George Osborne is given a tour of the production line at Bentley Motors on December 4, 2014 in Crewe. Photograph: Getty Images.
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Fastest US growth for 11 years spoils Osborne's boast

The Chancellor can no longer declare that the UK is the fastest growing major economy.

One of George Osborne's favourite boasts is that the UK is "the fastest growing of any major advanced economy in the world" (as declared in the second line of his Autumn Statement). That was true at the time, with Britain growing at an annual rate of 3 per cent, but revisions today have spoilt the Chancellor's brag.

Earlier today, the ONS downgraded year-on-year growth in the UK from 3 per cent to 2.6 per cent, leaving Britain behind Australia and the United States. Now, just to sharpen the contrast, annual US growth in Q3 has been revised up to 5 per cent: the fastest rate for 11 years and comfortably ahead of the 2.8 per cent posted by the UK over the same quarter. It's true, of course, that the UK has suffered more than its competitors from the stagnation of the eurozone (net trade is down) but Osborne can't make the comparison in good times and then reject it in bad times. And while US GDP is now 8.9 per cent above its pre-recession peak, the UK's is just 2.9 per cent above. 

After this, and Labour's blindsiding of him on spending cuts, the Chancellor would be wise to return a more humble figure in the new year. 

George Eaton is political editor of the New Statesman.

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Ignoring devolved nations on Brexit "risks breaking up the UK"

Theresa May is meeting with Scottish, Northern Irish and Welsh representatives. 

The Westminster government risks the break up of the union if it tries to impose a Brexit settlement on Scotland, Northern Ireland and Wales, the Institute for Government has warned.

On the day Theresa May is meeting with representatives from the devolved administrations, the thinktank said there were "worrying signs" the Tories were ignoring them instead of treating them like partners. 

The Institute urged the UK government to take steps to prevent "political spats from escalating into a full-blow constitutional crisis".

It stated:

"Imposing a Brexit settlement in the absence of consent from the devolved bodies may be legally possible, given that the UK Parliament remains sovereign. 

"However, this would run contrary to convention and to the spirit of devolution, which recognises the right of the three devolved nations to determine their own
form of government. 

"It would also be a reckless strategy for a government committed to the Union, since it would seriously undermine relationships between the four governments, and increase the chances of Scottish independence and rifts in Northern Ireland’s fragile power-sharing arrangements."

Instead, Brexit ministers from the devolved nations should be represented on a specially-created committee and held jointly responsible for the outcome of talks, it recommended. The devolved nations are expected to want a softer Brexit than the one outlined so far by Westminster. 

It noted that despite the Prime Minister's commitment to developing a "UK approach" to Brexit, there are "worrying signs" that the devolved governments are being ignored.

So far key decisions, such as the deadline for triggering Article 50, have been taken by Westminster alone. Legal experts have warned a stand off between devolved authorities and Westminster could lead to a constitutional crisis.

While civil servants across the UK are now trying to work together, the Institute for Government said their ability to do so "has been hindered by lack of agreement at a political level".

A Brexit settlement could also lead to new powers for the devolved nations, the report said, such as on employment and immigration.

The report said it was likely devolved parliaments would wish to vote on any settlement.

The Scottish First Minister, Nicola Sturgeon has already threatened to hold another independence referendum if Westminster does not take account of Scottish interests, and has pledged that the SNP will vote against the Brexit bill in Parliament. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.