That’s all for tonight.
Our news story about Alistair Darling’s death is here, and you can read Gordon Brown’s tribute here, and economics editor Larry Elliott’s analysis of his achievements as chancellor here.
Our earlier round-up of today’s tributes is here, or you can read them all from here onwards.
Rest in peace, Alistair.
What the front pages say
And finally, Alistair Darling features on many of tomorrow’s front pages.
The National, the pro-independence Scottish newspaper, highlights the tributes paid by past and present first ministers, such as Humza Yousaf (who described Alistair Darling as a “giant of Scottish and UK politics” – see 3.14pm) and Alex Salmond (see 1.30pm)
While The Scotsman recalls Darling as: ‘A giant of politics, and the safest of hands’
The Financial Times credit him as “A steady hand” (see 21.24pm for their obituary) .
The Guardian highlights the tributes paid to Darling, on a day in which Shane MacGowan and Henry Kissinger also died:
While The Mirror calls him a ‘man of honour’:
Updated
British history over the last 15 years could have been potentially far worse had it not been for Alistair Darling, argues Sky News’s Ed Conway tonight.
Perhaps the most significant moment came when he resisted the pressure (including aggressive phone calls from the US Treasury Secretary Hank Paulson) for Barclays to take over Lehman Brothers as the American investment bank careered towards collapse.
How different Britain’s fate would have been had it absorbed Lehman’s toxic waste and instruments onto its balance sheet.
Here’s a video clip of Ed Balls and George Osborne reacting to Alistair Darling’s death, as the sad news broke while they were recording their podcast (as covered earlier).
The Financial Times’s obituary of Alistair Darling records that the 2008 financial crisis was the making of his personal and professional reputation.
It was one, according to colleagues, he handled with great calm in some very dark moments.
The FT’s Chris Giles writes:
The Northern Rock saga dragged on for a year as storm clouds grew across the Atlantic. By the summer of 2008, Darling knew the economic outlook was grave. As a politician who believed in being straight with the public, he gave an interview describing the economic prospects for the UK and the world as “arguably the worst they’ve been in 60 years”.
With Brown doggedly sticking to a narrative that the UK was not about to slide into recession (we later found out one had started early in 2008), Number 10 was furious. The spin operation in the following days unleashed the “forces of hell” against Darling, he later said, but he managed to hang on to his job.
Brown and Darling went on to lead an ultimately successful bid to prevent the financial crisis spiralling into a repeat of the Great Depression of the 1930s.
As Giles explains:
That autumn Darling recapitalised and in effect nationalised the two largest UK banks — Royal Bank of Scotland and Lloyds. He ditched fiscal rules that had survived a decade and primed the economy with what was then a highly unusual fiscal stimulus. The deficit rose to its highest level in peacetime. Still, the 2008-09 recession was the UK’s deepest since the 1920s.
Internationally, in the run-up to the spring 2009 London G20 summit, Brown and Darling persuaded international powers to follow suit as they co-ordinated a global response.
More here (£).
Columnist Alex Massie writes tonight that Alistair Darling is one of very few politicians who were required to save the country.
Massie says:
….however much he might reject such hosannas, the historical record demonstrates that at two pivotal moments he played a part in hauling the United Kingdom back from the brink of complete, irrevocable, calamity.
A summary: Tributes pour in
Former Chancellor of the Exchequer Alistair Darling, who oversaw Britain’s economy during the 2008 global financial crisis, has been hailed with warm tributes from across the political spectrum following his shock death today.
Prime minister Rishi Sunak said Darling’s passing is “a huge loss to us all”, explaining:
“He was a dedicated public servant who served this country though challenging times.
“The role he played during the 2014 independence referendum was vital in keeping our union together.
Labour leader Keir Starmer said Darling would be missed “by all those whose lives he touched”, saying:
Alistair lived a life devoted to public service. He will be remembered as the chancellor whose calm expertise and honesty helped to guide Britain through the tumult of the global financial crisis.
He was a lifelong advocate for Scotland and the Scottish people and his greatest professional pride came from representing his constituents in Edinburgh.
Current chancellor Jeremy Hunt said Darling was “one of the great chancellors”:
Tony Blair, who gave Darling a series of cabinet jobs, said he’d never met anyone who didn’t like Darling, adding:
He was highly capable though modest, understated but never to be underestimated, always kind and dignified even under the intense pressure politics can generate. He was the safest of safe hands.
I knew he could be given any position in the cabinet and be depended upon. I liked him and respected him immensely as a colleague and as a friend.
Other former prime ministers also paid tribute.
Gordon Brown he was “deeply saddened” by news of Darling’s death:
“Alistair will be remembered as a statesman of unimpeachable integrity whose life was defined by a strong sense of social justice and who gained a global reputation for the assured competence and the exercise of considered judgement he brought to the handling of economic affairs.
“He was held in the highest esteem by me and all who worked with him for the way in which he handled the fall of the major banks and negotiated international agreements with fellow finance ministers. I, like many, relied on his wisdom, calmness in a crisis and his humour.”
David Cameron described Darling as “a thoroughly kind and decent man”, who was owed “a huge debit of gratitude for chairing the Better Together campaign” in the Scottish independence vote.
Theresa May said she would remember Darling as a committed public servant, a proud Unionist and a calm, kind and decent man.
May added:
He was an asset to our politics and our national life. My thoughts and prayers are with his family.
Boris Johnson said Darling was “a towering figure in Labour politics and he always brought wit, wisdom and intellect to his work.”
Scottish politicians also paid tribute.
Scottish first minister Humza Yousaf described Alistair Darling as a “giant of Scottish and UK politics”.
Yousaf, the leader of the Scottish National Party, said:
“As chancellor of the exchequer, Alistair played a central role in stabilising the financial system after the banking crash, both at home and abroad.
“I disagreed with Alistair on big political issues, but what is much more important is the courteous and respectful manner with which he conducted himself throughout his political career. He will be hugely missed from our public life.
