Coalition

Tuesday

Ed Holmes

Reforming Britain’s antiquated industrial relations laws

The TUC Conference rumbles on with some rather blood-curdling statements about the future of industrial relations in Britain.  The RMT leader Bob Crow called for a campaign of civil disobedience and spoke of ‘confronting… the enemy’.  The PCS’ Mark Serwotka has spoken of a ‘campaign of resistance the likes of which we will not have seen in this country for decades.’  Perhaps for good measure, the TUC also took the opportunity to attack our recent report on modernising industrial relations. The trade unions are arguing vociferously against not only the very clear necessity for reductions in public expenditure, but also any change in industrial relations procedures which are largely obsolete

Mats Persson

Finessing the coalition’s EU referendum lock

The Coalition Government’s proposal for a ‘referendum lock’ on future transfers of powers to the EU has already been branded “worthless” by some Tory backbenchers . It’s easy to share their frustration at the Coalition’s lack of interest in EU reform so far. After all, the Government has chosen to opt in to the European Investigation Order; signed up for new EU financial supervisors; and chosen not to challenge the UK’s participation in the eurozone bailout (making British taxpayers potentially liable for up to £8 billion in loans to eurozone governments). However, the referendum lock is still significant. New crises, situations and politicians’ egos will always drive the need for

Peter Hoskin

A worrying – but not disastrous – poll for the government

This morning’s Times/Populus poll (£) will have supporters of the coalition grimacing into their cornflakes. The headline finding is bad enough, if rather familiar, with Labour closing the gap between themselves and the Tories to only two points. But what follows is worse. According to the poll, around three-quarters of voters reject the government’s deficit reduction strategy – preferring, instead, what are loosely the approaches advocated by Labour and the unions. And, what’s more, economic pessmism is arrowing upwards. The number of respondents who think “the country as a whole will fare badly,” has risen by 13 percentage points since June. The number who think “me and my family will

Monday

Peter Hoskin

Osborne and Cooper’s knockabout

Far more heat than light generated by this afternoon’s urgent question on welfare spending – but a telling spectacle nonetheless. The question had been put forward by a dissenting Lib Dem voice, Bob Russell, and it was up to George Osborne to answer it. He did so with sweeping observations, and attacks on Labour, rather than specifics. And so we never really got into the small print of those £4 billion extra benefit cuts, but Osborne did wonder why Labour have never apologised for “leaving the country with the worst public finances in its history.” It was knockabout stuff.   This is not to say that Osborne was ineffective. In

Peter Hoskin

Harman tries to bind Labour and the unions even closer

Progressive coalition. Those two words haven’t been tied together too frequently since Gordon Brown scrambled for survival in the aftermath of the election. But Harriet Harman invoked them in her speech to the TUC today, and she wasn’t talking about a union between Labour and the Lib Dems: “We are witnessing an emerging political movement amongst progressives in Britain – beginning to see that the Tory/Lib Dem government has no mandate. They are seeing the difference between what they thought they voted for and what they ended up with. The Labour movement is their vehicle for progressive change. We will work together – Labour and the Trade Unions – to

James Forsyth James Forsyth

Who is behind Nick Boles’ proposed electoral pact?

Nick Boles proposed electoral pact (£) between the coalition partners would have a clear benefit for the Conservatives, it would make a deal between Labour and the Liberal Democrats after the next election impossible. That is quite a prize for the Conservatives. It would mean that David Cameron would continue as PM as long as the two parties between them held a majority of seats in the Commons. It is less clear what the Liberal Democrats would gain from it. Yes, it would help more of their MPs survive, but it would tie their hands ahead of another hung parliament and massively reduce their ability to claim that they are a distinct political

