Balls attend the State Opening of Parliament, in the House of Lords at the Palace of Westminster on May 8, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The US intelligence leaks on the Manchester attack are part of a disturbing pattern

Even the United States' strongest allies cannot rely on this president or his administration to keep their secrets.

A special relationship, indeed. British intelligence services will stop sharing information with their American counterparts about the Manchester bombing after leaks persisted even after public rebukes from Amber Rudd (who called the leaks "irritating") and Michael Fallon (who branded them "disappointing").

In what must be a diplomatic first, Britain isn't even the first of the United States' allies to review its intelligence sharing protocols this week. The Israeli government have also "reviewed" their approach to intelligence sharing with Washington after Donald Trump first blabbed information about Isis to the Russian ambassador from a "close ally" of the United States and then told reporters, unprompted, that he had "never mentioned Israel" in the conversation.

Whether the Manchester leaks emanate from political officials appointed by Trump - many of whom tend to be, if you're feeling generous, cranks of the highest order - or discontent with Trump has caused a breakdown in discipline further down the chain, what's clear is that something is very rotten in the Trump administration.

Elsewhere, a transcript of Trump's call to the Philippine strongman Rodrigo Duterte in which the American president revealed that two nuclear submarines had been deployed off the coast of North Korea, has been widely leaked to the American press

It's all part of a clear and disturbing pattern, that even the United States' strongest allies in Tel Aviv and London cannot rely on this president or his administration to keep their secrets.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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