Balls's threat to abandon support for HS2 sets him up for war with Adonis

Andrew Adonis, the head of Labour's growth review and the architect of the project, has warned that cancelling the programme would be an "act of national self-mutilation".

The most significant line in Ed Balls's speech to the Labour conference was on HS2. Having previously warned that there would be no "blank cheque" from his party for the new high-speed line, he went further today, questioning whether it was "the best way to spend £50bn for the future of our country".

Balls said:

Under this government the High Speed 2 project has been totally mismanaged and the costs have shot up to £50bn. David Cameron and George Osborne have made clear they will go full steam ahead with this project – no matter how much the costs spiral up and up. They seem willing to put their own pride and vanity above best value for money for the taxpayer.

Labour will not take this irresponsible approach. So let me be clear, in tough times – when there is less money around and a big deficit to get down – there will be no blank cheque from me as a Labour chancellor for this project or for any project.

Because the question is – not just whether a new high-speed line is a good idea or a bad idea, but whether it is the best way to spend £50bn for the future of our country. In tough times it's even more important that all our policies and commitments are properly costed and funded.

The signal from Balls that Labour is actively considering withdrawing support from the project raises the possibility of a major party split over the issue. Andrew Adonis, the former transport secretary and the architect of HS2, recently argued in the New Statesman that it would be an "act of national self-mutilation" to cancel the programme. As the party's shadow infrastructure minister and the head of the party's growth review, he remains a significant figure and would likely have to resign his post if Labour came out against the project.

In his piece, Adonis warned that the urgent need to increase rail capacity (the West Coast Main Line will be full by 2024) meant there was "no free lunch - or pot of gold which can be diverted to other projects in anything but the very short-term, with more costly consequences thereafter". But many in Labour would like to transfer funds from HS2 to a mass housebuilding programme. It would allow the party to differentiate itself from the Tories while remaining within George Osborne's fiscal envelope. Today, Balls made it clear that he is sympathetic to their demands.

Shadow chancellor Ed Balls speaks at the Labour conference in Brighton. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Getty Images.
Show Hide image

Douglas Carswell leaves Ukip to become independent MP

The Clacton MP quits his party but insists he will not rejoin the Conservatives or trigger a by-election. 

Douglas Carswell has long been a Ukip MP in name only. Now he isn't even that. Ukip's sole MP, who defected from the Conservatives in 2014, has announced that he is leaving the party.

Carswell's announcement comes as no great surprise. He has long endured a comically antagonistic relationship with Nigel Farage, who last month demanded his expulsion for the sin of failing to aid his knighthood bid. The Clacton MP's ambition to transform Ukip into a libertarian force, rather than a reactionary one, predictably failed. With the party now often polling in single figures, below the Liberal Democrats, the MP has left a sinking ship (taking £217,000 of opposition funding or "short money" with him). As Carswell acknowledges in his statement, Brexit has deprieved Ukip of its raison d'être.

He writes: "Ukip might not have managed to win many seats in Parliament, but in a way we are the most successful political party in Britain ever. We have achieved what we were established to do – and in doing so we have changed the course of our country's history for the better. Make no mistake; we would not be leaving the EU if it was not for Ukip – and for those remarkable people who founded, supported and sustained our party over that period.

"Our party has prevailed thanks to the heroic efforts of Ukip party members and supporters. You ensured we got a referendum. With your street stalls and leafleting, you helped Vote Leave win the referendum. You should all be given medals for what you helped make happen – and face the future with optimism.

"Like many of you, I switched to Ukip because I desperately wanted us to leave the EU. Now we can be certain that that is going to happen, I have decided that I will be leaving Ukip."

Though Ukip could yet recover if Theresa May disappoints anti-immigration voters, that's not a path that the pro-migration Carswell would wish to pursue. He insists that he has no intention of returning to the Conservatives (and will not trigger a new by-election). "I will simply be the Member of Parliament for Clacton, sitting as an independent."

Carswell's erstwhile Conservative colleagues will no doubt delight in reminding him that he was warned.  

George Eaton is political editor of the New Statesman.