Osborne under fire for “misleading the public”

The chancellor, George Osborne, came under fire today from MPs on the Treasury select committee, charged with “misleading the public” for claiming the UK was near bankruptcy in the weeks after he took office. He was accused of using inflammatory language to justify massive public spending cuts. The committee chairman, Tory MP Andrew Tyrie, said Osborne’s claim that Britain had been “on the brink of bankruptcy” was “a bit over the top”. He also challenged the chancellor’s claims that his emergency budget had been progressive, accusing him of “over-egging it a bit”. Tyrie’s comments followed heated exchanges during which Osborne was tackled over his handling of plans to cut central and local government spending. The chancellor has repeatedly justified the cuts as a reasonable response to unprecedented debt levels and the threat from credit ratings agencies to downgrade the UK’s blue-chip AAA rating […] “I think there is something there to look at when making these remarks, which do look to me more like the language of opposition than government. Tell it as it is.” – The Guardian

Mr Osborne, who appeared before a Commons committee yesterday, was criticised by its Conservative chairman, Andrew Tyrie, for exaggerated claims that his recent budget was progressive – affecting the rich more than the poor, despite strong declarations from the respected independent think tank the Institute of Fiscal Studies that it would have exactly the opposite effect, particularly after 2012. Equally, Mr Tyrie was unhappy that Mr Osborne had exaggerated the dangers facing the UK earlier this year by saying that the country was close to bankruptcy. Mr Osborne should be more statesmanlike now that he holds senior political office, said Mr Tyrie. However, the chancellor was unrepentant: “The situation I found myself in May this year was incredibly serious for this country. The largest bond investor in the world said UK gilts were a no-go area.” – Irish Times

Cable vs Cameron: round 26

David Cameron has moved to head off a damaging row with Vince Cable by allowing companies based in London to transfer employees from abroad to the capital without falling foul of the Government’s new immigration cap. The Business Secretary has been at loggerheads with the Prime Minister over the issue and warned that companies were considering moving jobs abroad because they could not recruit the staff they needed. Mr Cameron said yesterday that new limits on non-European immigration would not mean a change to existing “inter-company transfers”. It will be criticised by some Conservative MPs who will see it as a further “sop” to the Lib Dems that waters down tougher Tory measures. – The Telegraph (more…)

Cameron under fire for “vanity” hires

The news that a photographer Andy Parsons, who once worked for the Conservatives, has been put on the civil service payroll, seems to fit a pattern of behaviour over the last few months. Not just by the Conservatives, but the Liberal Democrats too. This would be a serious issue at the best of times, but is especially so at a time when nearly all parts of the civil service are having to make huge cuts. In addition to Mr Parsons there are two other Conservative cases: Nicky Woodhouse, a Conservative film-maker who was responsible for the internet propaganda service Web-Cameron, and who started work this Monday making films for the government. And Rishi Saha, who worked as head of new media for the Conservatives during the election campaign, and is now deputy director of communications in the Cabinet Office (and effectively head of digital communications, in charge of the websites run by the Cabinet Office and Number 10). – Michael Crick, BBC

DAVID CAMERON has taken on two new workers to improve his image – as he prepares to cut half a million public sector jobs. The PM has put Andrew Parsons, who documented his election campaign, on the public payroll as his personal photographer. And a web producer has also been recruited to the civil service to sharpen Cameron’s online messages. Labour leader Ed Miliband said the appointments cast doubt on Cameron’s judgment at a time when he was “telling everybody to tighten their belts”. At Prime Minister’s questions, Miliband mocked the PM’s claim to be making “hard choices” as a result of tight public finances. – Daily Record

Downing Street sources insisted that the appointments would ultimately save money for the taxpayer as they would end the need to hire expensive freelance photographers and film crews. Both Mr Parsons and Ms Woodhouse would work across all departments, documenting the work of dozens of ministers, they said. Two Labour MPs wrote to Sir Gus O’Donnell, the Cabinet Secretary, yesterday questioning whether proper procedures had been followed in making the appointments. Michael Dugher, the MP for Barnsley East, said: “Why is it that when the Government is putting half a million people out of work, Mr Cameron feels the need to recruit someone previously employed by the Conservative Party to be his personal photographer?” – The Independent

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