Friday 8 October 2010

Alan Johnson is named shadow chancellor

Ed Miliband stamped his authority on the Labour party today by picking Alan Johnson as his chief spokesman on the economy, over Ed Balls and his wife, Yvette Cooper. Cooper, who topped last night's shadow cabinet poll, and Balls, a defeated leadership contender, both hoped that one of them would get the Treasury portfolio. As shadow home secretary, Balls will probably take a more populist line, and observers will watch closely to see if he can craft a policy on immigration and anti-social behaviour that can win back lost working class voters.

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But Miliband's decision is a signal that he intends to assert his own authority on Labour's economic policy, reducing the risk of the splits that marred the Brown-Blair era. It is also shows that the Labour leader does not intend to shift dramatically from the economic plan laid out before the election by the former chancellor, Alistair Darling, who proposed to halve the budget deficit over four years. Since then, Miliband has suggested that more of the deficit should be tackled through tax rises.

Johnson said today: "Since his election as leader, Ed has demonstrated real strength of character and determination to unify and lead. We are both passionate about a new kind of politics where we will not disagree with our political opponents for the sake of it. These are testing times and we will be a responsible opposition acting in the national interest." He added: "Ed and I will work together to build a plan for growth and for jobs in our economy. We will offer a real and responsible alternative to the dangerous plans of this coalition government, which is damaging the economic future of millions of families."

Balls and Cooper had argued that the threat of a world recession requires a radical rethink of Labour's plans, prompting the Tories to claim the former secretary of state for children, schools and families was a "deficit denier". Balls had made a series of speeches and interviews that came close to being seen as applications for the job of shadow chancellor. Johnson, by comparison, has not shown any great enthusiasm for the post in the past few weeks. His appointment offers an olive branch to supporters of the defeated leadership candidate David Miliband, for whom Johnson was the first MP to declare his support.

John Healey, the relatively unknown MP who came second in last night's poll, was appointed shadow health secretary. Andy Burnham, another defeated leadership contender, switches from health to education. Peter Hain, who failed to make the frontbench, has been co-opted as shadow Welsh secretary, chair of the national policy forum and the leader's representative on the national executive committee.

Liam Byrne joins the shadow cabinet as a policy development adviser – a similar role played by the Conservative Oliver Letwin while in opposition. Byrne has had a series of conversations with Ed Miliband on the need to look at the effects of economic policy on the middle classes, and has been studying US analysis overseen by Joe Biden, the US vice-president.

Harriet Harman, who will remain deputy leader, has been appointed shadow international development secretary. Shaun Woodward is to remain shadow Northern Ireland secretary even though he was not elected to the shadow cabinet last night. Jim Murphy, David Miliband's campaign organiser, is to spearhead Labour's response to the strategic defence review as shadow defence secretary.

Douglas Alexander gets the shadow work and pensions portfolio where he will have to craft a distinctive position on welfare reform. Caroline Flint, who famously said that women were treated as "window dressing" in politics, has been given the communities and local government brief, where she will shadow Eric Pickles. Sadiq Khan, one of Ed Miliband's first supporters and a barrister, has been appointed shadow justice secretary. His appointment will signal a more liberal view on counter-terrorism issues.

Among the women elected for the first time, Meg Hillier has been appointed shadow climate change secretary, Maria Eagle shadow transport secretary and Mary Creagh shadow environment food and rural affairs secretary. Angela Eagle, a former Treasury minister, has been appointed shadow chief secretary working under Johnson. She will have a full workload as the Labour team struggles to produce a coherent economic policy ahead of the spending review on 20 October.

Patrick Wintour, the Guardian