Showing posts with label Ed Balls. Show all posts
Showing posts with label Ed Balls. Show all posts

Thursday, June 16, 2011

Was public debt really lower in 2008 than in 1997?

Ed Balls keeps banging away that the national debt was smaller before the crisis than they inherited from the Conservatives. The other day Labour List used this graph to illustrate his point.


Damning stuff, except it's two data points, let's look at the whole picture from 1999 to present courtesy of the ONS (It's the graph on the right we're interested in).

So what does this show, it shows that from when they took over and whilst they were following Conservative spending plans, national debt as a percentage of GDP did indeed fall, (aided as well by the sale of 3G mobile phone licences for £22.37bn in 2000, which as Ed Balls said this morning went towards paying off national debt.), but as soon as Labour economic policies kicked in we saw an upward trajectory. By 2008 we were already running a significant structural deficit, then we had the crisis which was an excuse for opening the spending taps even more. 

What's important to remember is that this graph excludes interventions in the banking sector, so the debt didn't go up in 2008 because we bailed out the banks, as the language Balls uses always implies. Trust me you don't even want to see that graph, in April 2011 debt including interventions was 148.9% of GDP.

So next time someone tells you that the debt was lower in 2008 than in 1997, ask them if they know what it was in 2002.

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Wednesday, June 8, 2011

Is it Christmas already?

Ed Balls latest campaign "Britain's Lost Talent" has been launched on Labour's Campaign Engine Room site. It's a blatant attempt to cash in on the success and media interest of Britain's Got Talent, (something that has failed miserably) and even has a showbiz style logo.

Unfortunately someone in the Labour Party's graphic design department seems to think that snowflakes are the same as stars.

Or is it just so bad there are the moment that they're wishing it was Christmas already?

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Tuesday, March 22, 2011

The Ed Balls Strategy

Last week’s opposition day debate was supposed to be on the Police. As Shadow Secretary of State for the Home Office, Yvette Cooper had put her motion to the Speaker, lined up her speakers and was putting the finishing touches to her speech when suddenly her husband Ed Balls popped up and changed everything.

You see “the Balls”, as I’m sure he dreams people called him, appears to be leading on Labour strategy, and as far as he’s concerned it’s “the economy stupid” that matters and nothing else. The Tory-led government are taking risks and cutting too far too fast and that’s affecting the man on the street and it’s the only message the public care about.

That he’s committing Labour to fight the government on the economy almost alone is clear from today’s Treasury OPQ order paper, which shows a clear whipping effort from Balls to get his questions in there.

For those that don’t know the order of who asks a question at OPQs is the result of a ballot. You can enter the ballot by tabling either a topical question (which just gives you the right to ask any current topical question) or tabling a pre-written oral question. These are then put into “the shuffle” which I’m pretty sure is just a computer programme which randomly selects who will get to ask a question.

If you’ve ever looked at an order paper and wondered why so many people are on the same wave length and have asked the same question or almost the same question, then here’s the secret. The Whips send round a set of questions and ask their MPs to pick one that they like and submit it. There’s no formal whipping of it, i.e. no one says you must submit a question, or that you can’t put in your own question (many do), or at least there isn’t normally one.

However for today’s Treasury questions three times as many Labour MPs put in questions as for yesterday’s Education questions, so you have to ask who has been putting the pressure on, and my answer is of course “The Balls”. As a result of this effort the order paper is stuffed with Labour MPs and of course if they all submitted one of “The Balls’ ” questions then you end up with the same question many times (although the MP obviously gets to ask a supplementary as well, although this is supposed to be supplementary to their initial question).

So out of 25 questions the Chancellor will actually only be asked 16, and the country and Parliament is missing out on the chance to get an answer to 9 different questions .

Today’s order paper (questions grouped):
1) What assessment he has made of the effects on the economy of the trade in mortgage-backed securities and collateralised debt obligations. – to be asked by Bill Esterson (Sefton Central)

2) If he will bring forward proposals for a scheme to provide looked-after children with a savings account or trust fund funded by contributions from the Exchequer; and if he will make a statement. – to be asked by Sheila Gilmore (Edinburgh East)

3) If he will estimate the revenue to the Exchequer attributable to receipts from the increase in the standard rate of value added tax on road fuel. – asked by Albert Owen (Ynys Môn), Vernon Coaker (Gedling), and Anas Sarwar (Glasgow Central)

4) What assessment he has made of the effect on levels of employment of the increase in the standard rate of value added tax. – to be asked by Lindsay Roy (Glenrothes), and Mike Gapes (Ilford South)

5) What assessment he has made of the effect on consumer confidence of the increase in the standard rate of value added tax since his recent meeting with representatives of the retail industry. – to be asked by Eric Joyce (Falkirk)

6) What fiscal measures he has taken to support economic growth in the manufacturing sector. – to be asked by Stephen Metcalfe (South Basildon and East Thurrock), Andrew Stephenson (Pendle), and Amber Rudd (Hastings and Rye)

