Public sector

If you think there really is a big idea behind the Big Society, then you agree with the unlikely pairing of Jon Cruddas (Lab, Dagenham) and Jesse Norman (Con, Hereford). The latter’s new book, The Big Society: The Anatomy of the New Politics, attempts the seemingly impossible task of providing a grand philosophical narrative to underscore David Cameron’s often amorphous rhetoric. Cruddas and Norman debated at the Institute of Economic Affairs last night, alongside the IEA’s Professor Philip Booth and Dr Steve Davies. The ninety minute discussion did more to expose the philosophical fault lines in modern British politics than any public event I’ve attended since the General Election. Jesse

Len McCluskey has won the race to lead Unite, Britain’s largest union. McCluskey will therefore have a major role in how the left respond to cuts in public spending. It would premature to label McCluskey but he comes with a reputation for militancy. He cut his teeth at the Transport and General Workers Union in the 80s and was a confidant of Derek Hatton’s. And he hasn’t forsaken childish things – being an integral figure in the long running and wholely counter-productive BA dispute. So, impeccable credentials for a man of the old left; akin to the roll call of Wellington, Sandhurst and the City for those on the right. But McCluskey must resist temptation.

The press has gone to town on the government’s spending spree; more than £80bn of central government expenditure, itemised in this imposing document published today by Francis Maude. The government will squirm at some findings, notably on redacted defence procurement contracts, Libyan oil agreements and the 194,000 payments made to individuals and private companies (Capita has been paid £3.3bn for outsourcing government work, and De Beers, the diamond cutters, received nearly £1,200 from the Business Department). Already the blame game has begun, with Labour and the coalition sparring from a distance. But, for the most part, ministers will be gleeful: the Civil Service and public sector have been forced to expose their

Neither Ed Miliband nor David Cameron had a good PMQs. Cameron let his irritation at questions about the appointment of his campaign photographer to a civil service post show. It was also a bit rich for him to criticise a Labour MP for asking a question scripted by the whips when Tory MPs ask patsy questions with monotonous regularity, I counted at least four in this session alone. But the regular shouts of ‘cheese, cheese’ from the Labour benches were clearly riling the Prime Minister. But it wasn’t a good session for Ed Miliband either. His delivery was rather halting and he stumbled on his words far more than he

Paul Mason’s review of the cuts for Newsnight last night (from 10:20 into the video here) was one of the most powerful critiques of Osborne from the left. His package majored on Osborne’s decision to cut a further £11 billion from welfare and pensions, to soften the departmental cuts. Adopting a rather funereal tone, Mason declared that, “if you are poor, your life is about to change”. He produced a decile graph, showing the poorest are hit second hardest. It foreshadowed this morning’s Guardian cover: “Axe falls on the poor”. Danny Alexander was fed to Paxo: “You said you would not balance your budget on the backs of the poor

As expected, the Chancellor announced reductions in public spending – though not quite as severe as indicated in the Emergency Budget last June.  Government expenditure will fall by 3.3 percent over four years rather than 3.6 percent as expected, leading George Osborne to state – correctly – that departmental budgets will be higher than those pencilled in by Labour – an outcome many may not regard as desirable.  In fact, Osborne will be spending 2 percent more in 2014/15 than Gordon Brown was in 2008/9. Departmental spending will fall 10 percent rather than 13 percent – largely paid for by more optimistic assumptions about savings on welfare and debt interest

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

The most brutal session the Lib Dems will see is the studio audience currently assembled by Victoria Derbyshire for her Five Live phone-in. It’s a rare event in conference time, where the general public are put into contact with the politicians. The result is normally a bit of a bear pit, and for that reason it’s become one of my favourite conference events – I’m in the audience, in the rather beautiful Liverpool Maritime Museum. And poor Danny Alexander is in the bearpit. “This is toughest job I’ve ever had,” he said at the offset. Erm, yes – the competition being his time as press officer of the Cairngorms National

Two years ago, Richard Hooper wrote a report on Royal Mail which recommended part-privatising the service, among other measures. And today, with the official update to that report, we learn that his views have barely changed at all. If anything is different between then and now, it’s that the need to modernise Royal Mail has become even more urgent. The number of letters they’re sending has plummeted by more than forecast, and their pensions deficit has become even more unsustainable. The rot has quickened – and, yes, it’s up to the government to combat it. For their part, the coalition are using Hooper’s update to stress just how crucial privatisation

Some day soon – unless the coalition has already lost its bottle – a bill will be introduced to ‘part-privatise’ Royal Mail. It has to be done. But it will be a tough sell, for four reasons. First, the market for the Royal Mail’s product is shrinking. It’s a big fish, but its pool is getting smaller. It carries 75 million letters a day, but that’s down by 10 million just in the last five years. And 87 percent is mail sent by businesses. Apart from Christmas cards, the rest of us now correspond by email. Last year’s pre-tax loss was £262m: the reality is that the business is insolvent.

Michael Gove has announced that 32 schools will open as Academies at the start of the new term. More schools are set to open over the next academic year, but it is a disappointing figure. However, it could’ve been worse – I’ve heard rumours that as few as 10 schools would adopt Gove’s reforms. The figure of 32 is at the upper limit of recent estimates knocking around Westminster. Disappointing it may be, but slow progress is unsurprising. These are radical steps and teachers are hesitant in the face of change. Blair’s original academy reforms were frustrated in part by teachers and governors eager to preserve the status quo. However,

I know, I know – there’s only so much information about the Labour leadership contest that a sane person can take. But as an addendum to Ed Balls’ pugnacious speech earlier, it’s worth noting that Ed Miliband has since deployed exactly the same argument about deficits and the Attlee era: “We do need to reduce the deficit but politics must be bigger than that. Remember our history. After 1945, with the biggest deficit in our history, that Labour government set out the vision of a good society – for a new welfare state and a new economy.” To be fair to MiliE, he’s made the same point before now. But