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George Osborne
Clinging on: George Osborne

Osborne in more trouble for Davis jibes to Mandy

Joe Murphy, Political Editor
23 Oct 2008


GEORGE OSBORNE faced fresh embarrassment today when it emerged that he had privately criticised David Davis in a conversation with Peter Mandelson.

The shadow chancellor risked a backlash from the Right of the Tory party as senior colleagues warned that he had shown poor judgement in his dealings with the Business Secretary and financier Nat Rothschild.

Senior figures have told Mr Osborne personally that he had been "ill advised" to brief against Lord Mandelson on his return from the Rothschild villa in Corfu this summer.

The Evening Standard has been told that Mr Osborne attacked Mr Davis, claiming that he had failed to fully back the leadership's modernisation of the Tory party.

Mr Davis is known to have infuriated David Cameron when he suddenly quit the shadow Cabinet earlier this year but the former shadow Home Secretary has always insisted that he has been very supportive of Mr Cameron.

There were also further indications that the temporary truce over the Corfu affair is at breaking point.

Allies of Mr Rothschild indicated that Oleg Deripaska, the Russian billionaire at the centre of a row over donations, would consider signing an affidavit backing the financier's version of events.

It was claimed that the affidavit would be drafted unless Mr Osborne and the Conservative Party halted their attempts to "rubbish" Mr Rothschild. A spokesman for Mr Deripaska was unable to confirm or deny the claim.

Earlier today, it appeared that Mr Rothschild did not want to prolong his dispute with Mr Osborne. But a source close to him warned: "If anything is put out that in any way contradicts what he has said, Nat will come back. This is not a white flag of surrender."

After details of private conversations between Lord Mandelson and Mr Osborne were first leaked two weeks ago, the Business Secretary warned that if his own private conversation had been made public then similar remarks by the shadow chancellor risked being released too.

Tory MPs are now speculating that Mr Osborne could be replaced by William Hague and shifted instead on to full-time general election co-ordination if the row gets much worse.

The shadow chancellor's manner has irritated some colleagues, while many on the Right want him to be bolder about cutting taxes.

Mr Osborne also remains under threat from a possible complaint to the Parliamentary Standards Commissioner about his decision not to register a free family holiday at the Rothschild estate.

Reader views (30)

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They were fools not to vote for Davis

- Paul Mason, Nottingham, 25/10/2008 11:11
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David Davis is ten times the man that this upper class twit will ever be.
The Tories will rue the day that they rejected his leadership bid in favour of the political windsock, Cameron.

- Keith Lonsdale, Doncaster, UK., 24/10/2008 03:32
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Osborne and Cameron are just silly little boys born with silver spoons in their mouths. Mandy and the girls will eat them alive. What has happened to our democracy and where did it all go wrong?

- Mike, London, UK., 23/10/2008 20:09
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The press might be falling for Mandelson's spin, but come the election, the people will remember nothing about this, but instead what a total disaster Gordon Brown and his cabinet has been for this country.

- St, London, UK., 23/10/2008 18:19
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Osborne and Mandelson were like 2 children aiming catapults at the back of the class. Mandelson obviously scored a direct hit! Yes - let's move on to either William Hague or Ken Clarke.

- Georgette Behar, London, England, 23/10/2008 18:02
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With the country slipping into a recession that looks increasingly likely to be very severe, this kind of silly tittle tattle has all the hallmarks of being stirred up by a Government desperate to avoid the real issues. Pity the Media and so many others are happy to oblige them.

- James Elliott, Eastbourne UK, 23/10/2008 17:43
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Funny isn't it - all this only started since Mandy came back on the scene...

- Pam, UK, 23/10/2008 17:34
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There is just no competition for the title of 'Upper Class Twit of the Year'. George walks it.

- Harvey Brooks, Brentford england, 23/10/2008 17:29
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The man is not fit for high office. He is typical of a little man. Not big enough to say anything to their faces but prefers whispers behind their backs. AND WE are expected to have confidence in people like Osborne.

To even contemplate sitting with Mandleson was stupid, to have a meal and talk down your colleagues, he deserves all he gets and if Cameron has any backbone he should kick him out of the Shadow Cabinet.

Mind you Osborne has got two quite powerful enemies now. Davis and Dr Liam Fox!

John Redwood is the man for the job. Read his blogs - brilliant.

- Alan, Chingford, Essex, 23/10/2008 17:26
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This whole saga has the stench of Mandelson and Campbell spinning this non-story as long as possible to cause maximum embarrassment to the Tory Party. And for the PM to be demanding an investigation smacks of opportunism of the highest order. Let us not forget that just a short time ago the Labour Party were involved in their own funding scandals involving actual money, not mere theoretical discussions a couple of 1000 miles away from British shores.

Let them have their fun while it lasts- the Labour crew will still be booted out at the next election, and perhaps the Tories can look at passing a law banning Trade Unions from donating money to political parties. If only....

