Politics

Read about the latest UK political news, views and analysis.

Wednesday

Sebastian Payne

The house price slide continues

Hidden behind today’s gushing Olympic headlines lies more disappointing economic news. Nationwide’s latest House Price Index release today shows that house prices are continuing to fall, with a 0.7 per cent decline in July. As the graph below shows, the fall in prices is a continuation of a trend that began when the country re-entered recession earlier this year: The latest figures put prices down 13 per cent on their 2007 peak and 2.6 per cent lower than this time last year. Last year the average house price was £168,731: now it is £164,389. But if you look at these trends in an international context, Britain’s prices appear relatively resilient.

James Forsyth James Forsyth

Cameron’s reshuffle quandary

One can see why the idea of Iain Duncan Smith as Justice Secretary appeals to some in Tory high command, as the Daily Mail reveals this morning. The former leader is one of the few people who could square the party to a policy that treated rehabilitation as the main aim of the penal system. I expect, though, that IDS himself would not be keen on the move. But this story does illustrate one of the biggest problems that Cameron will face with his reshuffle, how to make room at the top. Among Tory ministers, there promises to be very little movement in the higher echelons of government. The Chancellor,

Matt Cavanagh

ONS blunder lets ministers blame falling real incomes on immigration

Yesterday the ONS published a report showing average disposable incomes at their lowest level since 2003. This is difficult news for ministers: as Isabel pointed out, concerns about the cost of living – stagnant wages and rising prices – are one of the main reasons given by voters in recent polls for turning away from the Conservatives. Imagine, then, how pleased ministers must have been when they saw that the ONS had thrown them a lifeline: the chance to blame it all on immigration. The ONS report discusses the effects of wages and prices, and then adds that ‘finally, sustained population growth led to incomes being spread across a greater

Isabel Hardman Isabel Hardman

Osborne’s policy gymnastics

It’s been a few weeks at least since George Osborne’s last U-turn, so it must be time for another one, mustn’t it? Today’s launch of the Funding for Lending Scheme is being hailed as another change of course from the Chancellor as it signals the slow death of the National Loan Guarantee Scheme. The Sun’s editorial this morning compared George Osborne to a gymnast, and said he was the ‘master of the U-turn’. The NLGS has only lent £2.5bn of the £20bn that it was allocated so far for small and medium businesses, and the FLS, which allows banks and other financial institutions to borrow at below market rates, is

Tuesday

Douglas Murray

Will tweets soon paralyse the nation?

It is becoming increasingly clear that Twitter might be the greatest threat to civilised life in Britain. Take just 24 hours of news: A 17 year-old has been arrested (and is currently being detained) in Weymouth for sending unpleasant tweets to the nation’s Olympic hero Tom Daley. Rio Ferdinand has been charged by the FA with retweeting a comment which referred to another footballer as a ‘choc-ice’. The Mail reports: ‘The initial ‘choc ice’ remark about Ashley Cole came two days after the Chelsea defender gave evidence on behalf of team-mate John Terry in his race trial concerning Ferdinand’s brother Anton.’ The Prime Minister felt moved to respond to two

Isabel Hardman Isabel Hardman

A not-entirely-comprehensive spending review

There are more rumblings this morning on the shape of the next comprehensive spending review, this time at grassroots level within the Liberal Democrats. The Times reports threats from former Lib Dem MP Evan Harris that any attempt to sign up to a traditional spending review will trigger an emergency motion at the party’s autumn conference. The leadership is already well aware of this issue: I blogged last week that a senior party figure had told me that the £10 billion of welfare cuts that George Osborne has predicted are necessary over the next spending review period are ‘just not going to happen’. Clegg and co know that the Lib

Monday

Isabel Hardman Isabel Hardman

Borismania takes hold

Boris Johnson has had a fantastic few days. On Thursday he drove a crowd in Hyde Park wild with his Mitt Romney banter. On Saturday he charmed the public with his thoughts on the Olympic opening ceremony (‘People say it was all leftie stuff. That is nonsense. I’m a Conservative and I had hot tears of patriotic pride from the beginning. I was blubbing like Andy Murray.’) Today, in between talking about glistening otters (which in itself is a feat: a politician getting away with talking about how wonderful it is to see semi-naked women in central London and not sounding like a dirty old man), he has emerged as

