Coalition

Moving towards more efficient public sector pay

Data issued yesterday by the Incomes Data Services indicated that average pay settlements over the first quarter of 2011 in the public sector were close to 0 per cent. However, pay settlements in the private sector were closer to 3 per cent. Does this mean that Policy Exchange were wrong in a recent report to conclude that public sector workers are overpaid compared to their private sector counterparts? The basic answer is no. We highlighted that on a range of measures, workers in the public sector were overpaid compared to their comparators in the private sector. Even on our most conservative measure, which accounted for compositional differences in terms of

Labour’s malfunctioning front bench

The old adage that it’s hard to make an impact in Opposition is ringing true. Dan Hodges has denigrated Labour’s opposition thus far in the New Statesman’s political column today. He charts the party’s competing interests to create the sense that Miliband’s lack of direction, which is marketed as consensual politics, is the prime cause for Labour’s passivity. A listening exercise and numerous policy reviews are under way, but Labour is still stuck at Robert Frost’s fork in the road. Sooner or later, Miliband will have to act. Without firm leadership, shadow ministers are being left to their own devices; which perhaps allows the coalition to escape misfortune because often

Lansley’s inflated sense of his own department’s spending

The listening is over, now for the legislating. But if you’re keen to find out how Andrew Lansley’s health reforms will look in the end, then don’t expect many clues in his article for the Telegraph today. Aside from some sustained hints about involving “town halls” and “nurses” in the process, this is really just another explanation of why the NHS needs to change — not how it will change. Lansley’s central justification is one that he has deployed with greater frequency over the last few weeks: that, without change, the NHS will become too cumbersome and costly a beast. Thanks to the pressures of an ageing population, more expensive

The Tory euro-wars make a brief return

The Europhilic ghost of Ted Heath is stalking the House of Lords, upsetting the passage of the European Union Bill, the bill containing the coalition’s EU referendum lock. Lord Armstrong of Illminster, who was PPS to Edward Heath between 1970 and 1975, is trying to introduce a ‘sunset clause’ to ensure that the bill lapses at the end of this parliament. (He is working with Labour whip Lord Liddle, although Labour insists that this is not party policy.) Another amendment has been tabled to guarantee that referenda are binding only if turnout exceeds 40 per cent. This could mean that Britain succumbs to legislative creep from Brussels because only major

James Forsyth

Clarke’s crimes

One of the Conservative leadership’s worries at the moment is that the party is losing its reputation for being tough on crime. So it won’t welcome today’s Daily Mail splash about how a prisoner was granted permission by Ken Clarke to father a child by artificial insemination.   Now, we don’t know the precise details of the case, meaning that it is hard to come to a firm judgement. But I understand that when he was justice secretary Jack Straw rejected these kind of applications. He was, one familiar with the issue tells me, of the view that prisoners should not be allowed to benefit from non-medically necessary NHS services.

More ermine troubles for Nick Clegg

Tory backbenchers have been whispering to the Times (£), and their words will not hearten Nick Clegg. If the coalition pushes for Lords reform, one says, then about 50 of them will rebel. “If you were listing priorities for the Tories, I’m not sure you would put this at the top,” another adds, “[it might be] bumped down by other priorities that come along.” Much hinges on how eager David Cameron is to confront this resistance, and hasten a policy that was more or less writ into his party’s manifesto. In the weeks following the AV referendum, the Tory leader has been happy for Clegg to act alone as the

The inflation battle heats up

He left with a warning. “I think that there is a big risk emerging to the credibility of the Bank,” said Andrew Sentance last night, on his final day as a member of the Monetary Policy Committee. And he continued, “If inflation does not come down in the way that the Bank is suggesting — and I think there is a big risk that is the case — then that is going to have a big knock on effect on the credibility of the bank’s commitment to its inflation target.” Sentance’s views are unsurprising. He has, after all, been pushing for an interest rate hike for some time, and for

The growing need for a policy response to the ‘new inflation’

There’s been much debate on these pages about the political implications of higher inflation. Ironically, this morning’s news of record food prices could relieve the pressure on the Bank of England Governor. His argument for caution when it comes to a rate rise is based on the claim that UK inflation is now being driven by events beyond the MPC’s control. Today’s figures reinforce that case, showing that global commodity prices remain a key driver of the rising cost of living in Britain’s households. The same argument doesn’t really work for the Chancellor, whose remit isn’t just to keep headline inflation down, but also to help households cope with the

The coalition’s 2015 problem

The generals and the politicians are at odds with each other. This much has been clear since the run-up to last year’s Defence Review, but it finds a particularly clear expression in the Telegraph’s interview with Lt Gen James Bucknall today. Britain’s most senior commander in Afghanistan may not say, in terms, that we should avoid a timetable for withdrawal from the country — but he skirts awfully close to it. “It is of utmost importance that we stay the course, that we stay as long as it takes to finish our job,” he says, only a fortnight after David Cameron announced that 450 troops will be pulled out of

Clegg’s ermine troubles

Turkeys don’t vote for Christmas, that much we know. But thanks to the wonders of modern science, we can now poll them on it. Today’s Times carries a survey of the 789 peers who are entitled to sit in the Lords — of whom, 310 responded. It’s not a huge sample size, but the results, you assume, are representative. 80 per cent oppose a wholly or mainly elected second chamber, including 46 per cent of Lib Dem peers. 81 per cent believe that the Lords works well as it is. And 74 per cent believe that it wouldn’t be “constitutionally correct” for the Commons to force through a cull of