Scottish Labour leader Anas Sarwar dubbed Darling “a giant of the Labour movement, a titanic force for good and a man I was proud to consider a friend and a mentor.”
Bank of England Governor Andrew Bailey described Alistair Darling as a “dedicated public servant in the very best sense”.
Bailey added:
“He was a dedicated public servant in the very best sense, combining great skill and determination with profound humility.
“He steered the British economy ably during a time of great uncertainty.
Here’s our economics editor, Larry Elliott, on Darling’s work:
Full story: Former chancellor Alistair Darling dies aged 70
The former chancellor Alistair Darling has died aged 70, a spokesperson for the veteran Labour politician’s family has said.
A statement issued on behalf of the family said:
“The death of Alistair Darling, a former chancellor of the exchequer and long-serving member of the Labour cabinet, was announced in Edinburgh today.
“Mr Darling, the much-loved husband of Margaret and beloved father of Calum and Anna, died after a short spell in Western General hospital under the wonderful care of the cancer team.”
An Edinburgh MP from 1987 until he stepped down from parliament in 2015, Darling served as chancellor under Gordon Brown from 2007 to 2010.
Brown said he was “deeply saddened” by news of Darling’s death.
“Alistair will be remembered as a statesman of unimpeachable integrity whose life was defined by a strong sense of social justice and who gained a global reputation for the assured competence and the exercise of considered judgment he brought to the handling of economic affairs,” he said.
The Labour leader, Keir Starmer, said:
“Alistair lived a life devoted to public service. He will be remembered as the chancellor whose calm expertise and honesty helped to guide Britain through the tumult of the global financial crisis.
“I consider myself incredibly fortunate to have benefited from Alistair’s counsel and friendship. He was always at hand to provide advice built on his decades of experience – always with his trademark wry, good humour.
Darling ran the Treasury during the financial crisis of 2008, when the taxpayer was forced to rescue large parts of the banking sector in a series of unprecedented bailouts. He subsequently published a memoir about the period titled Back from the Brink.
Before the full impact of the crisis on the UK’s economy had become clear, in the summer of 2008, Darling gave a frank interview to the Guardian warning that the economic conditions the UK was facing were “arguably the worst they’ve been in 60 years”.
Brown: Alistair Darling was a politician who got things done
Former UK prime minister Gordon Brown has described Alistair Darling as an excellent people-manager, and a politician who got things done.
Writing in the Guardian tonight, Brown says:
The news of Alistair Darling’s death on Thursday came as a terrible shock to us all. A statesman of unimpeachable integrity and a man driven by a deep sense of social justice, twice in his career he stepped up when his country needed him and demonstrated a level of wisdom, courage and calmness that is granted to only the most exceptional of politicians and public figures.
The first was when, as chancellor of the exchequer during the 2007 global financial crash, it fell on him to manage the Treasury during an existential national crisis in which our major banks came within hours of collapse. He emerged from that shock with his reputation immeasurably enhanced; and as prime minister during that time, I found myself often grateful for his judgment. For his wry humour too: I well remember him telling me once – eyebrows arched – of the bank executive who claimed that he only now had become aware of the risks he was taking.
Alistair may have viewed the behaviour of the banks dimly but he went about the job with calm practicality: as the crisis reached its deepest point, he famously ordered £245 worth of curry and rice to feed to bankers while telling them they had no choice but to accept the terms we were proposing.
The second came a few years later when Alistair agreed to be chair of the Better Together campaign, arguing the case for Scotland’s place in the United Kingdom in the 2014 independence referendum. It was an immensely challenging task and not one he chose – rather, he was dragooned into the role.
Alistair was rightly seen as the best figure on the pro-UK side who could work as a leader and conciliator, bringing together people from across the political divide. He did an exceptional job.
Here’s the full piece.
Updated
There’s plenty of media coverage of Alistair Darling’s death today to wrap up.
The Financial Times say the former chancellor was “highly popular across party lines for his unflappable demeanour and deadpan sense of humour”, and that his death came as a great shock to many.
The Times flags that Darling “eschewed colourful phrases and stunts” and was sceptical of grand political visions.
They say:
He was proud of his pragmatic, managerial outlook and sought to provide practical solutions to help people. Critics thought him excessively cautious, too keen to build consensus on difficult issues before taking a policy decision.
When appointed he found both the social security and the transport departments in some disarray; he succeeded in calming both. His prematurely white hair, made distinctive by his black eyebrows, added to an impression of greyness.
He jokingly claimed that his obituary would contain the epithet “A Safe Pair of Hands”. Perhaps no other epithet would be so fitting.
In The Spectator, Stephen Daisley writes that Darling saved the country twice.
First, the financial turmoil of 2008, Darling managed a catastrophe down to a crisis, he writes:
“He brought Northern Rock into public ownership, backed British banks with the Treasury’s financial heft, and stimulated the economy with neo-Keynesian interventions. It was crude and messy and couldn’t stave off a recession but it held the sector and the economy together. Moreover, it saved the country from the kind of fiscal brutality seen in Spain, Portugal, Italy and elsewhere. Darling did all this while being briefed against by No. 10, obsessed as No. 10 always is by power and positioning.
He later had to watch as David Cameron and George Osborne turned virtue into vice for electioneering purposes. Come the 2010 election, they were maligning the unavoidable fiscal implications of Darling’s rescue strategy as proof that Labour couldn’t be trusted with stewardship of the economy. They castigated the firemen for causing water damage and, what’s worse, it worked. It is apt that Darling was followed in office by Osborne, for there could be no more historically insightful contrast in leadership, diligence and intellectual seriousness.”
Secondly, in the Scottish referendum campaign, when Darling took part in the first televised debate, one month before voters cast their ballots.
Now staid, unexciting, low-key Darling was to face off against [Alex] Salmond, one of the liveliest political performers Scotland has produced.
