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Thursday, 11th March 2010

Clegg's conditions

David Blackburn 9:00am

Nick Clegg is the rage of the papers this morning. His interview with the Spectator is trailed across the media and the Independent has an interview where Clegg once again lists the four demands that would be his initial negotiating tests for backing a minority government. They are:

- Raising the income tax threshold to £10,000 through taxes on the rich.
- An education spending boost for the poorest in society through the 'pupil premiums'.
- A switch to a Green economy, less dependent on financial services. 
- Political reforms at Westminster, including electoral reform.

What to make of that quartet? There is much that is sensible, much that is not, and still more that is unworkable. An economy that is driven by enterprise in emergent technology, a very exportable commodity, is self-evidently sensible and has the support of both Cameron and Mandelson.

Nick Clegg possesses the most attractive policy in British politics. Raising the income tax threshold to £10,000 is a fair and hugely popular measure that is, unfortunately, a peacetime luxury. The Liberals want to fund this cut through an ill-thought out 'Mansion tax'. Aside from the political problems both Labour and the Conservatives would have with super taxes, the mansion tax will not plug the gap left by removing 4 million taxpayers' liabilities. Exactly the same applies to the 'pupil premium' in the short term, though I doubt Labour or the Tories would object to a short-term boost in principle. Electoral reform is a pipe-dream, but will be a condition of any and all co-operation. The minority government's survival would rest on delivering electoral reform in the medium to long term of a hypothetical alliance.

There is consensus. Co-operation and perhaps even a coalition could be built in the event of a hung parliament. Whether that would prove durable is another matter.  

Filed under: Conservatives (2074 more articles) , David Cameron (1715 more articles) , Economy (883 more articles) , Electoral reform (91 more articles) , Hung parliament (90 more articles) , Labour (2014 more articles) , Liberal Democrats (1043 more articles) , Manufacturing (8 more articles) , Nick Clegg (637 more articles) , Peter Mandelson (108 more articles) , Tax rises (114 more articles) , UK politics (4908 more articles)

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Nick

March 11th, 2010 9:30am Report this comment

The most significant announcement Clegg has made is that the Lib Dems (if in power) would begin to cut the deficit immediately with £10bn of cuts in 2010.

So the Lib Dems are entirely in accord with Osborne's approach to the deficit and not to Brown's approach of "do nothing".

So why isn't the media leading with headlines of "Clegg backs the Tory approach to begin cutting the deficit now."

RJC

March 11th, 2010 9:38am Report this comment

I think that Mr Clegg needs to be careful not to confuse his perceived new found powers with actual party popularity. They are simply in the right place at the right time: a time when the Conservatives seem to be in the process of snatching defeat from the jaws of victory (hopefully not though).

As for the demands, everyone knows that you have to start somewhere, and I expect that the LibDems do not really expect to get the nod to all of the 4. All of them will be watered down, with verbal commitments to future policies which will be quickly forgotten.

David

March 11th, 2010 9:42am Report this comment

Agree or not with his policies, at least you know what they are. More than can be said for DC I'm afraid.

Irene

March 11th, 2010 10:04am Report this comment

Nick:
Hasn't saint vince warned of cutting too early, mind you that only applies to the Tories!

Fraser: Hand on heart do you really think for one minute that there will be a hung parliament? because I don't, so all the postering of clegg is looking absolutely rediculous.
I know you have to try and flog your current edition but even so.

Rhoda Klapp

March 11th, 2010 10:07am Report this comment

Where may I find the price lists for other members of the prostitution game?

This will all seem so laughable in a few weeks.

John Adlington

March 11th, 2010 10:14am Report this comment

David, if you really do feel that the tories are light on policy consider this: if the tories release in detail their whole raft of policies for the forthcoming election then Labour will pilfer wholesale from them. Let Labour get their manifesto for more of the same out first and then hit them with the tory one.

Maggie

March 11th, 2010 10:20am Report this comment

I don't like Clegg's arrogant assumption that after all the votes have been cast and counted, after all the electioneeering and media saturation, and after the result has been announced, he alone has the casting vote to decide who will govern. What's the point in having a general election if its all down to him.

Thomas Rai

March 11th, 2010 10:23am Report this comment

On a totally unrelated subject... can anyone tell me why we don't have the equivalent of Special Economic Zones, with extremely favourable taxes and regulation for businesses, in deprived post-industrial areas of this country. Always thought it would be a good idea but am no expert so would be intrigued to hear from someone who knows what they're talking about.

Chris, Birmingham

March 11th, 2010 10:24am Report this comment

David

To be fair Clegg does not really need a program for Government as he will never be Prime Minister. These ideas, plus the immediate 10bn cut are strategic and important. It gives an important reason to support the Libdems.

Unfortunately the better he does, I believe, the more unlikely he will actually get chance to be involved. If you look back over the polls you will notice that there has been a lot of evidence that the Libdems and labour are fishing in the same pond, and that an increase for clegg means a drop for Labour.

