Wednesday 19 May 2010

The new team gets to work

So the state of the public deficit is worse than expected, according to the incoming Treasury ministerial team.
Well, what a surprise. As sure as night follows day, it was inevitable that accusations of Labour ‘extravagance’ would emerge once the new government had its feet under the desk. And it all makes sensible politics – blame the predecessors for the bad news you are about to announce. A new government only gets this one chance, and it wants to milk it.
And there is nothing unusual about Liam Byrne’s outgoing joke to his successor that the Treasury cupboard is bare. The same message was left by outgoing Tory chancellor, Reginald Maudling, to his successor, Jim Callaghan, when Labour ended 13 years of Conservative rule in 1964.
More importantly, is how local government will fare in the inevitable slashing of departmental spending over the next few weeks, up to and including the June emergency Budget. The fact that Labour did well in the local elections paradoxically makes it easier for the coalition government to wield the axe. It was always going to be problematic for Mr Cameron to reward his foot soldiers in the shires, until 6 May, overwhelmingly dominating local government, by cutting their budgets. Now that Labour has made inroads back into its traditional heartlands in London and the mets, his government may be less concerned about the impact of its spending reductions.
Much also depends on the new ministerial team at the CLG. First, they are all experienced in local government as well as holding the shadow brief. Bob Neill, in particular, like Nick Raynsford in 1997, is a knowledgeable advocate of the sector. Unlike Mr Raynsford, who was banished initially to being construction minister, Mr Neill has been given his brief from day one, which is promising.
However, the new government may also be less keen about its devolution pledges. The scale of Labour’s fightback on 6 May, while predicted because of high turnout, nonetheless came as a surprise. The prospect of the coalition government now eagerly devolving powers to its political opponents becomes less believable.

Michael Burton, Editor, The MJ

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