Liberal democrats

Balls the tax-cutter?

‘Balls urges tax cuts’, we’re told. Has he had a Damascene moment? Has the borrowed penny dropped? Nope, this is his longstanding and cynical campaign to cut VAT. Under the Labour years, when Balls was encouraging Brown to adopt a ‘scorched earth’ policy to the public finances, he urged against raising VAT to 20 per cent as Alistair Darling wanted. Not because he didn’t think it was necessary, but because he knew that if Darling didn’t do it, Osborne would. So VAT could be an election campaign tool, and then a stick with which to beat the wicked Tories (and the Lib Dems, who dropped the ‘VAT bombshell’ that they

James Forsyth

Tory Ministers need to back the Health Bill

Tomorrow’s Downing Street meeting on the implementation of the health reforms is meant to send the message that the bill is definitely going ahead. Number 10 is keen to shore up the bill ahead of Liberal Democrat Spring Conference following the uncertainty caused by Rachel Sylvester’s column and Conservative Home’s call for the bill to be dropped. Indeed, I understand that at the Quad dinner on Monday night, Nick Clegg and Danny Alexander made the basic political point that the Liberal Democrats would feel absolved of the need to support the bill if any Tory minister came out publicly against it. But Tory ministers still need to muster more public

The Lib Dems prepare their strategy for future coalitions

Contain your excitement, CoffeeHousers: the Lib Dems are debating whether to change their ‘constitution’ so that their members have a greater say over future coalition negotiations. The amendment has been put forward Tim Farron and Norman Lamb, and proposes that, in the event of coalition talks, the party’s ‘negotiating team’ should have to consult with a ‘reference group consisting of not more than nine people appointed equally by…’ blah, blah, blah. In fact, you can just read the whole thing on page 41 of this document. The Lib Dems will be voting on it at their Spring Conference next month. But while internal Lib Dem governance may not be the

At least it won’t go to penalties…

Who’s winning in the latest match between Vince Cable and the Conservatives? The Business Secretary did take an early lead, with the news that No.10 had grudgingly yielded to his demand to appoint Professor Les Ebdon to the role of ‘university admissions tsar’ — a man who has hardly been kind about the coalition’s universities policy in the past, and whose appointment had been blocked by the business select committee. But, according to the Telegraph this morning, the Tory leadership appear to have scored a goal of their own: Cable’s proposal for imposing penalties on graduates who pay off their student loans early is to be dropped. We can, and

How Obama’s new budget fits into the UK debate

Yesterday, Barack Obama set out his budget for ‘Fiscal Year 2013’ – that is, for the year beginning October 2012 (in the US, the fiscal year runs from October to September, rather than April to March as it does here). Of course, the federal budget has to be passed by both houses of Congress before being signed off by the President, so the final version will look very different to this one. It is better thought of as a statement of Obama’s intent, and his starting point for the negotiations between Congress and the White House. Nevertheless, it throws up a few interesting points, not least in how it relates to our own

Nick Clegg’s NHS squeeze

Andrew Lansley’s career prospects were boosted yesterday — when Simon Hughes said that he should ‘move on’ after the NHS reforms have been implemented. Since then, Downing Street has redoubled its defence of the Health Secretary; with a spokesman explaining tersely this morning that, ‘Simon Hughes speaks for himself ’. And Nick Clegg himself has added that, ‘Andrew Lansley is the architect of the NHS bill. He cares passionately about the NHS. He’s the right man for the job and he must see it through.’ Clegg’s general support for the Bill — and Danny Alexander’s — is worth noting because it’s one of the factors helping David Cameron hang on

Warming up for the Budget

The Budget negotiations within government are now underway. The quad of Cameron, Clegg, Osborne and Alexander held a meeting last week to discuss their priorities for the Budget on March 21st. They’ll continue this conversation over a working dinner tomorrow night. Already, we know that the Liberal Democrats main priority will be to get the personal allowance as close to £10,000 as possible. As The Sunday Times reports, they’re suggesting paying for this by taking away various reliefs for higher-rate taxpayers and closing some of the loopholes in the tax system. I also understand from Liberal Democrats close to Clegg that they’re also interested in some new green taxes. For

The 50p tax debate won’t be settled this year — but it might be escalated

More evidence this morning that the government won’t be dropping the 50p rate any time soon, in the form of an interview with Danny Alexander. ‘This is not the time to be looking to reduce the tax burden on the wealthy,’ he says to the Daily Telegraph’s James Kirkup and Robert Winnett. This is a line that other ministers have deployed recently, and not just Lib Dems. And it suggests that the coalition is confident that HMRC’s forthcoming review of the rate will say that it does indeed raise revenue. But the matter won’t end there. The IFS recently said of the HMRC review that, ‘tax records for just one

Lansley’s health problems are starting to look terminal

The discontent with Andrew Lansley’s health reforms has been rising since the New Year. But, one or two threatening quotations aside, most of this has come from the government’s natural opponents: Labour and the unions. That changes today. Over at ConservativeHome, Tim Montgomerie has written a post calling for the Health Bill to be dropped. It is, Tim says, ‘not just a distraction… but potentially fatal to the Conservative Party’s electoral prospects.’ And he finishes: ‘It must be stopped before it’s too late.’ This would be striking enough by itself, but its impact is doubled by a single sentence: ‘Speaking to ConservativeHome, three Tory Cabinet ministers have now also rung

