Coalition

‘It’s now clear that Britain’s economic reputation is on the line at the next general election, another reason for bringing the date forward and having that election now … For the first time since these ratings began in 1978, the outlook for British debt has been downgraded from stable to negative.’ So said George Osborne when S&P placed Britain’s AAA credit rating on a negative outlook in May 2009, when Labour were in power. But guess what? Another credit-rating agency — Moody’s — has just done the same to our rating this evening. Given how much Osborne made of Britain being a ‘safe haven’, it’s rather a tricky one for

The Budget negotiations within government are now underway. The quad of Cameron, Clegg, Osborne and Alexander held a meeting last week to discuss their priorities for the Budget on March 21st. They’ll continue this conversation over a working dinner tomorrow night. Already, we know that the Liberal Democrats main priority will be to get the personal allowance as close to £10,000 as possible. As The Sunday Times reports, they’re suggesting paying for this by taking away various reliefs for higher-rate taxpayers and closing some of the loopholes in the tax system. I also understand from Liberal Democrats close to Clegg that they’re also interested in some new green taxes. For

The debate over the referendum on Scottish independence will take centre stage next week. Michael Moore, the Scottish Secretary, will see Alex Salmond in Edinburgh on Monday and then Cameron will head north a few days later. It appears that the coalition is ready to give way to Salmond on the date of the referendum but not on the fact that it must be a straight yes or no vote. Moore tells The Times (£) that ‘There absolutely must only be one question.’ Quite what the coalition will do if Salmond goes ahead with his own refrendum on devo max remains to be seen. I suspect that Salmond’s ideal result

David Cameron’s comments today that he finds a Swedish-scheme that offers tax breaks for employing domestic workers ‘very interesting’ and would ‘want to look at further’ are, predictably, being attacked by Labour. They are claiming that they are proof that he is ‘out of touch’. But it is, actually, a thoroughly sensible idea.   As I wrote back in October, the Cameroons have long been interested in the idea of trying to make childcare tax deductible. The appeal of this policy is that it would make it far more attractive for many highly-skilled — and high-earning — people to return to the workforce. It would also move many child-minders who

We will soon find out whether the coalition meant what it said about empowering parliament. The BIS select committee has rejected the government’s preferred candidate for the post of the head of the Office of Fair Access. The committee concluded that it was ‘unable to endorse the appointment of Professor Ebdon as the Director of OFFA and we recommend that the Department conduct a new recruitment exercise.’ But Vince Cable, the business secretary, is said to be keen to override the committee’s verdict. Number 10, which has never been keen on Ebdon, is opposed. As I said on Sunday, the circumstances behind Ebdon’s name going forward are straight from The

If there are ‘no votes in skills’, as the old dictum goes, there seem to be some in apprenticeships. Hence David Cameron’s call this morning for apprenticeships to become a ‘gold standard’ qualification ranking alongside degrees from the best universities. His goal is to rectify Britain’s shockingly poor performance on mid-level skills compared to world leaders such as Germany. So how hard would it be for us to catch the Germans? The numbers speak for themselves. Of every 1,000 employed people in England 11 are apprentices; compared to 40 in Germany. Here, fewer than one in ten employers are training an apprentice; in Germany it’s roughly a third. Although the

The coming release of Abu Qatada on bail is going to put bellows under the whole debate about the European Court of Human Rights. In his recent speech to the Council of Europe, David Cameron rightly protested about a situation with terror suspects in which ‘you cannot try them, you cannot detain them and you cannot deport them.’ We will now find out how quickly Cameron is prepared to act on this issue. If Cameron wants to makes changes to the Courts and the Convention, then he is going to have to get agreement from every member of the Council of Europe. There’s no guarantee that he’ll be able to

House of Lords reform is one of those subjects that make most people’s eyes glaze over. But it is going to dominate the next parliamentary session. The Queen’s Speech will include a bill for elections in 2015 for 20 per cent of the seats in the Lords using a ‘Proportional Representation’ voting system. This bill will take an age to get through the Commons, where it has to start if the coalition is to use the Parliament Act to push it through, let alone the Lords. One of the things that’ll be fascinating to watch is how large a Conservative rebellion there is on the issue. There are already Tory