Which of these two characters would you most trust with the economy?

Share This

Donkey and Waldorf

One is an annoying talking donkey who came to prominence by getting in the face of a grumpy ogre (who goes by the name of Gordon Brown). The other is the shorter half of a former double act of curmudgeons with an interest in variety performance. And the answer to this question matters a lot: it directly affects the electoral chances of the two main UK opposition parties.

For the past few days, the Tories have gone on the offensive on economics. Following a lead given by his Shadow Chancellor, David Cameron said on the Andrew Marr Show this morning that nationalising Northern Rock would be “the most complete humiliation and failure for the government”. Meanwhile, Vince Cable has spent the last couple of months insisting that nationalisation is the only viable short term option for the company.

And let’s be honest, both Osborne and Cable have had a good few months recently. Agree with it or not, it has to be said that Osborne’s proposal to raise the IHT threshold did him a lot of favours, while Vince Cable’s tenure as Acting Lib Dem Leader won plaudits from across the political spectrum.

All things being equal however, a cursory look at the men’s CVs rather suggests that Cable is the safer pair of hands to run the economy than Osborne. A doctorate, policy advisor to the Kenyan government, lecturer, civil servant, former Chief Economist at Shell, advisor on the Brundtland Commission… Cable broadcasts experience and it comes across. Gideon Osborne on the other hand is a history graduate with some journalistic experience and lots more experience as a political adviser on both sides of the benches. The brutal reason why Cable got all the airtime over Northern Rock in October-November was that it was clear that he reeked of authenticity while Osborne rarely made it further than the partisan soundbites.

Cameron and Osborne’s latest assault is an attempt to regain the agenda on the economy; a tacit acknowledgement that since their IHT coup, both the government and Cable have outmaneuvred them. But once again, does it add up to much more than a bit of partisanship? Their argument is that the government put off a decision because of the prospect of an October election and they cite an offer by Lloyds TSB as one that should have been more seriously considered.

But does this charge stack up? Look at it this way; if Darling had gone for a quick sale (which according to Mervyn King would have involved a whopping loan to Lloyds TSB), would we now be in a remarkably similar situation with Cameron denouncing the government for rushing into a decision because they were planning an early election? Indeed, isn’t that rather similar to the scenario we had in 2005 with Michael Howard attacking Brown for bailing out Rover (only several times larger by order of magnitude)?

My own instincts tell me that regardless of the rights and wrongs of the whole credit crunch debacle in general and Northern Rock in particular, rushing into a quick sale would have been a remarkably irresponsible thing to do when it directly affected billions of pounds of taxpayers money and thousands of jobs. And that’s even assuming the shareholders would have let them (my grandmother is getting bombarded with letters from SRM at the moment). I appreciate I’m biased but the Tories’ line here doesn’t merely strike me as easy partisan point scoring, but bad policy too.

For a long time I’ve felt that Osborne is one of the Tories’ weakest links. A good marketing man, true, but not one with a particular feel for economics, and one with a whiny tone of voice that doesn’t exactly inspire confidence. He is certainly in the wrong job. Cable on the other hand has always been one of the Lib Dems biggest secret weapons. Well, he’s not so secret any more and that could spell trouble for the Conservatives. If the Lib Dems manage to eat into the Tories’ commanding lead as the party most trusted on the economy, then things really could start to get interesting as it is the Tories’ greatest asset and one of the Lib Dems’ greatest perceived weaknesses. Yet could Cameron even contemplate cutting Osborne loose, his closest ally?

Of course, I’m not the only one thinking the unthinkable here: Tim Montgomerie was arguing for him to be made Party Chairman/Tsar back in October. Tim wasn’t attacking Osborne for being weak on the economy, but to argue this at a time when Osborne was still basking in his IHT glory said it for him.

Either way, Clegg should not be shy about keeping Cable in the limelight over the next few months; notwithstanding the importance of giving the public a chance to get to know Clegg himself, Cable should now be considered a central part of the party’s appeal and should be seriously exploited, particularly when the Tories use Osborne.

3 thoughts on “Which of these two characters would you most trust with the economy?

  1. One of the best points made at the Setting the Agenda mini-conference on Saturday was that Lib Dems should concentrate more on the economy. This is an area where:

    a. the government are increasingly weak,
    b. we have highly credible economic spokespeople,
    c. it will always be important to the electorate,
    d. it will be for us what the environment is for the Tories (i.e. something the party is not usually remembered for concentrating on, which makes it more interesting).

    On your contrast of Osborne and Cable, though, historically the best Chancellors have not been does with professional economic expertise.

  2. On your last point Antony, maybe not, but Osborne and Cable are Shadow Chancellors not Chancellors, which has a very different job description.

    But my beef isn’t just with Osborne’s CV, it is with his actions, which aside from demonstrating a base level of populism don’t exude a command of his brief.

    Cable’s success at the end of 2007, more than anyone else, was Osborne’s failure. Osborne should have had a clear run on Northern Rock; instead he ceded control of the issue to his Lib Dem opponent.

  3. Let’s not forget Osborne’s wallet problem; £487,000 in lovely donations. Mmm!

    Possible lines to take apart from NR; Coming property crunch – what is Darling doing to cope with a major wave of repossessions and toxic MBS? Loss of grip on the public finances; going into downturn with a whacking great budget deficit – compare Germany which just announced a sizable surplus.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.