Uk politics

Friday

James Forsyth

Abbott gives no answers

There’s one thing that people want to talk about today and that’s Diane Abbott’s appearance on This Week last night. As you can see above, it was a total disaster for Abbott. She was all over the place on her taxi claims and she got into a total tangle on whether she had meant to imply with her comment that ‘West Indian mothers will go to the wall for their children’ that West Indian mothers were better than mothers of other ethnicities. Under repeated questioning, all she would say is that she had said all she was going to say on the subject.  Even when it was clear that this

David Blackburn

Union backing is an indication of how far David Miliband has shifted to the left

Paul Waugh has news that David Miliband has received the backing of USDAW, the shop workers’ union. Block union voting is a thing of the past, but this endorsement is a surprise nonetheless. It’s lazy to categorize Miliband as a ‘Blairite’, but he is certainly on the right of the party – vigorously pro-European, pro-business and an avowed social democrat. USDAW’s general secretary John Hannett is said to be impressed by Miliband’s defence of Labour’s record in office. To be honest, Diane Abbott is the only candidate who has lacerated the Blair/Brown governments, all the others are ‘proud of our record in government but recognise the need for change.’ The

Lloyd Evans Lloyd Evans

WEB EXCLUSIVE: Time to leave?

The Spectator’s summer debating season ended with a strident appeal. ‘Too late to save Britain. It’s time to leave’. Proposing the motion, Rod Liddle claimed to have mis-read his invitation. ‘I thought this was a foregone conclusion and we’d come here to arrange the tickets.’ Surging immigration, he said, was ruining the education system and our love lives. ‘By 2029 no one will be having sex, we’ll be so crowded out.’ The recent election had proved nothing but democracy’s impotence. ‘The poverty gap keeps widening, financiers still get bonuses and schools support Lesbian Gay and Trans-gender History Month.’ Soon he predicted that the definition of disability ‘will cover everyone except

David Blackburn

Cameron takes to the global stage, orating for a domestic audience

From the point of view of historical curiosity, it is a pity that the great Victorian statesman predeceased the era of global summits. What would Palmerston or Melbourne have made of the pageantry? What might they have said to permeate it? Would they have wanted to? Modern British Prime Ministers have moulded themselves on the world stage: Blair as a liberal interventionist, Brown as a Keynesian. Judging by an article David Cameron has written in the Globe and Mail, he hopes to lead the world to fiscal re-trenchment and inaugurate lasting and real prosperity through free trade. Once again, Cameron’s premiership appears to be descended from Gladstone. Cameron insists that

Thursday

David Blackburn

Hughes and Davis fomenting rebellion?

From opposing sides of the coalition’s strait, two warning shots have been fired across the government’s bows. David Davis has challenged Theresa May’s decision to renew the 28-day detention limit for six months pending a review. And Simon Hughes has declared that he and a like-minded posse will seek to amend ‘unfair’ aspects of the Finance Bill. Neither is an outright revolt. Neither move amounts to what Ed Miliband termed ‘cracks appearing in the coalition’. Both Davis and Hughes remain in support of the coalition agreement – Hughes will ‘support the Budget’, and Davis, to his enormous credit, has made excessive and illiberal detention periods his raison d’être. The coalition

David Blackburn

Re-invigorating retirement

The retirement age must rise, timing is the sole contention. Yvette Cooper asserts that the coalition’s acceleration of the planned rise in the state pension age will force those currently in their late fifties to re-plan their retirement. Certainly, but a rise in the state pension age from 65 to 66 is unlikely to be life-changing. So why not bring it forward? Of more interest, I think, are the government’s other pension proposals. ‘Re-invigorating retirement‘ sounds rather jaunty, being forced to pay into less than lucrative company pension schemes does not – especially as those schemes are far from secure. Also, the abolition of the Default Retirement Age limits the