Douglas Murray

Disliking the Olympics opening ceremony does not make one a Nazi

Some conservatives have been accused of ‘politicising’ the Olympics by daring to say anything negative about the opening ceremony. Having begun by attacking an obscure back-bench MP, these accusations are now being aimed at Conservatives in the cabinet. Yet it is not conservatives, but the organisers of the opening ceremony who politicised the event. Naturally, those who agreed with the political bent on display rejoiced in it and continue to do so. Take the Labour Minister for Social Justice and Local Government in the Welsh Assembly, Carl Sargent who tweeted on the night: This is the best Labour Party political broadcast I’ve seen in a while. And: Working class history,

Jonathan Jones

Briefing: the Libor review

‘It is clear that urgent reform of the Libor compilation process is required,’ says Martin Wheatley of the Financial Services Authority. Hardly a revelation: it’s been clear since Barclays was fined for its part in the manipulation. Some were even pushing for reform back in 2008, such as the then-president of the New York Fed (now Obama’s Treasury Secretary) Tim Geithner. But it is significant that Wheatley is saying this now, as he’s been tapped by George Osborne to lead a review of how Libor is set. The FSA hardly has much credibility on this — even Mervyn King is keen to pass the buck to them — but Wheatley

Isabel Hardman Isabel Hardman

The government has little power over the empty seats scandal

The papers today are full of empty seats at the Olympics. This morning, a Downing Street spokeswoman tried to take a glass-half-full approach, saying the empty seats were ‘disappointing’, but adding that the Prime Minister was ‘satisfied’ that Locog was working to resolve the issue. Locog carried out a review at the weekend which found that the seats were in accredited areas rather than those allocated to sponsors. The accredited areas are set aside for ‘members of the Olympic family’, an unpleasant phrase that denotes representatives of the IOC and of the sporting federations,  as well as coaches, athletes and athletes’ families. The different options available are: – Give the

Nick Cohen Nick Cohen

Green Party Candidate: Give me more money!

As a slogan, ‘give me more money’ is an unlikely election winner. Nevertheless, Peter Cranie came close to trying it at the hustings for the leadership of the Green Party in Manchester on Friday. At the start of the above clip, a member of the audience asked what wage the contenders would take. Pippa Bartolotti purred that she wanted the Greens to spend party funds on campaigns not individuals – a sentiment to win elections with. But then it was easy for Ms Bartolotti to be selfless because she had a career in business before going into politics. Cranie was more cautious. He explained that he earned £29,000 as a

Steerpike Steerpike

Judo diplomacy

While the ladies’ beach volleyball is exciting Boris ‘glistening otters’ Johnson and the peeking Prime Minister, another event could be about to get very political. President Putin is set to arrive in town on Thursday: yes there will be bilateral meetings, but he’s really here for the judo. At a time when UK/Russian relations are particularly low, one Russian Embassy source jokes that perhaps diplomacy should be a little more hands on and that Putin should challenge fellow judo fan William Hague to a match. Sadly this will remain a pipe-dream, which is just as well – we would not want Hague’s old judo partner – Lord Sebastian Coe –

Isabel Hardman Isabel Hardman

Sneaking a peek at the beach volleyball

The Olympic beach volleyball is situated just behind Downing Street on Horse Guards Parade, and as such is perfectly located for a politician wishing to take an hour or so out from a hard day’s work. Boris Johnson is clearly a fan, writing in today’s Telegraph: As I write these words there are semi-naked women playing beach volleyball in the middle of the Horse Guards Parade immortalised by Canaletto. They are glistening like wet otters and the water is plashing off the brims of the spectators’ sou’westers. The whole thing is magnificent and bonkers. I’ve just returned from the morning lobby briefing, where us hacks remained focused on the important

