The Labour Party Regains Sanity on Economic Policy
George Parker:
http://www.ft.com/cms/s/0/439e4bd8-24da-11e0-a919-00144feab49a.html?ftcamp=rss&ftcamp=crm/email/2011120/nbe/InTodays/test/product#axzz1BdxXXwFU: Balls appointed shadow chancellor: Ed Miliband has been forced to share control over Labour economic policy with his leadership rival Ed Balls, after the resignation on Thursday evening of shadow chancellor Alan Johnson for “personal and family reasons”.
Mr Miliband was determined to keep Mr Balls’ hands off economic policy when he became Labour leader last September, promoting the self-proclaimed economic novice Mr Johnson to the post instead.
When Mr Johnson told Mr Miliband of his intention to resign on Monday, the Labour leader pleaded with him to stay in the job. Amid Westminster speculation that his marriage is in trouble, Mr Johnson said it was impossible for him to continue. Mr Miliband’s aides said the resignation had nothing to do with Mr Johnson’s numerous slip-ups during his short time as Labour’s economics spokesman. “We were very happy with his performance,” said one.
The Labour leader was left with little choice but to appoint Mr Balls in recognition that the combative former cabinet minister is arguably the party’s most effective opposition politician and sharpest economic mind.
Mr Miliband’s aides say he did not offer the job to his brother David, who has been waiting in the wilderness. The only other obvious candidate was Yvette Cooper, another economist, who is married to Mr Balls.
On a night of high drama at Westminster, Mr Miliband put on a brave face: “Ed Balls is an outstanding economist and is hugely qualified to take our economic message to the country.”
The smoothly executed reshuffle also saw Ms Cooper replace her husband in the home affairs brief, with Douglas Alexander succeeding her as shadow foreign secretary.
Mr Balls’ elevation is a huge gamble for Mr Miliband, who will have to share economic policymaking with a man certain in his opinions and intimately associated with Gordon Brown’s 13-year stewardship of the British economy. “It beggars belief that Ed Balls has been appointed as shadow chancellor – the man responsible for the economic mess we inherited,” said Michael Fallon, deputy Conservative chairman.
George Osborne, chancellor, was said to be delighted, but has previously told colleagues Mr Balls would be a tough opponent: “He will be down my throat 24 hours a day.”
Mr Miliband feared last year that Mr Balls could leave Labour open to accusations of being “deficit deniers” because of his refusal to discuss detailed spending cuts and insistence that growth should be put before deficit cutting. In government Mr Balls opposed a VAT hike to cut the deficit – preferring a rise in national insurance – and in July 2010 he claimed that Labour’s plan to halve the deficit in four years was “a mistake” and not deliverable...
