Morning Call: pick of the papers

The ten must-read comment pieces from this morning's papers.

1. London must be free to tax and spend (Financial Times)

Other capital cities have a wider tax base and more freedom to set rates, writes Tony Travers.

2. Big business mustn’t crush little guys in cars (Times)

If oil executives have fixed prices there should be a windfall tax and jail sentences, says Robert Halfon.

3. European Union: if the 'outs' get their way, we'll end up like Ukraine (Guardian)

There will come a point when Britain's relationship with the EU will change: to rush to the exit now would be a leap in the dark, says Vince Cable. 

4. France should face up to its fears (Financial Times)

The realisation of what is needed explains the people’s profound anxiety, writes Maurice Lévy.

5. Old Tory scepticism has won, yet Europe still ravages the party (Independent)

Eurosceptic anxiety under Blair was partly justified, says Steve Richards. They were right to be on their guard.

6. Have MPs learnt a thing since 2009? Their greed suggests not (Daily Telegraph)

The expenses scandal hasn't gone away, with politicians of all shades still milking the system, writes Peter Oborne.

7. Work on into your 70s. It will be good for you (Times)

Putting off retirement is good for the economy, writes Mark Littlewood. And people will be happier, healthier and wealthier too.

8. We have to decide to listen to sexually abused children (Guardian)

The cost of ignoring the girls involved in the Oxford case is too high, writes Zoe Williams. Why weren't they given this basic human respect

9. Who’s the odd one out in Europe? Not us (Independent)

France has left Germany's side and the public mood is heading south, writes Andreas Whittam Smith.

10. Mauling for Maude over his plans for change (Daily Telegraph)

Bernard Jenkin's select committee are putting the boot in over civil service reform, says Sue Cameron.

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How austere will Philip Hammond be?

The Chancellor must choose between softening or abandoning George Osborne's approach in his Autumn Statement. 

After becoming Chancellor, Philip Hammond was swift to confirm that George Osborne's budget surplus target would be abandoned. The move was hailed by some as the beginning of a new era of fiscal policy - but it was more modest than it appeared. Rather than a statement of principle, the abandonment of the 2019-20 target was merely an acceptance of reality. In the absence of additional spending cuts or tax rises, it would inevitably be missed (as Osborne himself recognised following the EU referendum). The decision did not represent, as some suggested, "the end of austerity".

Ahead of his first Autumn Statement on 23 November, the defining choice facing Hammond is whether to make a more radical break. As a new Resolution Foundation report notes, the Chancellor could either delay the surplus target (the conservative option) or embrace an alternative goal. Were he to seek a current budget suplus, rather than an overall one (as Labour pledged at the last general election), Hammond would avoid the need for further austerity and give himself up to £17bn of headroom. This would allow him to borrow for investment and to provide support for the "just managing" families (as Theresa May calls them) who will be squeezed by the continuing benefits freeze.

Alternatively, should Hammond merely delay Osborne's surplus target by a year (to 2020-21), he would be forced to impose an additional £9bn of tax rises or spending cuts. Were he to reject any further fiscal tightening, a surplus would not be achieved until 2023-24 - too late to be politically relevant. 

The most logical option, as the Resolution Foundation concludes, is for Hammond to target a current surplus. But since entering office, both he and May have emphasised their continuing commitment to fiscal conservatism ("He talks about austerity – I call it living within our means," the latter told Jeremy Corbyn at her first PMQs). For Hammond to abandon the goal of the UK's first budget surplus since 2001-02 would be a defining moment. 

George Eaton is political editor of the New Statesman.