Osborne at the royal mint. Photo: Matthew Horwood - WPA Pool/Getty Images
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What the budget will not reveal: Osborne has been more pragmatic than his image suggests

This looks set to be a minimalist budget - but not all is as it seems, and opposition Ed Balls would do well to veer away from it sooner rather than later.

Most voters are oblivious to the day-to-day combat at Westminster; their preferences are shaped by longer-term trends. The Budget is an exception. In this parliament, George Osborne’s 2012 “omnishambles” Budget, which entrenched the impression of the Conservatives as the party of the rich, is the most salient example.

It initially appeared likely that this year’s Budget (on 18 March) would be a minimalist affair. The Liberal Democrats briefed that they would strike no significant deals with the Tories on account of their desire to distance themselves from their coalition partners in advance of the general election. Mr Osborne, it seemed, would be denied the chance to unleash any fiscal fireworks. But more recent briefings suggest there will at least be a few sparklers. The government is reported to be considering raising the personal income-tax allowance to nearly £11,000, rather than the scheduled £10,600, after lower-than-expected inflation (which has reduced the cost of debt interest payments) gifted the Chancellor a £5bn windfall.

A cut in this very visible tax would be politically adroit but more progressive options exist. A further increase in the personal allowance will not benefit the 4.6 million workers who earn too little to pay tax; the biggest winners would be households in the top half of the income distribution. A better course would be to raise the National Insurance threshold (now at £7,956) or to cut VAT, which hits the poorest hardest.

Having failed to meet his original deficit reduction targets (borrowing this year is forecast to exceed £80bn), Mr Osborne has scheduled several more years of austerity. As a result of his plan to achieve a £23bn surplus by 2019-20, while cutting taxes by £7.2bn and avoiding further tax rises, the UK faces even greater cuts than those imposed since 2010. As Ed Balls noted in a speech on 9 March, public spending as a share of GDP, based on current trends, would fall to its lowest since the 1930s, the army would be reduced to its smallest size since Cromwell and three departments – the Foreign Office, the Department for Work and Pensions and the Department for Transport – would have no day-to-day budgets left at all. If this seems incredible, it is because it is. Rather than implementing his programme, Mr Osborne is likely to raise VAT again or to extend his deficit reduction timetable.

Yet the Chancellor, as Mr Balls says in his interview with George Eaton on page 34, has been more pragmatic than his axe-wielding image suggests. Rather than chasing his original targets when growth stalled, he allowed borrowing to rise by £219bn more than planned. This fiscal loosening partly explains the UK’s robust if much-delayed recovery. The trouble, Mr Balls says, is: “He’s learned the wrong lessons and he thinks now, at the beginning of the next parliament, you should go back to the plan at the beginning of the last one.” There is no economic need for Britain to run an absolute surplus in five years’ time. The most sensible course, as Labour and the Liberal Democrats propose, is to eliminate the current Budget deficit while leaving room to borrow to invest in housing, transport and other infrastructure projects.

Unlike some in his party, Mr Osborne is not a simple-minded libertarian. He recognises the necessity of active government to support growth, recently comparing himself to that champion of interventionism, Michael Heseltine. However, if he is truly intent on regenerating the Conservatives, he should change course now rather than after 7 May. 

It's just not cricket

The England cricket team will return from the World Cup defeated and humiliated. Having been thrashed by Australia, New Zealand and Sri Lanka, England were put out of their misery by plucky Bangladesh, a performance Mike Selvey at the Guardian described as among the worst he had seen in 30 years reporting on our summer game. English cricket is the author of its own misfortune. The England and Wales Cricket Board (ECB) is greedy and complacent. The relentless schedule to which it has committed the national team has wearied and bored the players. The hapless coach, Peter Moores, seems to speak entirely in management gobbledegook. The one-day team does not even have an English captain: Eoin Morgan is an Irishman, who understandably refuses to sing the national anthem and, less understandably, keeps getting out for nought. The one saving grace for the ECB is that the public does not seem much to care. Could it be that cricket in England is a dying game? 

This article first appeared in the 13 March 2015 issue of the New Statesman, Israel's Next War

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Donald Tusk is merely calling out Tory hypocrisy on Brexit

And the President of the European Council has the upper hand. 

The pair of numbers that have driven the discussion about our future relationship with the EU since the referendum have been 48 to 52. 

"The majority have spoken", cry the Leavers. "It’s time to tell the EU what we want and get out." However, even as they push for triggering the process early next year, the President of the European Council Donald Tusk’s reply to a letter from Tory MPs, where he blamed British voters for the uncertain futures of expats, is a long overdue reminder that another pair of numbers will, from now on, dominate proceedings.

27 to 1.

For all the media speculation around Brexit in the past few months, over what kind of deal the government will decide to be seek from any future relationship, it is incredible just how little time and thought has been given to the fact that once Article 50 is triggered, we will effectively be negotiating with 27 other partners, not just one.

Of course some countries hold more sway than others, due to their relative economic strength and population, but one of the great equalising achievements of the EU is that all of its member states have a voice. We need look no further than the last minute objections from just one federal entity within Belgium last month over CETA, the huge EU-Canada trade deal, to be reminded how difficult and important it is to build consensus.

Yet the Tories are failing spectacularly to understand this.

During his short trip to Strasbourg last week, David Davis at best ignored, and at worse angered, many of the people he will have to get on-side to secure a deal. Although he did meet Michel Barnier, the senior negotiator for the European Commission, and Guy Verhofstadt, the European Parliament’s representative at the future talks, he did not meet any representatives from the key Socialist Group in the European Parliament, nor the Parliament’s President, nor the Chair of its Constitutional Committee which will advise the Parliament on whether to ratify any future Brexit deal.

In parallel, Boris Johnson, to nobody’s surprise any more, continues to blunder from one debacle to the next, the most recent of which was to insult the Italians with glib remarks about prosecco sales.

On his side, Liam Fox caused astonishment by claiming that the EU would have to pay compensation to third countries across the world with which it has trade deals, to compensate them for Britain no longer being part of the EU with which they had signed their agreements!

And now, Theresa May has been embarrassingly rebuffed in her clumsy attempt to strike an early deal directly with Angela Merkel over the future residential status of EU citizens living and working in Britain and UK citizens in Europe. 

When May was campaigning to be Conservative party leader and thus PM, to appeal to the anti-european Tories, she argued that the future status of EU citizens would have to be part of the ongoing negotiations with the EU. Why then, four months later, are Tory MPs so quick to complain and call foul when Merkel and Tusk take the same position as May held in July? 

Because Theresa May has reversed her position. Our EU partners’ position remains the same - no negotiations before Article 50 is triggered and Britain sets out its stall. Merkel has said she can’t and won’t strike a pre-emptive deal.  In any case, she cannot make agreements on behalf of France,Netherlands and Austria, all of who have their own imminent elections to consider, let alone any other EU member. 

The hypocrisy of Tory MPs calling on the European Commission and national governments to end "the anxiety and uncertainty for UK and EU citizens living in one another's territories", while at the same time having caused and fuelled that same anxiety and uncertainty, has been called out by Tusk. 

With such an astounding level of Tory hypocrisy, incompetence and inconsistency, is it any wonder that our future negotiating partners are rapidly losing any residual goodwill towards the UK?

It is beholden on Theresa May’s government to start showing some awareness of the scale of the enormous task ahead, if the UK is to have any hope of striking a Brexit deal that is anything less than disastrous for Britain. The way they are handling this relatively simple issue does not augur well for the far more complex issues, involving difficult choices for Britain, that are looming on the horizon.

Richard Corbett is the Labour MEP for Yorkshire & Humber.