Liberal democrats

Osborne’s inoculation strategy has worked

Several of tomorrow’s newspapers lead on the IFS’ conclusion that those on the lowest income will suffer most from the cuts. This charge is problematic for the conclusion but far less problematic than it would have been if we hadn’t spent so much of the last few weeks discussing George Osborne’s decision to remove child benefit from families with a higher rate taxpayer in them. That change, however unpopular it may have been with normally Tory voters, inoculated the coalition against the charge that it was trying to balance the budget on the backs of the poor. Osborne’s preparation of the ground has not, though, stopped the Lib Dems slipping

PMQs live blog | 20 October 2010

QUICK VERDICT: More heat than light today, but Cameron easily got the better of Ed Miliband. Now to the Spending Review live blog. 1230: Cameron says that as cuts are made, the government will have to reform the way it does criminal justice. This is a prelude for the deep cuts that the Home Office and Justice department are expected to face in the spending review. 1228: The Lib Dem MP asks whether Cameron believes that better-off graduates should bear more for their university costs. Cameron says that he agrees on principle, and claims that “everyone in the House” wants the “same thing”: a fair and well-funded university system. 1226:

Laws helps Gove

Michael Gove has just been explaining in the Commons where the £7 billion for the fairness premium that Nick Clegg announced on Friday will come from. Revealingly, David Laws was present as Gove answered this urgent question. I understand that Laws was crucial to both the pupil premium being implemented at a decent level and the real-terms increase in the schools Budget.   Laws himself told John Pienaar’s show last night that “obviously I’ve talked to him [Nick Clegg] about some of the things that I’ve been associated with in the past, like the schools funding issue… because I was the schools spokesman in the last parliament”. I hear that

The axe hovers over welfare (and welfare cheats)

As we know, education and defence have now had their budgets settled – another two ticks alongside the checklist. But that still leaves the third member of the coalition’s trio of sticky settlements unresolved: welfare. The “quad” of David Cameron, George Osborne, Nick Clegg and Danny Alexander will meet today to bash out the final details. Yet some of their key talking points and decisions have already made it into the papers (especially in this article (£) in the Sunday Times). Here’s my round-up, along with brief comments: 1) Crackdown on welfare cheats. George Osborne sets the tone with his article in the News of the World (now also behind

The cuts are almost settled

We are entering the end game of the spending review. The Department of Education settled this morning, according to both Tory and Lib Dem sources. Although there is confusion about whether the money for the pupil premium is coming from inside or outside the education budget – Clegg’s speech suggested outside but other Whitehall sources are not so sure. Liam Fox has told friends that he knows the final number for the defence budget and that it is a lot better than expected over the summer. Fox has played a blinder in terms of defending his budget but this has come at a huge personal cost for him. Even supporters

The true scale of the cuts

George Osborne likes to spend his weekends at Dorneywood, the chancellor’s official residence near Slough, but I doubt this one will be  particularly enjoyable. He will be burning the midnight oil as he prepares next Wednesday’s spending review. No doubt he will also be taking calls from ministerial colleagues, muttering dark threats about aircraft carriers, the arts, sport, the roads budget, overseas consulates – you name it. And just when the numbers all add up he will probably have to start all over again after discovering that No10 has  promised to save some wind turbines because Steve Hilton bumped into somebody at a drinks party.   Meanwhile, we can expect

Clegg sweetens the pill with a fairness premium

Only five days to go until the spending review – and after weeks of emphasis on the cuts we’re about to see, the government has today unveiled a new spending commitment. It comes courtesy of Nick Clegg: a new “fairness premium” targeted at the least well-off young people. Lib Dem Voice has full details here, but the basic point is that £7 billion will be spent, across 4 years, on programmes for disadvantaged 2 to 20 year-olds. Much of this will go towards the “pupil premium” that we’ve heard so much about, and which should advance school choice in the most deprived areas. Putting aside his genuine commitment to it,

PMQs live blog | 13 October 2010

VERDICT: Well, who would have thought it? In his first PMQs performance, Ed Miliband not only put in a solid showing – but he got the better of David Cameron. I certainly don’t agree with the Labour leader’s central argument: that it is unfair to restrict child benefit. But he put his point across in measured, reasonable tones – and Cameron seemed flustered by comparison, as he wagged on about the size of the deficit. Make no mistake, the argument and the public’s sympathies will unwind themselves over the course of the entire Parliament. They will not be resolved in one session of PMQs. But in presentational terms, MiliE will

Cable backs the Browne report

The Lib Dem website still says that the party stands for the abolition of tuition fees, so Vince Cable had to draw on all his presentational skill this afternoon. The ‘current system of university funding is no longer feasible’ he said, before adding that Scotland’s free system is unsustainable. Second, he made clear that he and his party have always supported a ‘progressive graduate contribution’. The Browne report incorporates a progressive contribution into an alternative to the current system; Cable vowed to introduce a ‘specific proposal along the lines of the Browne report.’ Cable also dealt with the politically sensitive issue that these changes would not disadvantage middle income earners.

