Posts Tagged ‘chancellor of the exchequer’

John McDonnell and George Osborne: Two faces of Gordon Brown

19/04/2016, 10:56:55 AM

by Jonathan Todd

John McDonnell is bringing to mind the Gordon Brown of the 1992 parliament, while George Osborne is coming to appear the Brown of the 2005 parliament. Where Brown had neo-endogenous growth theory, McDonnell has an entrepreneurial state; both have public investment at their core. Where the later Brown had 10p tax, Osborne has tax credits; too clever by half missteps by Stalins transfiguring into Mr Beans.

“Business investment is falling,” McDonnell noted in a speech last month. “Exports are falling. The productivity gap between Britain and the rest of the G7 is the widest it has been for a generation. Without productivity growth, we cannot hope, over the long term, to improve living standards for most people.”

It is a powerful critique, grounded not in the overthrow of capitalism but in making it work more efficiently. Notwithstanding their divergent accents, you can close your eyes and imagine Brown, as shadow chancellor, castigating the Major government. Or more recently, Ed Balls attacking the Cameron administration.

The fiscal rule that McDonnell espoused in his speech might be interpreted as a crisper version of that which Balls took Labour into the last election with. The practical consequences of the McDonnell and Balls fiscal rules may be little different but McDonnell more explicitly backs capital spending.

“We believe,” McDonnell declared, “that governments should not need to borrow to fund their day-to-day spending.” This hawkish position on current spending contrasts with a more dovish approach to capital spending. “Alongside this, we recognise the need for investment which raises the growth rate of our economy by increasing productivity as well as stimulating demand in the short term.”


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George Osborne has learned his trade from Gordon Brown

10/12/2012, 09:07:19 AM

by David Talbot

“To bring all these decisions for many benefits over many years together,” Osborne told the House of Commons last Wednesday, “we will introduce into parliament primary legislation – the welfare uprating bill. I hope it commands support from both sides of the House of Commons”.

At that moment a thin smile seemed to escape the chancellor’s lips. Or if it didn’t, it should have done. For it represented the Damascene conversion of George Osborne to the scriptures of a once imperious Gordon Brown. And it was a moment of horribly low cunning that was eerily familiar for the Labour benches.

The announcement managed the near politically impossible. It will raise money, it will be popular and it will trap the opposition. It is vintage Gordon Brown, from the days when he was still known as the iron chancellor rather than the flailing prime minister of more recent memory. Yes, it’s easy to forget, but at one time, Brown was the political master of all he surveyed.

The guttural roar that greeted Osborne’s announcement from the Tory backbenches signified wholehearted approval of their chancellor’s ruse.  Budgets are meant to be about economics. But for the two most political chancellors of the modern era, everything is politics. The statistics, forecasts, tax and public spending changes are immaterial for the political battleground with their hated opposition.


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