I fully expect that Labour will drop in the polls this week on the back of this as Clegg will be in the limelight, and the Libdems have been crowded out since the new year. The Libdems also should increase during the election campaign due to increased coverage, and in particular because they will be involved in the leaders debates, which will give them more legitimacy.

David Ossitt

March 11th, 2010 10:24am Report this comment

He can be bought!

He has a price.

Therefore he is a political tart.

He is on the game.

JR

March 11th, 2010 10:25am Report this comment

After reading this I'm considering voting Lib Dem for the first time ever. I like those policies and the tax reform is likely to support growth in the economy. Tax cuts for the many and tax increases for the few is a sound way to support sound spending and employment led growth. I also think the education proposal is entirely compatable with free schools and would incentivise free schools in working class areas not middle class areas.

Ian Walker

March 11th, 2010 10:26am Report this comment

Everyone knows that the Liberals will sell their souls for STV. And Labour would be destroyed by a fairer voting system - the number of disenfranchised Labour voters is tiny compared to those of the Conservatives (Scotland, Wales, South West England, big cities) and Lib Dems (pretty much everywhere).

The ERS calculated based on the 2005 election results that under STV the Tories would have had roughly the same number of seats, but Labour would have lost about 100 to the Lib Dems. What's not to like about that for Cameron? We might have to move to a system of minority government, but they'd be guaranteed to be the largest party in it for a generation.

ollie

March 11th, 2010 10:44am Report this comment

It seems absurd that a party polling 16% can lay out fantasy conditions in the hope of a hung parliament. Won't happen - the Limp Dims are way to the Left of Labour - who wants MORE socialism? Stick to lentil farming, Smegg.

stereodog

March 11th, 2010 10:53am Report this comment

Maggie,
It is hardly fair to blame Nick Clegg for talking about what his party would do in the event of a hung parliament. For years the media has badgered the Lib Dem leader to talk about whcih party they would support in event of a hung parliament. It has always been a source of frustration that a leader must answer such a question rather than talking about his party's policies for winning an election. The only reason that Clegg has bowed to the pressure now is because the electorate percieve that a hung parliament is a likley option and so would no longer tolerate a vague answer.

stephen maybery

March 11th, 2010 10:56am Report this comment

A ten grand starting point for tax? great stuff. Naturally the wicked rich will have to pay. But has nobody thought of a novel solution to this conundrum? Stop spending on inessentials such as support centres for one legged lesbians and other wasteful nonsense. Simples.

denis cooper

March 11th, 2010 11:06am Report this comment

Is this country facing economic and financial Armageddon, or is it not?

If so, all politicians should be prepared to work together to save the country without laying down extraneous pre-conditions.

The Bellman

March 11th, 2010 11:07am Report this comment

I think he should be more realistic. Ask for the Mad Men boxset and a big bag of Revels.

G Butler.

March 11th, 2010 11:27am Report this comment

Why is nobody in the media pointing out that Lib Dem Economic policy is all over the place.

Cable says that cuts cannot happen this year, but Clegg wants £10billion of cuts this year. Julia Goldsworthy called for interest rates to go back up, clearly not worried about mortgage payments or job creation. While Davis Laws has pledged to ring fence schools, health and overseas aid despite Cable saying there were no sacred cows.

They may have Vince Cable but it seems they are still the Windmill Party, blowing in which ever direction suits their audience of the day.

DavidDP

March 11th, 2010 11:52am Report this comment

Wow - Clegg will say anything and you'll believe him. Shame the Speccie doesn't afford that courtesy to, say, Conservatives.

DavidDP

March 11th, 2010 12:13pm Report this comment

"support centres for one legged lesbians"

Is there a website for one of these? Or did you just make it up because you couldn't think of any real in-essentials.

TrevorsDen

March 11th, 2010 12:26pm Report this comment

'David' --- do not talk rubbish. There was a debate on education only last night which featured the relative policies of Lab, Con and LD.

TrevorsDen

March 11th, 2010 12:41pm Report this comment

As Daniel Hannan says on the telegraph blog - Clegg is saying one thing to the Speccie but another to the Indy. bet the Speccie does not pick him up on that.

Raising the income tax threshold is a great idea - I would like to see it abolished all together. but doing this by simply raising other taxes misses the point. Income Tax was introduced to fight the Napleonic Wars, as a temporary measure. Its still with us.

As the power force and influence of the state has grown so has its need to count file index inspect and tax us.

Reduce income tax but hand in hand with that must come a realisation that the state spends and wastes far too much money on far too many things that are increasingly far too irrelevant - such that the important things it needs to concentrate on et lost in the maze.

If you are wondering how we could afford the NHS if we abolished income tax - I should point out that I believe we do need a hypothecated health and benefits insurance fund (NI funnds by another name) to contribute to these costs.

