Liberal democrats

Thursday

James Forsyth

Nervous times for Clegg ahead of the Lib Dem spring conference

This weekend’s Lib Dem spring conference is the next big political hurdle for the Health Bill. If the conference votes against the Bill, then it will create a huge political headache for the government and be a severe embarrassment to Nick Clegg. Talking to Liberal Democrats ahead of the vote on Sunday morning, I’ve been struck by how worried some Clegg supporters are that the vote might be lost. Now, this could well be expectations management. But there are more than a thousand Lib Dem members who have signed the Lib Dem petition against the bill. On balance, I think it is more likely than not that the leadership escapes

Wednesday

Monday

James Forsyth

The government’s options for a child benefit tweak

Nick Clegg has confirmed this morning that the coalition is looking at how to tweak its policy of removing child benefit from families in which someone pays the higher rate of income tax. As I wrote in the Mail on Sunday, there are three options being explored. The first is designed to address the fact that, a family where one parent works and earns £45,000 while the other stays at home raising the children would lose their child benefit while the one next door where both parents are on £40,000 would keep theirs. This change would see families with one higher rate taxpayer lose only half of their child benefit.

Peter Hoskin

Will Osborne accept the Lib Dem offer?

Try telling George Osborne that ‘tax doesn’t have to be taxing’ — I’m sure he’d laugh at the sentiment. The story this morning is that he has a grand, gritty choice to make ahead of the Budget: to tax income or to tax wealth. The Lib Dems have apparently agreed to relent on the 50p rate, but only if they get a mansion tax on properties worth over £2 million in return. The thinking is that, in the current political environment, the government must always be seen to be hitting the well-off in some way. So, will Osborne accept the offer? He and other Tories will certainly be tempted to

Friday

Peter Hoskin

Devo disunity

The trouble with the Unionist cause is that it’s so disunited. Douglas Alexander’s speech in Scotland today may appear to bring Labour in line with the Tories and Lib Dems by hinting at greater powers for Scotland in future, but the truth is that it’s just another piece of string in an increasingly tangled mess. And so we have Alexander saying that ‘we must be open minded on how we can improve devolution’s powers, including fiscal powers,’ while, we’re told, he’s also ‘cautious… about fiscal measures that undermine the stability of the block grant system used to fund the three devolved governments in Edinburgh, Cardiff and Belfast.’ We have the

Wednesday

Peter Hoskin

What will the UK’s proposed ECHR reforms actually come to?

Two items of news that may unsettle stomachs in Euroland today: i) that Ireland is planning to hold a referendum on the new European fiscal treaty, and ii) that the UK is pushing — as April’s European summit in Brighton approaches — for the European Convention on Human Rights to be rewritten so that national courts have greater discretion and power. The BBC’s James Landale has more details on the latter here, but the basic point is that the government has circulated a ‘position paper’ that proposes injecting a few principles and particulars into the ECHR. One of these is ‘subsidiarity’, the idea that decisions should be made at the

Tuesday

Richard Marsh

So much for taking the politics out of the NHS

So here we are again. At least Lord Justice Leveson had the humanity to give us a couple of weeks off whining celebrities, shifty ex-journalists and declaiming newspaper editors. From the Health and Social Care Bill there is no respite. The Bill is back in the House of Lords and Liberal Democrat guerrillas are wound up for a fresh assault on the lumbering mule train as it passes through. Does anyone care any more which bit of this battered and bleeding legislation has been chosen for further victimisation in this week’s shenanigans? In case you do, it is part three of the Bill, the casket that carries the remains of

Monday

James Forsyth

Clegg shifts into NHS attack mode

The letter from Nick Clegg and Shirley Williams to Lib Dem MPs and peers raises several interesting questions. The first of which is why did Clegg champion these health reforms back in the day? Four days after the first reading of the bill, the deputy Prime Minister had this exchange with Andrew Marr: Andrew Marr: ‘Huge change to the NHS just coming down the line. Was that in the Liberal Democrat manifesto?’ Nick Clegg: ‘Actually funnily enough it was. Indeed it was.’ Second, how does the Clegg-Williams claim that ‘This is not the Bill that we debated as a party last March’ fit with the Tory line that the amendments to

James Forsyth James Forsyth

Tories question Lib Dems’ commitment to post-election cuts

The mood of this morning’s ‘Growth Forum’ hosted by the Free Enterprise Group of Tory MPs and the Institute for Economic Affairs was summed up by Kwasi Kwarteng’s introductory remark that to meet the OBR’s ‘ambitious growth targets’, the coalition ‘can’t just bumble along’. The headline news coming out of the event is Andrew Tyrie, the influential chair of the Treasury Select Committee, calling for it to be made clear that the government’s ambition is to get state spending down to 40 per cent of GDP. David Ruffley also caused a stir by saying that BIS and, possibly, DCMS should be abolished. But, in the session that I attended, what

Fraser Nelson Fraser Nelson

What’s going on over the Lords — and where to read about it

Finally, Lords reform becomes interesting: it could be the issue that splits the coalition. Lord Oakeshott’s admission of this yesterday has made the newspapers today — but it will come as no surprise to Spectator readers. James Forsyth drew out these battle lines for his cover story last week, and it’s worth reprising his arguments as the rest of the press has yet to catch up.   Self-preservation is a powerful force in politics. Even if the Lib Dem vote recovers, it’s likely to do so in different constituencies, meaning most Lib Dem MPs are likely to lose their seats. As Lembit Opik’s music career demonstrates, it’s tough to find

