As George Osborne sat down to the sound of rapturous applause and shaking order papers, he had achieved what few had thought possible. He had fronted up to the biggest political challenge facing a chancellor in years and ended not just still standing, but firmly on the front foot.
After a hoarse hour spelling out the detail on the investment and the reasoning behind the savings, Osborne climaxed his comprehensive spending review with the sort of political sleight of hand that must have had the absent Gordon Brown nodding in grudging approval. After all the cuts, all the efficiencies, the elimination of Labour waste, the fledgling government, thanks to turning around the economy, had actually cut less than Darling had planned. Your move Mr Johnson.
Except, of course, that he hadn’t. Osborne’s move was calculated to win a short term tactical battle. The treasury team would never have attempted such a move against a Brown or a Darling. They took the gamble to instantly put Labour’s new shadow chancellor under pressure. The braying 30 and 40 somethings in the cheap seats loved it. Of course they did. The backbenchers were raucous but whilst this was a tactical triumph it was a strategic disaster. (more…)