George osborne

Tory MPs hold their breath for tax credit changes

George Osborne received a fulsome banging of desks last night at the 1922 Committee, joking that he should come back again once he’s won a vote if he gets that sort of reception when he’s lost. Tory MPs were doing the desk banging for the benefit of those hacks skulking outside, but they are now holding their breath to see what the Chancellor actually comes up with to mitigate the tax credit cuts in the Autumn Statement. Inside the meeting, the Chancellor was upbeat, but made clear that there will be movement on the issue. The waiting game means that David Cameron had to refuse to answer the same question

James Forsyth

Lords of misrule

A few days after the general election, I bumped into one of David Cameron’s longest-standing political allies, one of those who had helped him get selected for Witney back in 2000. I remarked that he must be delighted that Cameron had now won a majority. To my surprise, he glumly replied that it would only be significant if Cameron were to create a hundred new peers. Without them, he warned, the govern-ment’s most important measures would end up bogged down in the Lords, where Labour and the Liberal Democrats combined comfortably outnumber the Tories. Now, normally when people urge the Prime Minister to create new peers it is because they

Heidi Allen mistaken for a Labour MP by national radio station

After Heidi Allen gave a barnstorming maiden speech last week criticising her own party over tax credit cuts, the Tory MP has found herself in the firing line within her own party. Mr S’s colleague Isabel Hardman writes in today’s Times that a number of Tory MPs are even refusing to speak to her over concerns that ‘her careless talk could cost them their majorities’. Now to make matters worse, it appears that even journalists are struggling to work out which side Allen is on. Word reaches Steerpike that a producer for a national radio station — thought to be one of the BBC’s radio stations — contacted the Labour party to ask if they would put

Osborne prepares to face 1922 Committee as Tory anger at peers builds

It is difficult to exaggerate the fury in the Tory party at the House of Lords after last night’s double defeat. MPs I have spoken to today want swift and damaging retribution from the government for the Upper Chamber’s behaviour that goes far beyond what ministers are likely to propose, with some suggesting that the bishops should be the first to take the hit because they should understand the constitutional delicacies involved in votes like this given their ‘privileged constitutional position in the Chamber’. Mind you, the Bishops weren’t as turbulent last night as they could have been: only the Archbishop of York supported the Baroness Hollis amendment that delayed

John McDonnell vs. George Osborne on tax credits: a surprisingly calm and serious affair

George Osborne and John McDonnell went head-to-head at Treasury Questions today and one topic predictably dominated: tax credits. There was a charged atmosphere in the Commons as the shadow chancellor explained ‘the Chancellor has a choice before him’ and outlined his proposal for reversing the planned cuts to tax credits. The plan differs somewhat from Osborne’s: ‘He can push on with the tax giveaways to multinational corporations. He can press on with tax cuts to the wealthiest few in inheritance tax that he announced in his summer budgets. Or he can reverse those tax breaks for the few and instead go for a less excessive surplus target in 2019-20 and be in

Isabel Hardman

Ministers must now work out how to avoid a similar showdown with the Lords

Unsurprisingly, the double defeat in the Lords on tax credits came up at Cabinet today. Baroness Stowell, Leader of the House of Lords, told the meeting that peers had broken the ‘longstanding convention’ of primacy of the Commons on financial matters. The Prime Minister reiterated his desire for a ‘rapid review’, details of which may emerge later today (once ministers have worked out what that rapid review might entail). Ministers need to work out what it is possible to announce that ensures the same scenario doesn’t arise again when the government tries to get a new Statutory Instrument through. The changes need to be something that the Lords will approve,

Chris Grayling: we’ll figure out how to take a measured approach with the Lords ‘in the next few hours’

After the government’s humiliating defeats in the House of Lords yesterday over tax credits, how will it seek revenge on the upper chamber? Chris Grayling, the Leader of the House of Commons, spoke on the Today programme about the government’s plans. On tax credits, he said ‘the Chancellor is clear, he will look again at the transitional arrangements’. But on the relationship between the Commons and the Lords, Grayling said a more careful approach would be taken — one that will be worked out ‘in the next few hours’: ‘The first thing not to do is to react on the hoof to this. We have to have a measured look at what the

Osborne pledges help for tax credit claimants after Lords humiliation

Tonight has not been a good one for George Osborne, with peers refusing to take his word that he was in ‘listening mode’ about tax credits. He didn’t look particularly happy about the matter when he gave a pooled clip to broadcasters a few minutes ago. He complained about an unelected group of Labour and Lib Dem lords voting down a matter passed by the House of Commons, and added: ‘I said I would listen and that’s precisely what I intend to do. I believe we can achieve the same goal of reforming tax credits, saving the money we need to save to secure our economy while at the same

Bernard Jenkin: a sugar tax would help soften tax credits blow

George Osborne and the government are apparently in ‘listening mode’ about tax credits and Bernard Jenkin has something to say. The Tory chair of the Public Administration select committee has a novel proposition for how to fund a way to soften the blow of the cuts. In my piece for Politico Europe today, Jenkin tells me: ‘I think Osborne should carry on with the cuts but ameliorate the introduction for those worst affected. It would show he is listening and compassionate If he needs the extra revenue and cannot find other short-term savings, he should be considering the Sugar Tax.’ The idea of a tax on sugary foods and drinks has been advocated

Isabel Hardman

Peers offered tax credit deal: behave and Osborne will listen to you

The House of Lords is unusually packed this afternoon for the debate on tax credit cuts. As I explained earlier, there are four motions to consider, and the government has decided to plump for one by the Bishop of Portsmouth as the least worst way of peers expressing their dissatisfaction with the situation. Tory Leader of the Lords Baroness Stowell has just told peers that she visited Number 11 this morning and that the Chancellor ‘would listen very carefully were the House to express its concern in the way that it is precedented for us to do’. The Bishop’s amendment adds the following to the end of the motion introducing

