Labour turmoil: Alan Johnson is forced to resign

Published on Thursday 20 January 2011 18:23

LABOUR'S plans for the economy were in turmoil last night after the shock resignation from front-line politics of shadow chancellor Alan Johnson.

The confusion in the Labour camp comes with party leader Ed Miliband, heading to Scotland today for a campaigning visit, facing questions about the wisdom of his appointment of Mr Johnson.

The former postman, whom some had tipped as a possible Labour leader, said he had quit for "personal reasons to do with my family".

Last night reports emerged suggesting that Mr Johnson's wife, Laura, had become involved in a relationship with a police protection officer.

A spokesman for the Metropolitan Police said: "This evening certain matters regarding a Metropolitan Police Service Constable were referred to the Directorate of Professional Standards. We are not in a position to discuss it further at this time."

According to press reports last night the officer involved guarded Mr Johnson from terror attacks when he was Home Secretary.

The officer was expected to be suspended from duty while investigations were carried out.

Former shadow home secretary Ed Balls was named as Mr Johnson's successor, just three months after Mr Miliband passed him over for the key post.

Meanwhile, details emerged about Mr Johnson's exit. He is understood to have told Mr Miliband on Monday about his desire to quit. The Labour leader tried to persuade him to stay but was unsuccessful.

A senior party spokesman said Mr Johnson had asked that no more be said about the nature of the problem he was facing, other than that it was a "personal and family" matter.

Mr Johnson said he had found it hard to perform for Labour recently. "I have decided to resign from the shadow cabinet for personal reasons to do with my family. I have found it difficult to cope with these personal issues in my private life whilst carrying out an important front-bench role," he said in a statement.

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"I am grateful to Ed Miliband for giving me the opportunity to serve as shadow chancellor of the Exchequer. He is proving to be a formidable leader of the Labour Party and has shown me nothing but support and kindness. My time in parliament will now be dedicated to serving my constituents and supporting the Labour Party. I will make no further comment about this matter."

Mr Miliband defended his judgment in the wake of the resignation and insisted it was not a mistake to have appointed Mr Johnson in the first place.

"Alan Johnson was the right man for the job," he said. "He has stood down for personal reasons. I do want to thank him for the job he has done. Ed (Balls] and I have very similar views and I am working with him as I did in the past. The public want us to hold this government to account."

The Conservatives seized on the appointment of Mr Balls to the Treasury brief, saying Labour had appointed one of Gordon Brown's key allies and that Mr Miliband had appointed the "deficit denier in chief".Liberal Democrat MP Stephen Williams, co-chairman of his party's parliamentary Treasury committee, accused Mr Balls of being a "deficit enthusiast".

"The decision to appoint Ed Balls as shadow chancellor shows that the Labour Party is now determined to carry on with the Gordon Brown economic plan that caused so much trouble for this country," he said.

"Ed Balls isn't just a deficit denier, he's a deficit enthusiast."

On getting the job in October, Mr Johnson admitted he would need "a primer on economics for beginners" and made a series of gaffes, including a TV appearance where he did not know the current rate of employers' National Insurance contributions.

However, attention was quickly turning to the appointment of his successor Mr Balls. The key economic aide to Gordon Brown during the previous Labour government, he said during the leadership campaign that the party's plan for the deficit was a "mistake", arguing for a slower reduction of Britain's national debt.

Mr Miliband's appointment of Mr Johnson was seen as a clear signal that he would not adopt Mr Balls' views on the economy. With Mr Johnson, he decided to stick by the prescription on deficit reduction laid down by ex-chancellor Alistair Darling.

There will now be questions about how Mr Miliband and Mr Balls can maintain a united front. However, the Labour leader insisted his and Mr Balls' views on recovery were "very similar".

Sources close to Mr Miliband insisted Mr Balls had been happy with the approach taken by his predecessor on the economy, and rejected suggestions that the new shadow chancellor did not accept the need for cuts to deal with the deficit.

But he is only recently on record as saying Labour should scrap its position on deficit reduction and pump more money into government spending to support the economic recovery.

Mr Balls' switch ensured a wholesale reshuffle in Labour's front-bench team, with Douglas Alexander becoming shadow foreign secretary, Yvette Cooper shadow home secretary and Liam Byrne shadow work and pensions secretary.

Friends said Mr Johnson never took to the high-profile shadow chancellor's job, which came after a long ministerial career. One MP said: "Alan's heart just wasn't in the job from the off. He couldn't be bothered doing basic research. He is famously laid back to the point of having no ambition whatsoever."

Shadow defence secretary Jim Murphy said: "Everyone is disappointed that Alan Johnson has stood down. It is 100 per cent for personal reasons."

Mr Murphy denied Labour's economic policies would change as a result of the appointment of Mr Balls. He said: "I think the Labour Party with Ed Balls as shadow chancellor will maintain that approach that Ed Miliband and Alan Johnson have set out of being mainstream, being credible on the deficit, being pro-business, in touch with business and companies across the UK, and also with its own vision for how the economy grows again."

Chancellor George Osborne paid tribute to his former adversary, saying: "Alan Johnson served his country at the top of British politics and will be missed from the front line." Both the Conservatives and Lib Dems leapt on the appointment of Mr Balls to claim Mr Miliband had taken a step back.

Conservative party deputy chairman Michael Fallon said: "It beggars belief that Ed Balls has been appointed as shadow chancellor of the Exchequer. The man who is responsible for Britain's economic mess has returned. The Labour Party has learnt nothing."

Mr Balls, a fierce ally of Mr Brown, had been seen as a possible shadow chancellor to Mr Miliband last year.

However, the new Labour leader plumped for Mr Johnson, who had no background in economics but was seen as a centrist figure with lots of Cabinet experience. One of his first comments after his appointment was that he would be buying a primer on economics – a remark that dogged him ever since.

Mr Alexander's appointment to the shadow foreign secretary's post marks a significant promotion for the Paisley MP. He said: "I am honoured to take on this role, even if it comes in circumstances that no-one would wish."