As had happened when he was in Number 11, Darling was briefed against by his own side and, as in No. 11, he had been underestimated. He turned his boring bank manager reputation to his advantage, hammering Salmond and his case for independence as risky, poorly thought through and driven by one man’s ego.
I watched that debate from the floor that night. I listened to sceptical politicians and hacks as they tried to process the clear victory of the man they had written off. I saw an ashen-faced Alex Salmond bundled away by his advisers. He was beaten and he knew it.
In the Independent, John Rentoul calls Darling “the surprise giant of the New Labour era”, explaining:
At the start, he was chief secretary to the Treasury, one of the most junior members of the cabinet, thought to have secured the post because he was part of Gordon Brown’s party within a party.
In fact, he had supported Tony Blair for the leadership, in preference to Gordon, and it was a tribute to his political skill that he was able to maintain a close relationship with both poles of the twin-axis government.
Being seen as a Brownite took him to the department of work and pensions, which the chancellor saw as part of his empire. Darling secured his reputation for competence and reliability when he was moved to transport, which he stabilised after the disruption of Stephen Byers’s exit – over problems that no one can now remember, and which seem trivial in comparison with the turbulence of the Tory years.
And The Daily Telegraph’s Jeremy Warner also has warm memories of Darling, calling him:
“…a kind, thoughtful and steadying influence amid the turmoil of the global financial crisis for which the country still has much to thank him for. Outcomes might have been much worse without him.”
Bank of England's Andrew Bailey pays tribute
Andrew Bailey, governor of the Bank of England, has paid tribute to Alistair Darling, saying he was “a dedicated public servant” who ably steered the British economy “during a time of great uncertainty”.
In a statement issued by the BoE, Bailey says:
“I worked closely with Alistair when he was Chancellor during the global financial crisis.
He was a dedicated public servant in the very best sense, combining great skill and determination with profound humility. He steered the British economy ably during a time of great uncertainty. My sincere condolences to his family and loved ones.”
Lord Wood: A terrible loss
“We were all lucky to have Alistair Darling running the Treasury during the 2008 crash,” said Lord Stewart Wood, who was a Downing Street adviser under Gordon Brown.
Wood added:
He was a wise, calm and clever politician, an extremely funny and generous man, and a frequent source of perspective & reassurance to junior people like me when times got tough.
A terrible loss.
Earlier this afternoon, Kezia Dugdale, the ftormer Labour leader in Scotland, said:
I am so desperately sad to read that Alistair Darling has passed away.
“What a giant of a man. Compelling intellect, wicked sense of humour, phenomenal public servant and the most loving father and husband. Such a great, great loss.”
Figures in the UK financial services industry have also paid their respects to Alistair Darling today, FT Advisor reports.
Scottish Friendly former commercial director, Neil Lovatt, said:
“Alistair was a kind and gentle soul with a razor sharp sense of humour. He will be sorely missed.
“No matter what your views of him as a politician there is little doubt that his efforts during the financial crisis were central to pulling the UK, if not the global financial system, back from the brink.
“His patience, force of will and diplomacy meant we narrowly avoided the ATMs running dry in 2008. It was his finest hour.”
Quilter Cheviot chief investment strategist, Alan McIntosh, also hailed Darling’s handling of the financial crisis, saying:
“Barely a year into his tenure as chancellor of the exchequer, Alistair Darling had to steer the UK economy through the worst financial crisis of the century.
“His response to the banking crisis undoubtedly helped prevent a potential economic depression, including a swift intervention to prevent RBS, then the largest bank in the world, collapsing upon hearing that it would run out of money within hours.”
Analysis: How Alistair Darling helped UK weather financial crisis
As chancellor, Alistair Darling had three big problems to tackle, our economics editor Larry Elliott remembers:
“The first was that he took over at the Treasury from a man who had been doing the job for more than a decade. Gordon Brown would have been a tough act to follow in normal circumstances, and these were far from normal circumstances. Darling often chafed at what he saw as Brown’s attempt to continue running economic policy even after he had moved from 11 Downing Street to the house next door.
A much bigger problem was that a financial crisis began almost as soon as Darling arrived at the Treasury. The seemingly inconsequential closure of two hedge funds at BNP Paribas in August 2007 set in train a sequence of events that brought the global banking system to the brink of collapse.
By the time Lehman Brothers was declared bankrupt in September 2008, trust had evaporated. In the early years of the decade, banks had loaded up on complex financial instruments linked to the US housing market. These trades were highly leveraged, which meant lucrative returns so long as property prices did not crash. When they tumbled, losses were magnified. Since nobody knew for sure the exposure of each individual bank to these toxic derivatives, banks stopped lending to each other, triggering a monster credit crunch.”
The third problem, Larry adds, is that the UK economy was in a desperately weak state by late 2008. So he had to encourage growth, while also teeing up measures to reduce record peacetime borrowing.
“Darling made a decent fist of it. A combination of VAT cuts, more generous benefits, and fast-forwarded public investment meant the economy was growing again by the end of 2009, with a multiyear deficit reduction plan delayed until after the election.
But it was not enough. Labour lost in 2010 and a gentle recovery was halted by George Osborne’s full-on austerity.”
Alistair Darling was “decent, witty and very shrewd” and a “lovely man”, says Steve McCabe, Labour MP for Birmingham Selly Oak, who worked with Darling in government:
Here are a few photos from Alistair Darling’s time in government:
And after leaving office, Darling wrote about his time within the British government’s handling of the global financial crisis:
Former chancellor George Osborne, and his Labour shadow Ed Balls, have discussed Alistair Darling’s death on their podcast, Political Currency.
Osborne said that Darling (who he succeeded at the Treasury) would be remembered as someone who “brought out the best of politics”, and was softly spoken, intelligent, and always trying to do the right thing.
