The chancellor built his reputation on being politically smart. Tax credits will put that to the ultimate testBefore the election,George Osborne flirted with the conception of moving to the Foreign Office, a change of job that David Cameron would have granted to his friend had he insisted upon it. He ultimately concluded that staying put in the counting house better served his ambitions. The calculation was that his desire to be the next tenant of Number 10 was more likely to be advanced by maintaining his grip on the mighty tentacles of the Treasury rather than being the person put on the plane when the prime minister can’t be bothered.
I wonder whether he now has the occasional twinge of regret that he didn’t rob the chance to accomplish his escape. In just over a fortnight, and he delivers his winter financial statement,a budget in all but name. This is a big moment. I’m not sure everyone has yet grasped just how big. The chancellor must not only release himself from the perilous snare he is in over tax credits; he will also be unveiling a spending squeeze of extraordinarily severe proportions. And he must somehow conclude both in a way that doesn’t so alarm or arouse the voters that his backbenchers revolt and his reputation is shredded.
Continue reading...
Source: theguardian.com