Coalition

Labour tries to make its mark

Global events may soon relegate Labour conference to the News in Brief sections of newspapers, especially as it appears that G20 finance ministers are preparing for Greece to default and for contagion to spread to other parts of the Eurozone. So, the Labour leader has wasted no time as Labour conference opens. In interviews with the Observer and the Sunday Mirror, he revives his tactic of presenting himself as an insurgent, the man to “rip up the rulebook”. He makes a pledge or two: the headline grabbing idea is a cap tuition fees at £6,000 per year, paid for by reversing a planned corporation tax cut on the hated banks. This blatant

Searching for an alternative

The Labour conference has started badly for Ed Miliband, with David Blunkett criticising the party for allowing the Tories to define the national economic debate. Blunkett was concurring with shadow foreign secretary Douglas Alexander’s view that the Tories had been successful in “framing a public language that made more sense of the economic crisis”. To be fair to Miliband, he made the same point in his recent interview with the New Statesman, but he is yet to provide a coherent or credible alternative to the government’s policies. So, inquiring eyes turn on Ed Balls (and today’s Mail relates another alleged tale of his part in our economic downfall). The shadow

Osborne’s dire warning

This morning’s headlines are apocalyptic: “Global economy on the brink”, “Six weeks to save the Euro”, “Collective action needed now”. The unifying theme is the lack of leadership in the Eurozone: someone must grasp the nettle, say external politicians and commentators. Meanwhile, Charles Moore points out, with typical understatement, that Europe is leaderless by nature: no one is in charge and that is its tragedy. Moore doesn’t mention the European President, who could, conceivably, offer direction and insist on fiscal discipline; but Herbert Van Rompuy is yet to meet that challenge. You wonder if someone of Tony Blair’s international standing might have succeeded where Van Rompuy has so far failed. Perhaps, but Europe’s

Fraser Nelson

Read my lips: no new tax cuts

There are still rumours in Westminster that David Cameron will cut taxes to stimulate the economy, but the speech he gave to the Canadian parliament on Thursday rather scotches this idea. Here’s what jumped out at me 1) No Obama-style deficit-financed tax cuts, please, we’re British. “The economic situation is much more dangerous and the solution for most countries can not be simply to borrow more. Because if the government doesn’t have the room to borrow more in order to cut taxes or increase spending, people and markets start worrying about whether a government can actually pay back its debt. And when this happens confidence ebbs away and interest rates

Is Osborne ready for the next crisis?

There is a strange pre-Lehman feeling in the air right now: the idea that something awful is going to happen, but no one knows what or when. This is laden with political ramifications. The problem for the Tories last time was not that George Osborne had been caught aboard HMS Deripaska. The greater problem was that a crash had arrived and the Shadow Chancellor had nothing to say. Brown, at least, seemed to have an agenda, and the Tory poll lead was reduced to one vulnerable point. I admire Osborne, but he can do far better in making the case for the government’s economic strategy. If there is a second

Corporatism, comms and civil servants

David Cameron renewed his calls for global action for growth last night and it seems that the work begins at home. The Times reports (£) that 50 of Britain’s largest companies will be given direct access to ministers and officials. Corporate bodies will be designated an “account director”, who, despite what that title might suggest, is a cabinet minister rather than a junior advertising exec. The scheme is not yet finalised, but it seems that the labour will be divided thus: ‘Vince Cable, the Business Secretary, will act as what officials are calling “an account director” to Britain’s oil and gas giants Shell, BP and BG. David Willetts, the Universities and

Battling it out over Brown’s legacy

Gordon Brown is back in the news this morning, or rather his legacy of debt is (an issue examined in depth by Pete and Fraser in 2008). The disastrous £12.7 billion NHS computer project is to be scrapped and, more important than that, the Telegraph reports that the care budgets at 60 hospitals are being squeezed by the costs of repaying PFI contracts totalling more than £5.4 billion. Andrew Lansley has taken to the airwaves to explain that Labour left the NHS with an “enormous legacy of debt”; he was keen to point out that no hospitals were built under PFI before 1997, so that there was no doubt where blame should

The Lib Dem conference closes

As the Liberal Democrat leadership leaves Birmingham, it is a contented bunch. Their conference has gone as well as could be expected. There were no embarrassing defeats for the leadership and no gaffes by any of their ministers. But conference was yet another reminder of how much of a gap there is between where those around Clegg want to take the party and where the activist base wants to go. When I asked one of Clegg’s allies about this discrepancy, he told me that the important thing to remember was that the membership, who elect the leader, take a different view from the activists. As evidence of this, he cited

Political Stepford Wives

At the beginning of the conference season I mused on Twitter that these occasions were very tribal, but that I had never been able to work out what defined the Liberal Democrat tribe. I was bombarded by suggestions. Iain Martin bluntly wrote: “What is the Lib Dem tribe? Answer: A lot smaller than it used to be.” Andrew Boff, the Tory London Assembly member said, naughtily: “It depends on who they are talking to.” Peter Beaumont drew on his experience as a foreign correspondent to paint a horrifying picture: “all sandals and penis gourds”. And Max Wind-Cowie pointed out what Nick Clegg himself recognises as a problem: “Perhaps surprisingly an

