Coalition 2.0
James Forsyth 7:19pm
Tomorrow’s announcement on university funding is a big moment for the coalition. It will show that the Conservative and Liberal Democrat leaderships have been able to come to agreement on a subject where they thought the differences were insurmountable just five months ago when they negotiated the coalition agreement. Indeed, in their months together in government, the two sides have managed to deal with two of the three issues that were too hot to handle in the coalition agreement.
As I revealed in the Mail on Sunday, preparations have already begun behind the scenes to draw up a joint policy agenda for the second half of the parliament. A group of senior Conservatives and Liberal Democrats, including Cabinet members and influential policy makers, will soon start meeting to hash out what the coalition does next. This group, known internally as Coalition 2.0, has the blessing and encouragement of both Cameron and Clegg.
In a sign of the importance of these talks, the Lib Dem group contains two of the four members of the original coalition negotiating team, David Laws and Chris Huhne. The other two Lib Dem members are Julian Astle, a former adviser to Paddy Ashdown, and Paul Marshall, a hedge fund millionaire and long-standing Liberal Democrat. Both are close to the Lib Dem leadership and involved with Centre Forum, the think tank which is organising these meetings.
The Tory delegation is interesting because of the efforts that have been made to bind the right into the process. Owen Paterson, the Northern Ireland Secretary who was IDS’ PPS when he was leader, and Tim Montgomerie, who was an IDS’ aide before he set up Conservative Home, are both included. The other Tories are Greg Clark, who—Conservative Home reports—came up with idea for the whole project, George Osborne’s close ally Daniel Finkelstein and—as The Guardian revealed today—Michael Gove.
One of the fascinating aspects of these meetings is that they will, inevitably, bleed across into things that will take until after the next election to complete. This group could well end up being where the outlines of a second term agenda for the coalition emerges from.



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Lee Jakeman
November 2nd, 2010 8:27pm Report this commentWhy do you never mention the fact that it is ENGLISH students who have to pay? Scottish students don't.
Are you afraid that discussion of this blatant discrimination might cause people in England to question the value of your beloved "union"?
What union?
normanc
November 2nd, 2010 8:57pm Report this commentLabour and the Conservatives are going to go into a feeding frenzy in 4 years time chasing Lib Dem voters.
Except in the seats where there will be no Conservative candidate.
lids
November 2nd, 2010 10:17pm Report this commentI am absolutely disgusted by the coalition policy on tuition fees. For me, the Tory dominated coalition has crossed a divide and I will never vote for a Cameron led Party again. He has betrayed the right thinking, hard working aspirational masses by choosing to burden kids with debts of anything upwards of 50k on leaving university. This single policy will be responsible for waves of young people seeking their futures abroad. The final body blow, is the outrageous prospect of redemption fees imposed on early re-payers. I don't want my kids to be wage slaves, in the thrall of big banks for the rest of their lives. I am not like Cable, I don't have a hatred for the middle classes. I will actively encourage my kids to bring their families up in a country more understanding of aspiration and hard work.
Good luck, to the politicos following every twist and turn of this government. I can't help but think you have no idea of the bigger picture.
Fergus Pickering
November 3rd, 2010 1:16am Report this commentI love this word aspiration? What exactly does it mean, folks? I think it means desiring to be richer. I think most people have this sort of aspiration, bankers particularly so, and it is not, per se, admirable at all.
Holly ......
November 3rd, 2010 5:53am Report this commentIt makes no difference what any student's financial capabilities are when entering uni.
It will 'focus' the student's mind on what subjects to study.
The outcome for both rich & poor will be the same depending on what they choose to take.
Taking on a harder course will benefit both rich & poor alike,just as taking the 'soft option' will have the same outcome whatever the student's background.
Only when the student earns £21K do they start to repay.NO fees are paid up front.
Fees should not deter anyone from going to uni,but they should deter students from rag bag courses that promise nothing.
Why do we STILL believe everything should be paid for by the taxpayer?
Scotland nick the money from another part of their budget for this,prescription charges etc.
Somewhere else is suffering because of their
policies,probably proper investment in long term job creation.
A case of 'the grass is always greener'
syndrome.Trouble is having to be Scottish to get these benefits.
Commentator
November 3rd, 2010 7:52am Report this commentLids, you have put your finger on the anti-aspirational nastiness of this Coalition. It is led by a motley collection of unreconstructed 1970's leftists (Cable); multimillionaire patricians (Cameron, Clegg, Osborne) who don't want social mobility threatening their vested interests; and Vicar of Bray figures like Willetts and Hammonds who talk a good game on social mobility but who actively endorse the ongoing expropriation of the under 35's. It's as bad as Blair.
lids
November 3rd, 2010 8:19am Report this commentI totally agree about the likes of Cable, Osborne I had higher hopes for. There is a report out today on Zombie households, teetering on the edge of being repossessed. The reality is, as soon as interest rates start to rise (some time in the next 12 months), millions of households will be under severe pressure. And this Govt wants to toss in another 50K+ worth of debt to young adults? To the poster who mentioned that no debt needs to be repaid until earnings reach 21K, well, have you never heard of compound interest? Do you have any idea what it can do to the size of your debt over a few short years? This bunch of lefties and millionaires don't seem to realise or care, but they have added a cute touch which enables the govt to profit out of other people's education loans. The loans will be set at inflation rate plus 3%. All this to follow a period of 200Bn QE!
Luckily my kids are duel-citizens, no prizes for guessing which country will get binned when they reach the age of 22. They can choose to be citizens of a country where ALL young people are treated the same, regardless of background. Where tuition fees are paid in full by the state and cheap subsitence loans are provided for living expenses.
I struggle to describe UK PLC as a civilised country these days...
Commentator
November 3rd, 2010 10:53am Report this commentLids, very wise. I am certainly not going to encourage my children to spend their lives being plundered in a country which is fast becoming an expensive, crime-infested s******e. You rightly point out the penal nature of the proposed interest rate, even if you assume (huge if) that the margin over RPI remains fixed! This is a swinging tax on ability and aspiration, to be paid for out of heavily taxed income. What's left must then be spent on buying overpriced housing and saving for a pension at a time when inflation is far outstripping deposit interest rates.
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