David Blackburn

Avoiding confrontation with the heirs of Scargill

The unions are bent on confrontation. The elephantine Bob Crow, finding unlikely inspiration from Malcolm X , has called for a ‘campaign of civil disobedience’. Brendan Barber has described his hot-headed colleague’s remarks as ‘unhelpful’, and so they are. The situation is complex: the public sector is a Leviathan but one that provides lucrative contracts for private firms specialising in defence, financial services, consultancy, health etc. Cuts have to be very carefully managed to avert discontent and disruption – as Francis Maude observed on the Today programme. Yet the government still relies solely on the refrain that these ‘cuts are necessary’. It must offer more detailed arguments, and it has

Sunday

David Blackburn

Benefit reform – one theatre in Cameron’s war

The Observer has received letters revealing that George Osborne plans to deliver net savings of ‘at least £2.5bn’ from the Employment Support Allowance by limiting the amount of time people can spend claiming it. Here is Osborne’s letter to IDS, Cameron and Clegg: ‘Given the pressure on overall public spending in the coming period, we will need to continue developing further options to reform the benefits as part of the spending review process in order to deliver further savings, greater simplicity and stronger work incentives. Reform to the employment support allowance is a particular priority and I am pleased that you, the prime minister and I have agreed to press ahead

David Blackburn

The government should return the unions’ fire

The TUC is mustering in Manchester and its leaders are in bellicose mood. Brendan Barber has called for a general strike; Bob Crow, brimming with the satisfaction of having wrecked London’s transport earlier in the week, has called for his members to ‘stand and fight’ the government’s cuts. These statements have a ‘Me and my executive’ air to them, so ludicrous as to be beyond parody. But the message is rousing and clear. Not so the government’s – as Fraser argues today in his News of the World column. The government is caught in an intellectual cul-de-sac. Its sole refrain is that these cuts are Labour’s cuts and they are

Saturday

David Blackburn

Field caught between reality and fantasy

Frank Field’s been thinking. He will make his report on poverty next week and he hints at its contents in an extensive interview with the Times (£). He is convinced that there is more to social mobility than money and he has some brilliantly simple ideas to alleviate poverty. He advocates creating four or five terms in the school year to shorten the long summer holiday, which he argues disadvantages the poor. ‘They have less help at home so they lose out even more in long holidays. They drop behind, they are not being read to or tutored or talked to in the same way as many middle-class children. They

Lucy Parsons

Beating the vested interests

This is the next of our posts with Reform looking ahead to the Spending Review. Earlier posts were on health, education, the first hundred days, welfare, the Civil Service, international experiences (New Zealand, Canada, Ireland), Hon Ruth Richardson’s recent speech and how to sell the case for cuts.  On Thursday, I took part in a spending review debate in West Bromwich, part of a series the BBC held across England (my colleague Patrick Nolan wrote about his experiences in London and the East here) to discover the public’s views on what should be cut or saved in their local area.    I felt a bit of an intruder talking to

David Blackburn

Battling for the budget rebate

A plain speaking man, Janusz Lewandowksi. This week, the EU Budget Commissioner said, not without a clear note of pleasure, that ‘the rebate for Britain has lost its original justification.’ The EU veers between incompetence and arrogance. Baroness Ashton embodies the former, Lewandowski the latter. His statement encapsulated why a majority of Britons want out of this club into which they have never been allowed to enter. Put simply, it was hectoring and counter-factual. Mrs Thatcher negotiated the rebate to balance Britain’s net contribution, which was excessive owing to Germany and France’s disproportionate profit from the Common Agricultural Policy (the most glorious misnomer). At the time, the EU was run

Friday

Patrick Nolan

What you need to know ahead of the spending review – making the case for cuts

This is the next of our posts with Reform looking ahead to the Spending Review. Earlier posts were on health, education, the first hundred days, welfare, the Civil Service, international experiences (New Zealand, Canada, Ireland) and Hon Ruth Richardson’s recent speech. Last night the BBC showed 12 major regional television debates examining impending cuts to public sector spending. I spoke at the debates in London and the East of England (held in Ipswich). There were interesting similarities and differences in the two debates and these illustrated some important lessons for the spending review. Both debates showed that there is still work to do to explain to the public, and some