The BIS select committee makes its presence felt

We will soon find out whether the coalition meant what it said about empowering parliament. The BIS select committee has rejected the government’s preferred candidate for the post of the head of the Office of Fair Access. The committee concluded that it was ‘unable to endorse the appointment of Professor Ebdon as the Director of OFFA and we recommend that the Department conduct a new recruitment exercise.’ But Vince Cable, the business secretary, is said to be keen to override the committee’s verdict. Number 10, which has never been keen on Ebdon, is opposed. As I said on Sunday, the circumstances behind Ebdon’s name going forward are straight from The

Fraser Nelson

Lawson: Abolish DECC

Did we need to replace Chris Huhne at all? Nigel Lawson, a former editor of The Spectator (amongst other things), has an intriguing idea in a letter to today’s FT: just break up the Department for Energy and Climate Change. It has done nothing to encourage the development of shale gas, which — as we argue in a leader in tomorrow’s Spectator — could keep Britain in energy for the next 100 years without the need to build another windmill. Lord Lawson, a former energy secretary, says that Ed Davey: ‘…has the opportunity to enter the history books as the only minister to use his position to abolish it for

Where has the pro-EU camp gone?

Did you see that amazing article by a group of pro-EU businesspeople? What about that clever ad paid for by ‘Better To Be In’, the new pro-EU lobby group? Nope, me neither. The reason we haven’t seen anything like that is because the pro-European camp in Britain is in total disarray. Like a beaten army, it is withdrawing in a state of confusion, while some diehards stage energetic but un-strategic counterattacks against the advancing Eurosceptic forces. A letter from pro-EU businessmen was, frankly, unimpressive: the signatories were hardly a who’s who of Britain’s business community, and even included some former officials. Hardly a show of strength. But yesterday’s letter from

Cameron’s coming battle over the ECHR

The coming release of Abu Qatada on bail is going to put bellows under the whole debate about the European Court of Human Rights. In his recent speech to the Council of Europe, David Cameron rightly protested about a situation with terror suspects in which ‘you cannot try them, you cannot detain them and you cannot deport them.’ We will now find out how quickly Cameron is prepared to act on this issue. If Cameron wants to makes changes to the Courts and the Convention, then he is going to have to get agreement from every member of the Council of Europe. There’s no guarantee that he’ll be able to

James Forsyth

An important intervention on energy policies, but will the Lib Dems pay attention?

The economist Dieter Helm is one of the few policy thinkers respected on both sides of the coalition. Oliver Letwin is a long-standing friend of his and Clegg’s office views him as one of the best economic brains in the country. All of which makes Helm’s attack on Chris Huhne’s energy policies in The Times today as interesting as the anti-wind farm letter signed by a 101 Tory MPs. Helm argues that the policy of huge subsidies for renewables is a mistake and that shale gas is a game-changer. Helm writes that, while renewables have a role to play, ‘Coal burning is not going to go away because of wind.

The government will have to fight for Lords reform

House of Lords reform is one of those subjects that make most people’s eyes glaze over. But it is going to dominate the next parliamentary session. The Queen’s Speech will include a bill for elections in 2015 for 20 per cent of the seats in the Lords using a ‘Proportional Representation’ voting system. This bill will take an age to get through the Commons, where it has to start if the coalition is to use the Parliament Act to push it through, let alone the Lords. One of the things that’ll be fascinating to watch is how large a Conservative rebellion there is on the issue. There are already Tory

The danger for the Lib Dems

Today’s papers make clear just how damaging the next phase of this whole Chris Huhne business could be to the Liberal Democrats. The danger is that because this story is a very human drama it cuts through to the public in the way that some minor dispute over policy would not. The Mail, for instance, reveals that Nick Clegg’s wife Miriam called Vicky Pryce as soon as the news broke about the charges saying ‘If you need somewhere to stay, if the kids need support, we’re here’. Patrick Wintour is surely right when he writes that the concern for the Liberal Democrats ‘must be the consequences of a drawn-out court

Clegg confirms the reshuffle

Nick Clegg’s statement just now was notable for how he stressed that he would like Chris Huhne back in the Cabinet if Huhne emerges from these current difficulties. This echoes what he said in his exchange of letters with the departing Energy and Climate Change Secretary. Cameron — notably — made no such comment in his letter to Huhne.   The reshuffle is widely as expected with Ed Davey coming into the Cabinet and Norman Lamb taking his post in the Business Department. But David Laws, who is already acting as an unofficial policy adviser to Clegg, doesn’t make a formal return to the government. Instead the spare pay roll

James Forsyth

What Huhne’s case means for the Lib Dems

The biggest danger for the Liberal Democrats from this coming trial is that it turns the party into the butt of everybody’s jokes. Having gone into government and lost much of their original support by taking tough decisions, they have consoled themselves with the hope that they have now established themselves as a serious political party.   Their aim at the next election will be to present themselves as a credible party of government who will make the Tories more compassionate and Labour more fiscally responsible. But at the top party they are aware that there is a danger that a trial of Chris Huhne and his ex-wife Vicky Pryce