George Osborne becomes first senior Tory to criticise Boris Johnson's IQ and inequality comments

"I would not have put it like that," says the Chancellor, after the Mayor of London states that "some measure of inequality is essential for the spirit of envy".

George Osborne has become the first senior Tory to distance himself from Boris Johnson's remarks about IQ and inequality.

In a speech this week, the Mayor of London had said noted that 16 per cent of "our species" had an IQ of less than 85, and just two per cent of had an IQ of more than 130. Under such conditions, true equality was never possible, he said: "Indeed, some measure of inequality is essential for the spirit of envy and keeping up with the Joneses that is, like greed, a valuable spur to economic activity."

On the Andrew Marr Show, Osborne said: "I would not have put it like that. I don't agree with everything he said. I think there is actually increasingly common agreement across the political spectrum you can't achieve equality of outcome, but you should be able to achieve equality of opportunity. You should give everyone, wherever they come from, the best chance, and, actually, education is the key to this."

Boris Johnson's speech provoked near-unanimous condemnation from the left. In the Evening Standard, Jenni Russell called his argument "utter rubbish":

Britain is a starkly unequal society where the dice are loaded against the poorest children and in favour of the richest from the moment of their conception. Success has infinitely more to do with background and upbringing than with talent or determination.

In the Observer, Andrew Rawnsley asked the Mayor:

The Conservative party is also charged with being disdainful of ordinary people. Labour have clearly and repeatedly signalled that they plan to fight the next election campaign by attacking the Tories for not caring about the majority. Would it be smart to suggest that large swaths of the population should be written off on the grounds that they are too thick to compete?

The Liberal Democrat leader Nick Clegg said the comments revealed "careless, unpleasant elitism".

But so far politicians on the right have largely remained silent. (The press were warmer: the Mail and Times reprinted extracts of the speech, while the Telegraph's Benedict Brogan wrote a piece entitled "Thank goodness for Boris". ConservativeHome's Iain Dale provided a rare dissenting voice.)

While the Cabinet will be able to keep their heads down until the autumn statement takes over the news cycle, David Cameron may be unable to duck the question of whether he agrees with Johnson. He's flying to China tonight with a press pack in tow.

Will any of them ask him if he thinks that inequality is good thing?

George Osborne with Ed Balls on the Andrew Marr show.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.

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What type of Brexit did we vote for? 150,000 Conservative members will decide

As Michael Gove launches his leadership bid, what Leave looks like will be decided by Conservative activists.

Why did 17 million people vote to the leave the European Union, and what did they want? That’s the question that will shape the direction of British politics and economics for the next half-century, perhaps longer.

Vote Leave triumphed in part because they fought a campaign that combined ruthless precision about what the European Union would do – the illusory £350m a week that could be clawed back with a Brexit vote, the imagined 75 million Turks who would rock up to Britain in the days after a Remain vote – with calculated ambiguity about what exit would look like.

Now that ambiguity will be clarified – by just 150,000 people.

 That’s part of why the initial Brexit losses on the stock market have been clawed back – there is still some expectation that we may end up with a more diluted version of a Leave vote than the version offered by Vote Leave. Within the Treasury, the expectation is that the initial “Brexit shock” has been pushed back until the last quarter of the year, when the election of a new Conservative leader will give markets an idea of what to expect.  

Michael Gove, who kicked off his surprise bid today, is running as the “full-fat” version offered by Vote Leave: exit from not just the European Union but from the single market, a cash bounty for Britain’s public services, more investment in science and education. Make Britain great again!

Although my reading of the Conservative parliamentary party is that Gove’s chances of getting to the top two are receding, with Andrea Leadsom the likely beneficiary. She, too, will offer something close to the unadulterated version of exit that Gove is running on. That is the version that is making officials in Whitehall and the Bank of England most nervous, as they expect it means exit on World Trade Organisation terms, followed by lengthy and severe recession.

Elsewhere, both Stephen Crabb and Theresa May, who supported a Remain vote, have kicked off their campaigns with a promise that “Brexit means Brexit” in the words of May, while Crabb has conceded that, in his view, the Leave vote means that Britain will have to take more control of its borders as part of any exit deal. May has made retaining Britain’s single market access a priority, Crabb has not.

On the Labour side, John McDonnell has set out his red lines in a Brexit negotiation, and again remaining in the single market is a red line, alongside access to the European Investment Bank, and the maintenance of “social Europe”. But he, too, has stated that Brexit means the “end of free movement”.

My reading – and indeed the reading within McDonnell’s circle – is that it is the loyalists who are likely to emerge victorious in Labour’s power struggle, although it could yet be under a different leader. (Serious figures in that camp are thinking about whether Clive Lewis might be the solution to the party’s woes.) Even if they don’t, the rebels’ alternate is likely either to be drawn from the party’s Brownite tendency or to have that faction acting as its guarantors, making an end to free movement a near-certainty on the Labour side.

Why does that matter? Well, the emerging consensus on Whitehall is that, provided you were willing to sacrifice the bulk of Britain’s financial services to Frankfurt and Paris, there is a deal to be struck in which Britain remains subject to only three of the four freedoms – free movement of goods, services, capital and people – but retains access to the single market. 

That means that what Brexit actually looks like remains a matter of conjecture, a subject of considerable consternation for British officials. For staff at the Bank of England,  who have to make a judgement call in their August inflation report as to what the impact of an out vote will be. The Office of Budget Responsibility expects that it will be heavily led by the Bank. Britain's short-term economic future will be driven not by elected politicians but by polls of the Conservative membership. A tense few months await. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.