TONY Blair’s audacious claim to have been behind British Labour’s decision to grant independence to the Bank of England has been dismissed.
Labour MP Ed Balls has who accused the former prime minister of trying to rewrite history in his memoir.
Mr Balls – now a Labour leadership contender – said yesterday the bank idea was his.
The revelation capped a rough weekend for Mr Blair after protesters hurled shoes and eggs and attempted a citizen’s arrest in Dublin at the first public signing of his book, A Journey .
Mr Balls, who was sometimes referred to as “the real chancellor of the exchequer” when he was former chancellor and prime minister Gordon Brown’s closest confidant at the Treasury, poured scorn on Mr Blair.
In his memoirs, Mr Blair claims he “suggested” bank independence to Mr Brown but allowed his chancellor to receive the plaudits for the action.
But in an interview with The Sunday Times, Mr Balls suggested Mr Blair played only a marginal role in the decision, rubber-stamping a policy devised by Labour’s Treasury team. The former schools secretary says the idea began with a pamphlet he wrote 18 years ago, which was adopted by Mr Brown and finally embraced by Mr Blair.
Labour’s decision to grant independence to the Bank of England is widely regarded as a defining moment for the party, helping to restore its economic credibility.
In his book, Mr Blair said he had “long been convinced” politicians should no longer set interest rates. He casts himself as the architect of the decision, saying Mr Brown “readily agreed”.
Mr Balls retorted: “I have no desire to force a correction in the second edition of the book, but the reality is that I wrote a lengthy argument for Bank of England independence in 1992, before Tony was even leader.”
He wrote the paper for the Fabian Society before entering politics. After joining Mr Brown’s team in 1994, he wrote a further internal document for the Labour Party setting out the case, and went on to make a key presentation on the issue to Mr Blair and Mr Brown at the home of Jonathan Powell, then Mr Blair’s chief of staff, in 1995.
Shortly afterwards, Mr Brown publicly said he believed there was a case for independence.
“When I presented detailed proposals to Gordon and Tony in 1995, they both agreed in principle it was the right thing to do,” Mr Balls said. He added he had no desire to make a big issue over it, acknowledging that Mr Blair, as leader, was ultimately responsible for pushing the policy through.
Mr Blair was pelted with eggs and shoes over the weekend as he arrived under armed guard at a Dublin bookstore. About 300 protesters, including anti-war groups and republicans opposed to the Northern Ireland peace process, gathered outside the venue, shouting abuse and hurling items including flip-flop sandals.
There were scuffles between police and demonstrators when some tried to force their way through the security cordon. Two protesters were bundled into the back of a security van. Four men were charged with public order offences. Kate O’Sullivan, 24, said she was taken away by security guards after attempting a citizen’s arrest on Mr Blair in the store.
Mr Brown has remained silent over the attacks on his character and record in Mr Blair’s book. Mr Balls said Mr Brown was philosophical about the memoirs.
“I rang him on the night of the publication to say I thought it was a bit unfair. I don’t think he had read it. His view was, ‘Oh well, that’s life’.”
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