Politics

Read about the latest UK political news, views and analysis.

Thatcher’s favourite think tank backs Danny Alexander

In the run-up to the Budget in March, Danny Alexander was pushing for the abolition of higher-rate relief on pension contributions, which would save the government £7 billion plus a year. George Osborne didn’t include it in his Budget, but today the Liberal Democrat gets support from a perhaps unlikely quarter: the Centre for Policy Studies. Echoing the Chief Secretary to the Treasury’s analysis, Michael Johnson’s CPS report says: ‘Today’s tax-based incentives to save for retirement are hugely expensive and, worse, ineffectively deployed. Skewed towards the wealthy, they do far less than they should to minimise pensioner poverty. Furthermore, they do little to catalyse a savings culture amongst younger workers,

Steerpike

The Hippy King

Last month I brought you news that Prince Charles was blocking Freedom of Information requests to ensure that his communications with government ministers remain hidden. Word is that the contents of these letters would threaten the future king’s claim to political neutrality. Today, we got a small clue about the subjects on which the royal mind might be less than impartial. Whilst on a health campaign visit with the Prince to an academy school in Sutton, TV chef and professional irritant Jamie Oliver told the crowds: ‘His Royal Highness has been doing this for a long time. At some stage possibly the royal family would have thought you were getting a little bit of a hippy,

Isabel Hardman

Cameron at pains to show Britain was not isolated in EU Budget talks

David Cameron took great pains in his statement to the Commons on the EU budget summit to emphasise the alliances that Britain had formed in trying to keep the budget down. He started by telling MPs that Britain had worked ‘together with like-minded allies from a number of countries’, and repeatedly used words such as ‘together’ and references to ‘we – and others’. This was important as one of the key lines of attack that Labour has tried to make since last year’s veto is that Britain is standing isolated in Europe. Labour struggled to make an impact, both in Miliband’s response to Cameron’s statement and during the ensuing debate.

James Forsyth

Like the Mounties, Osborne gets his man

George Osborne pulled off one of those bits of political theatre that he so enjoys today. Watching his statement in the Commons, one sensed something was up as Osborne delighted in delaying naming the new bank governor. It was an indication that, like the Mounties, the Chancellor had got his man. Moments later, a clearly delighted Osborne announced that Mark Carney, the Canadian Central Bank Governor, would be the new governor of the Bank of England. This is quite a coup for Osborne as Carney is widely regarded as the best central bank governor in the world. It also marks a clear break with all that has gone wrong in

James Forsyth

The UKIP pact idea will keep coming back

I have a feeling that we haven’t heard the last of the idea of Tory / UKIP pact. However much Grant Shapps tries to knock the idea down, it is going to keep coming back. Why? Because Nigel Farage will never totally dismiss the idea — hence his mischief-making about doing a deal with a Michael Gove-led Tory party — and enough Tory MPs want one to give the idea oxygen. When I spoke to Farage back in May, this is what he said on the subject of candidates standing on a joint Tory/UKIP ticket: ‘What I do know is there are Conservative Associations up and down the country who

Isabel Hardman

Grant Shapps tells Coffee House: there’ll never be a Tory/UKIP pact

I’ve just spoken to Grant Shapps, who was pretty unequivocal about the chances of the Tories and UKIP teaming up in 2015. ‘No,’ he told me. ‘There will be no pact with UKIP.’ Michael Fabricant might have thought he was being helpful when he suggested the Tories engineer a pact with UKIP, but his discussion paper (which you can read in full here), has now been rejected by both parties. Meanwhile, Nigel Farage and his deputy Paul Nuttall have been doing the rounds on the airwaves, and have rather upped their price for any co-operation between the two parties. Nuttall told BBC News: ‘It would be difficult for UKIP to talk to the

Isabel Hardman

Michael Fabricant calls for Tory pact with UKIP

Boris Johnson’s surprise rejection of an In/Out referendum on Britain’s membership of the European Union last night may have been an attempt to help David Cameron as he prepares to set out his own position on the EU, but the Prime Minister will find he’s not in for an easy ride from his own parliamentary party. As helpful as the Mayor might have been, his intervention has been rather overshadowed by a discussion paper from the Tory party vice chairman, Michael Fabricant, in which the former whip calls for a pact with UKIP. Fabricant’s plan follows the offer to the Tories which Nigel Farage set out in the pages of

Isabel Hardman

Boris Johnson rejects In/Out referendum call

As on many issues, Boris Johnson has made great efforts to position himself on the side of the Tory grassroots on key issues where the parliamentary leadership takes a different position, particularly when it comes to the European Union. The Mayor signed the People’s Pledge for an In/Out EU referendum in March of this year, but this evening, he appears to have backtracked rather. This is his exchange with John Pienaar on 5Live from a few minutes ago: Pienaar: Would you still want an In/Out referendum? Johnson: Well, I’ve always said… I think we’ve been now, what is it? 75 was the last referendum on the European Union: I certainly think

James Forsyth

Liam Byrne tries to turn David Cameron’s striver language back on him

The Leveson Inquiry will dominate this week. Inside Number 10 they regard it as ‘the most difficult’ of the three big issues dominating their time at the moment – the other two are the autumn statement and the EU Budget. But I suspect that voters will be far less interested in Leveson and the Prime Minister’s response to it than the media and political class are. I’d be surprised if Cameron’s handling of it changed the views of voters—as opposed to those of elites— of him. So, on The Sunday Politics today it was striking to see Liam Byrne, Labour’s welfare spokesman, trying to turn Cameron’s striver rhetoric back on