David

March 11th, 2010 1:07pm Report this comment

JA, I hope you’re correct. But consider the lack of precision and consistency when policy has been made known, for example on marriage and the speed and depth of cuts. This tends to lead to the current situation where polls suggest that ordinary voters do not know what the Tory party stands for or what its policies are.

TD, Tory education policy is distinctive and a strong suit , but not well communicated. A debate on a program at 22:30 watched by a relatively small audience does not equal a communication strategy for informing the population as a whole about a key aspect of Tory policy.

Publius

March 11th, 2010 2:21pm Report this comment

Hannan has it right on this. The Speccie, yet again, is all over the place.

I'm looking forward to seeing Mr Nelson's costings on Clegg's proposals. Or will he just treat it as the fantasy that it is? And what has Vince Cable to say about it all? Are they on the same page? Of course not. They're scarcely in the same party.

I can hardly recall an election where the commentariat haven't titillated themselves endlessly about the prospects of a hung parliament, and spent their time on naval-gazing scenarios.

Maggie

March 11th, 2010 2:27pm Report this comment

Governments like to keep us overtaxed and financially stretched because if they allowed us to keep more of our own money they think we'd splurge it all on foreign imports. Now that there is so little manufactured in this country where else do they think we can buy the necessities (or dare I say little luxuries) of life.

Rhoda Klapp

March 11th, 2010 3:11pm Report this comment

Oh, a question. Hope it's not too late to get it answered here. What the screaming bloody hell is a green economy? All our industries out-sourced, along with our call centres, and even our wind generator industry. Am I allowed to see a working example of a green economy elsewhere before Clegg signs up to it? One that isn't putting us back 200 years, preferably.

David Ossitt

March 11th, 2010 4:38pm Report this comment

Ian Walker.

“What's not to like about that for Cameron?”

Ian you go on to answer your own question.

“We might have to move to a system of minority government, but they'd be guaranteed to be the largest party in it for a generation.”

This would lead to weak flaccid government and to many more political parties.

JayBee

March 11th, 2010 5:11pm Report this comment

Raising the tax allowance to £12,000 should be a priority for a conservative government. It can be paid for by reducing or scrapping tax credits. Why should low paid workers pay tax and then have to beg the government for the return of their own money in the form of tax credits. A typical socialist policy, framed by the control freak Brown. The Tories can simplify the tax system and incentivise work at the same time. If only we had real Tories running for office.

Ian Walker

March 11th, 2010 7:47pm Report this comment

David Ossitt: Yes, but what politicians like best is power; they're not particularly bothered how it comes.

Minority governments may not be the best for the country (personally, I'm not convinced that's true), but if the parties had to come up with policies for everyone, not just the swing voters in the marginals.

For a start, if the Tories didn't adopt some anti-Europe policies, then they'd start losing large numbers of seats to UKIP. Of course, they couldn't let that happen, so policy would have to change, and would start to reflect the priorities of a whole load more people.

So, they might not like the outcome, but they'll all sell their souls for power. See "New Labour" for an example.

Hugo van Randwyck

March 11th, 2010 10:04pm Report this comment

The Lib/Lab/Con/EU parties seem to be talking amongst themselves.
What is needed is 'faster economic growth'. We can learn from the last housing bubble. The recovery was helped by a fall in real house prices and unlinking from the EU.
So:
- ensure any mortgage has a 10% deposit and is no more than 3 times 1 income. A fall in house prices/rents, leads to lower monthly accomodation costs, increases disposable income - not of bankers - and also helps students pay off debts quicker
- offer a referendum on EFTA or EU, a reduction in regulations to business, is like a tax cut
- also have financial devolution, so that taxes raised in each of Wales, Scotland, Northern Ireland are spent only there, any more spending they can borrow themselves, so helping more efficient accountable spending, like a business has profit centres.

Yes, electoral reform is a good idea. Have general elections every 4 years, not 5, and local elections every 2 years, not 3 or 4. That way people can throw them out more easily, and newer entrepreneurial parties can grow.

Major Plonquer

March 12th, 2010 6:21am Report this comment

I have this recurring dream - some might call it a nightmare - of the day after the General Election.

Nick Clegg is standing in a toilet stall with his trousers down around his ankles and a totally bewildered look on his face. Meanwhile the toilet roll holder is empty.

Shortly thereafter I have this vision of David Cameron laughing wildly while driving an 18-wheel truck with 80,000lbs of toilet paper onboard down Whitehall.

If there is anyone out there who can interpret dreams I'd like to hear your thoughts.

Niall

March 12th, 2010 9:02am Report this comment

The election hasn't even been called yet and Clegg is already all over the press stating what he requires in order to bend over and grab his heels.

Does he not get that you are supposed to at least pretend that have a chance of winning at least in public?

Frank V Arnold

March 12th, 2010 10:31am Report this comment

As a floating voter I have listened to Liberal Democrats to see if I might give them my support. Unfortunately I see them cosying up to these discredited Socialists, so it is unlikely they will get my vote.

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