Politics

Cabinet ministers were relatively relaxed about yesterday’s march against the cuts—and rightly so. It did not make a sea-change in British politics and merely served to underline the lack of a credible alternative to what the coalition is doing. But what does worry ministers is where the growth is going to come from in the economy. The corporation tax cuts and the planning law changes are designed to help big business. But what the Prime Minister is more interested in is small businesses; hence tomorrow’s launch of Start-Up Britain by the Prime Minister. The scheme is designed to offer help—both technical and financial—to those looking to start a business. The

Judging by today’s reports, it’s fear and self-loathing in Lib Dem Land. And it’s not just that one of their Scottish candidates has quit the party in protest at its, ahem, “draconian policies” and “dictatorial style”. No, according to this insightful article by Melissa Kite and Patrick Hennessy in the Sunday Telegraph, there are more manoeuvrings going on than that. Here are some passages from it, by way of a summary: 1) Chris Huhne, waiting in the wings. “Mr Huhne, who ran Mr Clegg close in the last Lib Dem leadership election, has told colleagues privately that he would be interested in leading his party in the future.” 2) A

The story today of a pregnant woman being downgraded so Gordon Brown and his six aides could travel business class from Abu Dhabi to London may ring a bell with CoffeeHousers. We revealed last August that Brown has a taste for freebies, and that he was offering himself for $100,000 at speaking and award-giving engagements. For an extra $20,000 he would throw in his wife, Sarah. The Mail on Sunday reports that one of the pregnant woman’s co-passengers was “livid, asking why it was necessary for all of [Brown’s team] to be travelling business — and if it was being paid for by the taxpayer.” He raises an interesting point.

Who would have thought it? Miliband’s short speech in Nottingham today went largely unheralded, and doesn’t seem to be getting a whole lot of attention now — and yet it tells us more about his approach to Opposition than almost anything he has said previously. Fact is, the Labour leader is taking two risks that may be either bold or foolhardy, depending on your point of view. These risks could come to define his Labour party. The first is splashed right across the entire speech. Miliband dwells on three “challenges” that the country will face over the coming decade: the “cost of living crisis”; declining prospects for the next generation;

If you want to get an MP going, just ask them what they think of IPSA — the new expenses watchdog. The body is hated: when Cameron joked at PMQs this week that it should be relocated to Croydon there was laughter across the House. IPSA is regarded as rude and inefficient. When Tory MPs were in a particularly grumpy mood before Christmas, David Cameron went to the ’22 and promised that IPSA would either have to mend its ways or be mended. Today’s revisions to the rules by IPSA (£) will go some way to addressing the concerns of MPs. The old rules only allowed children to be treated

There were few surprises in yesterday’s Budget. As expected, it focused on growth and the majority of the policies announced had been heavily trailed in the weekend newspapers. The fiscal picture did not change much. Potential over-optimism from the Office for Budget Responsibility on inflation and the output gap aside, the Chancellor is still on course to eliminate the deficit by the end of this Parliament.   This is very good news. The biggest danger during a fiscal consolidation programme is that governments water down their proposals due to political opposition or economic difficulties. In a 2009 report, Controlling Spending and Government Deficits, Policy Exchange argued that the preferred ratio

As if the budget and Libya weren’t enough, the UK Government woke up today with another major challenge on its hands – yet another flare-up in the eurozone debt crisis, which has been continuing to bubble away under the radar.   Yesterday, Portugal’s Prime Minister José Sócrates literally walked out of Parliament, during a debate on EU-backed austerity measures. The austerity package was subsequently voted down and shortly afterwards Sócrates announced his resignation. Portugal is now facing the prospect of being without a government for months, as its electoral rules require a 55 day break between the dissolution of Parliament and new elections.   The episode has increased the already