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Gordon Brown And Ed Balls Wasted Billions

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http://www.telegraph.co.uk/news/politics/labour/8569367/Labour-spending-Gordon-Brown-and-Ed-Balls-ignored-warnings-and-wasted-billions.html

By Robert Winnett, James Kirkup and Holly Watt

9:25PM BST 10 Jun 2011

Comment

A confidential document presented to the Cabinet in January 2006 asks: "We've spent all this money, but what have we got for it?"

It warns that the efficiency of the public sector needed to improve rapidly and insisted that "spending growth will slow". The document drafted by civil servants also says that "ineffective spending" must be "closed down".

However, Mr Brown discarded the advice and embarked on a £90 billion increase in spending when he became prime minister.

The expenditure meant that the economy was left facing a record deficit as the effects of the recession were felt.

The document is among 19 papers disclosed today by The Daily Telegraph that were obtained from the personal files of Mr Balls, the shadow Chancellor. They follow the divulgence yesterday of dozens of documents detailing Mr Balls's central role in a plot to topple Tony Blair.

The document is the first official evidence that shows the scale of concern over the activities of Mr Brown and those around him in his time as chancellor. In an analysis of spending plans drawn up in January 2006 for the following year's Comprehensive Spending Review, the document states that any increase in taxpayer expenditure should only be in line with inflation. It sets out detailed plans for cutting spending in more than 12 areas to reduce spending by billions of pounds.

However, Mr Brown neglected the advice and increased spending by twice as much as recommended. He only cut the wasteful spending in four of the areas identified.

At the time that the Treasury document was produced, Mr Balls was still a backbench MP and would not have been on the official circulation list.

However, other files show he was playing an important role in drawing up Mr Brown's policies. Before the October 2007 spending review he was made a Treasury minister then given a Cabinet seat as Secretary for Children, Schools and Families.

The Coalition seized on the disclosures as evidence that Mr Brown's "reckless" decisions over public spending left the country in a vulnerable position when the economic downturn hit Britain.

A Conservative source said: "This document shows the reckless approach of Brown and Balls which left Britain dangerously exposed to the economic crisis."

Michael Fallon, the deputy chairman of the Conservative Party, said: "As recently as last year, Ed Balls and Ed Miliband were denying something we now know to be true. While Britain's debt doubled, welfare spending spiralled out of control and education standards fell, they were obsessing about getting rid of the elected prime minister and putting Gordon Brown into the position.

"Instead of owning up to their role in a dysfunctional government and coming up with a credible plan to deal with the problems facing Britain, they are starting to plot against each other. They can never be trusted with government again."

Another leaked memorandum warns Mr Brown and Mr Balls that plans to scrap the 10p tax rate would hit millions of poorer Britons and pensioners - but the change was still introduced.

Mr Brown later denied that there would be any losers from the tax changes – before being forced to announce an emergency compensation plan.

The Daily Telegraph also publishes documents today revealing how Mr Brown's major policy idea to be introduced when he was Prime Minister was a new British constitution. Detailed plans for the bill of rights were prepared, including possible new regulations for the media, but the proposal was quietly dropped after he moved into Number 10.

The disclosure of the economic documents in the Ed Balls files comes as the shadow chancellor demands that the Coalition abandons its public spending cuts. Mr Balls has said that the pace and scale of cuts is unacceptable. Last week, Mr Balls demanded that George Osborne, the Chancellor, draw up a "plan B" for public spending if the economy deteriorates.

But, Ed Miliband, the Labour leader, is understood to privately believe that some of the cutbacks should be accepted – threatening a repeat of the divide between Mr Blair and Mr Brown over public spending plans.

Yesterday, Alistair Darling, the former Chancellor, gave an interview in which he dismissed the wisdom of Mr Ball's "plan B" concept. Mr Darling is currently finalising his memoirs which are also expected to criticise Mr Balls' influence over economic policy under Mr Brown's premiership.

