Coalition

Lib Dem conference: Clegg will accept further welfare cuts but wants to squeeze rich more

The opening act of any party conference is the interview for Sunday morning TV and Nick Clegg made clear to Andrew Marr that the welfare budget is ‘not immune from further savings.’ He also said that he was confident that he could persuade the Tories to agree to further ways to make the ‘rich’ pay more. But under pressure from Marr, he couldn’t provide any details on what form this new tax might take. In an attempt to damp down the continuing chatter about Vince Cable’s conversations with Ed Miliband, Clegg said that he was in regular touch with both Milibands, Tony Blair and Peter Mandelson. But as long as

Rallying the Liberal Democrat faithful

One of the striking features of the opening rally at Liberal Democrat conference was how it was figures from the left of the party who attacked Labour most vigorously. Simon Hughes, the deputy leader, scolded those who think that governing with Labour would be easy; pointing out that the parties are at odds on nuclear power, Trident, civil liberties and a whole host of other issues. While the party’s president Tim Farron demanded that Labour apologise for the expensive failure of the NHS PFI projects, the Iraq war and a whole host of other issues. Nick Clegg himself was on fairly confident form. He began with a couple of gags

James Forsyth

Don’t expect Nick Clegg to throw too many rocks at the Tories in Brighton

The Lib Dem round of pre-conference interviews today shows where the party wants to look distinctive. It is tax ‘fairness’, greenery and social mobility on which it has decided to set its stall. One thing worth noting, though, is that Nick Clegg’s interview in The Independent does not rule out future welfare cuts. He tells Andy Grice that ‘We are not going to do an across-the-board, two-year freeze of all benefits during this parliament’. This leaves the Liberal Democrats plenty of room for manoeuvre ahead of the autumn statement on December 5th. I expect that we won’t hear too much bashing of his coalition partners from the deputy Prime Minister

Iain Duncan Smith versus Jeremy Heywood

There’s war in Whitehall. The Sunday Times devotes its p2 lead (£) to the fact that Sir Jeremy Heywood, the Cabinet Secretary, is ‘sceptical’ of the Universal Credit, the key to Iain Duncan Smith’s revolutionary welfare reforms. The newspaper has gathered its intelligence by reading the leading article of this week’s Spectator, and repeats our point that civil servants will interpret Heywood’s reservations as a ‘go-slow order’. Here is what our leader column says: ‘Treasury officials have been against Duncan Smith from the start, due to the threat which Universal Credit posed to their beloved tax credits. Ambition in itself is looked down upon by ministers who deride ‘IDS’s grand projet’. Sir Jeremy

James Forsyth

Michael Gove and the return to rigour

The news that the coalition will announce on Tuesday that it is scrapping GCSEs is welcome. GSCEs are a devalued qualification and replacing them with a far more rigorous exam should boost England, Wales and Northern Ireland’s global competiveness as well as preparing pupils better for A-Levels. (Simon Walters’ scoop has the details on how the new qualification will differ from GCSEs). That this change is going ahead is a sign that the coalition is now functioning far better than it was a few months ago. When the idea of getting rid of GSCEs was originally floated back in June, Clegg reacted with unthinking fury. But in talks that have

Sir John Major glimpses the sunny uplands

The standard joke is that Sir John Major is the ultimate grey man, as if Charles Pooter had been painted by Wilhelm Hammershoi in particularly pallid light. But the pea-eating caricature of yesteryear was not in evidence on the Andrew Marr Show this morning. There was something calm and old-fashioned about Major during his interview; even his platitudes carried an air of wisdom. The former Disability Minister praised the Olympic and Paralympic Games, revelling in the fact that the games had revived aspects of our national character which he had assumed dead. The conversation was about old times: his father’s career in Music Halls during the early years of the

