Coalition

Friday

Fraser Nelson

Osborne needs to come up with radical growth policies, and soon

When it comes to defending the free market, and making the case for fiscal sanity, there’s scarcely anyone better than David Cameron. He was on superb form in Davos yesterday, giving much-needed blunt advice to the continentals. ‘Eurozone countries must do everything possible to get to grips with their own debts,’ he said. And he’s right. The snag, as I say in my Daily Telegraph column today, is that Cameron’s definition of getting to grips with debt involves increasing it more than Labour planned to, more than France, Germany, Italy or Portugal. On the first sign of trouble, his government gave up on its deficit reduction timetable – it will now

Jonathan Jones

A matter of honour

Condemnation’s coming from all sides for the £963,000 bonus awarded to RBS’s Stephen Hester, on top of his £1.2 million salary. The most prominent denunciation came from Lib Dem Foreign Office minister Jeremy Browne on last night’s Question Time: ‘I think there’s a sort of question of honour. Even if there is a contractual opportunity for him to have a bonus, it doesn’t mean he has to accept it. He’s already being paid more than £1 million a year. His total package now, means he gets paid in about three days what a soldier risking his life in Afghanistan gets paid in a whole year. And I think he should

Thursday

Peter Hoskin

Transparency marches on

It has been quite a few days for transparency in Westminster. First, Ben Gummer’s ten minute rule bill for tax transparency — which would see every taxpayer in the country receive a statement detailing what they owe and what the money’s being spent on — earned itself a second reading in the House. And now, today, the Department for Education releases its new ‘performance tables’ for secondary schools. You can sift through them here, and I’d recommend you spend at least a couple of minutes doing just that. They reveal finer detail about schools and results than has been made public before, such as about how ‘disadvantaged children’ (those on free school meals

Jonathan Jones

Clegg echoes Obama’s message

Nick Clegg, this morning, advocating closing loopholes for the rich to pay for raising the income tax threshold: ‘Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households. Right now, Warren Buffett pays a lower tax rate than his secretary.’ Oh, all right, that wasn’t Clegg. That was Barack Obama, in his State of the Union address on Tuesday night. But it’s remarkably similar to what Clegg just said in his speech at the Resolution Foundation this morning. On his account, the government ought to be ‘calling time on our out-of-whack tax system,’ as well as the ‘scandal of

Peter Hoskin

A Lib Dem demand that the Tories should get behind

Remember those Lib Dem calls for a mansion tax at the weekend? I said at the time that, ‘the Lib Dems appear to be drawing more attention to which of their own policies they are fighting for within government, whether those policies make it to the statute books or not.’ Well, now they’re at it again. Nick Clegg is giving a speech this morning in which he’ll urge George Osborne to go ‘further and faster’ in raising the income tax threshold to £10,000 a year. It was the stand-out policy of the Lib Dem manifesto, so it’s hardly controversial that Clegg should want to see it enacted ASAP. But it’s

Wednesday

Hamish Macdonell

Salmond lays the ground for his referendum

So now we have it: the ten words which Alex Salmond hopes will end Scotland’s 300-year-old membership of the United Kingdom. ‘Do you agree that Scotland should be an independent country?’ The First Minister unveiled his consultation paper on an independence referendum today and, to the surprise of many, actually did what David Cameron has been asking of him. He came out with a short, simple, clear question on independence which he wants to put on the ballot paper. The debate will now rage as to whether this question is fair (is it, for example, too positive? Should it perhaps include something about the United Kingdom?), but this does mark

James Forsyth James Forsyth

Both leaders left smiling after PMQs

Today was one of those PMQs when you sensed that both sides were fairly happy with how it had gone. Ed Miliband turned in one of his stronger performances, cleverly splitting his questions and so allowing himself to have a go at both the economy and the coalition’s troubled NHS reforms. Cameron, for his part, got through what was always going to be a difficult session for him after this morning’s negative growth numbers.   Strikingly, there were four planted Tory questions on the benefits cap. The Tories know that Labour’s vote against it compounds one of their biggest vulnerabilities, the sense they are the party for people on benefits

