http://www.independent.co.uk/news/uk/politics/leaked-email-from-miliband-aide-describes-nightmare-of-working-with-ed-balls-on-economic-policy-8947768.html
Leaked email from Miliband aide describes 'nightmare' of working with Ed Balls on economic policy
It was an accident waiting to happen. A leaked email from one of Ed Miliband’s closest aides described as a “nightmare” the process of reaching agreement with the shadow Chancellor Ed Balls on the line to take on the economic recovery. It was mistakenly copied to a Conservative MP with the same name as Labour’s pollster, James Morris, and emerged in the Mail on Sunday.
To some Labour MPs, the only surprise was that the tensions between Mr Miliband and Mr Balls have not surfaced more often. They can be traced back to the Labour leadership election the two men contested in 2010. Mr Miliband argued that the market-based economic system put in place in the Thatcher era was broken. Mr Balls believed the answer was not to turn the system upside down, but a fiscal stimulus instead of Coalition cuts that went “too far, too fast”. Mr Miliband did not make Mr Balls his shadow Chancellor when he won the top job, only to change his mind three months later when his first choice, Alan Johnson, quit for personal reasons.
What followed was a marathon bout of arm-wrestling between the two Eds. In public, they insisted they had learned the lessons from their ringside seats at the bruising battles between Tony Blair and Gordon Brown. They both worked as aides to the former Chancellor before becoming MPs and ministers.
In private, Mr Balls argued that Labour should focus on his five-point plan to kickstart the economy, including a temporary cut in VAT. Mr Miliband saw that as backward-looking to 2010, insisting that Labour needed to look forward to 2015. It was a painful process, but the Labour leader gradually weaned his shadow Chancellor off his cherished plan. Their relationship improved when they reached a new settlement this summer. With economic growth set to return, Labour would switch the spotlight from the “failure” of George Osborne’s Plan A to the “cost of living crisis”.
Mr Balls, anxious to regain Labour’s economic credibility, insisted the party stick to the Coalition’s day-to-day spending total for the first year of the next parliament if it wins power in 2015. Mr Miliband, anxious to show how Labour would be different to the other parties, kept alive his plan to borrow more to outspend the Coalition on building projects such as housing.