7) If he will review the pace of proposed reductions in public expenditure to take into account gross domestic product figures for the fourth quarter of 2010. – to be asked by Debbie Abrahams (Oldham East and Saddleworth), Graeme Morrice (Livingston), Barry Gardiner (Brent North), and Ian Mearns (Gateshead)

8) By what date he expects revenue to the Exchequer to match levels of public expenditure. – to be asked by Stephen Phillips (Sleaford and North Hykeham)

9) If he will (a) prepare and (b) publish an assessment of the relative effect of his forthcoming budget on women, families and ethnic minorities. – to be asked by Helen Goodman (Bishop Auckland)

10) What recent representations he has received on measures to reduce the budget deficit. – to be asked by Mark Lancaster (Milton Keynes North)

11) What recent assessment he has made of the effect on economic growth of the spending reductions set out in the June 2010 Budget. – to be asked by Mr Kevan Jones (North Durham), and Mr Geoffrey Robinson (Coventry North West):

12) What recent assessment he has made of trends in duty and value added tax on petrol. – to be asked by John Mann (Bassetlaw)

13) What steps he is taking to reduce the rate of inflation. – to be asked by Mr Douglas Carswell (Clacton)

14) What assessment he has made of the contribution of HM Revenue and Customs to reducing the budget deficit. – to be asked by Mrs Madeleine Moon (Bridgend)

15) If he will bring forward proposals for a further tax on bank bonuses. – to be asked by Heidi Alexander (Lewisham East)

16) What fiscal measures he has taken to support economic growth in Kent. – to be asked by Mrs Helen Grant (Maidstone and The Weald)

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Monday, March 14, 2011

Understatement of the Day

Ed Balls on Labour's handling of the economy:

“Did we spend every pound wisely? Of course we didn’t”

At least he's honest.

Hat-tip to Paul Waugh for spotting that gem.

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Thursday, March 3, 2011

Brown and Balls' gold sale has now cost country £9bn

Everyone knows that Gordon Brown sold off 400 tonnes of the government’s gold at the absolute bottom of the market in 1999. It is a fact so well known that gold traders even call it the “Brown Bottom” and of course this Conservative campaign poster helped as well.

However with gold reaching $1,437.20 an ounce yesterday, it’s becoming apparent just what that “mistake”, to which no Labour politician has ever apologised for, cost the country.

Then Chancellor Gordon Brown, and his advisors at the time, Ed Balls and Ed Milliband, who were copied into all correspondence relating to the sale, sold off our country’s Gold reserves at between $256 and $296 an ounce, raising £2.343 billion. If it was sold at today’s prices it would raise £11.2bn, an incredible £8.8bn difference.

To put that into perspective, a 1p reduction in fuel duty would cost the exchequer £500m, so this is enough to pay for a one year 18p reduction in fuel duty. Or to reverse the coming fuel duty rises scheduled by the last Labour government, and a few of those from the past for several years.

Bootnote:
Before anyone says, ahhh but what about inflation, according to the inflation calculator at thisismoney.co.uk total inflation since 1999 has been 30%. So the value in today’s money of the £2.34bn would actually be £3.042bn (still a massive difference of £5.75bn)

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Monday, January 18, 2010

Weekend Round-Up

I didn’t blog over the weekend, but there was more than enough happening:

  • @kerryMP put her foot in it again on Twitter managing to upset both Tory’s, the gay community and the gay Tory community in one fool swoop with her retweet. @OxfordSpring wrote a fantastic piece on the stereotyping of gay people, and the simplistic approach of identity politics to courting their vote.
  • Gordon Brown spoke at the Fabian Society and suddenly moved from Class Warrior to Champion of the Middle Class. A surprise about turn for anyone who thought that Mandelson wouldn’t eventually get his way. CCHQ put up a spirited defence, but Guido did ask what exactly their pro middle class policies were.
  • Peter Watt’s second week of book serialisation in the Mail on Sunday brought about more enormous revelations, leaving Gordon Brown having to explain why he used Labour Party funds to for his own personal campaign to oust Tony Blair.
  • The Sunday Express reported on HMRC’s tender for a new round of council tax revaluations to take place after the general election. Strangely the government haven’t said anything about it happening yet though. Dizzy Thinks suggested it was another front in the class war
  • Ed Balls attacked Conservative Marriage Policy, again
  • UKIP decided that the way to cour the BNP vote was to ban Burkhas across the nation, leading to condemnation on what everyone thinks is a very un-British policy
  • and finally the polls continued to put the Conservative ahead, 9% in a YouGov poll and 13% ahead in ComRes. 
Quite a few posts to write this morning, on these and other issues

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Monday, January 11, 2010

Tough decisions on efficiencies?

Ed Balls wrote in the Independent this weekend about having to make "tough decisions on efficiencies and non-essential programmes".


What tough decisions need to be made about efficiencies? If something can be made more efficient then surely there's no decision to be made, and it certainly shouldn't be tough, just do it and save some money. Or is Mr Balls suggesting that just the idea of cutting spending is so out of character for  the current government that it is tough to do.

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