George Osborne will deliver his Autumn Statement today. Photo: Getty
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Good cop, bad cop, steady cop? What to expect from the Autumn Statement

The Chancellor will make his last Autumn Statement before the general election. What will it include?

In one of the last set-piece political events before the general election, George Osborne will deliver his Autumn Statement today.

Unsurprisingly with a general election around the bend, the Chancellor has approached this pre-budget in a significantly political way. So what can we expect?

First, we already know a great deal of what will be included in the Statement. These are all the positive spending promises and plans for the future. The headline policies include:
 

 

A number of these plans have been condemned by the opposition as “re-announcements”, because the money has been pledged before, and also of “recycling funds”, because most of this is money being moved around and scraped together from further efficiency savings in Whitehall rather than being new spending money.

Yet in spite of this, these policies are the preceding ‘good cop’ to what will undoubtedly be George Osborne’s slightly gloomier cop when he addresses the Commons this afternoon. He will have to address how the economic recovery has not played out exactly, nor nearly as quickly, as first planned.

In light of this, his strategy for delivering the Statement will be to communicate to voters to “stay the course” with the Conservatives, to take the country gradually back to prosperity, rather than handing the Treasury to Labour, which is still the party less trusted on the economy. He will say:

Our long-term economic plan is working. I say: we stay the course. We stay the course to prosperity.

Whether this ‘good cop, steady cop’ tactic will work depends a great deal on Labour’s response. The party has been hitting the Chancellor hard on the fact that he has failed to keep his promises on fixing the economy. The shadow chancellor Ed Balls commented:

David Cameron and George Osborne have now failed every test and broken every promise they made on the economy.

They promised living standards would rise, but while millionaires have got a huge tax cut working people are £1600 a year worse off under the Tories. This cost-of-living crisis is why the Chancellor will have to admit he has broken his promise to balance the books by next year.

Labour will have to hammer this message home during its response to the Chancellor today.

Anoosh Chakelian is senior writer at the New Statesman.

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Forget gaining £350m a week, Brexit would cost the UK £300m a week

Figures from the government's own Office for Budget Responsibility reveal the negative economic impact Brexit would have. 

Even now, there are some who persist in claiming that Boris Johnson's use of the £350m a week figure was accurate. The UK's gross, as opposed to net EU contribution, is precisely this large, they say. Yet this ignores that Britain's annual rebate (which reduced its overall 2016 contribution to £252m a week) is not "returned" by Brussels but, rather, never leaves Britain to begin with. 

Then there is the £4.1bn that the government received from the EU in public funding, and the £1.5bn allocated directly to British organisations. Fine, the Leavers say, the latter could be better managed by the UK after Brexit (with more for the NHS and less for agriculture).

But this entire discussion ignores that EU withdrawal is set to leave the UK with less, rather than more, to spend. As Carl Emmerson, the deputy director of the Institute for Fiscal Studies, notes in a letter in today's Times: "The bigger picture is that the forecast health of the public finances was downgraded by £15bn per year - or almost £300m per week - as a direct result of the Brexit vote. Not only will we not regain control of £350m weekly as a result of Brexit, we are likely to make a net fiscal loss from it. Those are the numbers and forecasts which the government has adopted. It is perhaps surprising that members of the government are suggesting rather different figures."

The Office for Budget Responsibility forecasts, to which Emmerson refers, are shown below (the £15bn figure appearing in the 2020/21 column).

Some on the right contend that a blitz of tax cuts and deregulation following Brexit would unleash  higher growth. But aside from the deleterious economic and social consequences that could result, there is, as I noted yesterday, no majority in parliament or in the country for this course. 

George Eaton is political editor of the New Statesman.