Clegg’s chance to lead by example

Nick Clegg will deliver his keynote speech to the Liberal Democrat conference later this afternoon. It has been substantially trailed this morning, despite competing for airtime with Nick Robinson’s story about the injection of an extra £5 billion of capital spending into the economy. Similarly to Monday’s Q&A with activists, Clegg is expected to defend the government’s deficit reduction plan and insist that Britain can resist dire global economic trends. It remains to be seen whether Clegg will concentrate on the rest of the government’s programme, especially its radical public service reforms. There is some concern in pro-government circles that he will not. Clegg’s new £50 million summer school scheme

The strange case of the extra £5bn

Strange things are happening between Whitehall and Birmingham. After the IMF downgraded its growth forecast for Britain yesterday, the BBC reported that some government were considering spending an additional £5bn on capital projects: transport links, broadband, housing and so forth: as a stimulus to ward off possible recession. The implication was that the Liberal Democrats were in favour of changing Britain’s economic course and the Conservatives were not. Chris Huhne appeared on Newsnight and quashed the story (30 mins – 33 mins). He said he didn’t recognise the £5bn figure and said there was “no such plan”, but conceded that the government would have to be “imaginative and creative…to get

Farron’s difficult day

I’ve been away from Birmingham today but, even from a distance, it’s clear that Tim Farron has had a rather difficult day. It started with a story in The Times this morning about upset among his fellow MPs about his rhetoric on Sunday implying that the coalition partners would get divorced before 2015 and continued with him getting in a bit of a tangle about his leadership ambitions in interviews with Andrew Neil and Gary Gibbon. Farron’s problem is that he is an obvious candidate to run in any future leadership contest and so the leadership will constantly push him about his intentions. These are hard enough questions for any

Ross Clark

Why mansion tax makes sense

Messy deals and fudged compromises: an inevitable feature of coalition politics. But that doesn’t necessarily mean that the resulting policy will always be bad. As a result of grubby negotiations in Downing Street, it looks as if we might just end up with a change in direction of tax policy which should have been made years ago. The battle over the 50 pence tax rate seems to be settling into an uneasy compromise: the Chancellor gets to abolish it possibly in 2013 ­ and in return the Lib Dems get some form of mansion tax, the levy proposed by Vince Cable on homes costing more than two million pounds. Ever the party of

Clegg’s allies turn on Farron

James wrote at the weekend, Nick Clegg’s Orange Book allies fear Tim Farron, the Lib Dem President and standard bearer of the social democrat wing of the party. Yesterday, Farron said that the coalition would “end in divorce” in the months running up to the next general election. That provocative comment followed the barnstorming speech that Farron gave on Saturday, in which he labelled Nick Clegg as the “Leader of the Opposition”. Quentin Letts has echoed the views of many party foot soldiers by saying that this was a leadership pitch for the future by the Party President. Unsurprisingly, the leadership has moved to quash Farron. The Times reports (£): Mr Farron was ordered

Clegg wants to communicate

Communication, communication, communication: that appears to be Nick Clegg’s new political mantra. Speaking to the Today programme earlier this morning, the Lib Dem leader said: “If there is a legitimate criticism to be made of our government, it is that we haven’t articulated that there are things we can do”. He made the same point repeatedly during yesterday’s impressive Q&A with activists: ‘We need to explain, over and over again, what we have managed to achieve in power: the increased the income tax threshold, the pupil premium, the triple lock guarantee for pensioners … Above all we need to say that there is nothing progressive about being bankrupt. Have we

The coming row over Europe

One of the most striking things about Lib Dem conference has been how up for a scrap over Europe the party’s ministers are. Every single Lib Dem Cabinet minister has, over the past few days, ruled out any attempt to repatriate powers from Brussels. Given that the Conservative party wouldn’t forgive David Cameron not attempting to use any new treaty negotiation to try and regain control of various issues (see David’s blog from earlier), this puts the Prime Minister in quite a dilemma. Personally, I expect Cameron will go for the repatriation of powers. The AV referendum showed that when he has to choose between really angering his party or

Europe looms its head to threaten the coalition and the Tories

The Telegraph’s splash on Europe indicates that the issue, which proved so toxic to the last Conservative government, has risen again. Writing a stern op-ed for the paper, serial rebel and anti-Cameroon Mark Pritchard calls for a referendum. This will have irritated Downing Street no end, which is understood to have hoped that the whip-sanctioned Eurosceptic grouping that has formed around George Eustice might have contained the party’s factious elements. But some disgruntled MPs on the right privately say that last week’s well attended meeting of Eustice’s group turned into something of a disappointment. The insistence that an exit from the EU was off-limits for the moment was apparently met

James Forsyth

Clegg, on fine form, tells his party to move on

“We’ve got to stop beating ourselves up,” Clegg just told Lib Dem members in a Q&A session. As is traditional at these events, Clegg spent a lot of time trying to explain to his party why the coalition is doing what it is doing. The tone of the event was, perhaps, best summed up by the Deputy Prime Minster telling one hostile questioner to listen to his answer. Clegg, in head-masterly form, started by reminding the audience that if the coalition was not dealing with the defitict of its own volition, the bond markets would be forcing it to and “you can’t do anything  good if you have no control

James Forsyth

Vince Cable paints the world grey

Even by his own standards Vince Cable’s speech today was noticeably pessimistic. The Business Secretary warned that the post-war cycle of ever-rising living standards has been broken by the crash. There was little in what he said to suggest that he has any optimism about the prospects for growth over the next few years. If Cable’s analysis is correct — and it is shared, at least in part, by several Tory Cabinet ministers — then the politics of the next few years will look very different than we expected. The initial post-election Tory hope of running a ‘It’s morning in Britain again’ campaign in 2015 now seems like a distant