Darling, Osborne says, made a big difference to the UK’s future at two crucial points:
“In the financial crisis, he was the chancellor of the exchequer, who earned a lot of trust with the way he handled that crisis.
And I say that as someone who was against him at the time, and second, the Scottish referendum where he led the campaign to keep the United Kingdom together.”
Osborne called Darling was a great public servant; many people with political careers will wish to achieve just half as much, he adds, continuing:
“And he’s one of those people I think, whose reputation will just grow and grow. People will remember the contribution he made”.
Balls says that Darling was a radical, a reformer, and a “very, very strong moral code” who did politics the right way and made a difference.
Balls adds:
And in the end, at the end of a life, at the end of a political career, what you want people to say is, ‘it was a good thing they were there. They made a difference, they made things better’. And you can say that about Alistair Darling.
Back in 2009, there were rumours that Balls (then Children’s Secretary) could become the next chancellor.
In his 2011 book, Back from the Brink: 1000 Days at Number 11, Darling suggests that from the beginning, he was only keeping the Treasury seat warm for Balls, who was Gordon Brown’s protégé.
But Balls responded that he had opposed Brown’s plan to sack Darling and give him the job instead.
Updated
Yousaf: Darling was a giant of Scottish and UK politics
Scottish first minister Humza Yousaf described Alistair Darling as a “giant of Scottish and UK politics”.
Yousaf said:
“I am deeply saddened at Alistair Darling’s passing. He dedicated his life to public service, and was a giant of Scottish and UK politics.
“As chancellor of the exchequer, Alistair played a central role in stabilising the financial system after the banking crash, both at home and abroad.
“I disagreed with Alistair on big political issues, but what is much more important is the courteous and respectful manner with which he conducted himself throughout his political career. He will be hugely missed from our public life.
“My thoughts are with his wife, Margaret, his children, family, and many friends and colleagues at this sad time.”
Sunak: Darling played vital role in Scottish independence referendum
Prime minister Rishi Sunak has also recognised Alistair Darling’s role spearheading the Better Together campaign against Scottish independence.
Sunak says:
“Alistair Darling’s passing is a huge loss to us all.
“He was a dedicated public servant who served this country though challenging times.
“The role he played during the 2014 independence referendum was vital in keeping our union together.
“My deepest condolences go out to his family and friends at this difficult time.”
Blair: I remember him with huge affection
Former PM Tony Blair, who gave Alistair Darling a job in all his cabinets, says his former colleague was “the safest of safe hands” who did an outstanding job.
Blair says he liked and respected Darling immensely, and never met anyone who didn’t like him – something that has become apparent through the flood of tributes from across the political spectrum.
Here’s Blair’s tribute:
Alistair Darling was a rarity in politics. I never met anyone who didn’t like him. He was highly capable though modest, understated but never to be underestimated, always kind and dignified even under the intense pressure politics can generate. He was the safest of safe hands. I knew he could be given any position in the cabinet and be depended upon. I liked him and respected him immensely as a colleague and as a friend.
In all the jobs he did for me in government – Chief Secretary, Work and Pensions, Transport, Trade and Industry, and of course as Secretary of State for Scotland – he was outstanding. He could take tough decisions on spending when he needed to, but as he did with Crossrail, when convinced of a project’s importance, he would be equally tough in supporting it.
I remember him with huge affection. He has been taken from us far too soon. My deepest condolences to Maggie, to Calum and to Anna.
Alistair Carmichael, Liberal Democrat MP for Orkney and Shetland, says we have lost a “determined, capable and thoughtful public servant”.
Carmichael says:
Alistair was not the flashiest of politicians but he gave one hundred per cent to any job he did and always left things better than he found them.
It was my privilege to campaign with Alistair during the 2014 referendum. My respect and admiration for him grew enormously during that time. He will be missed by all who knew him but especially by Maggie and their family to whom I extend my deepest condolences.
Cameron: Alistair was a thoroughly kind and decent man
Lord Cameron says he is “incredibly sad” to hear that Alistair Darling has passed away.
David Cameron also acknowledged Darling’s role in the Scottish independence referendum campaign (the second of three referenda* on Cameron’s watch), saying:
Alistair was a thoroughly kind and decent man. Despite us representing opposing parties, I always valued his immense contribution and enjoyed working with him too. We owe him a huge debit of gratitude for chairing the Better Together campaign ahead of the referendum in 2014.
He led the campaign with great distinction and tenacity, securing Scotland’s place in our Union. He has left us far too early. My thoughts and prayers are with Maggie and his children, Calum and Anna.
* – the first was the Alternative Vote referendum of 2011, and the third was the EU membership vote in 2016.
Updated
Sam White: Civil servants still whisper Darling was their favourite minister
One of Alistair Darling’s advisors, Sam White, says he will remember the former chancellor’s “kindness, humour and friendship”.
White says he was part of a small “sect” of Darling-ites, when most of the Labour party either followed Tony Blair or Gordon Brown.
Darling-ites, White says, believed in “sensible, evidence-led, public policy making. Good judgment & good wine”.
White remembers laughing a lot with Darling, especially in the tough times, saying:
Gallows humour was his favourite. Every weekend, I’d say ‘see you next week’ and he’d answer ‘if we’re spared’. He had incredible work ethic. He would devour his ministerial box.
White, who went on to be Keir Starmer’s chief of staff, adds:
To this day, I still regularly meet civil servants who take me aside and when they think no one can hear whisper ‘he was my favourite minister’.
Alistair Darling took a degree in law at the University of Aberdeen in the 1970s, and received an honorary doctorate from his alma mater around four decades later.
Aberdeen have posted a photo of Darling receiving his Doctor of Laws, five years ago:
London Mayor Sadiq Khan says he was inspired by Alistair Darling’s calm leadership during the financial crisis, adding:
His integrity, and his years of service to our country will never be forgotten.
That calm leadership must have been tested in 2007, though, when Darling faced the first run on a UK bank in 150 years.
