Miliband moves to close down Balls speculation

The Labour leader has enough tricky policy questions coming his way. He doesn't want to be quizzed about personnel too.

Ed Miliband, on the Andrew Marr programme today, when asked about speculation that his brother David might be brought back to Labour’s front line to serve as shadow chancellor, said “there is no vacancy” – which, of course, there isn’t. That is a stock formula for equivocation disguised as certainty. It sounds like a definitive backing of the incumbent without closing down any longer term options. There is no vacancy now. That doesn’t mean there won’t ever be one. But Miliband also said that Ed Balls would "absolutely" be Shadow Chancellor going into the election campaign – a level of support that has hitherto been lacking.

The will-he-won’t-he sack Balls debate is a Westminster parlour game that falls in and out of fashion every few months. There has been a particularly intense bout of speculation recently (about which I blogged more extensively here). Miliband’s dilemma is that he wants to keep options open in case it becomes apparent that Labour’s lack of an effective economic message – or, rather, lack of a popular message-giver – is in danger of costing the election, but if he allows speculation to rumble on it overshadows the rest of his political project. Soap opera and pop psychology easily squeeze policy development and nuanced positioning out of the news. That is especially true when policy development is slow and positioning is cautious.

Miliband will have been particularly keen to kill off the Balls-related speculation as he is about to undertake a risky political manoeuvre that is not universally supported in the shadow cabinet and the party. He confirmed today that he has no intention of matching David Cameron’s pledge to hold a referendum on Britain’s European Union membership – a gambit the Prime Minister is universally expected to make in a speech on 22nd January. As I reported in my column last week, Miliband intends to take what he and his allies see as the statesmanlike moral high ground, attacking Cameron for gambling with Britain’s vital alliances and destabilising the economy in the process purely to salvage his position in a frustrated and rebellious Tory party.

But there are those in the Labour party who worry that Miliband will not be able to sustain that position through an election campaign. He will constantly be asked why the Tories feel confident asking the people for their view on Europe while Labour appears to be running scared. Even those in the shadow cabinet who support Miliband’s current position recognise that the going will be tough. (Much depends on whether the Liberal Democrats acquiesce to the referendum pledge or back the Miliband line – Nick Clegg has the power to leave one of the Labour or Tory leaders looking painfully isolated on an issue of  national significance, a rare bit of leverage the Lib Dem leader will no doubt be keen to prolong and exploit.)

Either way, Miliband does not want to spend the next few weeks, when he will have to answer plenty of difficult questions about his holding-pattern policies on everything from welfare to the economy to Europe, also answering questions about whether his shadow chancellor is a temporary feature or a permanent fixture.

Ed Miliband and Ed Balls. Source: Getty

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.