Politics

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

A tax Blitz that reveals Labour’s mistakes in full

The rumour mill is pulling 24/7 shifts. In recent days, newspapers and newswires have turned into gossip columns devoted exclusively to Alistair Darling’s Pre-Budget Report. If the rumours are true, which is a huge assumption, Darling will not offer the taxpayer a pre-election lolly-pop besides deferring the Age of Austerity until 2011, by which time he will probably be out of office. If Labour’s 1992 manifesto was a tax bombshell, then by all accounts this PBR will be like Dresden. Everyone, both rich and poor, is in the firing line, and there is no space here to analyse every alleged proposal.   Darling looks likely to prolong the VAT cut until at least February,

Fraser Nelson

Brown waits to strike

Things are shaping up nicely for Gordon Brown ahead of the Pre-Budget Report next week. The Tories were 17 points ahead on ICM in October – now it’s 11. Cameron would have a narrow majority on this basis but, given the margin of error, we’re back into hung parliament territory. And this has a self-reinforcing effect on the Tories. A shrinking opinion poll means they tend to get paralysed, avoid arguments, play it safe, wait for Labour to screw up again. As I say in my News of the World column today, the voters who are looking for leadership then don’t really see it. This, of course, softens the Tory

James Forsyth

Recognising the best

On Thursday night Michael Gove announced that a Conservative government would pay off the student loans of those with good science degrees from quality universities. The move, paid for by cutting out a level of bureaucracy in teacher development, would help address the shortage of science and maths specialist in state schools. It was a smart piece of policy that even Ed Balls didn’t attack. But the Telegraph reports carping amongst various unions that the scheme does not go far enough. The NUT says that, “It is a real mistake to think that they can designate small number of universities as being better than the others.” This quote sums up

The correct decision but a tactical blunder

The Telegraph reports that Alistair Darling will allow married couples to continue to pool their inheritance tax allowances. Downing Street has pressed the Treasury to abolish pooled allowances in order to demarcate between Labour, the party that promotes fairness, and the Tories, the party that entrenches privilege.   For all the recent polls and bravado, the near-bankrupt Labour party is still fighting an intensive rearguard. If it is avoid annihilation, the party has to hold on in Scotland, Wales and urban Northern England. Darling’s pledge illustrates that there is more than one way to fight a defensive battle. Theoretically, tax free pooled allowances worth up to £600,000 help middle income

Fraser Nelson

The truth about global warming

Anyone interested in climate change should buy The Spectator today. We don’t normally make such naked plugs here on Coffee House, but our global warming special has a line-up of the variety and quality which I guarantee you will find in no other British magazine or newspaper. As the FT’s Samuel Brittan says: we dare to debate. You’ve seen the piece about why the Maldives aren’t sinking, from a world-leading sea levels expert who has made six field trips to the islands. We also have the Freakonomics guys showing how geo-engineering has such potential, even though the environmentalists don’t seem interested. We unearth a never-seen-before CIA file from 1974 which

Requiem for the ‘people’s judge’

Jack Straw has finally got his wish: despite valiant efforts in the Lords, his Coroners and Justice Act has castrated one of our most ancient and overlooked institutions. Why? Because the ‘people’s judge’ was just too good at winkling out inconvenient truths. The office of coroner has existed in this kingdom since the year 1194. The medieval version was chiefly concerned with the protection of Crown revenue and determining responsibility for violent deaths as a means of raising fines. But seven centuries of gradual evolution resulted in a coroner rather more concerned with the welfare of the public. The modern incarnation emerged in the Victorian era when large numbers of

Salmond may save Labour

Pity Alex Salmond and his separatist supporters. The publication of their manifesto for Scottish independence this week is no threat to the Union, but a requiem for a dream now vanquished. The devolution settlement gave them the rope, and now they’ve managed to hang themselves with it. During Mr Salmond’s tenure as First Minister, Scotland’s economic situation has become progressively worse. If Gordon Brown did not send home pocket money — a subsidy of £11 billion each year — Scotland would have a budget deficit that would put even Britain’s to shame. So now Mr Salmond is under pressure: this week he had to demote one of his ministers to

Dubai’s debt crisis

A ‘new paradigm’ built on sand At Dubai’s soaring, spurious peak, one factoid the emirate’s bling-burdened battalion of ‘corporate communications consultants’ liked to slip to junketing media was that Dubai had the world’s densest concentration of cranes. Impossible to verify but too good to ignore, the glib observation almost always made it into media reports. It compelled people to want to go where the action was: subliminally, it suggested an economy where the fast buck came easy. And it certainly seemed true from the spas of Dubai’s ‘seven-star’ hotels, rising over a city-state-as-building-site which was also constructing that contrived archipelago for Premier League millionaires and their ilk. One towering temple

James Forsyth

Bernanke trashes Brown’s tripartite system

Gordon Brown’s much heralded tripartite regulatory system failed the first time it was faced with a financial crisis, proof that taking away regulatory powers from the Bank of England was a massive mistake. Now, Ben Bernanke — who is trying to secure a second term as Fed Chairman and keep the Fed’s regulatory powers intact — is citing the Brown model as what not to do, telling the Senate banking committee: “[O]ver the past few years the government of Britain removed from the Bank of England most of its supervisory authorities. When the crisis hit – for example when the Northern Rock bank came under stress – the Bank of

“Saboteur” or realist?