The panic over Northern Rock in September 2007 saw queues of savers across the country trying to take their money out of the bank.
After three days of queues, and fears of a wider banking panic spreading, Darling responded by issuing an emergency pledge to Northern Rock savers that their money was safe.
Darling went on to lift the maximum deposit protection on all bank savings, at the start of October 2007, as Gordon Brown’s government tried to address issues raised by the Northern Rock crisis.
And in February 2008, he nationalised Northern Rock after efforts to find a buyer failed.
Updated
Sarwar: Darling was a giant of the Labour movement
Alistair Darling was dedicated to public service and improving the lives of those less fortunate, says Scottish Labour leader Anas Sarwar.
In his tribute, Sarwar calls Darling “a titanic force for good”, who served the people of Scotland and the UK, saying:
“I am heartbroken at the news of the death of Alistair Darling and my thoughts are with his wife – Maggie, his two children and all those who knew and loved him.
Alistair was a giant of the Labour movement, a titanic force for good and a man I was proud to consider a friend and a mentor.
From his time as Secretary of State for Scotland to being the Chancellor that led the UK through the financial crisis, Alistair Darling was dedicated to public service and improving the lives of those less fortunate.
At a time of division for Scotland, Alistair led the Better Together campaign with kindness, intelligence and good humour – it was a job he did not want to do, but he believed he was doing a service for Scotland.
Alistair’s life was one spent in the service of the people of Scotland and the UK – the Labour family and our country will sorely mourn his passing.”
Labour MP Margaret Hodge says Alistair Darling was a “hugely important figure during the Labour government who helped navigate us through the financial crisis”.
Hodge also points to Darling’s dry sense of humour.
That sense of humour was visible in Darling’s meeting with the Guardian in August 2008, on Lewis in the outer Hebrides, when he warned that an economic storm was approaching.
At one point, our photographer asked Darling to look out to the Atlantic. He did so, murmuring, “I am looking at the sub-prime market.” (a few weeks later, those loans to borrowers with poor credit ratings brought down Lehman Brother, and rocked Wall Street).
Boris Johnson has pointed to Alistair Darling’s wit, wisdom and intellect in his tribute, saying:
I was so sorry to hear of the death of Alistair Darling. He was a towering figure in Labour politics and he always brought wit, wisdom and intellect to his work. My thoughts are with his family.
Former Labour spin doctor Alastair Campbell, who was Tony Blair’s chief press secretary from 1997 to 2000, says Alistair Darling was “a lovely man who always put others before himself”.
Campbell also points out that Darling did a succession of cabinet jobs during Labour’s previous term in power, and did them all well.
Darling was appointed Chief Secretary to the Treasury (number two, behind then chancellor Gordon Brown) in 1997.
He later served as social security secretary, Secretary of State for Transport, Secretary of State for Scotland, and Secretary of State for Trade and Industry. Darling then became chancellor when Brown became prime minister in 2007, and held the position until the 2010 election.
Theresa May: He was an asset to our politics and our national life
Theresa May, former UK prime minister, describes Alistair Darling as an asset to politics and our national life.
May says:
Sad to learn of the death of Alistair Darling, whom I will remember as a committed public servant, a proud Unionist and a calm, kind and decent man.
He was an asset to our politics and our national life. My thoughts and prayers are with his family.
His Majesty’s Treasury have posted that their thoughts are with Alistair Darling’s friends, family and former colleagues today.
Torsten Bell, chief executive of the Resolution Foundation thinktank, says he is “sadder than words can say” about Alistair Darling’s death.
Bell adds:
Alistair Darling was a great man, but never expected to be treated as one.
A man who always felt the weight of the huge decisions that public service involves, but was still able to take them - even in the darkest of economic times
Rupert Harrison, the former right hand man to George Osborne, who became chancellor in 2010, has also paid a touching tribute to Alistair Darling.
Harrison says Darling’s death is “incredibly sad news”, adding:
When we arrived in the Treasury in 2010 it was clear that Alistair Darling had inspired deep affection and loyalty from all of his officials. He also treated us gracefully and politely during the transition. A big loss to our public life.
Harrison, who is Conservative parliamentary candidate for Bicester & Woodstock, adds that those in political life can learn from Darling:
Labour MP for Edinburgh South, Ian Murray, says Alistair Darling was “a lovely person to be around”, in his tribute, pointing to the former chancellor’s principles and work ethic.
Murray says:
I have known Alistair for many years, and he was the most decent, hard working and principled man you could ever meet.
“He served our home city of Edinburgh as a councillor and MP diligently over decades, and served our country as Chancellor during the most urgent economic crisis in our lifetimes.
“He led the Treasury with the same principle and hard work that he applied to everything in his remarkable life.
“Most of all Alistair was my friend and a lovely person to be around.
“Alistair will be missed enormously and my thoughts just now are with his wife Maggie and his entire family.”
Here’s a reminder of that combative television debate over the question of Scottish independence, in which Alistair Darling accused Alex Salmond of arguing for independence using “guesswork, fingers crossed and blind faith”:
Salmond: Darling presented as a calm and authoritative figure during the financial crisis.
Alex Salmond, who was first minister of Scotland while Alistair Darling was UK chancellor, has also paid tribute, saying:
“This is very sad news. Alistair Darling was a hugely significant figure in UK politics. I always found him an effective politician. He became Chancellor at an extremely difficult period but he presented as a calm and authoritative figure during the financial crisis.
During the referendum campaign he was a formidable opponent on behalf of the Better Together Campaign. However, outwith the political debates I can say we did not ever exchange a cross word. Alistair was an extremely courteous man.
Condolences go out to his family.”
Updated
Brown: Alistair will be remembered as a statesman of unimpeachable integrity
Gordon Brown, Darling’s predecessor as Labour chancellor, said he was “deeply saddened” by news of his death.
