Austerity

The vanity appointments

If this is what bespoke PR produces, save your money. The Standard alleges that Number 10 has hired 26 ‘civil servants’. These latter-day Sir Humphreys include: a photographer, a stylist, a PR consultant to run the PM’s personal website, a diary keeper for Sam Cam and another addition to the Behavioural Insight Team at the Cabinet Office. Now, I like a bit of behavioural insight as much as the next man. But most, if not all, of these recruits have worked together in CCHQ for years: how much more insight can they glean in their new surroundings? Open up the field, many say, which poses another problem because it may

Labour’s hypocrisy on the EU budget

Labour’s Shadow Europe Minister, Wayne David, has been busy castigating David Cameron for his apparent failure to secure an EU Budget freeze. He says, ‘It is imperative that we do have a freeze on the EU budget’. Quite so, why then did Labour MEPs vote against an amendement to freeze it?    

Cameron must play his cards well to win in Europe

The British media woke up this week, realising that Europe still exists. As David Cameron travels to Brussels, questions loom over what, exactly, he can achieve in Europe – at this summit, and more importantly, moving forward.   Much of the commentary surrounding the summit has focussed on the increase to the EU’s 2011 budget, which Cameron is fighting.  And for good reason. It’s insane that Britain – or any other net contributing state – should be forced to accept any increase to the EU budget, at a time of tough austerity at home.   Cameron has spent considerable time talking up the negotiations on the budget increase, so he

Cameron prepares for the Brussels offensive

David Cameron’s first battle with the EU opens on Thursday. Angela Merkel and Nicolas Sarkozy hope to introduce a treaty that will deliver tough sanctions on eurozone members that break budget guidelines. Their success rests on David Cameron’s support. Europe is built on quid pro quos, so Cameron will ensure that the new treaty does not prejudice Britain whilst also seeking to repatriate competences. He will avoid the more avant garde suggestions of outspoken eurosceptics – he knows that a UK Sovereignty Bill and exemption from pan-European customs arrangements are unfeasible unless Britain rescinds its membership – and, in the delicate context of coalition, seek practical assurances instead. The regulation

Why the Tories didn’t win

Courtesy of John Rentoul, Tim Bale, professor of politics at the University of Sussex, offers this appraisal of the 2010 election: ‘For all the talk in opposition of decontaminating the Tory brand, of making the party more tolerant and inclusive and less ‘nasty’, the key task facing Cameron when he took over in late 2005 was reassuring voters that the Conservatives could be trusted on welfare and public services.  All the market research suggested that this was the sine qua non — a necessary if not a sufficient condition — of a return to office. When the global financial crisis hit and Britain’s budget deficit ballooned, however, this task remained

More encouragement for George Osborne

If there’s one thing the financial crisis has proved, then it’s that the heads of global financial institutions are fickle with their favour – for stimulus one minute and against it the next. Still, I suppose every little helps. Last night, Robert Zoellick, President of the World Bank spoke to Jeff Randall and gave George Osborne a resounding vote of confidence.

What Irish Austerity?

Next time you hear a Labour politician arguing that the markets are punishing Ireland despite its austerity drive (and therefore Britain should not rush to cut its own deficit) you might kindly point out that, because of the horrors at Anglo Irish and elsewhere, you can certainly argue that there hasn’t actually been an Irish austerity drive: In a statement, Mr. Lenihan conceded that the bank bailout would have an immediate and dire effect on Ireland’s budget deficit, pushing it up to an extraordinary 32 percent of G.D.P. Taking out the bank costs, Ireland’s deficit is expected to be around 11 percent, despite two years of an austerity drive. The

Three quarters of voters side with Cable

Politics Home has published an important poll, showing the staggering level of support for Vince Cable’s conference speech. The government will be pleased that its political attack on the financial services industry’s continued excess at time of austerity is cutting through; on the other hand, this could be seen as support for Cable’s emotive rhetoric. Worse still, the poll suggests that traditional Tory voters are the only group for whom Nick Clegg is more impressive than Cable. The business secretary has to be kept in government – the coalition can’t afford to have a charismatic wreaking havoc from the backbenches. Support for Vince Cable conference speech Who are the impressive

Finding a narrative of hope

In these grim dark days of austerity and cuts, the coalition urgently needs to find a compelling political narrative of hope and optimism. David Cameron’s Big Society rhetoric occasionally threatens to contain some philosophical depth, but suffers from the same problem as most new fangled analyses of the world. Namely, it is so fluffy that it becomes bewildering.   To the government’s credit, they have managed to prepare the public for the upcoming belt tightening. This achievement is all the more remarkable given the woeful refusal of either coalition party to admit the scale of the fiscal problem facing Britain during the general election campaign.   But softening up public

Pickles axes the Audit Commission

Eric Pickles’ decision to scrap the Audit Commission is further evidence that Pickles is the minister prepared to move quickest on the cuts agenda. It is a bold decision and one that is going to come under heavy attack. The Audit Commission’s supporters will claim that it is self defeating to scrap the watchdog that checks that public services are delivering value for money. Set against that, though, has to be the culture of excessive pay and waste at its hearts. Until Pickles intervened, it wanted to pay its new chairman £240,000. Notably John Denham in his statement tonight opposing the abolition of the Audit Commission, felt obliged to say,

