Coalition

There’ll be no u-turn on planning

This government has developed rather a reputation for u-turning. But I would be extremely surprised if it did one over its planning reforms. When you talk to ministers and advisers one is struck by how up for this fight they are. They’re convinced that it is only by taking on these vested interests that they’ll get their message across to the public. And unlike on forests or the NHS, Number 10 and the Treasury are fully on board. There are those who claim that these reforms are profoundly un-conservative. But, in fact, the opposite is the case as Charles Moore argues with his typical eloquence in today’s Telegraph. As Charles

The Swedish case for school profits

Should state schools be able to make a profit? We asked this of you on our Coffee House poll this week. 71 per cent of you said yes, and with good reason. Profit-seeking companies expand when demand is strong: that’s what you want good schools to do. But successful schools not seeking profit have no incentive to expand: it’s an easier life just to let the waiting list grow and jack up the fees. This month, 24 new ‘free schools’ will open – eventually able to educate 10,000 pupils. But to keep pace with the boom in primary school pupils, we’d need an extra 400 primaries alone. Will the ‘free

More banking worries

George Osborne wrote a strident article for the Observer last weekend, in which he called rich tax evaders “leeches”. As James Forsyth reveals in the cover story of this week’s magazine, Osborne is not alone among Tories in hounding the ‘undeserving rich’ at present. James goes on to argue that the Tories are ‘becoming particularly worried’ about the callous rich because the Vickers commission is poised to bring the emotive issue of banks back to the ‘political frontline’. The Vickers report has already irritated the coalition’s sore points, with disagreement allegedly rife between George Osborne and Vince Cable. Today’s FT offers a fresh angle. Osborne and Cable are in fact remarkably close

Getting tough on discipline

A fortnight ago, The Spectator asked if Cameron was fit to fight? We wondered if he had the gumption to use the political moment created by the riots to push through the radical reforms the country needs.  So, it’s only fair to note that the government has today actually done something—as opposed to just talking about—the excesses of the human rights culture. The Department for Education has stopped the implementation of new regulations that would require teachers to log every incident in which they ‘use force’ with children. These new rules would have made teachers record every time they had pulled apart two kids in a corridor or intervened to

Cameron and Osborne wary of Vickers’ banking reforms

Banking reform has always been one of those issues that was going to test the unity of the coalition. Indeed, it was the subject of the very first inter-coalition wrangle when back in May 2010 George Osborne and Vince Cable tussled over who would chair the Cabinet committee on banking reform.   To date, these differences have been held in check by the fact that the coalition is waiting for the recommendations of the John Vickers-led Independent Commission on Banking. But with the final draft of the Vickers Report being published on 12 September, these splits are starting to open up again.   Cable and the Liberal Democrats would like,

James Forsyth

Whitehall leaks

The Department of Education is remarkably unbothered by yesterday’s Guardian splash about free schools. Why? Because they have known for months that the emails on which it was based had gone missing. Indeed, the only thing that surprised them about the story was that it did not appear three months ago in the Financial Times. Email security in Whitehall is notoriously bad. Ministers and special advisers often don’t realise that civil servants have access to their email accounts. This access provides ample opportunity for those hostile to the government’s political agenda to leak out stories. (Most ministers in both this and the last government use secret squirrel email addresses to

Vince being Vince

A sweeping and utterly typical performance from Vince Cable in his interview with the Times (£) today. Not only does he plunge his teeth into the exposed flesh of the bankers (criticising them for their “special pleading” over banking reforms), but he also offers another overarching diagnosis of the British economy (there won’t be a repeat of 2008’s financial crisis, he says, in case you were wondering, but slow growth could be a problem). I feel like a spoilsport for pointing out that, only four months ago, the Business Secretary was actually warning that “you can see” another financial crash happening. But aside from Cable’s fiery rhetoric, it’s worth noting

Miliband re-opens campaign with same old weapons

Party politics is back from the summer and the summer’s events are defining the strategic dividing lines. Ed Miliband reopened hostilities by threatening to force a vote on police cuts. The Standard reports: ‘The Labour leader said ministers were being “reckless” in refusing to rethink planned 20 per cent savings following the worst rioting in living memory. Launching a new campaign during a visit to Lewisham, Mr Miliband claimed the cuts, reducing officer numbers by 16,000, would “weaken the forces of law and order on our streets”.’ Policing Minister Nick Herbert, one of the coalition’s stars outside the cabinet, described Miliband’s claims as ‘hypocrisy’, pointing out that Labour did not

James Forsyth

Coalition prepares for bank bust-up

There’s a big coalition split coming down the road. Next month the Vickers’ review into banking reform, which is going to suggest a ring-fencing of the investment and retail arms of banks, will come out. The Liberal Democrats — led by Vince Cable — will push for the instant implementation of the report’s recommendations. The Treasury will argue that banks need to be given time to introduce these new rules. The result will be, as one senior Lib Dem source tells this morning’s FT, ‘a big fight’.   The tricky question for Cameron and Osborne is how do they win this argument when there’s a visceral desire for tough measures

Housing crisis on the horizon

There is grim news on the housing front this morning: the National Housing Federation (NHF) reports that the housing market will descend into “crisis” unless the supply of houses is dramatically increased. It points out that only 105,000 new homes were built last year, the smallest amount since the 1920s. This is a long-term trend, as demand has consistently outstripped supply.  The NHF thinks that those facts will not change and predicts homeownership will fall to the level of the mid-1980s, when Margaret Thatcher announced that her goal was to help “more and more people to own property.” The conclusion is obvious if those are the premises: average property prices will