Brown says:
“Alistair will be remembered as a statesman of unimpeachable integrity whose life was defined by a strong sense of social justice and who gained a global reputation for the assured competence and the exercise of considered judgement he brought to the handling of economic affairs.
“He was held in the highest esteem by me and all who worked with him for the way in which he handled the fall of the major banks and negotiated international agreements with fellow finance ministers. I, like many, relied on his wisdom, calmness in a crisis and his humour.”
“Alistair’s family were central to everything he did. I send my deepest condolences to his loving wife Maggie and their children Calum and Anna. He will be missed by all who knew and respected him and benefited from the great work he did.”
As well as his time as chancellor, Darling also led the cross-party anti-independence campaign Better Together during the referendum campaign of 2014, famously clashing with his rival Alex Salmond in televised debates.
Widely expected to lose to Salmond in those debates, Darling won the first with a caustic put-down of the then first minister’s uncertainties about which currency Scotland would use after independence, and denouncing the prospectus for independence as being based on “guesswork, fingers crossed or his blind faith.”
Darling, educated at fee-paying Loretto’s boys school in Musselburgh, was also furious about the attacks on Better Together’s alliance with the Conservatives, which led pro-independence campaigners to brand Labour as “red Tories.”
That label cost Labour votes across urban Scotland; left wing Labour activists and MSPs were also embarrassed, but Darling insisted that since referendum law only allowed one no campaign and one yes campaign, a coalition with other pro-union parties was unavoidable.
Former Scottish Labour leader Kezia Dugdale says:
“I am so desperately sad to read that Alistair Darling has passed away.
“What a giant of a man. Compelling intellect, wicked sense of humour, phenomenal public servant and the most loving father and husband. Such a great, great loss.”
Starmer: Alistair lived a life devoted to public service
Keir Starmer has paid tribute to Alistair Darling, following the former chancellor’s death.
The Labour leader said Darling lived a life devoted to public service, and that he would be missed by all those whose lives he touched, saying:
I am deeply saddened to learn of the passing of Alistair Darling. My heart goes out to his family, particularly Maggie, Calum and Anna, whom he loved so dearly.
Alistair lived a life devoted to public service. He will be remembered as the chancellor whose calm expertise and honesty helped to guide Britain through the tumult of the global financial crisis.
He was a lifelong advocate for Scotland and the Scottish people and his greatest professional pride came from representing his constituents in Edinburgh.
I consider myself incredibly fortunate to have benefited from Alistair’s counsel and friendship. He was always at hand to provide advice built on his decades of experience – always with his trademark wry, good humour.
Alistair will be missed by all those whose lives he touched. His loss to the Labour party, his friends and his family is immeasurable.
That’s via our Politics Live blog, here.
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Jeremy Hunt, the current chancellor, has paid tribute to Alistair Darling as “one of the great chancellors”.
Former chancellor Alistair Darling dies, aged 70
Some very sad news: Alistair Darling, the former chancellor, has died, aged 70.
Darling was Chancellor of the Exchequer from 2007 to 2010, steering the UK economy through the financial crisis and the global recession that followed it.
A statement issued on behalf of the family of former Labour chancellor Alistair Darling said:
“The death of Alistair Darling, a former Chancellor of the Exchequer and long-serving member of the Labour cabinet, was announced in Edinburgh today.
“Mr Darling, the much-loved husband of Margaret and beloved father of Calum and Anna, died after a short spell in Western General Hospital under the wonderful care of the cancer team.”
In August 2008, shortly before the collapse of Lehman Brothers, Alistair Darling gave a precient warning to The Guardian that economic conditions were “arguably the worst they’ve been in 60 years”, and would be “more profound and long-lasting” than people recognised.
Later that year, Darling announced a 2.5 percentage point in VAT to support the economy, and followed it up in his 2009 budget with a £1.7bn job creation scheme and a new 50p income tax band for the highest paid.
Here’s our news story:
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FT: Saudi wins provisional backing for Opec+ oil production cuts
Back in the energy sector, the Financial Times is reporting that Saudi Arabia has won provisional backing for further oil production cuts by the Opec+ group.
Under this provisional plan, to be discussed at today’s meeting, other members of the cartel would also contribute.
The FT says:
People familiar with Saudi Arabia’s thinking have said an additional group-wide production cut of about 1mn barrels a day — about 1 per cent of global supply — has gained support, though the number has not been finalised and could be higher or lower.
The kingdom would also extend its existing temporary voluntary curbs — also of 1mn b/d — that are due to expire at the end of this year, while Russia has also made smaller voluntary cuts to exports.
This chimes with Reuters’ report that there is preliminary agreement about an Opec+ output cut.
The UK’s transport secretary, Mark Harper, has welcomed today’s vote by RMT members to accept a pay offer.
Harper says it is “a significant step” towards resolving industrial disputes on the railway, and can lead to “long overdue reforms”.
Full story: RMT union members at train operators vote to accept pay deal
Members of the RMT union working for train operators have voted to accept a pay deal, marking an end in part to the long-running national rail dispute, our transport correspondent Gwyn Topham writes.
The union announced an overwhelming vote in favour in an electronic ballot of a 5% pay deal for 2022, allowing talks to continue on a further deal for 2023 and 2024 without the threat of strikes or layoffs.
The train drivers union Aslef remains in dispute and a week of action including an overtime ban and rolling strikes begins on Friday.
The pay proposal which the RMT have accepted is online here.
In it, the Rail Delivery Group (made up of Network Rail and train operators) explain that the RMT’s strike mandate would end if members accepted it (as they have done so).
That would mean staff and passengers would have “respite from industrial action over Christmas and into the new year”, the RDG explained.
RMT members accept deal to end dispute over pay and conditions
Newsflash: Members of the RMT union have voted overwhelmingly to accept a deal to end their long-running dispute over pay and conditions which has let to months of disruption on the UK railways.