James Forsyth James Forsyth

Europe gives Osborne the context he needs

The political implications of today’s growth numbers are complex. On one level, a contraction in the economy should provide Miliband and Balls with an opportunity to make their economic case against the government. Indeed, Balls is already out with a statement calling the GDP figures a ‘damning indictment of David Cameron and George Osborne’s failed economic plan’. I suspect that Miliband is also looking forward to PMQs rather more than normal.   But on the other hand, as long as Cameron and Osborne enjoy a big lead on the economy — 18 points in the last ICM survey — bad economic news will reinforce voters’ tendency to stick close to

Peter Hoskin

Bad news doesn’t have to be surprising

I’m still of the mind that Westminster fusses too much about these quarterly growth figures, particularly when parts of the country have been in economic decline for decades. But there’s no doubting that they have the capacity to shift the political mood, both here and around the country. There is something disheartening about the idea that the economy returned to shrinkage in the final quarter of last year (even if today’s preliminary figure of -0.2 per cent might be revised upwards, or downwards, in due course). You can expect Ed Miliband to make much of it in this afternoon’s PMQs. The politics of the situation are not stacked entirely against

Tuesday

Fraser Nelson

Osborne owes Darling an apology

Britain’s national debt rose to over £1 trillion last month, and will never return below this threshold. George Osborne is increasing net debt by 61.5 per cent in real terms over this parliament, more than the 59.9 per cent which Labour proposed when it fought the last election. Here’s how the OBR’s current projections for debt contrast with what Darling proposed in his last Budget: At the time, Osborne said Labour’s debt plan was reckless and unsustainable. I think he owes Alistair Darling a generous apology. Then, Darling said he’d halve the deficit over four years. Too slow, said Osborne. Now, he’s taking five years to do it – as the

Jonathan Jones

UK government debt hits £1 trillion

New figures out today show the UK’s public sector net debt at just over £1 trillion for the first time ever. In the first 19 months since it took over, the coalition added £225 billion to the £779 billion debt it inherited. And it’s projected to rack up another £390 billion by the next election.

Monday

James Forsyth

A defeat that delights the Tories

Rarely can a government have been so pleased to have been defeated. The Tories are, privately, delighted that the Lords have voted to water down the benefit cap, removing child benefit from it. The longer this attempt to cap benefit for non-working households at £26,000 stays in the news, the better it is for the government. It demonstrates to the electorate that they are trying to do something about the injustices of the something for nothing culture. The matter will now returns to the Commons where the coalition is confident it can be reversed. I understand that Nick Clegg remains solid on the issue, despite the fact that Ashdown and

James Forsyth James Forsyth

A Chris Huhne prediction that didn’t come true

Chris Huhne attacked David Cameron for the EU veto in Cabinet back in December. At the time, one Cabinet minister told me that part of Huhne’s critique was that Cameron had scuppered the chances of a Liberal Democrat MEP, Sharon Bowles, being reelected as chair of the European Parliament’s Economic and Monetary Affairs Committee, which deals with financial services.   But Bowles has been reelected. In a Lib Dem press release welcoming this, Nick Clegg declares that: ‘As party leader, I am proud that we have a leading Liberal Democrat in such a prominent and powerful position on the international scene. As UK Deputy Prime Minister, I am delighted and

Peter Hoskin

Cable teaches Umunna a lesson about the past

If you were in a particularly soggy mood, you’d almost feel sorry for Chuka Umunna. He’d managed to force Vince Cable into the House this afternoon, to announce the coalition’s plans for curbing executive pay a day earlier than planned, and he must have been feeling pretty swell about it. This was, on paper, the initiative seized; a chance to prise open the Business Secretary’s differences with his Tory colleagues. But, in practice, it was something completely different. In practice, Cable dispatched his opponent with ruthless ease. You might even have found yourself in the unthinkable position of cheering him on. A large part of it was Umunna’s petty, needling

