Coalition

When Nick Clegg announced he was giving up the struggle on House of Lords reform, he named a number of policy areas that could fill the huge legislative void left by the collapse of the plans to overhaul the upper chamber. One of them was banking, and the Deputy Prime Minister told journalists it might be worth examining whether it was possible to go further than the Vickers proposals on this area. Today’s Financial Times fleshes out what going further might entail. Vickers had originally proposed banning the retail operation of a bank from selling interest rate and currency swaps, but this was dropped in the white paper on banking

Are the Tories about to do a deal with the Liberal Democrats over political party funding? Benedict Brogan intriguingly suggests that David Cameron might offer a post-Lords reform olive branch to Nick Clegg — the state funding of political parties. In return, the Lib Dems would have to support a future vote on boundary change: His side won’t like it, but it will be presented as Mr Clegg’s price for securing a review that gives the Tories more seats. And some Tories, including Mr Cameron, may be secretly delighted to reduce their reliance on donors who are never slow to voice their frustrations when things go wrong. With party memberships

Have Alex Salmond’s hopes for Scottish independence died, thanks to the Olympics? In this week’s cover feature, Iain Martin writes that the national pride and spiritual unification emanating from the 2012 games have finished off the SNP’s hopes of a break from the union. On this week’s View from 22 podcast, Iain recounts when he first realised Salmond had a serious problem: I was sitting on Friday and Saturday on the shore of Loch Fyne in the Highlands watching Team GB do these extraordinary things. I felt a wonderful feeling of togetherness and it seemed to me that it was the perfect riposte to narrow nationalism and the peevish attitude of

David Cameron has confirmed this lunchtime that the boundary reforms will be pressed to a vote. Describing the plans that the Lib Dems are now set to reject as ‘sensible’, he said that they would be ‘put forward’ to MPs. As James reported yesterday, Conservative sources are not yet conceding defeat on this, hoping that something might turn up to ensure their passage through parliament. But the vote will lead to the extraordinary spectacle of Lib Dem ministers walking through the ‘no’ lobbies with Labour and then, according to party sources, resuming their positions on the front bench without any censure because these are exceptional circumstances. The Prime Minister gave

Aside from the party conferences, two big set piece events are looming large in Downing Street’s thinking: the coalition’s mid-term review and the autumn statement. Both of these are expected to be heavy on economic measures as the coalition tries to get growth going again in the face of the headwinds coming off the continent. I understand that extra runways at Stansted are being considered in an attempt to boost aviation capacity in the south east. David Cameron is also trying to boost the enterprise agenda of Margaret Thatcher’s favourite Cabinet minister Lord Young. He brought forward a meeting on it scheduled for September 5th to Thursday last week. He’s

The conventional wisdom about the consequences of the failure of Lords reform is that the Liberal Democrats will wreak their revenge for the Conservatives’ ‘breach of contract’ by scuppering the boundary changes. Over the past few months, the party has taken great pains to link the two reforms, and now that it is clear that the first will not go through, all focus is on the second. There is much that still needs to become clear about how this will work; the biggest question of all being how Lib Dem ministers can vote against the changes without being sacked. But don’t expect the whole party to troop through the ‘no’

In recent weeks, Downing Street has been repeatedly told by Tory MPs that if proposals for an elected element in the House of Lords were brought back to the Commons, the next rebellion would be even bigger than the 91 who voted against second reading. Downing Street, as the Telegraph reported this morning, has now accepted that Lords reform will have to be dropped and there is talk of a formal announcement to this effect as early as Monday. But, intriguingly, I understand that David Cameron does not intend to abandon efforts to get the boundary reforms through. This, as Isabel noted this morning, has the potential to cause a

Ed Miliband’s comments in the Independent today were clearly based on the assumption that Nick Clegg will not be around if and when it comes to negotiating a possible Lib-Lab coalition in 2015. Vince Cable has already thrown his fedora into the ring to be the next Liberal Democrat leader, and Miliband backed the calls for a change of chief in his interview today. ‘I would find it difficult to work with him,’ he said, when asked about Clegg. Clegg cannot go from being Deputy Prime Minister in one government to Deputy Prime Minister in the next: it would look ridiculous. A coalition with Labour would also not suit Clegg’s own political

David Cameron’s decision to convene an inner Cabinet of seven Tories to advise him is a sensible move. As I say in the Mail on Sunday, calling this group together shows that Cameron knows he needs help handling his party. I understand that it meets regularly with a particular emphasis on the Conservative party side of coalition management. One Cabinet minister told me recently that the Prime Minister spends more time on coalition management than any other subject. To date, this has too often been at the expense of party management. Inevitably, if you spend most of the time thinking about what the Liberal Democrats will accept you begin to

Vince Cable’s decision to speculate publicly about a post Nick Clegg leadership race is a significant moment. To be sure, saying ‘I wouldn’t exclude it’ about running for the job is a long way from launching an actual challenge. But it is not the answer that a politician gives if they want to stop all speculation. There’s long been gossip at Westminster that Cable’s interest in the leadership has revived — and this interview appears to confirm that. It is worth remembering that Cable only didn’t run last time because he thought that the party wouldn’t pick another veteran as leader after the Ming Campbell disaster. So, there’s unfulfilled ambition

David Cameron’s interview with the Telegraph today reveals that the Prime Minister would not campaign for an ‘out’ vote in a referendum on Britain’s membership of the European Union. This will confuse some Conservatives, who had hoped that the ‘fresh deal and a fresh settlement’ that the Prime Minister described in the chamber earlier this month would either lead to a successful renegotiation followed by a referendum in which the government pushed for a ‘yes’ vote, or a failed attempt at renegotiation followed by a referendum in which the government pushed for a ‘no’ vote. But Cameron told Robert Winnett that he would never campaign for an ‘out’ vote. He adds: ‘It comes back

The coalition’s infrastructure shopping spree to cheer itself up after a miserable few weeks continues today. George Osborne and Danny Alexander are offering guarantees on up to £40 billion of ‘ready or nearly ready’ projects such as transport, communications and energy. They are also announcing a £6 billion temporary lending programme and a £5 billion export guarantee facility, which will give long-term support for British exporters. Today’s announcements are clever because they don’t commit any extra money, using the government’s balance sheet purely to guarantee the projects and get them off the ground. Osborne and Alexander have written a joint comment piece for PoliticsHome, in which they point out that their efforts

This morning’s press conference by David Cameron and Nick Clegg marked an attempt to scotch all the talk of the coalition moving to confidence and supply sometime before the next election. Cameron declared that he was more committed to the coalition than he was back in 2010. He also stressed that he believed Britain needed stable government ‘throughout this term’, an implicit rebuke to all those Tories talking about a move to minority government in 2014. Nick Clegg, for his part, spoke about how this was going to be a ‘proper coalition government for a full five years’. There was also an announcement that the coalition’s mid-term review will set