Peter Hoskin

Same old problems – and solutions – for Royal Mail

Two years ago, Richard Hooper wrote a report on Royal Mail which recommended part-privatising the service, among other measures. And today, with the official update to that report, we learn that his views have barely changed at all. If anything is different between then and now, it’s that the need to modernise Royal Mail has become even more urgent. The number of letters they’re sending has plummeted by more than forecast, and their pensions deficit has become even more unsustainable. The rot has quickened – and, yes, it’s up to the government to combat it. For their part, the coalition are using Hooper’s update to stress just how crucial privatisation

Thursday

James Forsyth

How Humphrys got it wrong

The 8.10 Today programme slot this morning went to Nick Clegg. The programme wanted to discuss with the deputy PM the BBC’s finding that those areas most dependent on the state would be hit hardest by the coming cuts, for some reason this statement of the obvious is regarded as news. But John Humphrys, in his haste to interrupt the deputy PM, made some statements deserving of further scrutiny.   First, Humphrys suggested that the cuts will take place before Christmas. They won’t. Unlike the cuts announced in the immediate aftermath of the election, these are not in-year cuts.   Next, Humphrys claimed that the economy is at ‘stall-speed.’ But

Peter Hoskin

Robert Chote is the new head of the OBR

Now this should dispel any worries that the Office for Budget Responsibility is partisan in the government’s favour. Robert Chote, director of the Institute for Fiscal Studies and scourge of Osborne’s “regressive” Budget, has been appointed as the body’s new chief. It is, in many repsects, the most sensible and obvious choice. Not only is Chote respected across the political divide, but the OBR is an attempt to institutionalise the kind of fiscal oversight that his IFS has provided for years. I can’t imagine that the Treasury Select Committee will try to block this appointment. In case you missed it first time around, Fraser interviewed Chote for the magazine back

James Forsyth James Forsyth

The coalition’s shifting horizons

Nick Clegg’s speech today is meant to be one of a pair with David Cameron giving the other tomorrow. The speeches mark an attempt to set out an agenda for the government that goes beyond deficit reduction. The idea is that Clegg’s speech called ‘horizon shift’, which is all about making government policy more long term, goes hand in hand with Cameron’s speech tomorrow on ‘power shift’, the government’s plan to devolve power down. This twin-pronged approach came out of the political Cabinet at Chequers at the end of the last parliamentary term and a recognition that the coalition must be seen to be doing more than just reducing the

Peter Hoskin

Clegg downplays the cuts

A noteworthy directional shift from Nick Clegg in his speech this morning. Instead of priming the us for “savage cuts,” as he once did, the Deputy PM is now deemphasising the severity of what’s to come: “Some of the hyperbole I have heard is just preposterous – this idea, that somehow, it is back to the 1930s. After the spending round, we are still going to be spending £700bn of public money – more than we are now.” To be fair, the basic message hadn’t changed: cuts are “unavoidable,” Clegg says, as we struggle to contain the deficit. But this new motif demonstrates just how keen the Lib Dem leader

Wednesday

Eamonn Butler

The Royal Mail – a tough sell

Some day soon – unless the coalition has already lost its bottle – a bill will be introduced to ‘part-privatise’ Royal Mail. It has to be done. But it will be a tough sell, for four reasons. First, the market for the Royal Mail’s product is shrinking. It’s a big fish, but its pool is getting smaller. It carries 75 million letters a day, but that’s down by 10 million just in the last five years. And 87 percent is mail sent by businesses. Apart from Christmas cards, the rest of us now correspond by email. Last year’s pre-tax loss was £262m: the reality is that the business is insolvent.

Peter Hoskin

In or out?

You’ve got to hand it to Dan Hannan – he knows how to make a splash. His latest initiative is a cross-party campaign for an “in or out” referendum on Britain’s EU membership. You can find details in his article for the Telegraph today or, indeed, on the campaign’s actual website. But the basic argument runs thus: with the AV vote next year, referendums are now hardwired into the political mainstream – so why not give us a vote on one of the biggest questions of national sovereignty that we face today? And if you agree with him on that, you can sign up here. Hannan is, of course, making