David Blackburn

The Budget PR battle enters a second phase

The government is on the defensive. The IFS’ pronouncement that the Budget was ‘regressive’ and the VAT hike ‘avoidable’ has given sustenance to the opposition and their supporters in the media. At the time, Harriet Harman’s response to the Budget seemed execrable. Now, I’m not so sure. Harman is like a Swordfish bi-plane attacking a battleship: she is so slow and obsolete that her superior opponents cannot bring their modern guns to bear. So she closes the range and scores a hit. Tuesday was one of her more successful strikes. As John Rentoul notes, Harman had a point beneath the bluster. The OBR is George Osborne’s weak spot; it downgraded

Fraser Nelson Fraser Nelson

Cable begs for protection

Vince Cable is announcing to Metro that “We do not want to make such deep cuts to transport, energy, science research and universities.” Really? According to whom? The science budget, which has shot from £1.3bn to an indefensible £3.7bn, is a prime example of a cost that should not be borne by the taxpayer. Scientists are best left to get on with this themselves, and companies are more than capable of funding research. On energy, again, there are many expensive vanity projects just begging for the axe. Given that Cable is in charge of the universities brief – the most important part of his otherwise non-job – you can expect

Fraser Nelson Fraser Nelson

The true meaning of Osborne’s Budget

To understand the budget properly, read James Forsyth’s cover story in The Spectator today. Sure, it was about reducing the deficit – but within it lie several political strategies which explain how George Osborne hopes to win a majority Conservative government. James says that those around Cameron will not entertain this notion – they “have been persuading themselves that coalition government is the best possible result”. But Osborne, he says, finds it deeply unsatisfactory and has a twin mission: fix the economy, and win outright next time. “He has been observing recently that Gordon Brown spent 13 years successfully creating Labour voters — mainly through state dependency — and that

Wednesday

David Blackburn

RIP Lord Walker

Peter Walker, Baron Walker of Worcester, has died aged 78. He served as a Cabinet Minister in both the Heath and Thatcher governments. He was what might be termed derisively as a ‘Wet’, and was a leading figure on the liberal side of the Conservative Party for thirty years. He was a founder member of the Tory Reform Group, which propounds One Nation Toryism and economic efficiency, ideals that have, it might be argued, profoundly influenced David Cameron’s leadership. Walker served with distinction throughout the Thatcher government, carrying the brief for Wales, Energy and Food and Fisheries. As Energy Secretary, he was a key figure during the Miner’s Strike. Walker

Peter Hoskin

How good intentions can be counterproductive

Might the coalition’s emphasis on fairness be making it harder to get people off welfare and into work? Not a question that I can answer with confidence, but certainly one which has been thrown up by the IFS’s Budget briefing. Take the government’s action on child tax credits, for instance. By increasing it at the lower end of the income distribution, and restricting it at the upper, some claimants now stand to lose more, more quickly, by moving up the income ladder. Or, as the IFS put it, their marginal effective rate of taxation has increased. Of course, this will have been offset by other measures such as the rise

Peter Hoskin

IFS: there could be deeper cuts to come

An unfamiliar mood before the Institute for Fiscal Studies’ Budget briefing today: many of the gathered journalists, economists and policymakers had decided that, for once, this wouldn’t be an exercise in spotting the Chancellor’s deceptions, because, quite simply, there aren’t many. And they could well be right. In his introductory remarks, Robert Chote, the director of the IFS, said that “the government is certainly to be congratulated for the transparency with which it presented [yesterday’s policy announcements].” What we’ve heard, so far, backs up that tribute. There will be an extra £50 billion of fiscal tightening by 2015; there is a 77-23 split between spending cuts and tax rises; and

Lloyd Evans Lloyd Evans

Loving Hattie

The unthinkable has happened. I’ve started to admire Batty Hattie’s performances at PMQs. Her career may be over, her party may be trashed, her movement may drift leaderless, and her colleagues’ reputation may have been shot to pieces but Hattie always turns up and gives it everything. Nature has not overburdened her with talent. She can’t count. She can hardly speak. She reacts to events about as quickly as a self-timing oven but she has epic quantities of pluck. Every week she pounds out into the surf, like a battleship equipped for the last war but two, and heads for the centre of the fray where she refuses to sink

