Philip hammond

Wanted urgently: a Budget boost

The Budget this Wednesday represents this government’s best, and perhaps its last, chance to regain the political initiative. Ever since the launch of the Tory election manifesto, Theresa May has been buffeted by the political weather. The past few weeks have been particularly bad. It hasn’t rained on her but poured, leaving her in urgent need of a Budget boost. Already this month, two cabinet ministers have had to resign. A third — who happens to be Theresa May’s most important ally — remains under Cabinet Office investigation. The Brexit optimism that followed her Florence speech is ebbing away. The sense that European leaders would declare in December that ‘sufficient

Stop the rot

Dealing with a hung parliament was never going to be easy, but no one quite foresaw the decay which now seems to have set in to Theresa May’s government. The best that can be said for the Prime Minister is that the past week’s events have weakened her rivals within the Conservative party. No one is talking up Priti Patel as a potential rival any more and a challenge from Boris Johnson is now highly unlikely, following his loose words about a British woman incarcerated in Iran — which the Iranian regime may use as a pretext to increase her sentence. Like John Major, the Prime Minister benefits from the

It’s not just the Green Belt that could cause a political row on housing

The Conservatives are having yet another one of their Green Belt rows. Over the weekend, it was reported that Philip Hammond wants to relax restrictions on the Green Belt in order to get more homes built, but the Prime Minister isn’t very keen on the political implications of a liberalisation of planning laws. She remembers the bruising political rows that David Cameron’s government had with the National Trust, the Campaign to Protect Rural England, and the Telegraph, and feels that this is a battle she could ill-afford. When I interviewed Conservative policy chief George Freeman last week, one of the striking observations he made was that while he wanted to empower

The Spectator Podcast: Save the children!

On this week’s episode we look at whether the kids are alright or if we need to talk about their generation. We also ask whether Philip Hammond’s cautious approach is suited to the present economy, and consider why the best minds of a generation were lost to trash TV. First, with Scotland outlawing smacking and safe spaces coddling students, it sometimes seems like the sharp edges of childhood have been sanded down. That’s why our children are so unhappy, writes Rod Liddle in the magazine this week. But do kids really need to be exposed to the world? Or are there good reasons why we don’t let 9-year-olds ride alone

James Forsyth

Hammond can build his way out of trouble

Sometimes in life the biggest risk you can take is to play it safe. This is the predicament of Philip Hammond as he approaches the Budget next month. If he adopts a safety-first approach, it will almost certainly go wrong and he’ll be forced into a credibility-draining U-turn, as he was in March. His best hope is to be bold, and to hope this generates enough momentum to carry him over any bumps in the road. The two longest-serving chancellors of recent times have relished the theatrics of Budget Day. Both Gordon Brown and George Osborne loved pulling a rabbit out of the hat at the last minute, wrongfooting the

The plots thicken

‘Worst week ever’ is one of those phrases that journalists are, perhaps, too quick to use. Alastair Campbell once quipped that if you added up all Tony Blair’s worst weeks, you got a full year. The real worry for the Tories, however, is not that last week was Theresa May’s worst ever, but that it represented the new normal. Even inside Downing Street, there are those who worry that leadership plotting and the like will continue until Mrs May leaves the building. They worry that while they are strong enough to repel the plotters — as they did so effectively this time — she isn’t powerful enough to take back

The Spectator Podcast: Brexit Wars

On this week’s Spectator Podcast we look at the final Brexit war amongst the Conservatives. We also discuss the maverick politician taking Ukraine by storm, and get on the blower with Blowers. First up, with a 4,000 word intervention by Boris Johnson doing the rounds this week, ahead of Theresa May’s pivotal Brexit speech in Florence, the Conservatives look more divided than ever on the European question. Will it be EEA minus or CETA plus? Or are we headed for an even more mongrel departure? These are the questions James Forsyth asks in this week’s cover piece, and he joins the podcast along with Henry Newman, director of Open Europe. As James writes: “The time for

Steerpike

Caption contest: Cabinet unity

A week is a long time in politics. After Boris Johnson kicked off his working week with a 4,000 word Brexit essay for the Telegraph, the Foreign Secretary has been dogged by resignation rumours. Now, however, the Cabinet is all smiles. Although Johnson and Philip Hammond are reported to be on a collision course over their vision for Brexit, the pair were put on a friendly display as they exited today’s Cabinet meeting, ahead of Theresa May’s big Florence speech. Captions in the comments.

Tories grow increasingly nervous about the Budget

So long, public sector pay cap. After months of speculation – and some public Cabinet feuding – over the seven-year pay freeze, No 10 today announced that the government would be adopting a more ‘flexible’ approach from now on. Police and prison officers will be the first to receive a pay rise with more sectors expected to get a pay increase as it’s rolled out across the board. This concession from the government just months after Philip Hammond argued on Marr that public sector workers get a 10pc ‘premium’ over their private sector counterparts shows that the shift in public mood proved more powerful than any argument for it. The difficult

May’s exit strategy

Nearly all Tory MPs now agree Theresa May should stay on as Prime Minister. She must get the party through Brexit, they say. A leadership contest now would risk splitting the party over the European issue. One senior Tory who was agitating to depose May back in July has told me that he has now decided it would be best if she stays until 2019. But this desire to keep her in place for Brexit should not be confused (especially not by Mrs May) with a desire to see her fight the next election. The number of Tories prepared to even contemplate following her into another battle remains vanishingly small.