Cable and Clegg scrambling to repel errant MPs

The Lib Dems have met the Browne report with a mixture of cordiality and outright antipathy. According to the Guardian, Greg Mulholland is the ring-leader of a band who will vote against a fee rise come what may. Lib Dem ministers are describing the Browne report as ‘unpalatable’ in its current form but recognise that fees must rise and are ‘keeping their powder dry’. The stumbling block is Browne’s recommendation that interest free loans be scrapped. This stark move was to be offset by raising the threshold and tapering interest rates to protect the disadvantaged. There are also concerns that the affluent will be able to pay off their debt

A sustainable and permanent solution

‘A sustainable and permanent solution’, that was Lord Browne’s refrain this morning. Browne has aimed to fill the £1bn university funding black hole with a system that doesn’t prejudice the disadvantaged or force universities to privatise. Browne recommends that the tuition fee cap goes, but insists the Treasury should collect a levy from universities that charge above £6,000: fees set at £9,000 will cede 50 percent of £1,000 above £6,000, which will rise to 75 percent for fees of £12,000. This tapered levy is designed to discourage institutions from charging US-style of £20,000. Browne says that no English or Welsh student should be confronted with upfront costs – at the moment,

The AV rebels change tack

A little snippet from today’s Times (£) that is worth noting down: “Tory rebels will this week lift their threat to the date of next year’s proposed referendum on voting changes – because they believe May 5 offers the best chance of stopping the alternative vote (AV) system. That date coincides with the council elections in Scotland, Wales and most of England, and was thought likely to boost the ‘yes’ vote for replacing first-past-the-post general elections. Nick Clegg insists that the Lib Dems will not budge on the date. But a tactical rethink will see many AV sceptics wave it through when the Bill comes to the floor of the

Making the case for further tuition fees

Ever the opportunist, Ed Miliband recognised that university funding could be the coalition’s first test of resolve. Opposing a tuition fee hike has given him the chance to serenade disgruntled Liberal Democrats and to discard New Labour’s sheen (which so incensed Alan Johnson, the minister who introduced the fee in such difficult circumstances). Miliband is determined to mould the Labour party in his image. Speaking on the Politics Show yesterday (16:20 in), he said that the party, Johnson included, will strive to deliver a graduate tax. After a summer’s procrastination, the government has run out of time. The substance of Lord Browne’s recommendations is in the public domain and it

Vince Cable’s discomfort is shared by the coalition

The trouble with holding a ministerial debate in public is that, when it comes to the crunch, it’s obvious who the winners and losers are. So it is with Vince Cable and higher education funding. A couple of months ago, the business secretary tap-danced onto the stage with a (problematic) plan for a new graduate tax. Now, it seems clear that the Browne Review will reject his advice (£) in favour of increasing tuition fees. And so Cable has had to send out an excruciating email explaining why a graduate tax was never really a good idea in the first place. After the flip comes the flop, so to speak.

Alex Massie

More Mail Fail: Clegg Edition

Apparently the print edition of the Mail on Sunday screams “Hypocrisy” because Nick Clegg, though not a believer himself, is not averse to sending his eldest child to be educated at the (catholic) London Oratory. Like you, dearest reader, I look forward to the Mail opposing school choice. The online version of this nonsense does its best to be faux-outraged with “Why is atheist Nick Clegg considering sending his son to the same exclusive school as the Blairs?” It is not clear whether the atheism or the Blair connection is the more pernicious. Never mind that Clegg’s wife is catholic and the children are being brought up as catholics. Never

Huhne and the universal benefit conundrum

Chris Huhne has given an interview to the Telegraph. According to the front page report, the Energy Secretary has nothing to say about nuclear power, new wind farms or energy security; but rather a lot to say about economic and social policies that are strictly beyond his purview. Jeremy Hunt’s belief that child benefit should be limited across the board is dismissed because there are ‘limits to how much we can achieve through changes in the tax and benefits system’ – this week’s Spectator argues otherwise. Huhne also registers his profound cynicism for the marriage tax break – no surprises there and he has a point that austerity should not

Ken Clarke in the firing line

There’s an intriguing pre-conference story in the Mail on Sunday today. The paper reports that: “Ken Clarke faces a whispering campaign by allies of David Cameron and George Osborne to move him from Justice Minister because of his ‘disastrous’ views on law and order, it was claimed last night. Conservative MPs say Mr Cameron and Mr Osborne are ‘ frustrated’ by Mr Clarke’s refusal to take a tougher line on key issues such as prison sentencing.” Clarke’s liberal views on criminal justice certainly are infuriating his colleagues. Allies of Theresa May have been heard to complain that “Ken is going to send the crime rate soaring and we’re going to

Fraser Nelson

Society 3, The State 0

Cameron and Osborne may just be about to pull off something incredible. This time last year, The Spectator ran a cover story about a new proposal which we could revolutionise welfare: the Universal Credit. It was an IDS idea: he’d sweep away all 50-odd benefits, and replace it with a system that ran on a simple principle – if someone did extra work, they’d get to keep most of the money they earned. It meant a bureaucratic overhaul, of a system that controls the lives of 5.9 million people. The resistance from HM Treasury, the architect of the tax credit system, was as fierce as it was predictable. But Clegg

Lib Dems to the right of their Tory colleagues?

I’ve re-read it several times now and I’m still not sure whether Francis Maude was joking or not when he told The Times that Danny Alexander ‘is obviously a bit to the right of me’. It is the kind of thing that the dry-witted Maude might say as a joke. But equally there’s no signal there that it is. But Mr Alexander occupies an odd place politically at the moment for a Liberal Democrat. He has become an ardent budget-balancer. Indeed, Nick Clegg has been heard to observe recently that his former chief of staff has had his brain captured by Treasury officials.

Many Lib Dems want to be part of the New Generation

Politics tends to ruin an evening in the pub. On Wednesday, I came across a friend who had been a card-carrying Lib Dem prior to the coalition’s formation. He confessed that he’d been impressed by Ed Miliband’s speech and had joined the Labour party. Several other Lib Dem supporters attending agreed that Ed Miliband is a more attractive option than David Cameron and Nick Clegg. Everyone else in this small band (mostly unaffiliated voters with the odd furtive Tory) believed that Labour has probably elected the wrong Miliband, but were antagonistic to Labour in any case. Politics Home has published formal research suggesting that only Lib Dems clearly favour Ed