Sunday

Fraser Nelson

Raise the tax threshhold and let youth prevail

Youth unemployment is approaching crisis levels in Britain. For almost two decades, Britain’s more flexible labour market had favourable effects on youth employment. But the re-regulation of the British economy has narrowed the difference between our jobs market, and that of the continent. Meanwhile the British poverty trap has been strengthened by a dysfunctional welfare state: British workers can in some circumstances keep as little as 5p in every extra pound they earn if they find work. Who would break their back for less than 50p an hour? We’re paying people not to bother, so little wonder that most of the employment rise — in the last government, and under

James Forsyth James Forsyth

The coalition for a Boris victory

When David Cameron addressed Tory MPs on Friday, he told them that the London Mayoral elections were ‘the binary moment of 2012’. He argued that if Labour lost in London, one of their traditional strongholds, it would be a disaster for Ed Miliband. In the Cameron narrative, a Boris victory in May would mean that the Labour leader would remain under pressure and continue to be the subject of regular attacks in the press. Interestingly, there are Liberal Democrats close to Nick Clegg who share this analysis. Their worry is that a Livingstone victory combined with bad local election results for Lib Dem could turn the deputy Prime Minister back

Saturday

Peter Hoskin

The ruckus over Lords reform

Both the Tory and Lib Dem manifestoes promised to reform the House of Lords, as did the Coalition Agreement, but the gulf in enthusiasm between the two parties is enormous. For many Lib Dems, this is of course — as Nick Clegg put it in December — ‘one boat that urgently needs rocking’. For many Tories, it is something to be ambivalent about, or to oppose. Which is why the politics around the ongoing Lords Reform Bill are likely to be so fraught. James has already written of how there are ‘more than 81 [Conservative] MPs prepared to vote against it.’ But today the Tory Cabinet Office minister Mark Harper

Peter Hoskin

Willetts tries to dampen the flames around Ebdon

Siphoning the contents of two brains through one mouth and on to a single page will generally produce eclectic results. And that’s certainly the case with David Willetts’ interview with the Times (£) this morning. The universities minister manages to range across subjects that include Robert Falcon Scott, climate change, the Falklands and universities access. He even reheats one of his old theories about Feminism and social mobility in a way that (coupled with the interview’s headline: ‘Moving on and up is very hard — and feminism is partly to blame’) makes it sound far more provocative than I think it’s meant to be, and much weaker for it. The

Friday

Jonathan Jones

Tim Farron wants competition dropped from the Health Bill

Will there be further changes to the Health and Social Care Bill? Liberal Democrat President Tim Farron certainly wants some, as he told ITV’s Party People last night: ‘If the new competition introduced through this Bill is removed, then I think it’s better on the books than it is off it… What I want is for the Lords to propose changes that will remove the new competition elements from the Bill and I would like the Government to give way on those things. It’s all to play for.’ Farron’s echoing the call made by fellow Lib Dem Shirley Williams last week and by a group of activists who have submitted

Jonathan Jones

Which tax cuts would be best for the economy?

With all these tax cut suggestions kicking about — and with the British economy desperately in need of some oomph — it’s worth asking: which would help growth the most? It’s not of course the only consideration, but it is clearly an important one as we struggle to find our way out of recession.   Fortunately, the OECD is on hand with two recent reports to help answer our question. The first, ‘Tax Reform and Economic Growth’, divides taxes into four broad categories and ranks them on how harmful they are to growth: This suggests that the Centre for Policy Studies is right — on growth grounds at least —

Thursday

Sebastian Payne

Detoxifying profit in education

Profit and education are still two words that should only be put together with caution. The coalition has long-accepted this is a toxic area, as typified by Nick Clegg in September when he proclaimed: ‘Yes to greater diversity; yes to more choice for parents. But no to running schools for a profit; not in our state-funded education sector.’ But as Fraser argued last year, we need profit-making schools to spread the benefits of Michael Gove’s reforms to the most deprived children. To straddle this divide, Policy Exchange has proposed a halfway solution today: social enterprise schools. Similar to a private company, the proposed model has full financial transparency and a duty to reinvest

James Forsyth James Forsyth

The tension’s rising inside the coalition

Talking to a Downing Street adviser earlier this week, I was struck when they observed that a ‘2014 election wouldn’t be too bad really. David would have done his best, Nick would have done his best. But they just couldn’t make it work anymore.’   The Tories have spent some time recently contemplating the possibility that the coalition might not run for the full length of the parliament. At a recent Chequers away day, the prospect of the Liberal Democrats walking out in 2014 was openly discussed.   That this possibility is even being talked about is revealing of the mood inside the coalition, which is the subject of my

Fraser Nelson Fraser Nelson

Why George should listen to Danny

In the new Spectator, we back the Liberal Democrats’ plans to raise the tax threshold to £10,000 — provided that the money is found by cuts in state spending rather than the pensions raid they propose. It’s not top of my list of tax cuts, but we have to accept the realpolitik. It’s the only tax-cutting option that has advocates in the Treasury. There are plenty of proposals around to cut taxes and wake the British economy from its ‘lost decade’ slumber. The need to use tax cuts as a remedy to the deficit will be familiar to anyone who has followed the American presidential debate: every candidate, even Romney,