Coalition

Labour shuns aid choices

Government is about choices. In opposition you can like anything, support any measure, back any proposal. But when in office you either make choices or invite dismissal. So when International Development Secretary Andrew Mitchell looked at Britain’s development spending he was determined to make choices. Now that he has, some people don’t like it. Not one bit. They like choices in general, much as they accept a theoretical form of cuts; but they recoil from real ones. Former Europe Minister Denis MacShane is one of the choice-avoiders. Writing in the New Statesman, he rails about cutting funds to the International Labour Organisation, seeing a Tory plot to undermine trade unionism.

Government to appeal on prisoner votes

PoliticsHome reports that the government is to ask the ECHR to reconsider its verdict in the prisoner voting rights case. The website says: ‘In a response to a parliamentary question from Labour MP Gordon Marsden, Cabinet Office Under-Secretary Mark Harper said: “We believe that the court should look again at the principles in “Hirst” which outlaws a blanket ban on prisoners voting, particularly given the recent debate in the House of Commons.”’ This is unsurprising. Last month, the government asked its lawyers to advise on the ramifications of noncompliance. The lawyers were unequivocal: the repercussions of such defiance was diplomatically impossible and extremely expensive. As non-compliance is foolhardy and acquiescence

The strong business case for HS2

Matthew Sinclair argues that the government’s plans for high-speed rail would not create enough jobs to justify the government spending money on the project. But his argument is disingenuous as he is not comparing like for like. He is comparing predictions about jobs created directly by high-speed rail with predictions about jobs created indirectly by investment in the wider economy. The 40,000 jobs created directly by high-speed rail are simply the tip of the iceberg – tens of thousands more will be created by the investment boom in the cities the new line will link up. These are the jobs being created by the “wider economy” that he mentions, but

May’s change of emphasis

Theresa May has a new soundbite: police pay or police jobs. May has been asked to find cuts of 20 percent in the police budget. May insists that the frontline must and will be protected and that therefore these ‘extraordinary circumstances’ mean that the government will have to rewrite the terms and conditions of police employment. The former rail regulator, Tim Windsor, is already conducting a review into police pay and working conditions. In addition to his recommendations, May is scrutinising overtime payments, housing and travel allowances and so forth. Estimates vary but these perks are thought to cost the taxpayer more than £500million a year. She is also overseeing

The failing business case for HS2

Under a week ago, when James Forsyth wrote about how the government was successfully mobilising third party groups to support high-speed rail, it looked like Philip Hammond was going to get the neat debate he wanted. The script was simple: the new high speed line was urgently needed and in the national interest, a small number of people ardently opposed it because it would spoil their views. Since then that message has come unstuck. I think it is understandable that some people are very upset at the aesthetic disruption that could come with HS2.  But that isn’t the only objection. Plenty of people who have no particular attachment to Wendover,

Of course Pickles is ambitious. He needs to be

No one, most of all the normally genial Eric Pickles, said that reforming local government would be easy or quick. The New Local Government Network reports that the government’s plan to encourage councils to share back office functions is ‘hugely ambitious’. It says that considerable savings can be made, but it doubts that councils will meet the 40 percent target for backroom efficiencies. Savings of 20 percent are more likely, the NLGN argues. On the face of it, the NLGN is correct. Eric Pickles’s demand that councils share their functions and facilities is ambitious. At the moment, councils are struggling to meet the upfront costs of uniting geographically diverse buildings

Brits want to give money abroad – but not necessarily via the government

“A well-targeted aid budget is essential if Britain is to punch above its weight on the world stage.” That’s how Tim Montgomerie finishes his neat defence (£) of British aid policy for the Times today. But, putting aside the matter of whether it’s wise to give aid to, say, India at a time of spending restraint back home, Tim’s claim rather inspires a question: is our aid budget well-targeted? And the answer, it seems to me, is encoded in Ian Birrell’s punchy piece for the Evening Standard. Ian’s overall point is similar to that made by economists such as Dambisa Moyo, whose work we have mentioned on Coffee House before