In England’s green and pleasant land

What do the TUC, heavy industry and the European Commission have in common? This is not the start of a bad joke; the answer is that they all oppose the government’s energy policy. Ten days ago, Tata (formerly British Steel) announced that it was to cut more than 1,500 jobs at plants in Scunthorpe and on Teeside. The directors later confirmed that their decision was influenced, in part, by the introduction of a costly carbon floor price at the last Budget. The floor price, which exists on top of levies imposed by the EU, has increased the burden of taxation on energy consumption to subsidise renewable energy research. In last week’s

Testing the health of the coalition

Listening is seriously damaging the coalition’s health. The Sunday Mirror carries a report that chimes with a week of rumours in Westminster: the NHS reforms are going to be significantly diluted to appease warring Liberal Democrats. The Mirror adds that Lansley is likely to quit in protest. Matt d’Ancona argues, in his essential column this morning, that this is not a listening exercise but a ‘full blown carefully orchestrated retreat’. It is, if you will, a political version of the battle of Arnhem: the NHS reforms were a reform too far in this parliament, so tactical withdrawal is now imperative. Clegg and Cameron’s signatures are on the original White Paper.

Shoesmith strikes at Balls and executive power

Sharon Shoesmith cut into Ed Balls on the Today programme this morning. She said: “Why don’t we ask Ed Balls why he acted on November 12, 2008 when he knew for 15 months that Peter Connelly had died and I was working with his officials, I was going to the government office, they were reading the draft reports. Haringey council knew all about it. We examined the conduct of our social workers, we found a disciplinary against them, but they weren’t sacked – all of that was open and clear and on the table and everyone knew everything about that. It wasn’t until the spat in the House of Commons

NHS Reform: In praise of ‘cherry-picking’

The British Medical Association (BMA) has always been a trade union with elements of professionalism on the edges. Its report this week on the NHS reforms was the work of unadulterated, self-serving trade unionism. Our modern trade union leaders would have been embarrassed to publish it, even Bob Crow. It tries to portray competition as the opposite of co-operation, when competition is the opposite of monopoly, in this case a public sector medical monopoly. Competition describes an arrangement under which teams of people co-operate with each other to find better ways of serving customers than rival teams of collaborators. The co-operation of which the BMA speaks is a weasel word

Off target

Target culture. It’s a pejorative phrase, and understandably so. As we discovered during the New Labour years, targets designed to encourage good public services can frequently do the opposite — replacing genuine care with box-ticking, and action with bureaucracy. I mention this now because of an article in this week’s Spectator (do subscribe, etc.) by an anonymous Metropolitan Police officer. He describes how a target culture has skewed the work of the force and, in some cases, even the law itself. Here’s one anecdote, which rather sums it all up: “I know of one instance in which a uniformed sergeant stole (or neglected to hand in) some confiscated cannabis. Instead

Less listening, more talking

There was an exchange on Question Time last night that may go some way to explaining why the government’s health plans are so mired. One panellist, media lawyer Charlotte Harris, said that she was very worried by the substantial cuts being made to the NHS’ budget. Large sections of audience greeted this with rapture. (From 44 mins.) Immediately, Tory Louise Bagshawe and Lib Dem Jeremy Browne tried to grab David Dimbleby’s attention. It fell to Bagshawe to correct Harris, pointing out that the government has increased spending on the NHS when Labour would cut. The audience responded with boos – more in disbelief than disagreement, incredulous that the Tories would

Tory MPs launch NHS reform counter-offensive

Nick Clegg’s speech on the NHS today has fanned the flames of the Tory backbench rebellion on the issue. Tory MPs’ tribal instincts have kicked in and even those who were worried about the Lansley plan are now swinging behind it. As Nick Watt revealed earlier today, there’s currently a letter from Nick de Bois urging Tory MPs to set out their red lines on health service reform. One thing that Tory MPs keep repeating to me is that they are not prepared to see the Lib Dems ‘take the NHS backwards’. This is their most fundamental red line and it translates to a determination not to have the level

James Forsyth

Lansley’s original reforms are off the table

Nick Clegg’s speech on the NHS this morning was not as bad as many feared it would be. It recognised that there is a role for competition in the NHS, something that the Lib Dems were questioning last weekend, and that the NHS needs to be opened up to any qualified provider. But, on the other hand, the idea that any willing provider should be able to deliver NHS services — an idea which was in the manifesto of all three parties — will now only be introduced at a glacial pace. There’ll also be a two-tier NHS for the foreseeable future with some areas having GP-led commissioning, while NHS

More freedom for some schools means better schools all round

Academies, as CoffeeHouser knows, are booming. There were around 200 of them when Michael Gove became Education Secretary last May. Now, just a year later, and steaming well ahead of expectations, there are over 600. This is, as Benedict Brogan suggests in his Telegraph column today, one of the great successes of the coalition era — albeit one that owes a debt to Andrew Adonis, Tony Blair and all the school reformers that came before them. And it is a triumph of quality, as well as of quantity. The simple, overwhelming truth is that academies are, on the whole, better than the schools they replace. Just look at the table released by the