By Peter Hoskin
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The hull of HMS Ed Balls has taken a real pounding in recent months – the Guardian published an editorial calling for him to be replaced; prominent lefties have written letters to the same effect; and David Miliband has been touted as a likely substitute. And yet, this week, Mr Balls appears to be bobbing happily across Westminster’s waters.
First, a poll suggested that voters are keener on policies when his name is attached to them. And now the shadow chancellor uses an interview with the Daily Telegraph to make a bold demand of George Osborne: to cut the basic rate of income tax in next week’s Budget. “If George Osborne, in this Budget, were to cut the basic rate of income tax, he says, “we would applaud him.”
The last time a Labour government cut the basic rate they funded it by scrapping the 10p rate. So how would Balls, if here were Chancellor, fund it this time around? The tax on bankers’ bonuses that would totally, definitely raise about £50 squillion? The mansion tax? No, here’s the kicker: according to the Telegraph report that accompanies the interview, Balls reckons Mr Osborne should fund it by borrowing more, at least temporarily.