Politics

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

Thursday

Peter Hoskin

The IFS delivers an ambivalent judgement on the Budget

Away, away from Drill Hall in central London, where the Institute for Fiscal Studies has just delivered its briefing on yesterday’s Budget. And, as useful as this event always is, there’s no denying that another independent body — the Office for Budget Responsibility — has taken some of the sting and surprise out of it. Not only did the OBR poach the IFS’s former director, Robert Chote, for themselves, but their supplementary Budget document has already done an IFS-style job on the government: highlighting the trends and tremors that might otherwise go unspoken. And so we heard, again, about how overall spending has risen slightly after yesterday’s Budget; about the

Matthew Sinclair

Merging Income Tax and National Insurance Contributions – Simples?

“I am announcing today that the Government will consult on merging the operation of National Insurance and Income Tax.” The word ‘consultation’ in the Budget drew the longest, loudest sigh from me. Some commentators had hinted that Osborne was considering merging Income Tax and National Insurance Contributions (NICs), which would be a fantastic move towards simplifying our tax system.  Of all the pre-Budget leaks, this was one that sounded truly exciting and innovative.  But, alas, this idea is only in infancy and all that was promised was a consultation.  Of course, the Chancellor can’t rush into this. He has to get this right if it goes ahead, so a consultation

Peter Hoskin

Laws gives another signal on 50p

Usually, the task of David Laws Watch is to judge just how close the former minister is to a return to government. But, today, his article for the FT is worth highlighting for a different reason altogether. Referencing George Osborne’s signals on the 50p rate in the Budget speech, Laws has this to say (my emphasis): “The chancellor also signalled that excessive marginal rates of income tax – of 50 per cent, even 60 per cent – are on their way out. The Treasury believes that the majority of expected revenue from the current top rate is lost in avoidance. But the government is rightly cautious about the timing of

Fraser Nelson Fraser Nelson

Osborne gets his man

So Martin Sorrell is set to move WPP back to Britain. This was always part of Osborne’s Budget plan, as I revealed in my News of the World column and also mentioned on Coffee House. As I said in the newspaper: “The Chancellor has been on bended knee, pursuing Sorrell with energy that would make Berlusconi blush. ‘What do we need to do?’ he asks. Sorrell’s answer is to cut the tax on overseas profits. So Osborne will, hoping to lure back companies who generate most of their cash abroad.” Today, Sorrell will announce that he’ll come back from Ireland if the Budget is made law. Of course it will

Wednesday

The Spectator

Budget 2011 round-up

Coffee House ran a live blog of the Chancellor’s statement and the Leader of the Opposition’s response. In addition to that, here is a selection of posts from Spectator.co.uk on the Budget: Fraser Nelson says Osborne’s cuts have got softer. James Forsyth considers the Budget’s political implications, and witnesses Ed Balls’ mischievous response. Peter Hoskin asks if Osborne has done enough to deal with inflation, and examines the macro-economic picture. The Adam Smith Institute issues a qualified positive. The Resolution Foundation says that Osborne the Reformer is an unfinished work. The Institute for Economic Affairs says the Budget was disappointing for promoting growth.

James Forsyth James Forsyth

Balls replies with mischief

Ed Balls has just delivered Labour’s Budget briefing. His main point was that the Office of Budget Responsibility now forecasts higher levels of unemployment than it did last autumn. He claimed that this would lead to a £12.6bn increase in spending on unemployment benefit. He also argued that the decision to increase tax thresholds by CPI rather than RPI was an effective tax increase and that it will hit the middle hardest. In a classic piece of Ballsian mischief, he reveled in pointing out that the Office of Budget Responsibility says that it received news of the extra cut in corporation tax and the 1p cut in fuel duty too

Patrick Nolan

Giving up before the race has begun?

