Liberal democrats

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

A small step for Labour, not a giant leap

I had expected Ed Miliband to do pretty well in the polls. He’s unknown, and voters haven’t had a chance to dislike him yet. That’s not an insult – familiarity breeds contempt in politics, and the public are normally quite quick to give a new guy the benefit of the doubt. Witness the Clegg bubble. But tomorrow’s Guardian shows precious little sign of a conference bounce. The two parties were level before the conferences – a remarkable achievment for a leaderless party. The Tories took three years to do the same. It was one of many reasons that inspired our cover story last week, “Labour leaps forward”. The illustration, by

The IMF delivers a boost for George Osborne

The proclamations of economists and economic bodies shouldn’t be taken as the be-all-and-end-all of fiscal policy – for every one claiming that a decision is right, you can find another insisting that it is wrong. But the coalition will still be pleased by the influential International Monetary Fund’s latest report, here. It begins: “The UK economy is on the mend. Economic recovery is underway, unemployment has stabilized, and financial sector health has improved. The government’s strong and credible multi-year fiscal deficit reduction plan is essential to ensure debt sustainability. The plan greatly reduces the risk of a costly loss of confidence in public finances and supports a balanced recovery. Fiscal

Cameron neglects to mention his tax cut for the middle classes

David Cameron’s interview in the Telegraph this morning is striking for three reasons. First, despite the interview appearing on the day of the Labour leadership declaration, there’s no attempt to bring the hammer down on the new Labour leader. All we get is some framing on the deficit. Next, as Paul Goodman notes, it is an attempt to reassure the Tory faithful after the Lib Dem conference Vince Cable is gently put back in his box with the line ‘Vince is Vince’. Cameron also stresses that he ‘will always safeguard our nuclear deterrent’; a line that is very different from the nakedly political discussions of Trident in Liverpool, where what

Three quarters of voters side with Cable

Politics Home has published an important poll, showing the staggering level of support for Vince Cable’s conference speech. The government will be pleased that its political attack on the financial services industry’s continued excess at time of austerity is cutting through; on the other hand, this could be seen as support for Cable’s emotive rhetoric. Worse still, the poll suggests that traditional Tory voters are the only group for whom Nick Clegg is more impressive than Cable. The business secretary has to be kept in government – the coalition can’t afford to have a charismatic wreaking havoc from the backbenches. Support for Vince Cable conference speech Who are the impressive

The trouble with Cable’s posturing

What are we to make of the fact that No.10 gave the thumbs-up to Vince Cable’s bizarre anti-capitalist rhetoric today? “Capitalism takes no prisoners and it kills competition where it can,” he fumed – and you can argue that, technically, he is paraphrasing Adam Smith. But he has been in politics long enough to know what signal his speech sent out (and the reaction it would trigger). Mood music counts for a lot in politics, and in business. And the mood music from this government sounds like a bunch of politicians happy to tax the bejesus out of the high-paid – regarding them as ATM machines to be raided, rather

James Forsyth

Vince’s land tax land grab

There was one notable bit of kite flying in Vince Cable’s speech earlier, an indication that he wants the next Liberal Democrat manifesto to contain a commitment to a land tax. This would give the party a distinctive policy going into the next election. With the proceeds of a land tax, they could abolish stamp duty and still have a lot of fiscal wriggle room allowing it to propose increasing the income tax threshold or spending more on certain public services. There’s already work going on in Lib Dem circles on how to model a land tax and to find how much revenue it would raise.  Here’s the key section

James Forsyth

Bonuses: a question of political economy

There is a reason why the coalition has used the Lib Dem conference to step up its rhetoric about the bankers and their bonuses. The coalition believes, rightly, that balancing the budget is a matter of political economy. It is acutely aware, and has been for some time, that the sight of banks paying out huge bonuses later this year just as the public sector begins to lay people off and cut services would be disastrous. This view is shared by everyone in the coalition from Cable to Osborne. Bumper bonuses would increase calls for new punitive measures against the banks and produce precisely the kind of political atmosphere that