Yesterday, in the wake of The Daily Telegraph's disclosures over his role in plotting to replace Mr Blair with Mr Brown, the shadow Chancellor denied he had acted improperly.

Mr Balls also effectively accused Mr Blair of lying to the electorate in 2005 about his intention to serve a full third term as prime minister.

Labour began discussing the "transition" from Mr Blair to Mr Brown even before the 2005 general election, Mr Balls claimed.

Mr Blair fought and won the 2005 election on a promise to serve a full third term in office. In 2004, he declared: "If I'm elected I would serve a third term. I want to see it through."

But, in a radio interview, Mr Balls alleged that talks between Mr Brown and Mr Blair about a transfer of power began before the election.

"The discussions about how to make that transition work began before the 2005 general election," he said.

He was asked: "Even though publicly Mr Blair had said he would serve a full third term, he wasn't saying that privately?"

Mr Balls replied: "Yes."

The claim was last night disputed by friends of Mr Blair. One said: "Ed is basically saying Tony deceived the British public at the 2005 election. That is not true."

Mr Balls has previously denied any involvement in any plot – which this newspaper disclosed was codenamed "Project Volvo" because of Mr Brown's reliable but dull image - to force Mr Blair from office.

Yesterday, he said he had taken part in "difficult discussions" about Mr Blair's position.

"There was not a plot but there was genuine and open and sometimes difficult discussion," he said. "There were tensions, there were arguments."

Mr Balls said he and Alistair Campbell, Mr Blair's aide, had tried to calm those tensions.

He said: "Should Tony Blair and Gordon Brown have done things better in that period? Probably. Were people like me and Alistair Campbell and others trying to hold things together? Absolutely."

Mr Campbell later appeared to raise doubts about Mr Balls' role in relations between the two camps.

Mr Campbell said yesterday: "It is right, as Ed Balls says today, that he and I worked together at times to try to keep TB-GB in a better place, but I think Ed would have to admit he was doing so very much from a GB perspective, whereas I always sought to see things from a team perspective too."

Mr Miliband, the new Labour leader, said he was focussed on the future and described the revelations as "ancient history". However, he side-stepped questions over his role in the plot and declined to defend the secret talks as Mr Balls had done.

The Cabinet Office announced it was launching an investigation into the source of the leak of the Ed Balls files, which yesterday gripped Westminster.

Volvo, the car company, also attempted to distance itself from being linked to Mr Brown's image. Peter Rask, Regional President of Volvo Car UK, Ireland and Iceland, said: "If only the Labour party had been like today's Volvos - dynamic, agile and innovative - perhaps the UK economy would have been in a better place than it finds itself today!"

with a credible plan to deal with the problems facing Britain, they are starting to plot against each other. They can never be trusted with government again.”

Another leaked memorandum warns Mr Brown and Mr Balls that plans to scrap the 10p tax rate would hit millions of poorer Britons and pensioners, but the change was still introduced.

Mr Brown later denied that there would be any losers from the tax changes, before being forced to announce an emergency compensation plan.

The Daily Telegraph also publishes documents today revealing how Mr Brown wanted to create a British constitution. Detailed plans for a Bill of Rights were prepared, including possible regulations for the media, but the proposal was quietly dropped after he moved into No 10.

The disclosure of the economic documents in the Ed Balls files follows demands from the shadow chancellor that the Coalition abandons its public spending cuts. Last week, Mr Balls demanded that George Osborne, the Chancellor, draw up a “plan B” for spending if the economy deteriorates.

Ed Miliband, the Labour leader, is understood to privately believe that some of the cuts should be accepted, threatening a repeat of the divide between Mr Blair and Mr Brown over spending plans.

Alistair Darling, the former chancellor, gave an interview yesterday in which he dismissed the wisdom of Mr Balls’s “plan B” concept.

In the wake of the disclosures over his role in plotting to oust Mr Blair, Mr Balls denied he had acted improperly.

