Coalition

Nick Clegg gave a speech on the economy earlier this morning. As Tim Montgomerie notes, Clegg came close to admitting that the economy is nearing crisis. He said, “The economic context is much worse than before. Yes, facts have changed” and added that the “government is not blind to deterioration in economic environment”. These warnings tighten a knot in already sick stomachs; but, with the Eurozone mired in a crisis that is fast becoming existential, banks under mounting strain, rising unemployment, widespread talk of further Quantitative Easing and the very public internal debate in the coalition about the need for tax cuts, Clegg’s comments don’t come as a great surprise.  He also introduced

Ed Miliband is the Brothers’ man, or so the popular myth relates. Miliband has been trying to shake that perception ever since his election was secured by the union vote. He will make his most visible show of defiance yet in a speech to the TUC conference today. Miliband will refuse to countenance the proposed general strike over public sector pensions and instead urge the unions to change their ways. The Guardian reports that he will say: ‘The challenge for unions is this: to recognise that Britain needs to raise its game if we are to meet the challenges of the future and to get private sector employers in the new economy

I hear that 124 Tory MPs attended the inaugural meeting of the Tory ginger group pushing for renegotiation of Britain’s relationship with Europe. Those present included at least one minister — Theresa Villiers, several PPS and a few whips who were keeping a beady eye on proceeding. George Eustice, the convener of the group, told the room that he wanted the group to work with the government rather than against it and that he wanted front-benchers to feel comfortable attending the meetings. The group intends to put out a series of proposals as to which powers should be repatriated before issuing a white paper on how the government should renegotiate

Chris Huhne’s comments to Prospect magazine about the 50p tax rate are typically provocative. The millionaire, former City boy accuses the Tories of wanting to abolish the 50p tax rate to help ‘their friends in the City to put their feet up’. He even suggests that the Lib Dems would not vote through any Budget that contained its abolition. Huhne’s intervention comes at a time when George Osborne is trying to build support for abolishing—or, at least cutting—the 50p rate. Tellingly, the letter from economists opposing the 50p rate was drawn up with the help of one of the Chancellor’s closest lieutenants. But, as with so much Lib Dem rhetoric

William Hague’s comments in an interview with The Times that the Liberal Democrats are restraining the Tories on Europe will increase the grumbling among Tory backbenchers about the power of the junior coalition partner. Hague tells the paper that ‘A point of difference in our manifesto was the aim to repatriate some powers. Clearly that’s something I’m in favour of, but that’s the area we had to compromise on in return for other compromises.’ (In many ways this is a statement of the obvious. But in the current uncertain European environment, his remarks are news). In an attempt to reassure euro-sceptics, Foreign Secretary stresses that the Conservative party ‘would like

I understand that following a meeting in Downing Street this morning, Eric Pickles, the Communities and Local Government Secretary, has been put in charge of dealing with Britain’s 120,000 “problem families”. In the aftermath of the riots, David Cameron promised to put all of these families through some a family-intervention programme by the time of the next election. This policy, though, was bogged down in the bureaucracy as it cut across so many different departments. Pickles’ department will now have sole responsibility for this commitment. It will receive extra budget, with the money coming from education and work and pensions, and staff to deal with this. As I revealed in

One ally of the deputy Prime Minister suggested to me yesterday that the press was missing the most significant aspect of Clegg’s speech on education: Clegg acknowledging that free schools would now be a permanent part of the educational landscape. This ally argued that this was a big deal given that a year ago Lib Dem conference had voted to boycott these schools. The Lib Dem leader is considerably more liberal than his party. This means that he sometimes needs, so the argument goes, to sweeten the reformist pill with some Lib Dem rhetoric. Hence the emphasis on free schools being fair schools in yesterday’s speech. But this internal Lib

There used to be a time when some of the most important relationships in the government were between Tory reformers and Nick Clegg. The Lib Dem leader, to his credit, tilted the scales in favour of radicalism in both education and welfare. But those reformist alliances are now pretty much over. Indeed, Ken Clarke – with his plans to put rehabilitation first in the justice system – is the only Tory Cabinet minister who remains in a strategic alliance with the Deputy Prime Minister. Iain Duncan-Smith’s relations with the Lib Dems have soured over the issue of family policy. On the education front, the Clegg-Gove axis is clearly at an

As the Lib Dem conference approaches, we can expect some briefing from their spin doctors claiming to have “wrecked” all manner of Tory policies. It’s a petty and ugly phase of the coalition. Last year: nuptial bliss. This year: one partner throwing china at the other. The next phase is divorce, which is why I’m surprised to see the Lib Dems accelerating the process by today’s divisive briefings. Especially on something as self-defeating as school reform. We are told that “Nick Clegg defeats bid by Michael Gove to let free schools make profits”. This is nonsense. As I write in this week’s Spectator, Gove is not pushing for profit-seeking schools,