Lord Lawson is Andrew Neil’s guest on this week’s BBC Straight Talk and, among other topics, the former chancellor rebuffs Ed Miliband’s accusation of climate change heresy. Lawson said: “I hope that all parties…take a good hard look at this, we don’t want a sort of Stalinist monolithic line in everything.  But I do think, because of the damage that will be done to the economy, that is why, and for very little good, if any, that is why we have got to take a good hard look at the fact that we can’t get a global agreement on this anyway, as will be seen in Copenhagen…So, I think you

James Forsyth

Balls: ‘I have resisted moving’

Ed Balls has given an interview to The Times Educational Supplement which contains a comically audacious attempt to rewrite history. When asked about whether he really wants to be in his current job, Balls tells the interviewer, “I have resisted moving”. Now, I suspect this will come as a bit of a shock to Alistair Darling who fought off an effort by Balls to take his job. 

James Forsyth

What possible justification can there be for this?

From The Guardian’s write up of the latest TPA report on public sector pay: “Those earning more than the prime minister include Professor Salman Rawaf, the director of public health in Wandsworth, who has a package of up to £370,550” I can accept that some people in the public sector with certain particularly valubale skills might have to be paid more than the PM. But I find it hard to see why Wandsworth is offering its director of public health a package worth more than a third of a million pounds. One hopes that the Tory policy which will see the Chancellor having to sign off on any public servant

Another vindication of open primaries

Local girl Caroline Dinenage has won the Tories’ Gosport open primary race. Congratulations to her and commiserations to the other candidates: James Bethell, Julia Manning and Sam Gyimah. By all accounts the open primary process is proving hugely popular – over 12,000 votes were cast by post in this election. It is clear that the format encourages local political engagement; the Totnes primary was not a one off and evidently this process will become increasingly more common. Also, both elections have produced women, an indication that there is a clear alternative Central Office’s unintentionally divisive A-list strategy.  

Fraser Nelson

Who cares about the playing fields of Eton?

The Eton question came up on Question Time – is Labour right to use class in the run-up to the election? I have a piece in The Guardian tomorrow on this theme. The answer should be that which Andrew Lansley read out on Question Time:  that this shows Labour is living in the past, what matters is where you’re going to not where you came from. He’s right. But I do wish the Tories would believe it. The Eton taunt is still taken far too seriously by the Cameroons: it hurts them. It’s a piece of verbal kryptonite. They go to great lengths to defend themselves from such an attack:

James Forsyth

Could Brown go for a March 25th election?

The conventional wisdom in Westminster is that the election will be on May 6th. But a few shadow Cabinet members have told me that they think Brown will actually go in March, an idea that they have been pushing for a while. Their argument is that this quarter’s GDP figures will be quite good, boosted by the Christmas rush, and Brown would want to go to the country before, another more disappointing set of numbers came out. Second, Brown will want to avoid people seeing the effects of the new tax arranegements which will come into force in April. Finally, if the election was on May 6th, the first week

The Tories, money and inheritance tax

Key to Labour’s emerging strategy is promulgating the myth that raising the inheritance tax threshold is designed to protect the Tories’ rich friends from the great unwashed. Despite its sojourn in the wilderness, the politics of envy remains crude at best. Raising IHT thresholds favours hardworking, modest Middle England. The super rich can protect their fortunes without the help of threshold raises, which are negligible by their standards in any event. James Macintyre proves as much in his latest New Statesman column. When detailing Tory donor Lord Harris’s IHT avoidance, Macintyre writes: ‘The Tory peer, whose wealth is estimated at roughly £285m, donated £90,000 to Cameron’s campaign. In 1997, he

How will Labour try to soak the rich?

Brace yourselves.  According to today’s Daily Express, Alistair Darling is under pressure to introduce a new 70 percent tax rate for high-earners in next week’s Pre-Budget Report.  I repeat: s-e-v-e-n-t-y percent. To be honest, I can’t see the Chancellor doing it.  Leaping from 50p to 70p would be regarded as far too incendiary, not to mention fiscally insane, even for this government.  But I can still see them introducing a fair handful of soak-the-rich measures, if only to strengthen their reinvigorated attack line against the Tories. In which case, I refer you to Polly Toynbee’s column from a few months ago, in which she recommended that the 50p rate start

Sarko pulls it off

The news that Nicolas Sarkozy has cancelled a proposed flying visit to London, in order to smooth over the fall out from his attack on the City, has got tongues wagging. Adam Boulton reports: ‘It’s claimed Sarkozy asked for this week’s meeting to patch things up. So by implication their (his Westminster sources) argument goes – if it isn’t happening it’s because Brown is snubbing Sarko and not the other way round.’ This line doesn’t convince. According to the Elysee’s diary, Sarkozy is otherwise engaged tomorrow, so the finance cordiale will now take place at…wait for it… the European Council meeting in Brussels next week. Why would Brown give away