- Richard, London, UK, 23/10/2008 17:17
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Perhaps EVERYONE - especially the press/media should stop publicising people bickering. Yes, Osborne did show poor judgement. Hasn't everyone at some stage of their lives. He has however, done nothing wrong or illegal. Every political party will discuss financing. Where else can they get their money from ! Instead, the media should concentrate on accurately reporting the havoc, destruction and steady erosion of the GREAT Britain that they took over from Ms Thatcher, and the sheer mess they have created over the last decade.

- Rg, London, 23/10/2008 17:16
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So Mandleson says its so, then it is?

What next? Osborne leaves the seat up? Osborne strangles kittens?

This isn't news, its tittle-tattle.

- Dino Fancellu, Epsom, Surrey, 23/10/2008 16:57
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I'll take Davis over Cameron/Osborne any day of the week. Davis should have been made leader. The yachting toffs now leading the party are going to drag it into the ground.

- Phil Jones, London UK, 23/10/2008 16:35
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re: David.

It chills the blood even more to know Mandelson is in Government!

- Joe, London, UK, 23/10/2008 16:25
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Private visits on private yachts or private islands or private anywhere for any senior politician in or close to power has heavy undertones. Meet anyone you want under the glare of public scrutiny. But off a Greek island, give us a break. We are paying your salary and pension and this is what we get.

- Colin Bond, London, 23/10/2008 16:07
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This is totally shocking. An iffy financier can openly threaten a politician who might endanger his dodgy dealings without anybody thinking: Hang on, that doesn't sound legal.

- Delphine, Oxford, 23/10/2008 16:05
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This whole business simply confirms what we all already knew. ALL politicians are two-faced scumbags.

- L.Taubler, London / UK, 23/10/2008 15:59
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Could the source be Campbell, Draper,Whelan or even Mandelson himself? Or perhaps just one of their little helpers?
Either way its certainly taking attention away from the real problems.

- Jon Dee, Warks GB, 23/10/2008 15:55
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Mike - the "state" is a fiction. The Bank of England is a privately owned family-run business, which lends money to the government in return for interest payments. It is called fiat money because it is not backed by any tangible assets. Oh and Airstrip One was the name given to England in Orwell's Nineteen Eighty-Four. As to the ethnic thing, I'd best not go there...

- Neil, london uk, Airstrip ONE ., 23/10/2008 15:49
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Touchy these super-rich, aren't they? Perhaps if all their wealth were removed at a stroke they might appreciate what ordinary people feel and talk about in the pubs.

- Dhanraj, Basildon, 23/10/2008 15:43
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It chills your blood to think that Osborne could one day be Chancellor.

- David, London UK, 23/10/2008 15:42
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This is a three-way game of blackmail now. The CPS should charge all parties.

- Blackstone Coke, London, 23/10/2008 15:40
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David Davis is twice the man that Osborne is. If all Cameron wants for a Chancellor is a 'yes' man then he is no better than Brown and will never be Prime Minister.

- John, London, 23/10/2008 15:32
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David Cameron dare not replace George Osborne with William Hague.

Hague's substance and competence in the most important role in the Shadow Cabinet after Leader of the Opposition would show up Cameron for what he is, a sincere but fundamentally shallow PR man.

So if Osborne is moved out, someone other than Hague will have to replace him as Shadow Chancellor.

- Tony, Aylesbury, UK, 23/10/2008 15:25
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@ Mark Burton, St Ives. Cambs. If I were Mr.Rothschild I would choose my friends more wisely !

- Martin, London UK, 23/10/2008 15:23
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George Osborne should tell McBilge and the rest of his New Labour crew of halfwits, charlatans and chancers to get stuffed - and do it pubicly.

- Ted, Shetland, 23/10/2008 14:29
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Neil, you've been watching the too many conspiracy videos to get your views on the Rothschilds.

By the way, the Rothschilds don't own or control the Bank of England - last time i looked it was owned by the state.

You'll be ranting on about how a certain ethnic minority are the cause of all the wars since time began - time to fly off on your Airstrip ONE.

- Mike, London, 23/10/2008 13:55
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First the Russian Mafia buy Chelsea now they are buying the Conservative Party. Who won the Cold War?

- Mick, London, England, 23/10/2008 13:35
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It's worth noting that the Rothschilds own or control every bank on planet Earth. Every interest payment, every payment to the "national debt" ends up in the pockets of the Rothschild family. Who are these people and why do they wield so much power? How do we reduce their influence? Why do we even need a banking system based on fiat money in the first place?

- Neil, london uk, Airstrip ONE ., 23/10/2008 12:35
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New Labour are milking this affair for all that it is worth, it shows just how desperate they are to slash the Tory lead in the polls, frankly it makes me support the Tories even more.
This is a storm in a teacup, George Osborne is guilty only of not keeping his mouth shut when he should - we are all guilty of that sometimes.
Mr Rothschild should have known that his letter to the Times on Tuesday would cause a storm for the Tories, if i were Mr Osborne i would choose my friends more wisely in future.

- Mark Burton, St Ives. Cambs, 23/10/2008 12:30
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