Exclusive: Osborne’s jobless recovery

George Osborne was right to boast in the Commons that Britain has the “second highest rate of net job creation in the G7”. Coffee House recently pointed out that all of the increase is accounted for by foreign-born workers. But what if you narrow the definition to foreign nationals? We put in an information request to the Office for National Statistics and the below information came back. It is quite striking. Over the 12-month period to which Osborne refers, 90.1 per cent of the extra employment amongst the working-age population can be accounted for by an increase in foreign nationals working in the UK. Here are the figures. The phenomenon of pensioners returning to

Salmond rules out move for Megrahi

Alex Salmond has just been on Sky News and he ruled out extraditing the Lockerbie bomber. He said that the Scottish government has no intention of asking for al-Megrahi to be extradited and the Libyan National Transitional Council appears to have no intention of granting extradition. He also added that there was no scope for further interviews with al-Megrahi, such was the prisoner’s condition. Although he reiterated that the Lockerbie case would be re-opened should further evidence emerge. He also defended the Scottish government’s decision to transfer al-Megrahi to Libya, saying that the original medical judgement of three months life expectancy was never definitive and therefore it had been impossible

More questions for UKBA

The Home Office and the UK Border Agency (UKBA) completed the review into the asylum seekers legacy backlog ahead of schedule at the end of last month. 450,000 case files have now been closed and the government is as pleased as punch. Earlier in the summer, Damian Green heralded the achievement as one of “three fundamental changes to the asylum system.” Not everyone shares his enthusiasm and serious concerns about UKBA remain. First, the review is incomplete. An as yet unidentified number of cases have been granted ‘temporary leave to remain’ for up to 3 years, which merely defers the decision to grant asylum or deport. The Home Office concedes

The Lib Dem conference advantage

Traditionally the fact that the Liberal Democrats hold their conference first and still vote on party policy at it has been regarded as a disadvantage. But this year, I suspect that these two things will be in their favour. By going first, they will get to set the terms of debate for conference season. They’ll be able to spike their coalition partners’ guns on a whole variety of post-riots issues. They can make clear that they won’t accept any changes to the human rights act or any government push to encourage marriage. Even better, they can pass motions to this effect. They also will have first crack at setting out

Osborne’s crusade

‘Tax evasion is morally repugnant. It’s stealing from law-abiding people who face higher taxes to make good the lost revenue. Those who evade taxes, like benefit cheats, are leeches on society. And my message to those who try to hide their incomes from the Revenue in offshore bank accounts and false declarations is simple: we will find you and your money.’ That was written by George Osborne in today’s Observer. He promises that the deal with Switzerland is “just the start” of his campaign to close tax havens. The rest of the article then relates the coalition’s achievements at reducing tax avoidance by increasing charges on capital gains and non-domiciled

Why energy bills will be one of the big issues of the autumn

One of the big political issues of the autumn is going to be energy bills. Among Tory MPs, there’s mounting concern that the coalition’s green policies are driving up the price of energy rather than helping to bring it down. They fear that this is both acting as a drag on the economy and adding to the squeeze on family budgets. So, today’s story in The Times about how a carbon trading scheme—started under the last government—has led to households being charged, on average, £120 more than they should have been in utility bills is going to turn up the political heat on this subject. The paper alleges that: “Energy

Clegg at odds with many Lib Dems over 50p rate

The future of the 50 per cent tax rate is growing issue within the coalition. Unlike most government wrangles, this one doesn’t split on partisan lines, with the yellows on one hand and the blues on the other. The debate is largely being forged by personalities. George Osborne is well entrenched; Eric Pickles weighed-in for the race last weekend, saying that he wanted people “to keep more money in their pockets”, indicating that he hopes the rate is temporary. (He went take a swipe at Vince Cable’s mansions tax, which he described as a “big mistake”.)   It’s David Willetts’ turn this weekend. The Times reports (£) that Willetts believes

Clegg paints the world yellow

Nick Clegg laughed-off the dousing of blue paint he received in Glasgow yesterday, like one of Noel Edmonds’ unwitting victims. Today, Clegg has turned into the grinning douser: drenching his coalition partners in yellow paint by saying that the European Convention on Human Rights will not be watered down. Writing in the Guardian, Clegg says that the Conservatives are right to seek operational reform of the European Court of Human Rights, but the common ground ends there. He says that “the Human Rights Act and the European convention on human rights have been instrumental” in preventing injustices from council snooping to the misuse of DNA records and that the incorporation

Beating Labour’s education legacy

If it is GCSE results day, there must be a row about government education policy. True to form, the NASUWT — a union whose role often appears to be to make the NUT look moderate by comparison — has come out with a comically hyperbolic statement accusing the coalition of a ‘betrayal of young people’ because of its decision to reform the educational maintenance allowance. What the NASUWT statement ignores is that the real betrayal of young people has been pushing them into doing courses and qualifications that condemn them to a life of low-skilled labour at best. Last year, only 16 per cent of pupils achieved a C or

Need Libya be another Iraq?

“It’s not over yet.” That has become the government’s Libyan mantra, delivered with a tone of sombre sobriety. However, James Kirkup reports that, in private, ministers are cock-a-hoop, already dreaming of photo-ops and triumphant flyovers. You wonder what Ed Llewellyn makes of the celebrations. Allegra Stratton has written a revealing profile of David Cameron’s chief-of-staff, ‘the most powerful man you rarely hear about’. Llewellyn is a foreign policy expert, a veteran of tours in the Balkans and the Far East. Stratton says he is: ‘Discreet personally and cautious politically, he will have insisted on megaphone caution from the PM and his cabinet ministers who duly took to the airwaves.’ I’m told that diplomats share