He also effectively accused Mr Blair of lying to the electorate in 2005 about his intention to serve a full third term as prime minister.

Labour began discussing the “transition” from Mr Blair to Mr Brown even before the 2005 general election, Mr Balls claimed.

Mr Blair fought and won the 2005 election on a promise to serve a full third term in office. In 2004, he declared: “If I’m elected I would serve a third term. I want to see it through.”

But, in a radio interview, Mr Balls alleged that talks between Mr Brown and Mr Blair about a transfer of power began before the election.

“The discussions about how to make that transition work began before the 2005 general election,” he said.

He was asked: “Even though publicly Mr Blair had said he would serve a full third term, he wasn’t saying that privately?”

Mr Balls replied: “Yes.”

The claim was last night disputed by friends of Mr Blair. One said: “Ed is basically saying Tony deceived the British public at the 2005 election. That is not true.”

Mr Balls has previously denied any involvement in any plot – which this newspaper disclosed was codenamed “Project Volvo” because of Mr Brown’s reliable but dull image - to force Mr Blair from office.

Yesterday, he said he had taken part in “difficult discussions” about Mr Blair’s position.

“There was not a plot but there was genuine and open and sometimes difficult discussion,” he said. “There were tensions, there were arguments.”

Mr Balls said he and Alistair Campbell, Mr Blair’s aide, had tried to calm those tensions.

He said: “Should Tony Blair and Gordon Brown have done things better in that period? Probably. Were people like me and Alistair Campbell and others trying to hold things together? Absolutely.”

Mr Campbell later appeared to raise doubts about Mr Balls’ role in relations between the two camps.

Mr Campbell said yesterday: “It is right, as Ed Balls says today, that he and I worked together at times to try to keep TB-GB in a better place, but I think Ed would have to admit he was doing so very much from a GB perspective, whereas I always sought to see things from a team perspective too.”

Mr Miliband, the Labour leader, described the revelations as “ancient history”, but side-stepped questions over his role in the plot.

The Cabinet Office announced an investigation into the source of the leak of the files.

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I look forward to hearing all about this on the BBC news.

Quite.

Broon was a disaster, anyone with half a brain already knows that. The tribal idiots will dismiss this as they always do.

McRuin has done more to advance the incidence of poverty in the UK than any bankster could if they were minded to it. Quite something from a party who's expressed constituency is those on society's margins. You couldn't make it up.

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Oh come off of it Brown was a true Robbing Hood of his day, taking from the rich and giving it to the poor. :rolleyes:

Have you no heart? :)

:)

Funny though, isn't it? Labour tribal types characterise those on the right as heartless, nasty types, yet Labour's social tinkering results in more poverty, more taxes, less freedom, and less aspiration amongst the poorest. Who's really nasty?

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:)

Funny though, isn't it? Labour tribal types characterise those on the right as heartless, nasty types, yet Labour's social tinkering results in more poverty, more taxes, less freedom, and less aspiration amongst the poorest. Who's really nasty?

Yes, a very nasty bunch of corrupt infighting liars who put their own ambition over and above that of the country and the people they pretended to represent. It takes a lot of self discipline on my part not to throw things at the telly when Ed Balls-up shows his blinky eyed devious face. Has anyone noticed by the way that the prat has been taking voice coaching lessons - he's doing a Thatcher and toning down his normal bleating voice and has gone all sotto-voce (or trying to but in the main failing).

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:)

Funny though, isn't it? Labour tribal types characterise those on the right as heartless, nasty types, yet Labour's social tinkering results in more poverty, more taxes, less freedom, and less aspiration amongst the poorest. Who's really nasty?

To me, the type that vehemently side with stupid, and become aggressively vocal about it - are themselves not worth listening to. They will never change their idiology - even if you present them with an irrefutably rational argument which opposes their argument - you simply cannot argue against stupid. It's never been done. I lay down the gauntlet - if anyone here knows of a way of countering stupid in an argument to the extent that stupid itself is exorcised from the firebrand - please, please let us know the secret. (As long as it does not involve rohipnol or anything).