Sunday

Peter Hoskin

Lib-Dem-a-rama

There are Lib Dems everywhere today, CoffeeHousers, and they’re differentiating like crazy. We had Nick Clegg himself on the Andrew Marr show earlier, waxing lukewarm about Boris Island, and there have been moments of assertiveness from his party colleagues as well. Here’s a quick round-up: 1) Chris Huhne. The embattled energy minister hasn’t taken to the airwaves today, but he is omnipresent nonetheless. A good portion of Clegg’s Marr appearance was devoted to him, with the Deputy Prime Minister stressing that ‘he has been crystal clear that he denies any wrong doing’ — but not quashing the idea that Huhne would lose his job if those denials turn out to

Peter Hoskin

Lansley’s headache becomes a migraine

Now that the three party leaders have each pronounced on capitalism, domestic politics is returning to its familiar battlegrounds. And there are few more familiar battlegrounds, for this government, than the NHS. Earlier this week a couple of unions came out completely against Andrew Lansley’s health reforms, despite his previous efforts to accommodate their concerns. And now we learn that the Commons health select committee, chaired by the former Tory Health Secretary Stephen Dorrell, is set to criticise those reforms as well. According to the Observer, a report that they’re publishing this week will raise a common complaint: that it’s tricky for the NHS to both reorganise and find efficiencies

Friday

James Forsyth

 Reshuffle chatter

Today’s Huhne news, which Pete blogged earllier, has set off all sorts of reshuffle chatter. At the moment, the expectation is that if a reshuffle was required it would be a limited, Lib Dem only one—their version of the one that followed Liam Fox’s departure. The current favourite to replace Huhne is Ed Davey, Vince Cable’s Lib Dem junior minister in the business department. In terms of a more general reshuffle, I’m hearing that we might have to wait until after Olympics. There is a growing view among those close to the Prime Minister, I’m told, that it would be better to leave ministers in place until then and then do

Melanie McDonagh Melanie McDonagh

What today’s immigration numbers tell us

During the leaders debates before the last general election, David Cameron declared that he wanted to make immigration a non-issue and he would go about it by reducing immigration numbers from hundreds of thousands a year to tens of thousands a year. He hasn’t succeeded in the second objective — more than half a million people arrived here in 2010, only 30 per cent of whom were from the EU — and he most certainly hasn’t succeeded in the first. At least if the reaction to today’s revelations about immigrants on benefits is anything to go by. Chris Grayling, minister for employment, and Damian Green, immigration minister, wrote an article

Peter Hoskin

Will Huhne survive this?

What odds, this morning, on Chris Huhne retaining his ‘Survivor of the Year’ crown at this year’s Spectator Parliamentarian Awards? I only ask because The Sunday Times has dropped its challenge to hang on to its emails with his former wife, Vicky Pryce, about those speeding points. They’ll now be handed over to the police, and shuffled into their evidence folders for this case. The Prime Minister’s spokesman has said that Cameron still ‘has confidence’ in Huhne — but all this does at least raise the prospect of a reshuffle. If the Energy Secretary is found guilty, and had to depart his ministership, then he’s likely to be replaced by

Fraser Nelson Fraser Nelson

Cameron’s capitalism

Ever since Ed Miliband’s ‘predatory capitalism’ speech at the Labour Party conference, the future of capitalism has been a subject that has much occupied our MPs. Clegg made his speech on Monday, and Cameron delivered his yesterday. I have had plenty to say about the coalition government’s inadequate economic policy, and its inability to stoke growth. But Cameron’s speech was impressive, and it’s worth going into in some detail. I look at it in my Telegraph column today. Much rot is spoken about capitalism. It is not an ideology, there is no rule book you can tweak: it is simply the name given to the system where people trade with