Andrew Lansley: the Tories chose not to win

I’m at a YouGov conference in Cambridge where we’re just had a speech from Andrew Lansley, the new Leader of the House. He was speaking about the coalition, and gave a brief history of its inception. ‘None of us had, in truth, understood the nature of what a coalition government might be…I’m not even sure the Lib Dems had thought about what a coalition would look like. In normal circumstances, with that election result, there would not have been a coalition. We’d have formed a minority government, put forward a programme, challenged the House to support it or not and after a decent interview – probably a few months –

Why George Osborne will miss his debt target

Much is being made today of reports that George Osborne will drop his fiscal target in his autumn statement on 5 December. Isabel reported earlier that, faced with breaking his own rule, Osborne will abandon it rather than implement more cuts to meet it. All the fuss seems to stem from a note by Citi Reasearch last Friday. You can read the whole thing here, but here’s a summary. Like Gordon Brown, Osborne has two fiscal rules. Neither says anything about eliminating the deficit, or even halving it. The first — called the ‘fiscal mandate’ — is ‘to balance the cyclically-adjusted current budget by the end of a rolling, five-year

Face it: Ed Miliband could be the next prime minister

It’s fun isn’t it, all this speculation about a leadership challenge to David Cameron? It was obvious really in the run-up to party conference season. We all needed a new narrative. Last year we enjoyed giving Ed Miliband a good kicking and his ‘anti-business’ conference speech played into the hands of his critics. The infantile booing of Tony Blair’s name by delegates made it look like the party was determined to make itself unelectable. But the reality now – and there are plenty on the left as well as the right who still find this a scary prospect – is that Ed Miliband is the man most likely to be

Vince Cable’s differentiation strategy

While Boris was busy upstaging everybody at the Olympic victory parade, Vince Cable was giving a rather earnest statement on industrial strategy in the Commons chamber. Cable didn’t reveal that much about what he will say tomorrow, simply calling it ‘a gradual evolution of policy’ and making clear that it does not mark a return to picking winners. But as with all Vince appearances these days, Labour tried to woo him while various Tories questioned his coalition fidelity. Chuka Umunna pointed out that while Vince Cable had been working for John Smith, Michael Fallon had been part of Margaret Thatcher’s team. One Labour MP after another then questioned whether Cameron

Michael Fallon takes on health and safety

The government is keeping up its new, frantic pace on the economy today by announcing that it wants to scrap half of all existing red tape and that the overwhelming majority of businesses will now be exempt from health and safety inspections. At the moment, health and safety officials classify businesses as high risk or low risk. Under the reforms being announced by Fallon, no business that is low risk (and a vast proportion fall into this latter category) will be subject to pro-active inspection. They will only be inspected if there is an incident, a track record of poor health and safety or a complaint. This is a sensible

Fraser Nelson

Ed Balls proposes coalition with Vince Cable

Ed Balls has today made his very own full, open and comprehensive offer to the Liberal Democrats – or, rather, to Vince Cable. The shadow chancellor said he could work very well with Vince (but, pointedly, not Nick Clegg). ‘I wish George Osborne would see Vince Cable as a man to do business with and listen to, rather than telling the newspapers he is putting his allies in [to the Business department] to try and surround him and hold him back. Vince should be listened to on banking reform and on the economy. I could work with Vince. I would like the Liberal Democrats to say right now that this coalition

James Forsyth

The coalition’s growth bargain

The contents of the coalition’s grand bargain on growth will become clearer this week. On Monday, Michael Fallon will announce plans to scrap half of all existing regulation, and then later in the week Vince Cable will detail the changes the coalition will make to employment law. This combined with the planning reforms announced last week and the expected initiative on mini-jobs is the Tory supply side of the bargain. But there’s also an interventionist Liberal Democrat side to it, with the coalition announcing this week that it is adopting an industrial strategy. This is something that Vince Cable and his Tory deputy David Willetts have been pushing for over