James Forsyth

The prejudice on display in Rotherham

There are some stories that become more shocking the more you think about them. The case of the Rotherham foster parents who have had the children they were caring for taken away from them for being members of UKIP is one of these. It is hard to imagine the distress that must have been caused to them by this arrogant, ill-thought out decision. First, UKIP is not a racist party: none of its policy positions could be called racist in any meaningful definition of this term. I’m sure there are some racists who are members of UKIP, just as there are — I suspect — some Labour, Liberal Democrat, Tory

Boris in Bollywood

So Cameron is making his mark on the EU budget, Gove has caused a stir with his Leveson remarks, and Osborne is prepping for his Autumn Statement. No matter. As usual, Boris is marching to the beat of his own cinematic drummer. He’s going to Bollywood, on an India trip many interpret as an effort to project himself as a future world leader. The Mayor of London is visiting Delhi, Hyderabad and Mumbai, where he will appear on a top TV chat show and visit Bollywood studios. It is couched as a trade mission – ‘London loves India,’ he is quoted in the Hindustan Times as saying – but many

Isabel Hardman

118 Tory MPs publicly reject gay marriage plans

David Cameron is planning to fast-track legislation for gay civil marriage through parliament, but today’s Daily Mail underlines that his own MPs are dragging their feet over the legislation. The paper reports that at least 118 Tory MPs have expressed their opposition to the plans in letters to constituents or interviews with journalists, and they’re not just the usual suspects that Nick Clegg might accidentally label ‘bigots’. They include openly gay Conor Burns, who told his local newspaper that ‘I marvel at why we’re bringing this forward. There is no clamour for this at all within the gay community’. Wirral West MP and minister for Disabled People, Esther McVey, holds

Why do-gooding ‘sin taxes’ always stink of politics

Nutella may have been created by Italians, but it is the French who really love it. The hazelnut spread is a fantastically popular accompaniment for everything from bread for breakfast to crêpes for a delicious dessert. Yet the French Senate, in its infinite wisdom, decided that Nutella should be taxed. The proposal was voted through the Senate, before being stopped by a very unlikely coalition of Communists and conservatives. The plan to impose a ‘sin tax’ on Nutella in France was obviously ludicrous; but it was also full of politics. Sin taxes and green taxes may look like an efficient intervention on an economist’s blackboard; but they never live up

Fraser Nelson

David Blunkett warns MPs against regulating the press

David Blunkett, the former Home Secretary, has has his private life in the newspapers often enough to yearn, Hugh Grant-style, for a world where the press is not free but obliged to operate within parameters outlined by the government. But I’ve interviewed him for Radio Four’s Week in Westminster (it airs at 11am this morning) ahead of next week’s Leveson report and he has come out against the idea state-mandated regulation. It was an unusual discussion: the supposedly illiberal Blunkett, himself a compensated victim of hacking was defending press freedom. A Tory, Nadhim Zahawi, was urging David Cameron to act. As a former Home Secretary, Blunkett’s words carry some weight. He

George Osborne might meet his debt target after all

When George Osborne gives his Autumn Statement on 5 December, the OBR will publish its new forecasts for growth, deficit and debt. For the last few weeks, the consensus has been that the OBR would declare that Osborne will miss the debt target he set himself in 2010: to have the debt-to-GDP ratio falling in 2015-16. The logic behind this, as I set out in September, is pretty straightforward: the OBR will have to lower its growth forecasts, which will in turn mean lower tax revenues, higher deficits and more debt. But it now looks like Osborne might narrowly avoid failure, though not because the outlook for the economy or

James Forsyth

A satisfactory outcome at the EU budget talks for David Cameron

So, the EU budget summit has — as expected — broken up without agreement. We await the date of the next discussion of the matter. But for the moment it means there is nothing that David Cameron will have to try to pilot through parliament. Talking to those close to the Prime Minister, I sense that they are not unhappy with this conclusion. In Downing Street, they feel that their criticisms of the running costs of the EU bureaucracy have struck a chord with other contributor countries. They’re also pleased that Cameron has managed to strike a tough negotiating position without isolating himself. But what is giving them the greatest

EU budget talks end

The EU Budget discussions have ended with no agreement, as seemed inevitable after yesterday’s struggles and rows. David Cameron has been copping a lot of flak for his intransigence, particularly from Francois Hollande, who has spent much of the time talking of the need for ‘solidarity’ with Europe – by which he means the Common Agricultural Policy. Despite these headlines, it’s worth remembering that plenty of other countries objected to Van Rompuy’s proposals, and for many different reasons. Indeed, far from being isolated, Britain may have forged closer relations with those countries thanks to the experience of these talks. Nicholas Watt reports that blame is being aimed squarely at Herman van Rompuy, which is an interesting development from the

The Lib Dems’ future may not be so bleak

At last week’s Corby by-election, the Liberal Democrat candidate requested two recounts. Once a formidable by-election machine, the Lib Dems were reduced to searching in vain for the 14 extra votes they required to get 5% of the vote, and so get their £500 deposit refunded. In 1935, a famous book described The Strange Death of Liberal England, a theme that has regularly been returned to in the intervening 77 years. In 1951 the Lib Dems’ predecessor, the Liberal Party, won six seats on 2.5 per cent of the national vote; in 1989, a year after the merger between the Liberal and Social Democratic parties, the Lib Dems polled 6