If the BBC won’t cut costs, then Hunt must

From a completely selfish standpoint, I’m pleased that the BBC has saved 6Music. The decision does, however, raise a pertinent question: why is one of the public sector’s mammoth institutions seemingly impervious to spending cuts? Never mind DfID and the NHS, ring-fencing Sue Barker is simply inadmissible. Mark Thompson, the Director General, has identified the barest modicum of cuts. The BBC’s ‘gold-plated’ pension scheme might be limited (subject to union agreement), which will save roughly £50million. But the BBC has awarded 70 percent of its employees a £475 annual pay rise. Few companies in the private sector, especially broadcasters, can afford such generosity. It’s that same with presenters’ pay. Thompson

The Irish Economic Problem

Responding to this New York Times piece on Ireland’s ecoomic woes Matt Yglesias, Ezra Klein, Kevin Drum and Steve Benen echo Paul Krugman and say: See, this just shows how stupid austerity measures are. And it’s true, Ireland really is in a terrible hole and won’t be getting out of it any time soon. As the article puts it: Nearly two years ago, an economic collapse forced Ireland to cut public spending and raise taxes, the type of austerity measures that financial markets are now pressing on most advanced industrial nations. “When our public finance situation blew wide open, the dominant consideration was ensuring that there was international investor confidence

Cameron takes to the global stage, orating for a domestic audience

From the point of view of historical curiosity, it is a pity that the great Victorian statesman predeceased the era of global summits. What would Palmerston or Melbourne have made of the pageantry? What might they have said to permeate it? Would they have wanted to? Modern British Prime Ministers have moulded themselves on the world stage: Blair as a liberal interventionist, Brown as a Keynesian. Judging by an article David Cameron has written in the Globe and Mail, he hopes to lead the world to fiscal re-trenchment and inaugurate lasting and real prosperity through free trade. Once again, Cameron’s premiership appears to be descended from Gladstone. Cameron insists that

The story of the Tory campaign

If you read only one thing today, then make a cup of tea, sit in a comfy armchair, and make sure it’s Tim Montgomerie’s 7,000-word review of the Conservative election campaign.  Tim has opened up his address book and spoken with many of the main players in the Tory operation – and the result isn’t all that flattering.  Here’s a summary passage which gives a sense of it all: “For a period, the ‘Big Society’ was put at the heart of the campaign. Amazingly, the Big Society was never tested in focus groups and it failed on the doorstep. One leading adviser to the campaign complained of a ‘cavalier’ approach

Hope springs eternal

The Tory press conference this morning, launching their plan for National Citizen Service, shows how they hope to run a two track campaign. On the one hand, they want to be hammering Labour over their plans to increase National Insurance — Cameron called it a ‘a recovery killer, an economy killer, a job killer’ and said that Labour wanted people to pay ‘taxes for government waste’. On the other, they want to be presenting hopeful, optimistic ideas like a National Citizen Service. This fusion campaigning enables the Tories both to be attacking Labour and presenting themselves as the party that is offering a positive alternative. National Citizen Service is very

Is this Labour’s election slogan?

I wouldn’t be surprised if this Gordon Brown snippet gets deployed ad nauseam between now and the next election: “[Brown] described Labour as the party of ‘prosperity not austerity'” If so, it’s worth noting that it’s a phrase that Ed Miliband used in several speeches last year (e.g. here, here and here).  But, whoever its author, it’s hard to imagine it working for a governing party which has presided over one of the most spectacular busts in our history.

No Christmas cheer in the Mail for Cameron

The Daily Mail sets about David Cameron in its editorial today. It accuses him of “insulting voters’ intelligence”, tells him to “avoid the PR men, spivs and trashy celebrities with whom he has taken to mixing” and advises him to “spend less time with his spin-doctors, worrying about his image and trying to be all things to all men.”   The Mail matters. Privately Tory strategists admit that its savaging of Cameron’s shift in European policy played a considerable part in depressing the certainty of Tory supporters to vote, one of the reasons for the party’s lead narrowing in the polls. If the Mail was fully on board with Project

Will Darling’s politicking make the Tories weaken their IHT pledge?

Ok, so the Age of Austerity means that promises made in sunnier times will need to be forestalled – or even cancelled altogether.  But it’s still revealing that Labour are thinking about reversing their plan to raise the threshold at which inheritance tax is levied. After all, this is what Brown regards as The Great Dividing Line: the Tories implementing a tax cut for their “rich friends,” on the one side, and Labour implementing policies “for the many,” on the other.  Darling’s decision to raise the IHT threshold to £350,000 for single people and £700,000 for married couples undermined that crude message.  Reversing the policy may, in Labour strategists’ eyes,

What Gordon thinks of London 2012

Another good quote for the Brown ‘n’ Blair scrapbook, courtesy of Ben Brogan’s column in the Telegraph: “Only once in the 20th century has a government that won the games survived to deliver them. A change of administration in the run-up to the Olympics might be expected to herald political trouble. Thankfully, David Cameron does not share Gordon Brown’s loathing of what he refers to as ‘Tony’s f—— Olympics’. He is committed to ensuring stability by protecting London 2012’s status as the Switzerland of politics, immune from partisan attacks.” Brogan’s wider argument is worth noting: that the Cameroons think 2012 could be the tonic the country – and their potential

Osborne’s recycling giveaway is actually an Age of Austerity measure

I don’t want to be a stick-in-the-mud when it comes to an idea which is actually quite promising, but it’s worth pointing out that George Osborne’s plan to pay people to recycle – featured in quite a few of today’s papers – was first mooted by him back in July 2008.   The difference between then and now?  That this particular nudge was worth up to £360 a year for families who took advantage of it – whereas now the figure has come down to £130 a year.  In which case, it’s probably better to regard at least this part of Osborne’s announcement today as an Age of Austerity-inspired cutback,