How will history judge George Osborne’s second Budget? Once the headline writers have moved on to the next story and the longer-term consequences of the measures become apparent, will this budget be seen as doing the right thing? Unfortunately the answer is, at best, “not really.”   By sticking to the target of eliminating the structural deficit in this parliament, George Osborne got the big call right. As Andrew Haldenby has written, “It’s always easier to set a target at first but as people get tired of austerity there is a real temptation to stop before the job is done. Writing for Reform last year, Paul Martin, the Prime Minister

Peter Hoskin

The big question: has Osborne done enough to deal with inflation?

“We understand how difficult it is for so many people across our country right now.” If you weren’t sure which direction George Osborne’s Budget was going to head in, then he clarified it right from the start of his speech. This was one to tackle the rising cost of living. And much of it — such as the raise in the personal allowance and the fuel duty cut — was welcome. But there is a nagging question hovering above Osborne’s announcement today: has he done enough? The Chancellor will certainly hope so. After all, by scrapping the fuel duty escalator he has effectively encoded a tax cut into all of

James Forsyth James Forsyth

Lib Dems bringing home the bacon

There are a few big Lib Dem policy wins in this Budget, most notably the rise in the personal allowance and the introduction of land auctions. But there are also a few bits of rather unseemly pork barrel politics. Nick Clegg’s Sheffield gets an enterprise zone, which is probably fair enough. But we are also told that ‘following a thorough review, the government is approving the revised Sheffield retail quarter regeneration scheme.’ The south west, which has a disproportionately large number of Lib Dem seats, gets help to keep water bills down. Remote areas of Britain, which is expected to include the constituency represented by the Lib Dem chief whip

James Forsyth James Forsyth

Osborne pulls it off

George Osborne beat the expectations game today. His abolition of the fuel duty escalator for this parliament should — Elizabeth Taylor and Libya permitting — get him the front pages he wants.   Aside from the headline measures, I think there are three stories that will run on from this Budget. First, the government is accepting the Hutton report’s recommendations on public sector pensions in full. This puts the ball firmly back in the unions court, who had previously accused the government of trying to cherry pick from it. Second, the requirement that all planning decisions will have to be reached within one year will have a big impact. A

Lloyd Evans Lloyd Evans

Dave’s rave

Friskier than a spaniel. That’s how Cameron seemed at today’s PMQs. The Gadaffi debacle has given him a Falklands bounce – prematurely one senses – and he was glowing like freshly made toast from the praise lavished on his performance on Monday. He seemed to want to share the good cheer with everyone else, even his opponents, and he offered thanks to Ed Miliband for his contribution, ‘which I thought was extremely powerful.’ Miliband sensed that attacking Cameron today would be like serving a writ on a man at his birthday party. He tried to pester the PM for ‘removing the mobility element from DLA’ but Cameron cut him down

Peter Hoskin

Budget 2011 live blog

1348, PH: And Ed Miliband comes to a close, still sounding the same note: that the growth downgrades prove the coalition is bad for the nation’s health. We’ll come to a close there, too. Thanks for tuning in. More Budget coverage on Coffee House all afternoon, starting with these graphs. 1244, PH: Ed Miliband is suggesting that Labour were tougher on the banks because their bonus tax raised £3.5 billion. Problem is, it’s esimated that, after other tax effects, the actual amount that ended up in Treasury coffers was more like £2 billion — if that. 1342, PH: Oh, Miliband’s back on growth again: “The OBR has factored in every

James Forsyth James Forsyth

Osborne’s white rabbit

We can expect at least one rabbit out of the hat in George Osborne’s Budget speech. The Chancellor is a canny enough operator to have held at least one big announcement back. Already this morning, we have had news that all councils will freeze or reduce their council tax next year. But I expect there is one more on fuel to come in the speech itself, possibly the suspension of the fuel duty escalator for this parliament. This move would be expensive but it would also say I feel your pain and stop Osborne having to come back to the price of petrol every year. For Ed Miliband, today will

