Politics

One popular prediction swirling around Westminster this morning is that part of the Government’s response to the GDP disaster will be to cut more money from the welfare budget. After all, George Osborne told MPs in his Budget statement that there would need to be a further package of £10 billion cuts in welfare spending over the period of the next spending review, and the IMF has made similar noises, too. But I understand that this is not going to happen because the Liberal Democrats will not let it go through. Sources are emphatic that those at the top – Nick Clegg, Danny Alexander et al – have blocked the

Yesterday’s economic news reminds us of the need for the Government to continue to focus relentlessly on getting our economy moving – dealing with the debt crisis, boosting bank lending to the real economy, and ensuring sustainable long-term prosperity through radical economic reform. One of the key planks of the Government’s reforms is to make Britain’s tax system more competitive, ensuring that Britain is open for business, that we are a dynamic and an attractive place to invest in and to work in. Cutting corporation tax to the lowest rate in the G7 is one element of this plan. Cutting the top rate of income tax to level the playing

David Cameron is using the Olympics today to strike a more upbeat tone after yesterday’s GDP gloom. The Prime Minister is speaking at 10am at a global investment conference to pitch for business from 180 chief executives from around the world. Cameron will tell the conference that he is ‘determined that Britain will be on of the great success stories’ in rebuilding its economy, and will say: ‘There will be no more passionate supporter of Team GB than me. But I’ve got a job to do this summer. And a big part of that job is to get behind British business… and do everything I can to help secure the

It may be unpopular to say, but there is reason to be charitable to Tony Blair and his latest warnings about Islamist extremism. The former Prime Minister gave afascinating interview to Charles Moore in yesterday’s Telegraph where, inter alia, he talks about the challenge of militant Islam. ‘The West is asleep on this issue,’ he tells Moore. Blair has been more vocal and unequivocal on the issue than almost any other politician in recent years. He notes that the success of his Africa Governance Initiative faces ‘this threat above all others’. Failed states in the Horn of Africa have accentuated this, while one of the unintended consequences of the Libyan revolution

The approach of eurozone leaders to the crisis in their region has so far been a piecemeal, sticking plaster approach. But this morning, calls are growing for big and effective bandages to bind up the wounds before it is too late. Late last night, ratings agency Moody’s warned that the size of those bandages was so big that containing the shock of a Greek exit from the euro would come ‘at a very high cost’, and that ‘greater collective support’ for Spain and Italy would place a heavy burden on those eurozone members with higher credit ratings. Hence the downgrades from the agency for Germany, Luxembourg and the Netherlands, while

Westminster’s favourite shaggy-haired do-gooder Andrew Mitchell has been spilling his heart out to Total Politics about Maggie: ‘To me, she was a goddess. When she walked down the  corridors, I used to stand stiffly to attention and hope she would pass by.’ Far too much information from the International Development Secretary, who is known to keep a bowl of condoms in on his ministerial desk, as part of a worldwide health campaign, of course.