The offer was made by the UK’s Rail Delivery Group, and included a 5% pay increase for 2022, and a guarantee of no compulsory redundancies until December 2024.
RMT general secretary Mick Lynch says:
“Our members have spoken in huge numbers to accept this unconditional pay offer and no compulsory redundancies until the end of 2024.
“I want to congratulate them on their steadfastness in this long industrial campaign.
“We will be negotiating further with the train operators over reforms they want to see. And we will never shy away from vigorously defending our members terms and conditions, now or in the future.
“This campaign shows that sustained strike action and unity gets results and our members should be proud of the role they have played in securing this deal.”
Updated
Reuters: Opec+ has preliminary agreement for extra output cut
Reuters is reporting that the Opec+ group has reached a preliminary agreement for an additional oil output cut of more than 1 million barrels per day.
That’s being attributed to an Opec+ source, ahead of the formal Opec+ meetings due to take place later today (see intro for more details).
Here’s Marc de Muizon, senior economist at Deutsche Bank Research, on today’s eurozone inflation report:
“For the third month in a row, Euro Area inflation surprised markets and forecasters strongly on the downside today.
The November inflation flash prints confirmed price pressures are coming down quickly across all components of the inflation basket.
This print confirms that Euro Area domestic inflation is slowing much faster than anticipated by ECB forecasts a few months ago.”
Core inflation also falls in eurozone
Core inflation across the eurozone has also fallen this month.
If you strip out energy, food, alcohol and tobacco, annual core inflation dropped to 3.6% this month, down from 4.2% in October.
Core inflation is seen as a good guide to underlying inflationary pressures.
Diego Iscaro, head of European economics at S&P Global Market Intelligence, says inflation is likely to be below ECB forecasts in 2024:
“The larger than expected fall in eurozone inflation is good news and confirm the disinflationary trend already evident in recent months. The combination of falling inflation and still robust employment growth will help to support the economy and offset some of the drag coming from tighter monetary policy.
While we expect headline inflation to rise in December, the latest figures suggest that inflation in 2024 is likely to be below the ECB’s latest projections. It remains to be seen whether this will be enough to lead the central bank to cut interest rates already at the start of the second quarter of next year as financial markets currently expect. We expect that ECB will want to see a clear deceleration in wage growth before pulling the trigger”, said
Economics lecturer Daniel McLaughlin says inflation is likely to be rather lower than the ECB expected in the final quarter of this year.
ING: Falling inflation means eurozone rate cuts before the summer
Bert Colijn, senior eurozone economist at ING, predicts falling inflation will prompt the European Central Bank to start to cut interest rates before next summer.
Colijn says:
For the ECB, signs of an imminent victory on inflation are mounting. The central bank worries about factors like wage growth and possible spikes in the energy market that could put inflation on a higher path again.
But current monetary policy is sufficiently restrictive as bank lending data out earlier this week showed that the effects of higher rates are impacting lending significantly.
Also, there is still a lot more of the impact of tightening to come as interest payments are still increasing. The market is therefore right to start looking at rate cuts for 2024. We think the first one could well happen before the summer.
The sharp drop in eurozone inflation this month is a challenge to the European Central Bank’s argument that inflationary pressures are stubborn.
On Monday, ECB president Christine Lagarde told EU lawmakers that “This is not the time to start declaring victory.”
The ECB left interest rates on hold last month, after 10 increases in a row.
Mathieu Savary, chief European strategist at BCA Research, says the ECB is unlikely to start cutting interest rates soon:
“The Eurozone’s core CPI is falling even faster than market participants expected.
Traders will be tempted to bring their expectations of the first rate cut forward, but this would be a mistake. The ECB is too concerned by the tightness of the labor market, which implies later rather than sooner rate cuts.”
Eurozone inflation falls to 2.4%
Newsflash: Inflation across the eurozone has fallen sharply this month, as falling energy prices ease the cost of living crisis.
The eurozone annual inflation rate is estimated to be 2.4% in November, down from 2.9% in October.
That’s a bigger drop than expected, as economists had forecast the inflation rate would drop to 2.7%.
Statistics body Eurostat reports that food, alcohol & tobacco is expected to have the highest annual rate in November, at 6.9% (compared with 7.4% in October).
Service inflation is estimated to have eased to 4.0%, down from 4.6% in October.
Industrial goods price inflation has eased to 2.9%, from 3.5%, Eurostat estimates.
Energy prices continue to tumble on a year-on-year basis, down -11.5% compared with November 2022, compared with -11.2% in October.
In contrast, the UK’s inflation rate fell to 4.6% in October (we don’t have November’s figures yet), while US inflation cooled to 3.2% in October (ditto).
Updated
UK property transactions drop
UK property transactions fell again last month, data from HMRC shows, as the housing market continued to cool.
There were 82,910 UK residential transactions in October (on a seasonally-adjusted basis), which is 3% lower than in September…. and 21% lower than October 2022.
The drop in transactions follows the fall in mortgage approvals, which hit a five-month this summer.
Anna Clare Harper, CEO of sustainable investment adviser GreenResi, says the fall in housing transaction is not surprising, adding:
“Firstly, we are still coming down from a bubble caused by Covid and Stamp Duty reductions, which created double-digit house price growth for much of the past three years.
Secondly, the higher base rate is designed to cool demand and therefore pricing in the economy, and it is working to plan.
Sentiment is subdued across the property market. However, for investors it’s a time of opportunity since rental demand has never been stronger, and it is a good time to negotiate on purchase price.”
Here’s Noble Francis, economics director at the Construction Products Association:
Amena Bakr, chief Opec correspondent and deputy bureau chief at Energy Intel, has details of the timings for today’s Opec meeting:
The JMMC is the Joint Ministerial Monitoring Committee, which will make recommendations to Opec+.
It’s possible that Opec+ members fail to agree any output cuts today, and simply maintain output at current levels.
