George Osborne attends a press conference at the French Economy Ministry in Paris on April 28, 2014. Photograph: Getty Images.
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Osborne's speech is also an attack on Tory EU withdrawalists

The Chancellor's denouncement of those who want to "pull up the drawbridge and shut Britain off from the world" applies to a significant number in his own party.

George Osborne will not mention Ukip by name in his speech to the CBI today, but it will be clear that he has them in mind when he says:

Political parties on the left and the populist right have this in common: they want to pull up the drawbridge and shut Britain off from the world.

They want to constrain foreign investment in our economy, and deprive us of the British jobs that it has created in industries from car manufacturing to energy. They want to set prices, regulate incomes, impose rent controls, wage war on big business, demonise wealth creation, renationalise industries — and pretend that they can re-establish control over all aspects of the economy.

The Chancellor's attacks on Labour are nothing new (although as a supposed friend of the minimum wage it's odd to hear him denounce Ed Miliband for wanting to "regulate incomes") but more striking is his decision to brand Nigel Farage's party a threat to the economy. In a direct echo of Nick Clegg's language, he denounces Ukip's support for immediate EU withdrawal as an attempt to "pull up the drawbridge and shut Britain off from the world". 

Europhiles will note the irony that it is Osborne's party that has threatened the UK's EU membership by pledging to hold an in/out referendum by 2017. In his interview on Today on Monday, Miliband described the possibility of withdrawal as "the biggest threat to prosperity". Many businesses are far more worried by the Tories' euroscepticism than they are by Labour's proposed energy price freeze or the reintroduction of the 50p tax rate. Martin Sorrell recently revealed that he and others had told David Cameron that "if he were to drop the referendum he would be a shoo-in". That's almost certainly not the case (as Sorrell appeared to forget, most voters support a referendum) but it shows how desperate businesses are for Britain to remain in the EU. 

To this, Osborne would reply that it is only by renegotiating the UK's relationship with Brussels that the government can preserve its membership. As he argued in his recent speech to Open Europe: "If you cannot protect the collective interests of non-eurozone member states, then they will have to choose between joining the eurozone, which the UK will not do, or leave the European Union...I believe it is in no-one's interests for Britain to come to face a choice between joining the euro or leaving the European Union. We don't want to join the euro, but also our withdrawal from a Europe which succeeded in reforming would be bad for Britain. And a country of the size and global reach of Britain leaving would be very bad for the European Union."

But if Osborne is committed to reforming the EU, his contempt for those who favour automatic withdrawal ("they want to pull up the drawbridge and shut Britain off from the world") is also clear. And that is not just an attack on Ukip but on a significant number in his own party. That, in turn, suggests that Osborne is confident that he'll be in government after 2015, potentially as Foreign Secretary, rather than wooing EU opponents in a Conservative leadership election. 

George Eaton is political editor of the New Statesman.

Photo: Getty
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Theresa May is paying the price for mismanaging Boris Johnson

The Foreign Secretary's bruised ego may end up destroying Theresa May. 

And to think that Theresa May scheduled her big speech for this Friday to make sure that Conservative party conference wouldn’t be dominated by the matter of Brexit. Now, thanks to Boris Johnson, it won’t just be her conference, but Labour’s, which is overshadowed by Brexit in general and Tory in-fighting in particular. (One imagines that the Labour leadership will find a way to cope somehow.)

May is paying the price for mismanaging Johnson during her period of political hegemony after she became leader. After he was betrayed by Michael Gove and lacking any particular faction in the parliamentary party, she brought him back from the brink of political death by making him Foreign Secretary, but also used her strength and his weakness to shrink his empire.

The Foreign Office had its responsibility for negotiating Brexit hived off to the newly-created Department for Exiting the European Union (Dexeu) and for navigating post-Brexit trade deals to the Department of International Trade. Johnson was given control of one of the great offices of state, but with no responsibility at all for the greatest foreign policy challenge since the Second World War.

Adding to his discomfort, the new Foreign Secretary was regularly the subject of jokes from the Prime Minister and cabinet colleagues. May likened him to a dog that had to be put down. Philip Hammond quipped about him during his joke-fuelled 2017 Budget. All of which gave Johnson’s allies the impression that Johnson-hunting was a licensed sport as far as Downing Street was concerned. He was then shut out of the election campaign and has continued to be a marginalised figure even as the disappointing election result forced May to involve the wider cabinet in policymaking.

His sense of exclusion from the discussions around May’s Florence speech only added to his sense of isolation. May forgot that if you aren’t going to kill, don’t wound: now, thanks to her lost majority, she can’t afford to put any of the Brexiteers out in the cold, and Johnson is once again where he wants to be: centre-stage. 

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