Balls strengthens his position at Treasury questions

The shadow chancellor enjoyed a better day in the House as he pinned down Danny Alexander on living standards.

After his much-panned response to George Osborne's Autumn Statement, Ed Balls enjoyed a better outing at today's Treasury questions. Noting that Osborne had claimed that living standards were rising (based on the flawed "real household disposable income measure"), but that the IFS had subsequently said that they were falling, he asked Danny Alexander (who stood in for the absent Osborne): "who's right?" After quipping that it was a "pleasure" to see the shadow chancellor in his place and mockingly condemning the "unattributable briefing" against him from the Labour benches, Alexander could only reply that "the whole reason why millions of Britons are under financial pressure is because Labour’s economic mess cost every household in this country £3,000". But while voters might have accepted this line in 2010, they are less likely to do so after three years of stagnation. 

Balls then noted that Osborne was away in Brussels, where "the government is taking legal action to stop a cap on bank bonuses", and asked: "are the Liberal Democrats really right behind the Conservatives on this one too?" Alexander replied by joking that the shadow chancellor had "appointed a new special adviser on hand gestures - Greg Dyke" (a reference to Dyke's cut-throat gesture), adding: "at least that's the gesture his colleagues are making every time they hear him in the House." One was left with the impression that Alexander was more interested in cracking pre-prepared gags than in responding to Balls's questions. 

The shadow chancellor undoubtedly has his critics in Labour. Some MPs believe that he remains too defensive over the record of the last Labour government and too preoccupied with proving that he was right about austerity. Others, on the Blue Labour wing of the party, argue that he is insufficiently committed to Miliband's reformist agenda (one told me that he was a "conventional Brownite" who "doesn't really buy responsible capitalism"). But after his strong performance today and his defiant interview (stating in response to briefing: "I couldn't give a toss") on Sky, the odds on him being replaced as shadow chancellor will lengthen again. As Miliband recognises, there is no one else with the rare combination of political cunning and economic aptitude required to do the job. 

Ed Balls speaks at the Labour conference in Brighton earlier this year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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.