James Forsyth James Forsyth

Cameron settling in nicely

David Cameron was on punchy form at PMQs today. He jibed that in Harriet Harman’s case the Budget Red Book should be called ‘the unread book’ and called Labour backbenchers ‘dunces’ who didn’t know what the last government was planning. The Cameron Harman exchange was interesting. Harman had come armed with some classic follow-up questions using the details in the Red Book. Cameron didn’t want to engage on the detail, suggesting that Harman might have had a point. But his ability to attack Labour for having got the country into this mess allowed him to win the exchange on points quite comfortably. Bob Russell, a Lib Dem MP who said

Fraser Nelson Fraser Nelson

The road to recovery | 23 June 2010

This is a slow-burning budget. Not because Osborne has concealed, like Gordon Brown did, but because the reverse is true. The budget is, as Osborne says, a third of the size but with three times the amount of information. It has layers: some policies and language are there just to assuage the LibDems. Some are pure Tory. James has a brilliant cover piece in tomorrow’s magazine which spells out the political, rather than economic, forces at work in this budget. Osborne, that great player of three-dimensional chess, sees in this budget plans to restore a Tory majority government. The Red Book itself is, for wonks like myself, a joy to

Mark Wallace

The EU must face cuts too

This is a balancing act Budget. At every stage and on almost every topic there’s a bit of good news and a bit of bad news for taxpayers. Spending cuts are (finally) on the way, but at over £30 billion by 2014-15 they aren’t large enough, and there is plenty of dead wood that the Coalition intends to leave in place. Similarly, the rise in the income tax threshold is extremely welcome, but the VAT hike will hit the poorest hardest of all. And so it goes down the list of Government financial activities. Indeed, the theme the Government are keen to communicate is one of leaving no stone unturned,

Peter Hoskin

Osborne winning the Budget PR battle – but VAT remains a thorny issue

Well, that’s gone as well as can be expected for the coalition.  Most of today’s newspaper coverage highlights the severity of George Osborne’s Budget – but, crucially, it adds that the Chancellor had few other options.  The Telegraph calls it a “brave Budget”.  The Times says that it delivers “the best of fiscal conservatism combined with no small measure of social justice”.  And even the FT – no friend of the Tories in recent years – suggests that Osborne might be “remembered for doing Britain a great service.” The sourest notes chime around the government’s welfare cuts and the hike in VAT.  Already, it’s clear that the latter will be

Tuesday

James Forsyth

A well-crafted Budget but the spending review will hurt more

George Osborne’s Budget today was the first dose of pain. The second will be the spending review in October, which I suspect will put far more of a strain on the Coalition than today did. Non-protected departmental Budgets, everything apart from health and DFID, are going to be cut by 25 percent on average. But Osborne told the House he would hope that the cuts to defence and education would be significantly less than that. The unspoken part of that is that the cuts to some other Budgets will have to be significantly bigger than that; I expect there are a few people at BIS and DCMS looking around rather

Ed Holmes

A credible start

Today’s Emergency Budget announced the most ambitious fiscal consolidation programme in decades.  It sets out a framework returning the government broadly to a state of fiscal solvency by 2014.  To do this, George Osborne announced a deficit reduction programme amounting to just over £100 billion in real terms – entirely in line with our recommendations.  The ratio of spending cuts to tax rises – 74:26 is largely in line with the international best practice model (which we also endorsed) of 80:20.   Instead of government living well beyond its means for the next four years, we estimate that the Chancellor’s plans will reduce the structural deficit – in other words,

Matthew Sinclair

Why must VAT rise? Because not enough will be cut

There is plenty of very good news in the Budget.  A two year public sector pay freeze, the abolition of the Child Trust Fund and cuts in welfare spending are all longstanding TPA recommendations that will be absolutely key to getting the public finances under control.  As a result of all the measures proposed, annual spending will be £31.9 billion lower than planned by 2014-15.   The Government are also scrapping more organisations.  The Emergency Budget report says (page 31) that “Regional Development Agencies will be abolished through the Public Bodies Bill.”  We called for their abolition as far back as August 2008 and the Spectator manifesto included a demand