Posts Tagged ‘economic competence’

It’s still the economy, stupid, which is why the two Eds should be worried about 2013

31/12/2012, 08:00:15 AM

by Atul Hatwal

The Christmas break will have been a time for some self-congratulation in Labour leadership circles. A solid poll lead, a divided coalition and high hopes for the coming year.

Ed Miliband had a passage in his stump speech on the circuit of pre-Christmas Westminster receptions where he talked about the unprecedented position of strength Labour is in for a new opposition, with such a lead at this stage in the parliament. He is factually right, but then the competition for most effective new opposition is not terrific. In the past 33 years, there’s a choice of two: either William Hague’s Tories or Michael Foot’s Labour party.

And at this point in Mrs.Thatcher’s first term, two and a half years after the election, even Michael Foot managed an average lead over the Tories of 3% (averaging the four polls in November 1981 – h/t Mark Pack and his magnificent polling spreadsheet).

When considering unprecedented political phenomena, Ed Miliband, and indeed Ed Balls, might want think more carefully about where the party stands with voters on economic competence.

Decades of polling gives a very clear message: no opposition has won an election without a commanding lead on the economy.

In 1979, voters preferred Jim Callaghan to Margaret Thatcher as PM by 50% to 31%, but still elected the Tories who led on economic issues by an average margin of 10%. In 1997, Labour led by 10% on the economy at the election, while in 2010 the Tories led by 8%.

Currently. Labour is 11% behind on economic competence and no opposition has gone on to win the next election when trailing the government on the economy, after two and half years.

Typically, there just isn’t the time left in the parliament to overhaul the government lead and build a sufficient cushion prior to the inevitable narrowing of the polls as election day draws near. Based on the polling facts, a Labour victory in 2015, from this position, would truly be unprecedented.

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What will it take for voters to choose Labour over the Tories on the economy?

27/07/2012, 07:00:25 AM

by Atul Hatwal

It’s the question on which the next election will turn.

David Cameron and George Osborne have been at the helm for just over two years and in that time the economy has been shrinking for five out of eight quarters.

While other countries that were also in the eye of the financial storm, such as the USA, have recouped their lost output since 2008 and are growing, our economy is still 4.5% smaller than when the banks collapsed.

Even in the nightmare of the Eurozone, only Italy is in a double dip recession like Britain.

The situation could hardly be worse, but still, almost beyond logic and certainly beyond the comprehension of most of the Labour movement, the public believe Cameron and Osborne to be more economically competent than Ed Miliband and Ed Balls by a double digit margin.

July’s ICM poll had the Tory incumbents in an 11% lead over Labour’s challengers. This lead actually grew between June and July by 2% from 9% to 11%.

So what would it take for the two Ed’s to take the lead or at least wipe out the deficit?

ICM has regularly asked voters which of the competing political duos they would prefer to be running the economy in their monthly polls for the Guardian, over the past nine months.

Mapping the Cameron/Osborne lead over Miliband/Balls against the actual movements in growth over these three quarters gives us a sense of whether there is a link between growth and the public’s preference, and if so, how bad the economic situation would need to become for Labour to be preferred.

Based on the last three quarters, it is clear there is a correlation between growth and the Cameron/Osborne lead.

The minor easing in the rate of economic contraction at the start of 2012 was mirrored in a slight increase in the Tory lead while the steep acceleration in decline in the second quarter this year was reflected in a sharp fall in the Cameron/Osborne lead from 17.5% to 10%.

Electorally for Labour, that’s the good news. Cameron and Osborne are definitely paying a price for their economic incompetence.

But then comes the very bad news.

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