Isabel Hardman Isabel Hardman

Whatever it takes to save the euro

In case you were in any doubt about how committed eurozone leaders are to the survival of the single currency, Angela Merkel has put out another statement on doing ‘everything possible to protect the eurozone’, this time with Italian Prime Minister Mario Monti. The pair had a phone conversation on Sunday and their remarks follow the joint statement released by Merkel and François Hollande on Friday, and Mario Draghi’s announcement last Thursday that the European Central Bank would do ‘whatever it takes’ to protect the euro. The markets are looking forward to something decisive later today as US Treasury Secretary Tim Geithner arrives in Europe to meet German finance minister

Sunday

Isabel Hardman Isabel Hardman

Osborne needs to give the Lib Dems sleepless nights on supply-side reform

Ed Balls is doing very well out of the GDP figures that were released on Wednesday. The Shadow Chancellor is right to say that George Osborne is not yet doing the right thing with the economy. But that doesn’t mean Balls’ solution is the right one. Cuts should have been only one side of the deal, but as Iain Martin points out in today’s Sunday Telegraph, the other side which should have kickstarted growth – supply-side reform – is not forthcoming because Osborne and Cameron are afraid of offending the Lib Dems. Similarly, James says in his column today that too often attempts to strike a balance between the supply-side

Saturday

Isabel Hardman Isabel Hardman

Osborne seizes on S&P ratings relief

You’d think that after the bad economic news of the past week, George Osborne might have reverted to submarine mode as soon as he possibly could, moving quietly under the cover of the Olympics. But this afternoon he has stuck a periscope up with this message: the world has confidence that Britain is dealing with its economic plan. It’s a bold statement to make after Wednesday’s GDP figures, and Labour has already mocked him for doing so, but Osborne is responding to the announcement overnight by Standard & Poor’s that the UK will continue to enjoy an AAA credit rating. The ratings agency said: ‘We project that, despite recent weakness,

Isabel Hardman Isabel Hardman

Cameron’s Olympic opportunity as Syria massacre fears grow

There was an uncomfortable moment last night at the Olympic opening ceremony when the Syrian team entered the stadium. The athletes – who are there as competitors, not apologists for the Assad regime – did not receive the same raucous cheer as many of the other nations. The BBC commentators at least, who had been peppering the procession with helpful comments such as ‘ah, X country: very rich in precious gems, and of course, overcoming appalling human rights abuses to be with us today – marvellous’, barely mentioned the Syrian Arab Republic as its ten athletes  paraded around with their coaches. Away from the excitement of the Games, politicians are

James Forsyth James Forsyth

Cameron can’t risk becoming the status quo candidate

The next few weeks should be a good time to be Prime Minister. Unusually for this decade, anti-politics will not be the mood of the moment. Instead, the nation will indulge in an Olympic holiday from austerity. Every time the Prime Minister congratulates a British medal winner, his words will be eagerly reported. He will also be on hand whenever a foreign businessman announces a new investment in Britain. Cameron knows that looking like he is trying to gain partisan advantage from the Games would be disastrous. So he’s quick to stress that the public won’t confuse Olympic success with economic growth, something which remains alarmingly elusive. The economy shrank

Ross Clark Ross Clark

The Tory delusion

Many a Conservative MP will spend the summer dreaming happily about what the party should do in office once it has freed itself from the shackles of coalition. Few even consider the painful truth — that the coalition party most likely to survive the next election is not the Conservatives but the Lib Dems. Imagine the misery of watching Nick Clegg disappear through the door of No. 10 to begin his second term as deputy PM — this time under Ed Miliband. But it could be worse: it could be Vince Cable, who seems to have decided (in spite of declaring himself too old at 64 to stand for the

Daniel Hannan

The pain in Spain

Spain was always going to be where the doom of the euro would be determined. Ireland, Portugal, Greece and Cyprus amount, together, to less than 5 per cent of the EU’s economy. They can be rescued without emptying the bailout fund. Alternatively, their defaults can be managed as controlled explosions. Spain is in a different category. Europe’s banks are massively exposed there: an explosion could blast the continent’s financial system to splinters. On the other hand, the sheer scale of a rescue package might finally exhaust the patience of the northern European taxpayers. Spain’s agonies were caused directly by the euro. We can’t, as we can in Greece, blame irresponsible