Tuesday

James Forsyth James Forsyth

Budget eve

In stark contrast to 2003, when Gordon Brown delivered his Budget on the same day that Baghdad fell, the Treasury is phlegmatic about the Budget being overshadowed by Britain’s involvement in a conflict overseas. But the signs are that this will be, within the obvious fiscal constraints, an ambitious Budget. Tonight, we have had confirmation of a raise in the income tax allowance to £8,000, something that will please the Lib Dems . Tomorrow, we’ll almost certainly get at least one unexpected rabbit out of the hat. What we do know is that the Budget and the growth review will be built around four things: deregulation, planning reform, tax simplification

Jo Johnson-Mp

Web Exclusive: HolyBookers 1 – Facebookers 0

Cairo The Facebook and Twitter revolutionaries are taking a beating at the hands of the Brothers. The results of Saturday’s referendum are now out and they point to a simple truth: the internet was fine as a tool for gathering a few hundred thousand youths in Tahrir Square; but it is largely irrelevant as a means of winning elections across large swathes of Egypt, where three-quarters of the 83 million population have no internet connection at all. On a massive turnout, and in the fairest vote in the country’s modern history, 77 per cent of Egyptians sided with the Muslim Brotherhood in saying “Yes” to a quick and dirty patch-up

Peter Hoskin

Your five-point guide to tomorrow’s Budget

From rescue to recovery — that’s how George Osborne is selling his Budget ahead of its release tomorrow. But what might we see beyond the rhetoric? Here’s a five-point guide for CoffeeHousers:   1) Growth. It almost feels like a tradition now: a new Budget, and a new set of forecasts from the Office for Budget Responsibility. Chief among them will be what the OBR says about growth. Its previous forecast for 2011, made last November, was for 2.1 per cent growth in 2011 — but that will almost certainly be downgraded after the mini-slump in the fourth quarter of last year. As this graph shows, the average of the

Monday

James Forsyth James Forsyth

The Commons votes to support the intervention in Libya

The House of Commons has just voted by 557 to 13 to support Britain’s participation in the enforcement of UN Security Council Resolution 1973. This came at the end of six and a half hours of respectful debate rounded off by a speech from the Foreign Secretary that reminded us why he was for so long regarded as the best parliamentary performer on either side of the House. Hague offered an assurance that if the mission changes, the government will return to the House. This was widely understood to mean that no ground troops would be committed without the support of the House. He also confirmed that the costs of

James Forsyth James Forsyth

Cameron promises that Libya is ‘not another Iraq’

Discussion of military action brings a different atmosphere to the chamber of the House of Commons: quieter, less disputatious, more consensual. In opening the debate, the Prime Minister took a huge number of interventions including a large number from those MPs who are most sceptical of this intervention. All were heard respectfully and answered respectfully. Cameron’s desire to find consensus was part of his broader message that this is ‘not another Iraq.’ He stressed that the action in Libya was necessary, legal and right and that any kind of occupying force is ruled out. He argued that the intervention had been ‘in the nick of time’ to prevent a massacre

Alex Massie Alex Massie

Three Cheers for John Hemming MP

Come the revolution, you’re supposed to hang the lawyers first. Which is fine. But it might be better to start with the judges. Specifically those that are happy to grant injunctions that prevent members of the public from raising matters of concern with their local MP. I ken that commonsense need not be compatible with jurisprudence but this oversteps the mark by some considerable distance. It is outrageous and so outlandish that one wonders how it can actually happen. But happen it does and, it turns out, more frequently than you might think and certainly more often than you’re supposed to know. So three cheers for John Hemming*, MP for

The Spectator

Just in case you missed them… | 21 March 2011

…here are some of the posts made at Spectator.co.uk over the weekend. Fraser Nelson makes some Budget predictions, and describes a threat to British liberty. James Forsyth explains why Osborne is so keen to unite National Insurance and Income Tax, and analyses the weekend’s events in Libya. David Blackburn notes that Sarkozy is being lauded by the French press, and reckons that Obama’s vacillation suits Gaddafi. Daniel Korski wants NATO to get a move on. Alex Massie thinks that the goals of the Libyan operation must be clarified. And Melanie Phillips is stuck in Wonderland.