Johnson steps down as shadow chancellor

SHADOW chancellor Alan Johnson dramatically quit the Labour front bench last night over what he said were “personal issues”.

His surprise announcement forced Labour leader Ed Miliband to reshuffle his team after just three months.

Ed Balls, passed over for the job in October, was installed as Chancellor George Osborne’s new opposite number.

Sources close to Miliband said he had not wanted to lose Johnson and insisted his departure had nothing to do with repeated questions about his suitability for the job.

The Labour leader said Johnson had done a “good job” and stressed that the arrival of Balls in the Treasury brief did not mark a change of economic policy.

In a statement, Johnson said he was resigning 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.

“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.”

Balls, a fierce ally of former prime minister Gordon Brown, has questioned Labour’s deficit reduction plans in the past, suggesting they should be less aggressive. But Miliband stressed there would be no change to Labour’s economic policy.

“Ed brings great expertise to this role and I look forward to working with him on the direction Alan and I have set out,” he said during a visit to the West Midlands.

“Economic policy is unchanged. Actually Ed and I have similar views.”

The Tories and Liberal Democrats said Balls’ appointment marked a return to strength for Brown’s old guard.

Conservative Party deputy chairman Michael Fallon said: “It beggars belief that Ed Balls has been appointed as shadow chancellor.

“The man who is responsible for Britain’s economic mess has returned. The Labour Party has learnt nothing and is now led entirely by Gordon Brown’s old team.”

Stephen Williams, co-chair of the Lib Dem Parliamentary Treasury Committee, accused 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.”

Johnson’s abilities as shadow chancellor had been repeatedly called into doubt by opponents — something he helped encourage by saying he needed to buy a primer on economics.

But Miliband denied that Johnson had been the wrong choice for shadow chancellor in the first place.

“No, Alan Johnson was the right person for the job. He’s had to stand down for personal reasons, nothing to do with the job,” Miliband said.