Portrait of the week | 3 August 2017

Home Philip Hammond, the Chancellor of the Exchequer, appeared to wrest control of plans for Brexit from cabinet rivals, while Theresa May, the Prime Minister, was in Italy and Boris Johnson, the Foreign Secretary, was in Australia. Mr Hammond foresaw a ‘transitional deal’ ending by June 2022, when the next general election is due. He said it would be ‘some time before we are able to introduce full migration controls between the UK and the European Union’. Liam Fox, the International Trade Secretary, insisted that the cabinet had not agreed to a three-year transition. Mr Johnson said he was unaware that Amber Rudd, the Home Secretary, had announced a year-long inquiry

The Tories need to seem serious about balancing the books

There are some things in life that you can always rely on: the sun will rise in the East, there will be showers in April, and the Conservatives will find a way to put off balancing the books. Although George Osborne – back when he was Chancellor – initially aimed to eliminate the structural deficit by 2015, it has since been pushed back time and time again. His successor Philip Hammond isn’t much better, pushing paying off the deficit until the middle of the next decade, in the 2017 manifesto. At the time, I wrote that their record on the issue meant there was little reason to believe the Tories would even stick with the new date. So,

Tom Goodenough

What the papers say: Philip Hammond must ‘belt up’

Philip Hammond, of all people, ought to ‘relish’ Brexit and the opportunity it will hand to Chancellors to set their own tax rates. But in ‘yet another blunder’, says the Sun, the current occupant of No.11 has told the French that Britain won’t lower taxes. ‘Has he gone made?’ the paper asks. Back in January, Hammond said that lower taxes and limited regulation could be an important way of luring businesses to Britain after Brexit. ‘As a Conservative, that is exactly what he should be saying’. Now, though, says the Sun, ‘he has contradicted himself’. Whatever level the Chancellor plans to set tax rates, ‘why make any promises and surrender a potent bargaining

Philip Hammond creates a one-man Cabinet split over Brexit

Leaving Philip Hammond in charge of the government was always going to be a risk because of his habit of putting his foot in it. There was the debacle of his first budget, then his saying in Cabinet that driving a train was so easy that even a woman could do it, and his comments that public sector workers are “overpaid”. Now, with the Prime Minister walking in the Alps, Hammond is in charge and has goofed again – this time in an interview with Le Monde. “I often hear it said that the UK is considering participating in unfair competition in regulation and tax. That is neither our plan nor our vision

The Cabinet’s Brexit position is transitioning

Although this week has seen a divergence of views in the Cabinet over Brexit (not to mention Labour’s continuing Brexit confusion) on everything from chlorinated chicken to freedom of movement, there is one aspect of the negotiations that all ministers can agree on: the need for a transitional agreement. Speaking on the Today programme, the Chancellor confirmed that ‘many things would look similar’ the day after Brexit. The new Cabinet consensus for an implementation period while the UK moves towards a new relationship with the EU is something Philip Hammond has been lobbying for for some time. The expectation in Whitehall is that Theresa May will give a speech in September

This isn’t a Cabinet leak, it’s just good journalism

I was on the radio this morning with David Mellor who accused the Cabinet of being appallingly ill-disciplined because of ‘leaks’ in the weekend press. James Forsyth revealed on Saturday that Philip Hammond had told Cabinet that being a train driver is so easy that ‘even’ a woman could do it. Yesterday, Tim Shipman revealed in the Sunday Times that Hammond had gone on to declare that public sector workers were ‘overpaid’. But here’s the thing: that meeting took place on Tuesday. If Cabinet members were queuing up to leak to journalists then we’d have read about it in Wednesday’s newspapers. It took several days for the information to become public precisely because it was not being

Sunday shows round-up: Philip Hammond says public sector workers paid ‘10 per cent premium’

Philip Hammond – Public sector workers paid ’10 per cent premium’ Chancellor of the Exchequer Philip Hammond has landed himself in hot water after he apparently claimed that public sector workers were overpaid during a recent meeting of the political cabinet. Andrew Marr challenged Hammond repeatedly over what he did in fact say, and gave the Chancellor several opportunities to deny that he had used the word ‘overpaid’: Marr: Did you say it? Hammond: Andrew, I’m not going to talk about what was or wasn’t said in a cabinet meeting and it’s easy to quote a phrase out of context, but I’m very happy to talk about the substantive issue.

Hammond must make sure his political tin ear doesn’t derail the government

Philip Hammond has a bit of a political tin ear. He can be very unaware of how he sounds to other people. This is what lay behind the extraordinary sexism row at Cabinet on Tuesday which I write about in The Sun today. Hammond’s tin ear has already caused trouble for the government. In the Budget, he announced a national insurance hike for the self-employed despite the fact that the 2015 Tory manifesto had ruled out an increase in this tax. This all makes some Cabinet Ministers rather worried about this autumn Budget, which will be inherently tricky. Hammond doesn’t have much room for manoeuvre. But he has to deal

Self-employed workers don’t need rescuing

‘Workers,’ says Matthew Taylor, whose report into modern practices is published this week, ‘should be treated as human beings, not cogs in a machine’. How very grand – and how fatuous. His entire report, commissioned by Theresa May in one of her first acts after becoming Prime Minister last July, is pointless, based on the false premise that there are millions of Brits beavering away in Victorian conditions for little money in insecure self-employment. Actually, we’re quite happy, Matthew. The vast majority of us are self-employed because we like it that way. We are not looking for a job, nor extra hours. According to the Office of National Statistics (ONS),

Philip Hammond holds his nerve on public sector pay

Oh to be a fly-on-the-wall at today’s Cabinet meeting. After growing calls from ministers for Theresa May to ditch the public sector pay cap, last night the Chancellor put his foot down. In a speech to the CBI, Philip Hammond said that while the public are naturally ‘weary’ after seven years of austerity, now is not the time to ‘take our foot off the pedal’: ‘After seven long and tough years, the high wage, high growth economy for which we strive is tantalisingly close to being within our grasp. It would be easy to take our foot off the pedal. But instead we must hold our nerve and maintain our focus resolutely