All so predictable from Cable

If Vince Cable has achieved anything, it’s to enliven a Lib Dem conference that had settled into cosy anonymity after Clegg’s speech on Monday. He has now delivered the address that David blogged about earlier – and all of the firebrand passages trailed in this morning’s papers were present and correct. “Capitalism,” Cable warned, “kills competition where it can.” And he followed that lead to kick the bankers where he could. In between passages extolling the virtues of “pro business, pro market” policy, he set about the “spiv and gamblers” who had triggered the financial crisis. To be honest, though, I find it hard to get too worked up about this. Sure,

James Forsyth

Lib Dem activists less than gleeful about the coalition

Last night, Liberal Democrats gathered for their traditional conference glee club. It is a light-hearted occasion with lots of communal singing and jokes. But some of the gags did seem to vocalise a certain unease about the coalition.   There was a very lusty rendition of a song that went like this, to the tune of The Twelve Days of Christmas: On the first day of coalition The Tories gave to me A referendum on AV On the second day of merger The Tories gave to me Absolutely zilch And a referendum on AV On the third day of coalition The Tories gave to me Sweet FA Absolutely zilch And

Cable shows his true colours

‘[Capitalism] takes no prisoners and it kills competition where it can’. ‘Markets are often irrational or rigged.’ A snob would describe those as the ravings of a chippy provincial university lecturer. In fact, they are the considered thoughts of Vince Cable, the business secretary, the very man tasked with selling Britain to international markets. Cable will address the Lib Dem conference later today, vowing to shine the ‘harsh light into the murky world corporate behaviour’. Limiting short-term speculation when linked to high pay is government policy, but Cable will go further than a spot of banker bashing. Much further. He will say: ‘Why should good companies be destroyed by short-term investors looking

Liberal Democrat Misanthropes

Bagehot had the misfortune to attend a Liberal Democrat fringe meeting on education reform. But I’m glad he did because he’s produced a righteous post that demands to be read in full. Here’s a taste of it: The title of the meeting was blunt: “Will Schools Have Too Much Freedom in a Big Society?” Mr Hames tried pluckily to defend the idea of radical, permissive reforms to British education policy. Such change might be messy, he conceded, as different sorts of schools and academies sprang up. But his audience—well-meaning and “progressive” local councillors, school heads and school governors—appeared convinced that changes to education policy (and certainly any changes to the

James Forsyth

Whither the Lib Dems?

A striking aspect of the Liberal Democrat conference is how discussion of cooperation with Labour takes place in public while talk of any future work with their current coalition partner happens in private. Tonight, Paddy Ashdown told an Observer fringe meeting that the Liberal Democrats’ long-term goal should still be to become the dominant party of the centre-left in Britain. I must admit that I struggle to see how this is possible. The steps that the coalition needs to take to deal with what Nick Clegg calls the ‘invisible crisis’ of the deficit will alienate the party from the centre left. But then again, as one liberal Liberal Democrat said

James Forsyth

Keeping the flame alive | 21 September 2010

In the early hours of this morning, Lib Dem conference looked like any other party conference. A throng of people—mostly men in suits—standing around outside the conference hotel having come from the various media parties. Indeed, it is surprisingly hard to tell the difference between Lib Dem conference and the others now. There are a large number of lobbyists here and a whole host of corporate types.   But there are some activists trying to keep the flame of the traditional Lib Dem conference alive. Julian Glover has a lovely story over at Comment is Free about what happened after Nick Clegg’s speech yesterday: “In the hall yesterday evening, where

Hughes retracts his claws (for now)

Few observers would have expected Simon Hughes to tear into the coalition with full force in his speech today. The mood in Liverpool is geared towards support, not destruction. But the deputy Lib Dem leader’s effusiveness was still fairly surprising. He reassured the audience that he is a “rock solid supporter of the coalition – which our party has democratically agreed will last for five years”. He echoed one of Clegg’s central messages from yesterday, saying that “when you move from the touchline to the pitch, there is a risk you may get some knocks and pick up a few bruises – but on the touchline you never get the