The Tories cynically veto Balls's plan to allow the OBR to audit Labour's manifesto

Osborne is determined to claim that there is a "black hole" in Labour's spending plans, whatever the Office for Budget Responsibility may say.

One of the biggest obstacles to a Labour victory at the next election remains the lack of economic trust in the party. Three years after David Cameron and George Osborne entered office, it is still blamed more for the spending cuts than the coalition (owing to "the mess" it left in 2010) and viewed as fiscally irresponsible. With Labour likely to pledge to invest significantly more than the coalition in housing and other infrastructure projects (while abiding by George Osborne's day-to-day spending totals), it is politically vital to shift this perception.

That is the task that Ed Balls has set himself for his speech today in which he will announce that he has asked the Office for Budget Responsibility to audit every tax and spending pledge in Labour's election manifesto. Balls will say:

In tough times it's even more important that all our policies and commitments are properly costed and funded.

The British people rightly want to know that the sums add up. So we will go one step further and ask the independent Office for Budget Responsibility – the watchdog set up by this government – to independently audit the costings of every individual spending and tax measure in Labour's manifesto at the next election.

This is the first time a Shadow Chancellor - the first time any political party in Britain - has ever said it wants this kind of independent audit. A radical change from what's gone before, but the right thing to do to help restore trust in politics.

It's a smart move that provides Ed Miliband with some political cover ahead of his speech tomorrow, which is likely to include major spending commitments on housing. But, crucially, Balls's plan would require an extension of the OBR's remit, which does not currently allow it to scrutinise the opposition's fiscal policies. Any change to this would require the approval of parliament, with number-cruncher-in-chief Robert Chote emphasising that a "cross-party consensus" is "highly desirable".

But just 17 minutes after Balls's announcement, the Tories put paid to any hope of securing one, with Sajid Javid, the increasingly prominent Economic Secretary to the Treasury, declaring:

Ed Balls knows this is not allowed under the Budget Responsibility Act and the OBR's charter, so this is just a stunt to try and distract attention from the fact that Labour have been found out for making unfunded commitments that would just mean more borrowing and more debt.

Nothing has changed - it's the same old Labour. Ed Miliband and Ed Balls still want more spending, more borrowing, and more debt - exactly how they got us into this mess in the first place. And it's hardworking people who would pay the price through higher taxes and higher mortgage rate.

The Tories' decision to torpedo Balls's plan is entirely politically motivated. There is no reason in principle why they should refuse to allow the watchdog founded by Osborne in 2010 to audit Labour's policies. But there are plenty of political ones. The Tories are understandably reluctant to allow Labour to enhance its fiscal credibility and to repeal claims of a "black hole" in its plans.

Tonight, Balls's SpAd Alex Belardinelli has rightly responded by asking how the Tories intend to justify their opposition to the proposal.

It will be worth watching to see how Osborne's team respond when independent figures, dedicated to encouraging evidence-based policy, deplore their cynicism.

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

George Eaton is political editor of the New Statesman.

Photo: Getty
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The campaign to keep Britain in Europe must be based on hope, not fear

Together we can show the world a generous, outward-facing Britain we can all be proud of.

Today the Liberal Democrats launched our national campaign to keep Britain in Europe. With the polls showing the outcome of this referendum is on a knife-edge, our party is determined to play a decisive role in this once in a generation fight. This will not be an easy campaign. But it is one we will relish as the UK's most outward-looking and internationalist party. Together in Europe the UK has delivered peace, created the world’s largest free trade area and given the British people the opportunity to live, work and travel freely across the continent. Now is the time to build on these achievements, not throw them all away.

Already we are hearing fear-mongering from both sides in this heated debate. On the one hand, Ukip and the feuding Leave campaigns have shamelessly seized on the events in Cologne at New Year to claim that British women will be at risk if the UK stays in Europe. On the other, David Cameron claims that the refugees he derides as a "bunch of migrants" in Calais will all descend on the other side of the Channel the minute Britain leaves the EU. The British public deserve better than this. Rather than constant mud-slinging and politicising of the world's biggest humanitarian crisis since the Second World War, we need a frank and honest debate about what is really at stake. Most importantly this should be a positive campaign, one that is fought on hope and not on fear. As we have a seen in Scotland, a referendum won through scare tactics alone risks winning the battle but losing the war.

The voice of business and civil society, from scientists and the police to environmental charities, have a crucial role to play in explaining how being in the EU benefits the British economy and enhances people's everyday lives. All those who believe in Britain's EU membership must not be afraid to speak out and make the positive case why being in Europe makes us more prosperous, stable and secure. Because at its heart this debate is not just about facts and figures, it is about what kind of country we want to be.

The Leave campaigns cannot agree what they believe in. Some want the UK to be an offshore, deregulated tax haven, others advocate a protectionist, mean-hearted country that shuts it doors to the world. As with so many populist movements, from Putin to Trump, they are defined not by what they are for but what they are against. Their failure to come up with a credible vision for our country's future is not patriotic, it is irresponsible.

This leaves the field open to put forward a united vision of Britain's place in Europe and the world. Liberal Democrats are clear what we believe in: an open, inclusive and tolerant nation that stands tall in the world and doesn't hide from it. We are not uncritical of the EU's institutions. Indeed as Liberals, we fiercely believe that power must be devolved to the lowest possible level, empowering communities and individuals wherever possible to make decisions for themselves. But we recognise that staying in Europe is the best way to find the solutions to the problems that don't stop at borders, rather than leaving them to our children and grandchildren. We believe Britain must put itself at the heart of our continent's future and shape a more effective and more accountable Europe, focused on responding to major global challenges we face.

Together in Europe we can build a strong and prosperous future, from pioneering research into life-saving new medicines to tackling climate change and fighting international crime. Together we can provide hope for the desperate and spread the peace we now take for granted to the rest of the world. And together we can show the world a generous, outward-facing Britain we can all be proud of. So if you agree then join the Liberal Democrat campaign today, to remain in together, and to stand up for the type of Britain you think we should be.