Michael Fallon and Vince Cable join forces

Michael Fallon has given a pugnacious interview to the Sunday Telegraph. He said that Britain must end its obsession with the ‘politics of envy’ and celebrate wealth creators as ‘Olympian’. (I wonder what the minister makes of the Romford Business Awards, which are presented by his colleague Andrew Rosindell, the Conservative MP for Romford.) As well as having venerated wealth, Fallon introduced several policy objectives: a new round of privatisation (Royal Mail being the first target), employment law reform to ease the dismissal of underperforming workers or where working relationships have collapsed, and a sustained attack on 3,000 regulations. The Sunday Telegraph describes Fallon’s ideas as an ‘agenda pursued by Lady

Tories shouldn’t worry about David Laws going to Cabinet meetings

There is some understandable concern in Tory circles about David Laws becoming a minister for education. As Paul Goodman says today, there’s a worry that even this brightest orange Lib Dem could end up slowing down Michael Gove’s reform plans. These feelings are undoubtedly heightened by the fact that Nick Gibb, one of the most principled and decent men in politics, has had to make way for Laws and is now on the backbenches. But one thing Tories shouldn’t fret about is Laws attending Cabinet. That there are two Liberal Democrats in the Quad of four who decide on the biggest questions for the coalition should irritate Tory MPs far

Harman tries to play ball with Clegg on boundaries

Nick Clegg didn’t mention the boundary reforms once in the statement he gave to the House of Commons on the death of the House of Lords Reform Bill. The Deputy Prime Minister knew he wouldn’t need to wait long for an opportunity to talk about it, though, and he was right: Harriet Harman raised the changes to constituencies as soon as she stood up to respond. Seizing on the Liberal Democrats’ decision to oppose the changes as revenge for the failure of their attempts to reform the upper chamber, Harman told Clegg that Labour thought the work of the Boundary Commission should stop immediately, given the cost of it continuing

Lib Dem MPs are still remarkably loyal to Clegg

Nick Clegg may or may not be thrilled that Paddy Ashdown has urged party members to stand by their leader after Lord Oakeshott’s rather vicious attack on him yesterday. It depends slightly on the Deputy Prime Minister’s reading of history: as Tim Montgomerie observed last night, the endorsement of a former party leader can sometimes seem like a death knell. It is interesting, though, that it was Lord Oakeshott who launched the first public attack on Clegg’s leadership (that is, if you discount the helpful suggestions from ex-MP Lembit Opik). Not surprising, of course: the party’s former Treasury spokesman in the Lords is not known for delicacy when it comes

Tory MP: Cameron is a chambermaid to the Lib Dems

Yesterday David Cameron was a mouse, and today he’s a chambermaid, according to another one of his imaginative backbench MPs. Brian Binley, the Conservative MP for Northampton South, has written a fierce blog in which he tells David Cameron that he doesn’t need a reshuffle that will simply amount to ‘re-arranging the deck chairs on the Titanic’: he needs a change in direction and a re-think. Binley attacks the way the Prime Minister relates to the Liberal Democrats in government, saying: My point is that Mr Cameron should never have hitched his star to any of the self-indulgent lunacy that has been characteristic of the unreasonable demands of his coalition

With friends like the OBR, George Osborne hardly needs enemies

The Office of Budget Responsibility was created to be George Osborne’s friend. The theory was that under the leadership of Sir Alan Budd, the OBR would urge the Chancellor to cut. Budd would be listened to more than Robert Chote, who was then running the IFS. But when Sir Alan quit unexpectedly, Chote took over. Since then, the OBR has become the in-house prophet of doom. It not only points to a growth-free future for Britain, but keeps getting its forecasts wrong. It is proving laughably unreliable as a means for working out the likely effect of UK government policy. In the Telegraph today, Doug McWilliams who wrote the original brief for

Proalition risks becoming a noalition

The Conservatives and Liberal Democrats are preparing for their last-ditch attempt to kiss and make up before having to accept their union is over. The coalition partners are heading into the conference season with a positive attitude they hope will carry them through 2015 (and potentially beyond). A new word to describe the second coalition love-in has entered the Westminster lexicon this week — ‘proalition’. Both sides are desperate for proalition to work. Not out of a desire to work together, but out of sheer necessity. If the coalition falls apart in the near future, both parties would face annihilation at the polls. Neither side has managed to distinguish itself