Support 100 years of independent journalism.

  1. Spotlight
  2. Elections
27 August 2010

Has this speech won Balls the shadow chancellorship?

Balls thrusts himself back into the spotlight with attack on George Osborne as a “growth denier”.

By George Eaton

In his column in this week’s magazine, Irwin Stelzer argues that Ed Balls is the only Labour leadership candidate with a solid grasp of economics. Balls will be hoping that his speech at Bloomberg HQ this morning (the setting for George Osborne’s attack on the “deficit deniers” last week) has proved as much.

All of the Labour leadership candidates have challenged the government’s decision to cut spending this year, but Balls’s speech is the most sustained and forensic attack on the coalition’s economic policy we’ve yet seen.

In a neat riposte to Osborne, he labelled the Chancellor a “growth denier”, who is ignoring warning signs of a double-dip recession. “What he is now doing is the equivalent of ripping out the foundations of the house just as the hurricane is about to hit,” he said.

With figures from both left and right now saying a double-dip recession is possible, Osborne can no longer credibly claim that such talk is “Labour scaremongering”. But will the “growth denier” label hurt him? That will likely depend on what the Q3 figures (due out on 26 October) look like.

Select and enter your email address Quick and essential guide to domestic and global politics from the New Statesman's politics team. A weekly newsletter helping you fit together the pieces of the global economic slowdown. The New Statesman’s global affairs newsletter, every Monday and Friday. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A newsletter showcasing the finest writing from the ideas section and the NS archive, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

For now, while polling suggests that voters are increasingly nervous of the coming cuts, most accept Osborne’s argument that the need to reduce the country’s £149bn deficit trumps everything else. Voters who are tightening their belt see no reason why the state should not do the same.

Content from our partners
A global hub for content producers, gaming and entertainment companies in Abu Dhabi
Insurance: finding sustainable growth in stormy markets
Why public health policy needs to refocus

As for Balls, having correctly predicted that the coalition would raise VAT to 20 per cent, he will be hoping that his prescience has not deserted him on this occasion. If “the hurricane” that Balls warns of doesn’t materialise, his words will be dismissed as partisan hyperbole.

But the politics of this speech may turn out to be as significant as the economics. As the Spectator’s Peter Hoskin points out, the speech was a transparent pitch for the shadow chancellorship. But whether Balls turns out to be the shadow chancellor of the coalition’s dreams or nightmares may depend on what those Q3 figures look like.