George Osborne and Ed Balls walk through the Members' Lobby before the Queen's Speech at the State Opening of Parliament on June 4, 2014. Photograph: Getty Images.
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Osborne refuses to rule out raising VAT after promising £2bn for NHS

The Chancellor says he"doesn't have any plans" to increase the tax: the same phrase he used before the 2010 increase. 

George Osborne's promise of £2bn extra for the NHS is an attempt to neutralise one of Labour's strongest attack lines. By providing new money for the health service in Wednesday's Autumn Statement, the Chancellor hopes to render the opposition's pledge to spend £2.5bn extra irrelevant. In a shameless act of political plagiarism, he used his appearance on the Marr show to announce a further increase: the £1.1bn the government will receive in bank fines over the foreign exchange rate scandal will be used to fund improved GP services (Ed Balls last weekend called for the money to be spent on the NHS). By arguing that the £2bn of new funding has only been made possible by the Tories' "long-term economic plan" and their commitment to deficit reduction, Osborne aims to use Labour's weakness on fiscal responsibility to undermine its strength on the health service (the issue on which it polls best). 

In his own interview on Marr, Balls described the extra £2bn as "crisis money" made necessary by the coalition's "mismanagement" of the service. He also questioned whether it was merely a "one-off bung". But the Tory Treasury Twitter account was quick to reply that the money would be "baselined" (i.e. included in new calculations of future NHS spending) making it a permanent rather than a temporary increase (something confirmed by Osborne in his appearance). 

But the awkward question remains: how will all this be paid for? After Osborne's NHS spending promise, it is even harder to see how he will meet his pledge to eliminate the deficit by the end of the next parliament while simultaneously avoiding further tax rises and cutting taxes by £7.2bn (increasing the personal allowance to £12,500 and the 40p rate threshold to £50,000). Most economists believe that he will fail on at least one of these fronts. 

It was telling, then, that Osborne repeatedly refused to rule out raising VAT, stating that he "doesn't have any plans" to do so: the exact formulation used before the 2010 increase. Given the historic tendency of governments to raise taxes immediately after the election, it is right to be suspicious. But Osborne clearly believes that the Tories' polling strength on the deficit means that they can get away with such fiscal recklessness in a way Labour never could. 

After today's high octane politics, the opposition's hope is that Osborne's intervention will only raise the salience of the NHS and ultimately benefit them. The Chancellor's gamble is that it will achieve the reverse. By at least giving the appearance of providing an answer to the funding crisis (Labour would still spend more) he hopes to deny Balls and Ed Miliband any benefit from running on this issue. 

George Eaton is political editor of the New Statesman.

Photo: Getty
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The future of the Left is London

Far from debating it and arid pamphlets, local politicians in City Hall and across the country are bringing change today, says Fiona Twycross. 

Broadly, London is viewed as a left-wing city. This is an assumption backed up by polling. That same city, however, has twice voted in Boris Johnson defying tribalism and defining a new order in which politicians will be defined less by the colour of their rosette and more by their pragmatism and how they make you feel about the world.

With the concepts of left and right as inaccessible and irrelevant as ever to most members of the public, the future of political ideas will be understood and judged by voters less by their ideological purity and more by their actions and effectiveness. On a recent canvass session on a housing estate in Outer London, it was a change to the bus route not Trident the people I spoke to wanted to discuss.

The future of the left – and of the Labour Party – isn’t something that will be shaped in the future. The future of the left is being shaped now. It is being shaped wherever those of us who define ourselves as left of centre are using whatever power we have to directly or indirectly effect change. In Labour run town halls, in Select Committees, through carefully worded press releases – however, we can. Limited by the budgets and rules laid out by central government – with the Tories in Westminster, politics is a game in which the dice are loaded against the left but in which we can sometimes win a round.

At the London Assembly, we have played a part in shaping the direction. We have won the occasional round. London Assembly Members have proven that shaping the debate is not only reserved for those who wield power. The banning of water cannon, the promotion of universal free school meals, the Government’s climb-down over devastating cuts to the police budget and not least exposing the Mayor’s vast record of vanity projects. As the largest party in City Hall, Labour has achieved sometimes small but often fundamental victories against Boris Johnson. Victories that have allowed the public to better understand the alternative we could provide as politicians who stand with their communities and protect the services they rely upon.

City Hall offers a challenging yet pragmatic forum to shape policies. With just 25 members in total, and no party having a majority, you really have to be able to work together to get anything done. The electoral make-up of the Assembly, including groups from minority parties as well as the two main parties requires a much higher degree of pragmatism, collaboration and in the end compromise than Parliament. As a result, policy - particularly that coming out of City Hall’s scrutiny committees - often commands cross-party support and a certain degree of legitimacy that political point scoring rarely achieves.

However, while we can change things round the edges; highlight injustices and propose alternatives that may sometimes be adopted, we must never lose sight of the fact that you can do immeasurably more if you are in power. Winning power to enact positive change, should be the guiding aim of any centre left politician.

With the next general election still likely to be more than four years off, the first major electoral challenge since 2015 comes in the shape of this May’s elections in local councils across the country, in devolved countries and in London.

The upcoming Mayoral election means throwing off the abstract and painting an image for Londoners of what a left wing alternative in London would look like. That picture will resonate far beyond London - the future of the left really is being shaped today.

That is exactly what we are doing and what Sadiq Khan is offering. Standing up for hard pressed Londoners who are increasingly forced into poverty or priced out of the capital altogether.

From building affordable homes to tackling London’s air quality. From freezing fares to protecting neighbourhood policing. All of these are policies with mass appeal but at the same time, all are ones which disproportionately benefit the least well off in our society. The left, if anything has to stand for a fairness.

But voters don't want just abstract vision, they want tangible change. Sadiq Khan is putting forward ambitious, progressive policies for London, but to implement them as Mayor, with the Conservatives in power nationally, he will have to not just argue with government but make the arguments for London to get the best deal he can. 

With high levels of child poverty in Conservative run boroughs like Westminster and Kensington & Chelsea, he knows he can’t afford only to be able to work with Labour boroughs if he wants all young Londoners to have better life chances. What matters isn’t just what works it is working with all those you need to build and deliver change.

From City bankers to environmentalists, a Labour Mayor will need a range of allies. In charting his own course, having his own voice and putting London and Londoners at the heart of his policies. What works for London won't necessarily work everywhere, that will mean a necessary element of independence, that's not disloyal, its the job. 

Whether in London or beyond, the left needs a message relevant to people like those I met on that housing estate in outer London. Authenticity and independence matter. In a world where tribal politics has broken down ensuring you don’t look like you put your party before the people you represent matters. But you can do this and still stay true to your values.

Our opponents like to paint a horror story image of what the country would look like under Labour. A win in London offers the chance to dispel that myth and will show the success to be had with a Labour politician who is willing to govern in the interests of the majority rather than just the few.

A win in London will show the progressive left has a future, here and now. A future that delivers.