Group leader Saudi Arabia is pressing fellow alliance members to join it in restraining supplies in order to stave off a renewed oil surplus next year. A deeper collective cutback of 1 million barrels a day or more will be discussed when ministers from the Organization of Petroleum Exporting Countries and its allies hold their video conference, delegates said.
Yet obstacles to an accord remain — most notably, a dispute over whether African members Angola and Nigeria should accept reduced output targets to reflect their diminished production capabilities. The stalemate has meant that Thursday’s gathering is being held four days later than originally planned.
Failure to resolve the issue could result in a so-called rollover at the meeting, in which members maintain output at current levels, delegates said.
In the City of London, shares in footwear maker Dr Martens have plunged by 25% after it issued its fourth profit warning this year.
A tough consumer environment in the US continues to affect sales of Dr Martens sturdy boots.
The Northamptonshire-based footwear brand said sales fell 5% to £396m in the six months to 30 September and pre-tax profits dived 55% to £26m. While this was better than City analysts had expected, the company warned that the outlook for the following six months had worsened because of a slower than hoped for recovery in its US business.
At 85p, shares are over 75% lower than the 370p float price in January 2021.
Sales for the full year are now expected to fall by about 8% and underlying profits to drop back below the £223.7m minimum expected by the City – continuing the slide seen since the company listed on the London Stock Exchange in January 2021.
The “trend towards disinflation” is well underway in France, says Charlotte de Montpellier, ING’s senior economist for France and Switzerland, after inflation dropped to 3.4% this month from 4% in October.
There are worrying economic signs from China today, where factory activity has contracted for the second month running.
The official purchasing managers’ index fell to 49.4 in November from 49.5 in October, National Bureau of Statistics data showed today, further below the 50-point mark showing stagnation.
Economists had expected a small rise to 49.7 (showing a slower contraction).
Dan Wang, chief economist at Hang Seng Bank China, blames a slowdown in global demand.
“The domestic market cannot make up for losses in Europe and the United States. The data shows that factories are producing less and hiring fewer people.”
Growth in China’s non-manufacturing section of the economy slowed, with its PMI weakening to 50.2 in November from 50.6 in October.
Kyle Rodda, senior financial market analyst at capital.com, says:
Further evidence for China’s half-baked economic recovery came from today’s PMI surveys, which revealed an unexpected drop in manufacturing and non-manufacturing activity.
In better news from France, inflation has fallen… and by more than expected.
Over the last year, the Consumer Price Index (CPI) is estimated to have risen by 3.4% in November 2023, down from 4.0% in October, French stats body INSEE says.
During November alone, prices are estimated to have dropped by 0.2%.
On an EU-harmonised basis, French annual inflation dropped to 3.8% this month, down from 4.5% in October.
French economy shrank 0.1% in Q3, worse than thought
Newsflash: The French economy shrank unexpectedly in the last quarter, as the eurozone economy teeters on the brink of recession.
Updated GDP data just released shows that France’s economy contracted by 0.1% in July-September.
That’s worse than the first estimate of 0.1% growth for Q3, and follows growth of 0.6% in Q2.
The new data shows that French investment and consumer spending were weaker than initially expected.
INSEE, the statistics body, says:
The purchasing power of households gross disposable income (GDI) per consumption unit fell slightly (-0.2%) after remaining stable in the previous quarter. The household saving rate fell this quarter to 17.4% of GDI, after 17.9% in the previous quarter.
Trade also pulled GDP down, with exports falling by 1% while imports were stable.
The wider eurozone economy also shrank by 0.1% in the last quarter, according to statistics body Eurostat.
Oil up ahead of Opec+ meeting
Brent crude has hit a two-week high this morning, as traders brace for today’s Opec+ meeting.
Updated: It traded as high as $83.85 per barrel, +0.9%, the highest since 14 November, following yesterday’s report that Opec+ was considering cutting production by as much as 1 million barrels a day.
Updated
Introduction: Opec+ meeting in the spotlight today
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
To cut or not to cut? That is the question facing Opec+ today as the oil cartel meets (virtually) to set production levels.
Opec and its allies are expected to try to agree to cut the amount of crude oil they pump, in another attempt to prop up prices as demand weakens.
But there’s an unusual lack of consensus within the group, so analysts aren’t sure what to expect today.
This afternoon’s meeting has been delayed from last Sunday, due to a disagreement over output quotas by the African oil-producing countries.
And yesterday, the Wall Street Journal reported that Opec and its Russia-led allies are considering new oil production cuts of as much as 1 million barrels a day. That would be around one percent of global demand.
But some members may not support a cut, as Stephen Innes, managing partner at SPI Asset Management, explains:
There is increasing speculation that deeper OPEC+ cuts may encounter strong resistance, particularly from the United Arab Emirates and African producers such as Angola and Nigeria.
These countries resist accepting lower production baselines, even under weaker market fundamentals. The dynamics within the OPEC+ alliance continue to play a crucial role in determining production policies and addressing global oil supply challenges.
Opec+ has already been cutting output over the last year, and has removed around 5 million barrels per day, despite pressure from the White House to pump more to bring down motor fuel prices.
And Deutsche Bank has pointed out that if Opec+ don’t cut output, then the global oil market would move into an oversupplied position in early 2024, given oil demand growth and rising non-OPEC production.
Also coming up today
We find out today if inflation in the eurozone kept falling this month. The CPI index is expected to drop to 2.7%, from 2.9% in October, closer to the European Central Bank’s target of 2%.
There’s also new eurozone jobs report, while Canada will become the last G7 country to report GDP figures for the third-quarter of 2023 today.
The agenda
8.55am GMT: German unemployment
10am GMT: Eurozone flash inflation report for November
10am GMT: Eurozone unemployment report for October
1.30pm GMT: US weekly jobless claims
1.30pm GMT: PCE measure of US producer price inflation
1.30pm GMT: Canada’s Q3 GDP report to be released
3pm GMT: Opec virtual meeting expected to start
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