Isabel Hardman

What to expect from today’s Lords showdown on tax credits

There could be four troublesome votes on tax credits in the Lords this afternoon, each challenging not just the measures that George Osborne is keen to introduce, but also the way that the Lords functions. The most troublesome of all in terms of the constitutional implications is the amendment to the motion introducing the instrument from Baroness Manzoor. This is the Lib Dem ‘fatal’ motion and it changes the government motion ‘that the draft Regulations laid before the House on 7 September be approved’ to ‘that this House declines to approve the draft Regulations laid before the House on 7 September’. The Lib Dems want to appear to be tougher

Fraser Nelson

Exclusive: tax credit reform leaves low-paid facing tax rates of up to 93%

As the House of Lords prepares to debate the tax credit cuts, a significant new piece of information has come to light. The government initially suggested that, in the vast majority of cases, its minimum wage increase and higher tax allowance would compensate for tax credit removal. A bold claim based on not very much research. Coffee House can today reveal that the most authoritative analysis yet conducted—based on over 100,000 working-age households—shows the damage being far more extensive than the Treasury realises. Policy in Practice, Britain’s leading welfare-to-work consultancy, held a Chatham House symposium on the subject three weeks ago, attended by various figures in the world of welfare reform. Drawing from these discussions,

Matthew Hancock on tax credits: ‘George is very much in listening mode’

The House of Lords is set to vote on several measures relating to the tax credits reforms today and Westminster is on tenterhooks to see if they have the nerve to kill off the cuts. Matthew Hancock, the Cabinet Office minister and close college of George Osborne, said on the Today programme the government is listening to the concern in the Lords — echoing the words of Nicky Morgan yesterday: ‘George is very much in listening mode and the peers this afternoon have the opportunity through a motion put down the Bishop of Portsmouth to express regret at this measures without braking this constitutional convention, long standing.’ Hancock reiterated his admiration for the Lords’ work

The Chinese government are propping up George Osborne’s pet projects

The Chinese President’s visit to the UK ended today in the heart of the Northern Powerhouse. David Cameron took Xi Jinping up to Manchester to announce various new deals that supposedly demonstrate China’s commitment to the British economy. The Prime Minister said the president’s appearance in Manchester highlighted China’s commitment to the northern project and will ‘see real investment going into the north.’ But how much money is China really putting into the Northern economy? Today’s FT says the deal is netting just £4 million of actual investment for the North — the Beijing Construction and Engineering Group will finance the construction of an apartment block at Middlewood Locks, a

The human factor | 22 October 2015

Just over 30 years ago, Margaret Thatcher’s government decided to look at local government finance. A young aide, John Redwood, outlined ‘some kind of poll tax which is paid by every elector’. Discussions continued, and bright young men (including the young Oliver Letwin) assured the Prime Minister that the figures would all stack up. Unpopular to start with, perhaps, but necessary. Later, Kenneth Baker had a niggle: ‘If I’m on Question Time and I’m asked “Why must the Duke and the dustman pay the same?” there’s no answer.’ Last week the energy secretary Amber Rudd was on Question Time. She was challenged by a weeping Tory voter who asked why,

Isabel Hardman

Osborne: Tories ‘signalled’ tax credit cuts during election campaign

The general election was only a few months ago, but according to George Osborne, voters and his own MPs have forgotten what happened during that campaign. Indeed, it seems we have all already forgotten what was said, because apparently the campaign included details of cuts to working tax credits. Today the Chancellor defended these cuts when he appeared before the Treasury Select Committee. John Mann decided that the most effective way of attacking the cuts was by appealing to George Osborne’s own personal ambition. ‘We’re trying to help you Chancellor avoid Mrs Thatcher’s mistakes with the poll tax,’ he said, adding: ‘That will be a political disaster for you as

A Chinese bailout won’t save Hinkley Point, our latest nuclear disaster

How easy it would be to scorn the environmentalists who are up in arms about George Osborne’s new pet project, the Hinkley Point C nuclear power station. You can understand their anxiety: subsidies for green energy are being slashed, yet the Chancellor will do anything — and pay anything — to get this project up and running. He is happy to force households to pay artificially high prices for a form of energy which brings all kinds of risks — of which the world was reminded this week when Japan found the first cancer case liked to the Fukushima disaster of 2011. ‘Has the Chancellor lost his mind?’ they ask.

Osborne looks set to miss his deficit target – again

After disappointing figures last month, public borrowing in September came in lower than forecast, at £9.4bn, figures published by ONS today show. VAT, income and corporation tax receipts were all up on last year, and despite the government debt pile growing, interest payments fell by £420m. [datawrapper chart=”http://static.spectator.co.uk/z63H9/index.html”] But it still look like it will be tough for George Osborne to meet his borrowing target for the year. Borrowing over the last six months is 14 per cent down on the same period last year – but over the next six months it would have to be a huge 36 per cent lower than last year in order for the Chancellor

Listen: Tory MP Heidi Allen’s devastating attack on tax credit cuts

‘I’ve been trying flipping hard to avoid doing it,’ said Heidi Allen today as she started her maiden speech. She hadn’t seen the point of speeches in the Chamber, she explained, because most people in the Commons were already wedded to their side, and there wasn’t much point in her adding to those speeches as they changed no minds. But the reason she had decided to give it during the Opposition Day debate on tax credits ‘because today I can sit on my hands no longer’. She wanted to criticise the tax credit cuts. She wanted to intervene before it was ‘too late’ to stop the changes to tax credits,