What happens in Greece will not stay there. Photo: Getty Images
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What happens in Greece will not stay there. The Prime Minister must act

Rachel Reeves surveys the scene ahead of the UK's budget and explains why she's backing Andy Burnham for Labour leader.

In the aftermath of the Greek referendum, the threat of instability in the Eurozone reminds us that Britain cannot insulate itself from global economic forces. So we need this week’s Budget to help build a more resilient economy – securing our public finances, productivity and competitiveness.

Tony Blair and Gordon Brown rightly kept us out of the single currency that was supposed to deliver stability - but is currently creating the opposite. Yet we would be naïve to think that disruption on our doorstep will not have consequences at home. In Europe and at the IMF the British Prime Minister and Chancellor should be arguing for a new deal for Greece, including proper restructuring of the Greek economy but also more time and greater debt write-downs. Without this, more austerity is simply going to deliver higher unemployment, lower output, and deeper deficits.

But uncertainty abroad also underscores the importance of securing our position at home.

Before the 2007 global financial crisis hit, Britain’s national debt was less than 40 per cent of GDP. Today it is more than 80 per cent. It will be the work of this, and future, parliaments to get it back to sustainable pre-crisis levels. This is not only so we can withstand external shocks, it is also essential for ending a situation where annual debt interest payments are set to exceed £50bn a year – more taxpayers’ money going to bondholders every year than we pay to the teachers in our schools or the nurses in our hospitals. We must deal with our debt precisely so we can release resources for the public services we believe in and the infrastructure our economy needs.

Labour is committed to this task. But we will need to be clearer than we were at the last election about a timetable for getting the deficit down and set a target for when we would get the national debt back to pre-crisis levels. The approach Labour committed to before the election could have seen debt still above 65 per cent in 2030. We must admit the mistakes of the past, and be clear that while spending on public services did not cause the financial crisis, the deficit that we were running when the shock hit meant we weren't as prepared as we should have been. Andy Burnham understands this, and this is exactly why I am backing him for Leader of the Labour Party. Looking forward, we should commit to run a surplus when the economy is growing at or above its historic average rate, allowing us to bring the debt down more quickly. And the Office for Budget Responsibility should be the independent arbiter of the government’s progress in this.

Getting our debt down as a share of GDP means cutting departmental spending as well as driving efficiency across all our public services. But crucially, it also means building a more productive and inclusive economy, raising earnings and reducing reliance on benefits and tax credits.

Early in the last Parliament, George Osborne promised to “rebalance the economy” with a “march of the makers”. But since then we have seen productivity stagnate, our current account deficit rise to record levels, and a fragile recovery that remains too reliant on household borrowing and which has yet to be felt in many parts of the country.

The underlying weaknesses and imbalances in our economy pose no less a risk to our future stability and prosperity than the unsustainable state of our public finances. We need a Budget that rises to both challenges.

Take social security spending, Labour supports the principle of a benefit cap to ensure our welfare system is fair, affordable and rewards hard work. But to make significant savings from social security we need a Budget to create more productive, high skilled, better paid jobs. Without this, cutting away support for low-paid workers, as this government plans, risks weakening work incentives and deepening the division and disadvantage that prevent us making the most of our country’s potential.

Now is not the time to be timid, now is the time to be bold and so on Wednesday, the Chancellor should announce an increase in the minimum wage. And with five million people paid less than living wage, there should be tax breaks for firms who will pay the living wage, better use of government procurement and a requirement on companies to report on whether they pay the living wage so consumers can vote with their purses and wallets.

And crucially, this week's budget needs to back the entrepreneurs and employers who create jobs – rewarding innovation and investment, improving access to finance, and doing what it takes to secure the research base, skilled workforce and world class infrastructure businesses need.

With a focus on economic credibility, constructive engagement with business and a bold plan for technical education and skills, Andy has shown that he gets this - and the need for Labour to lead the debate over Britain’s economic future.

That’s why I am pleased to be co-chairing Andy's Business Panel which launched last week alongside Graham Cole, chair of Augusta Westland, and Shabir Randeree, Chair of DCD group. This week the panel met for the first time to start the conversation in which we will work to engage businesses of all shapes and sizes throughout the country – so that Labour can best understand what businesses need to create the jobs and opportunities to grow our economy.

