George osborne

What is Vince Cable up to? He is on manoeuvres, keeps making attempted power grabs from George Osborne. Barely a week passes without him rattling the cage to which Cameron and Clegg have confined him  – that is, the unwieldy and yet fairly powerless Department for Business, Innovation & Skills. For all its bulk, the department doesn’t really do anything. It has the universities brief, which is important, but it is certainly not an economics department as Cable was pretending last week. “It is a bit like the German economics ministry and the finance ministry,” he claimed. “Two departments, working in parallel.” As if. Cable may like economics, but he

George Osborne’s Asia trip has now been rounded off with a meeting of the G20 finance ministers in South Korea and he is now heading back to Britain and his Budget preparations. The trip must be marked up as a success for Osborne. In its communiqué, the meeting implicitly endorsed Osborne’s two major moves since becoming Chancellor, cuts this year and the setting up of the Office of Budgetary Responsibility:  ‘We welcome the recent announcements by some countries to reduce their deficits in 2010 and strengthen their fiscal frameworks and institutions’ No one can doubt that the Tories have comprehensively won the argument for in-year cuts. With a growing domestic

Today is the first PMQs of the new term. Given the Coalition, the whole thing will be a bit different from what we’re used to. The leader of the opposition will, as before, have six questions. But no other MP will have more than one question.   There’ll be a couple of little things I’ll be keeping a particularly close eye on. During the opening of the Queen Speech debate last week, the front bench was so crowded that Nick Clegg was not really visible on the TV. Instead, Cameron appeared to be flanked by two Tories. It’ll be interesting to see if this leads to a slightly different seating

Sunshine might have won the day but today was also the start of the age of austerity, as George Osborne and David Laws laid out £6.243bn of cuts. Despite the fact that they were cutting ‘wasteful’ and ‘low priority spending’, both men were keen to insulate themselves against the Labour attack that the coalition is cutting for ideological reason. Osborne said that ‘controlling spending is not an end it itself.’ While Laws stressed that the Coalition would ‘cut with care.’ Within its first fortnight in office, the government has found savings with commendable celerity. But the fact that the whole package was agreed on at 11.45 pm on Friday for

There’s an entire gaggle of noteworthy interviews in the papers this morning, but let’s start with David Laws in the FT. It’s generally quite hard to draw substantive conclusions about the actual interviewee in political interviews, but I’m sure you wouldn’t come away from this one thinking anything but that Laws is a good man to have in the Treasury right now. Here, anyway, are five observations about what he actually said:  1. Sharing the blame. If people in Tory circles feel that there’s one major consolation to working with the Lib Dems, then it’s that they can share the blame over spending cut.  But, encouragingly, Laws sees this as

I’ve just read through George Osborne’s speech to the CBI annual dinner last night, and there’s much in there about free markets and tax cuts that will encourage Tory supporters.  But one passsage seemed a little strange to me: “And on the subject of coalitions, let me be absolutely frank. As a member of the negotiating team, we did consider whether we could try to bluff our way into a minority government. But it was David Cameron’s bold vision and Nick Clegg’s great foresight which saw, before anyone else, that that option would be the greatest compromise of all. A weak, unstable government, risking defeat night after night in Parliament.

Is the new government marching across scorched earth?  They certainly claim so, and now they seem to have the civil service backing them up.  Speaking to the Beeb this afternoon, Jonathan Baume, the leader of a civil service union, said that senior civil servants had written “letters of direction” to Labour ministers in concern at the spending decisions they took in the final months of their government.  As Baume put it: “It’s not a decision that is taken very often to ask for such a letter of direction, which is why it is regarded something of a nuclear option. So when it happens it tends to be a big spending

George Osborne and David Laws’ press conference this morning gave some hints about the chances of the coalition making it. The Treasury is where, I suspect, this coalition will succeed or fail. If the two parties can keep it together on how to reduce the deficit and how fast to do it, then I expect that they’ll be able to deal with the other issues that are thrown at them. Encouragingly from this perspective, Osborne and Laws seemed comfortable sharing a platform; there were no attempts to score points off each other. It appeared to be a harmonious double-act. But Osborne didn’t refer as many questions to Laws as he

The cover of today’s Sunday Times spells out what we all suspected anyway: that the Labour government left behind acre upon acre of scorched earth for the Tories to contend with.  There’s the £13 billion contract for tanker aircraft, the £1.2 billion “e-borders” IT project, a £420 million spend on schools, and so on – most of them put in place just before the election.  As James said earlier, Sir Alan Budd’s audit of the public finances is likely to show that things are much worse than the last Budget dared admit. All this throws open the wider question of our debt position.  Even by Labour’s measures, our national debt

After the sunshine of the Downing St rose garden, the gloom of the public finances. This morning’s newspapers are full of stories about the tax hikes and spending cuts that our coalition government is looking to introduce. The Sun and the Times dwell on yesterday’s forecast for a rise in VAT. The Guardian outlines possible cuts to middle-class benefits. And there’s plenty more besides. Two articles, though, are particularly indicative of the tensions that the government will face.  Interviewed in the Sun, David Cameron has to go on the defensive about tax rises; insisting that “The Conservative party is still a low-tax party, a tax-cutting party – and that’s in

Philip Hammond was quietly brilliant as Shadow Chief Secretary to the Treasury and it would have been a travesty if he was excluded from the Cabinet. Having avoided assuming the mantle of ‘the most hated man in England’, Hammond has been handed the poisoned Transport brief. A popular saying about frying and pans and fires comes to mind as he will tasked with renewing Britain’s congested roads, baleful airports and Victorian railways amid austerity. Still, he could have been sent to Northern Ireland. Hammond’s first announcement has been to confirm George Osborne’s pledge that the £16bn Crossrail project will not be cut. “It’s happening, it’s being built, spades are in

If you read only one thing today, then make a cup of tea, sit in a comfy armchair, and make sure it’s Tim Montgomerie’s 7,000-word review of the Conservative election campaign.  Tim has opened up his address book and spoken with many of the main players in the Tory operation – and the result isn’t all that flattering.  Here’s a summary passage which gives a sense of it all: “For a period, the ‘Big Society’ was put at the heart of the campaign. Amazingly, the Big Society was never tested in focus groups and it failed on the doorstep. One leading adviser to the campaign complained of a ‘cavalier’ approach

Should David Cameron just call the IMF immediately? Like, on Monday? This argument has been doing the rounds in Tory circles and tomorrow’s Spectator has an important contribution from Niall Ferguson. He advises that Cameron takes a two-pronged approach. Prong one is to ‘axe ruthlessly’ and prong two is to call the IMF. He says: ‘There is a very real danger that [things] could now spiral, Greek style, out of all control if foreign confidence in sterling slumps and long-term interest rates rise. Mr Cameron needs to do two things right away. He must instruct George Osborne to wield the axe ruthlessly with the aim of returning to a balanced