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To me, the type that vehemently side with stupid, and become aggressively vocal about it - are themselves not worth listening to. They will never change their idiology - even if you present them with an irrefutably rational argument which opposes their argument - you simply cannot argue against stupid. It's never been done. I lay down the gauntlet - if anyone here knows of a way of countering stupid in an argument to the extent that stupid itself is exorcised from the firebrand - please, please let us know the secret. (As long as it does not involve rohipnol or anything).

I always try not to engage in a battle of wits with people who are obviously unarmed.

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Labour supporters come in the form of ...

- idiots

- public sector workers who want to keep their pointless job

- scum who do nowt but claim benefits!

It's a amazing that with the stupid education system, the massive public sector and the shear number of spongers on the street that labour lost the last election, the vested interests are just so great

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Yes but tell the people something new.

At the time most everybody knew that Labour, Blair and Brown etc were wasting taxpayers money hand over fist, £billions and £billions of it.

The coalition are continuing that particular theme.

At the time most everybody knew that there was a lot of politicking and conniving to get Blair out of Downing Street. The connivers made sure of that but at the time put a more acceptable face on all the political mechanations.

So what's new apart from filling up some news space as if it's fresh news.

Tell the people about the £billions/£trillions of secret off balance sheet accounting in the style of Enron and the Greek economy.

Edited by billybong

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Is this thread where the Tory think tank is tonight ? :blink:

Yes i love these rosette wearing Tories on here who denounce everything Labour did as completely useless (which it was) but subtly imply the Tory party are for something different, FFS Dave and the gang backed Gordons ludicrous spending policy and now do all they can to prop up the property market .... Lets face it the Torys whilst in power are just doing their best at spinning the plates until the next bunch of Etonians or Labour social climbers see them crash!

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Is this thread where the Tory think tank is tonight ? :blink:

Is not that an oxymoron?

The Tories and their chums in the press are going after Balls because they see him as a major threat (they don't care about Milliband). They are aided by disgruntled Blairites who rather like Cameron because he appears to be a facile unprincipled lying little war monger out of the same cast as their hero. Still why discuss the current problems facing Britain when we can rerun the tired and tedious tale of the bickering that brought down NuLab. It is even less interesting now that all the protagonists are on the opposition benches where they are likely to remain for years to come. The problem is that politicians on all sides have so little contact with reality that they actually think the public are interested in this drivel.

Edited by stormymonday_2011

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Yes i love these rosette wearing Tories on here who denounce everything Labour did as completely useless (which it was) but subtly imply the Tory party are for something different, FFS Dave and the gang backed Gordons ludicrous spending policy and now do all they can to prop up the property market .... Lets face it the Torys whilst in power are just doing their best at spinning the plates until the next bunch of Etonians or Labour social climbers see them crash!

So no change there then.

Maybe the Labour party should contemplate that what they need is a new Kier Hardie not Ed Milliband or Ed Balls.

http://en.m.wikipedia.org/wiki/Keir_Hardie

Edited by stormymonday_2011

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Interesting.Hadn't realised before that Ed Miliband was part of the Balls/Damien McBride/Tom Watson cabal of plotters,and I follow politics very closely. I doubt that the Tories had anything to do with this..they would surely have leaked it just before the Election.And why were some documents sent to the Guardian as well as the Telegraph? I expect this was leaked by Blairites in the Labour Party.David Miliband is still seething,and Blair has a book about to be released.What disgusted me was that there was a plotters meeting on the day of the London Bombings.Just shows where their priorities lay.

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Yes i love these rosette wearing Tories on here who denounce everything Labour did as completely useless (which it was) but subtly imply the Tory party are for something different, FFS Dave and the gang backed Gordons ludicrous spending policy and now do all they can to prop up the property market .... Lets face it the Torys whilst in power are just doing their best at spinning the plates until the next bunch of Etonians or Labour social climbers see them crash!

