The Wisdom of George

Steve Richards of The Independent tweets that we should not be surprised if George Osborne performs a u-turn over the controversial Child Benefit cut for high earners announced at the Tory Party Conference this week. The point Richards makes is that, while in Opposition, Cameron and Osborne quite frequently ‘flip-flopped’, to use the dreadful American parlance, at the first sign of serious media scrutiny of policy. “They are weak” he writes and, for all the tough rhetoric on tackling the deficit, there is more than a grain of truth to the remark.

My sense from the outside is that Osborne will probably stick by the announcement on child benefit, in spite of the rage from certain sections of the press, and try to paper over the cracks by making the sort of vacuous, moralising intervention on marriage that has already been indicated. I may not know a great deal about Osborne’s mindset but experience demonstrates that, given a range of options, instinct normally leads him towards the wrong one.

Perhaps the middle class outrage at the (frankly quite messy) changes to Child Benefit is the start of something faintly encouraging. I don’t mean in the sense that Women’s Institutes the length and breadth of Britain will start to become more politically engaged, but that – finally – there is a flicker of scrutiny of Tory policy from the party’s friends in the right-wing press. This is unlikely to unleash a full-scale examination of the darkness at the heart of the Conservative world view – the Mail, Telegraph and Murdoch propaganda sheets know where their bread is buttered – but the press may yet find it hard to supress their natural instinct to hunt down an individual when they scent weakness. Osborne may have some difficult months ahead of him.

It’s hard to see how Osborne can find himself in a position to pull any rabbits out of the hat. The economic situation is bleak and by any measure he was a strange choice for Chancellor given the options available to David Cameron when the Coalition was formed. Both Vince Cable and Kenneth Clarke were clearly better qualified for the job and there can be little doubt that Osborne holds his position (arguably the first ‘proper’ job of his life) purely as a result of the personal loyalty of the Prime Minister. Such loyalty is worth a great deal of course, as the continual, bewildering survival of Andy Coulson demonstrates, but is it really doing anyone any favours?

The coming months will test the Coalition to breaking point. The government will inevitably become increasingly unpopular as the cuts start to bite, and much pressure will fall on the Liberal Democrat involvement, depending on next year’s elections and the outcome of the AV Referendum. Crucial at such times is the work and vision of the Treasury, as the fulcrum of the business of government. The biggest worry for the Coalition must be that so much therefore depends on the wisdom – or otherwise – of George Osborne.

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