Shadow business secretary Chuka Umunna (left) and Gordon Brown (right) clashed on the phone over Labour's record on the economy
Gordon Brown gave Labour rising star Chuka Umunna ‘the hairdryer treatment’ in a blistering phone call after the shadow business secretary publicly blamed him for Labour’s struggles on the economy.
Mr Brown attacked the shadow cabinet minister for an interview he gave criticising the former Labour leader’s failure to confront Britain’s ballooning deficit in the run up to the 2010 election.
Mr Umunna said Mr Brown’s refusal to even talk about Government ‘cuts’ was still costing Labour support, because it made the party look like it did not care about the deficit, But the remarks sparked a furious response from Mr Brown.
Labour are currently 25 points behind the Tories on which party is best for the UK economy.
The former Prime Minister told Mr Umunna that he should not accept Tory claims that Labour was spending too much before the last general election, a senior Labour source revealed.
The source said: ‘He still cannot accept Labour was running a structural deficit. Even after all this time he won’t accept that he was wrong – it’s unbelievable.’
The deficit – the difference between Government spending and how much it raises in taxes each year – was more than £160 billion in 2010.
In an interview with GQ magazine, published this month, Mr Umunna said Mr Brown’s refusal to face up to the deficit was still hurting the Labour Party.
He said: ‘My view is that the seeds were sown under the last government and Gordon - for whom I have a lot of respect - his refusal to use the word “cuts” in trying to frame the economic debate as investment versus cuts gave the impression we didn't understand that debt and deficit would have to be dealt with.’
Labour blamed the huge borrowing splurge on the global recession – because the Government was forced to withstand a huge hit on tax revenue as people lost their jobs, while at the same time increasing spending on benefits.
But analysis has since revealed that the ‘structural deficit’ – the amount of borrowing needed even when the economy is growing normally – had grown to more than £100 billion in the last year of the Labour government.
A source close to Mr Umunna confirmed the pair spoke in a telephone call after the interview was published earlier this month.
The source said: ‘It is something they disagree on.
‘Chuka’s argument has always been that pursuing the line that it was Labour spending versus Tory cuts allowed Osborne to make the whole election debate about deficit reduction. They spoke and that is definitely still his view.’
A spokesman for Mr Umunna said: 'Chuka and Gordon are both members of the PLP - or course they speak to each other on a range of issues. Chuka has great respect for Gordon.'
It is understood that on this occasion Mr Umunna initiated the call.
Conservative MP Henry Smith said the confrontation between Mr Brown and Mr Umunna revealed a 'divided' Labour Party.
He said: 'This shows a Labour party still in denial about the record deficit they left behind and with no plan to deal with our debts and ensure a more financially secure future for Britain.
'Brown’s intervention begs the question who’s in charge of a clearly split and infighting Labour leadership team.'
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