Is not that an oxymoron?

The Tories and their chums in the press are going after Balls because they see him as a major threat (they don't care about Milliband). They are aided by disgruntled Blairites who rather like Cameron because he appears to be a facile unprincipled lying little war monger out of the same cast as their hero. Still why discuss the current problems facing Britain when we can rerun the tired and tedious tale of the bickering that brought down NuLab. It is even less interesting now that all the protagonists are on the opposition benches where they are likely to remain for years to come. The problem is that politicians on all sides have so little contact with reality that they actually think the public are interested in this drivel.

sockpuppets?

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Is this thread where the Tory think tank is tonight ? :blink:

Of course, anyone you disagree with is 'Tory scum'.

I'm no Tory, but I despise Labour with a passion. We need a single term, genuinely right ring party to really take this country by the scruff of the neck without a thought for it's popularity with parasites and their representatives in parliament.

And no, I don't mean the s*dding BNP. They are socialists, who should get a share of the piano wire when the time comes.

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:)

Funny though, isn't it? Labour tribal types characterise those on the right as heartless, nasty types, yet Labour's social tinkering results in more poverty, more taxes, less freedom, and less aspiration amongst the poorest. Who's really nasty?

You've obviously been reading the Guardian 'Comment is free'

Labours mantra has always been tax to everyone to oblivion, and think about what to spend it on later.

Their fiscal policies were so wildly destructive, it gives credence to the theories, that they did it on purpose.

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The Tories and their chums in the press are going after Balls because they see him as a major threat (they don't care about Milliband). They are aided by disgruntled Blairites who rather like Cameron because he appears to be a facile unprincipled lying little war monger out of the same cast as their hero. Still why discuss the current problems facing Britain when we can rerun the tired and tedious tale of the bickering that brought down NuLab. It is even less interesting now that all the protagonists are on the opposition benches where they are likely to remain for years to come. The problem is that politicians on all sides have so little contact with reality that they actually think the public are interested in this drivel.

Wrong clearly posted through red tinted glasses.

The press are going after Balls because they see him as a figure of comedy in the mould of Brown. The son of Bean.

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I look forward to hearing all about this on the BBC news.

Today reported it as "Balls complains about document leaks" or something similar.

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Of course, anyone you disagree with is 'Tory scum'.

I'm no Tory, but I despise Labour with a passion. We need a single term, genuinely right ring party to really take this country by the scruff of the neck without a thought for it's popularity with parasites and their representatives in parliament.

And no, I don't mean the s*dding BNP. They are socialists, who should get a share of the piano wire when the time comes.

Tahoma succinctly applies the hammer to the head of the nail

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I look forward to hearing all about this on the BBC news.

Just watched Suzanna Reid reporting it through gritted teeth actually gave a sigh at the end as if its all been made up .

shes still a stunner though :D

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Thanks operator, very interesting indeed.

By the way, I've found the original Treasury doc in the Telegraph site:

LINK: http://s.telegraph.co.uk/graphics/viewer.html?doc=202870-a-memo-sent-to-ed-balls-setting-out-the-internal

( If you are syill able to edit the OP, could you please add the link to it? It may be useful for the "geekiest" amongst us... :) Cheers. )

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Basically the extra spending went on increasing the pay roll and inflating wages in the public sector with very little impact on the quality of services. The increase in the pay roll was bad enough, going a long way towards an increase in the structural deficit of the 90 billion mentioned. More catastrophic was the wage push, in the name of the fat c**ts social justice for workers. However, the final salary pay schemes linked to these stellar pay increases now show a 1.5 trillion black hole. Justice for today's workers but raping the unborn of money which they had no benefit from, absolute selfish jam today stuff from the fat c**t. Totally criminal what the Labout government did, and using Enron-style accounting practises to boot, anything like pension or PFI just code name the f**ker ''raptor'' and lose off balance sheet.

Edited by crashmonitor

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • up 5%



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