Dealing decisively with the deficit and the debt are essential to good economic management, but so is a strategy to raise the productivity of our workforce and the competitiveness of our businesses. If this week’s budget does not rise to this twin challenge, we in the Labour Party must show that we can.

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If there’s no booze or naked women, what’s the point of being a footballer?

Peter Crouch came out with one of the wittiest football lines. When asked what he thought he would have been but for football, he replied: “A virgin.”

At a professional league ground near you, the following conversation will be taking place. After an excellent morning training session, in which the players all worked hard, and didn’t wind up the assistant coach they all hate, or cut the crotch out of the new trousers belonging to the reserve goalie, the captain or some senior player will go into the manager’s office.

“Hi, gaffer. Just thought I’d let you know that we’ve booked the Salvation Hall. They’ll leave the table-tennis tables in place, so we’ll probably have a few games, as it’s the players’ Christmas party, OK?”

“FECKING CHRISTMAS PARTY!? I TOLD YOU NO CHRISTMAS PARTIES THIS YEAR. NOT AFTER LAST YEAR. GERROUT . . .”

So the captain has to cancel the booking – which was actually at the Salvation Go Go Gentlemen’s Club on the high street, plus the Saucy Sporty Strippers, who specialise in naked table tennis.

One of the attractions for youths, when they dream of being a footballer or a pop star, is not just imagining themselves number one in the Prem or number one in the hit parade, but all the girls who’ll be clambering for them. Young, thrusting politicians have similar fantasies. Alas, it doesn’t always work out.

Today, we have all these foreign managers and foreign players coming here, not pinching our women (they’re too busy for that), but bringing foreign customs about diet and drink and no sex at half-time. Rotters, ruining the simple pleasures of our brave British lads which they’ve enjoyed for over a century.

The tabloids recently went all pious when poor old Wayne Rooney was seen standing around drinking till the early hours at the England team hotel after their win over Scotland. He’d apparently been invited to a wedding that happened to be going on there. What I can’t understand is: why join a wedding party for total strangers? Nothing more boring than someone else’s wedding. Why didn’t he stay in the bar and get smashed?

Even odder was the behaviour of two other England stars, Adam Lallana and Jordan Henderson. They made a 220-mile round trip from their hotel in Hertfordshire to visit a strip club, For Your Eyes Only, in Bournemouth. Bournemouth! Don’t they have naked women in Herts? I thought one of the points of having all these millions – and a vast office staff employed by your agent – is that anything you want gets fixed for you. Why couldn’t dancing girls have been shuttled into another hotel down the road? Or even to the lads’ own hotel, dressed as French maids?

In the years when I travelled with the Spurs team, it was quite common in provincial towns, after a Saturday game, for players to pick up girls at a local club and share them out.

Like top pop stars, top clubs have fixers who can sort out most problems, and pleasures, as well as smart solicitors and willing police superintendents to clear up the mess afterwards.

The England players had a night off, so they weren’t breaking any rules, even though they were going to play Spain 48 hours later. It sounds like off-the-cuff, spontaneous, home-made fun. In Wayne’s case, he probably thought he was doing good, being approachable, as England captain.

Quite why the other two went to Bournemouth was eventually revealed by one of the tabloids. It is Lallana’s home town. He obviously said to Jordan Henderson, “Hey Hendo, I know a cool club. They always look after me. Quick, jump into my Bentley . . .”

They spent only two hours at the club. Henderson drank water. Lallana had a beer. Don’t call that much of a night out.

In the days of Jimmy Greaves, Tony Adams, Roy Keane, or Gazza in his pomp, they’d have been paralytic. It was common for players to arrive for training still drunk, not having been to bed.

Peter Crouch, the former England player, 6ft 7in, now on the fringes at Stoke, came out with one of the wittiest football lines. When asked what he thought he would have been but for football, he replied: “A virgin.”

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 01 December 2016 issue of the New Statesman, Age of outrage