Clarke in the Sun’s harsh light

The Sun has launched another sortie against Ken Clarke’s restorative justice programme. The paper reports: ‘SHOPLIFTERS could escape prison by just paying for what they pinch and saying “sorry”. Jail sentences and tough fines will be SCRAPPED as the default punishment for nicking from stores under controversial plans soon to be unveiled by Justice Secretary Kenneth Clarke. Instead he wants thieves to make face-to-face apologies to victims and pay compensation.’ The Ministry of Justice has responded by saying that it ‘strongly believe[s] offenders should make more financial and other amends to victims and are in the process of consulting on plans for this.’ The substance of that statement contrasts with

Osborne goes on the offensive

Attack, attack, attack. That’s the temper of George Osborne’s article for the Guardian this morning, which sets about Labour’s economic credibility with a ferocious sort of glee. Perhaps the best passage is where he asks how many times Labour can spend their ubiquitous “bank tax,” but this is more pertinent to the recent debate: “Where does all this leave Ed Miliband’s newfound enthusiasm for the “squeezed middle”? Let’s pass over his failure in every interview to define it – his last effort included around 90% of taxpayers. Where we can all agree is that these are difficult times for family incomes. There are two root causes. One is global: rises

Cameron: military action not out of the question in Libya

The government’s game of catch-up on Libya continues apace. David Cameron came to the Commons to update the House on the current situation. His main message was now that we have the vast majority of our citizens out, we can have a policy. Indeed, the government is today openly admitting that it was hamstrung last week by the continuing presence of a large number of British nationals in Tripoli. Cameron told the House that ‘we do not in any way rule out the use of military assets’; a dramatic shift from the tone of his entourage on last week’s trip. At the moment, the main military option on the table

James Forsyth

The need to address National Pay Bargaining

National Pay Bargaining is one of the major impediments to rebalancing the national economy and improving the quality of public services. But as Julian Astle, the head of the Liberal think tank Centre Forum, notes the coalition is doing little about it. It knows that the public sector unions will go to the wall for national pay bargaining and so are holding off. Gordon Brown flirted with doing something about national pay bargaining, announcing a review of it in the 2003 Budget. But he then backed away from the issue. One area where the coalition is chipping away at national pay bargaining is schools. Academies and free schools have the

Three charts that complicate a simple focus on growth

GDP growth figures have become the barometer of choice for commentators trying to tell the political weather – a good measure of how the public will eventually fall in the faceoff between Osborne and Balls. The story goes that a return to sustained growth will mean a return to rising living standards.  That means a vindication of the government’s position, and a victory for the Chancellor. As a simple story, that makes sense if the pressures now facing Britain’s households are straightforwardly growth-related – if, in other words, we’re in a post-recession hangover that will vanish when growth returns. But there’s now mounting evidence of a deeper problem for living

Will Cameron have a Brown moment over petrol?

Remember when Gordon Brown came up against Fern Britton in a TV interview? I’ve pasted the video above to remind CoffeeHousers of two persistent truths: how tricky a subject petrol costs can be for a serving Prime Minister (watch on from around the 0:50 mark), and how Labour are hardly blameless when it comes to the current cost of fuel. As Britton asks in the interview, “How much tax do you put on the fuel?” And the answer that Brown mumbled to avoid, from a House of Commons briefing note at the time, was this: In other words, for a huge portion of the New Labour years, fuel duty accounted

The charge that the coalition should fear

The greatest political, as opposed to strategic, threat to the coalition from the Libya evacuation crisis was that it would give the government a reputation for incompetence. As I say in the Mail on Sunday, Labour are looking to pin the incompetence charge to the coalition at every possible opportunity. The Miliband team knows that if the coalition comes to be seen as incompetent, then it is done for. Once a government comes to be seen as incompetent, then it is almost impossible for it to gain support for any of its proposals as even those who agree with the ideas don’t trust the government to implement them. Equally, any

Keep calm and carry on

The Libya crisis looked like it would prove the critics of the government’s Strategic Defence and Security Review right. Was it not the case that the HMS Cumberland, now seen as crucial for the evacuation of British nationals, would soon be decommissioned. And would the Harriers not prove useful in a potential intervention? Coupled with criticism that the government struggled to handle the evacuation of British nationals, it looked like the makings of a credibility-destroying theme: strategic misjudgement and tactical incompetence. But a week into the crisis, the government’s handling of the evacuation – and response to the Libyan crisis overall – looks increasingly surefooted. The UK has led the

Labour sets about warning of a “cost of living crisis”

Ed Balls has been warming up to this one for a while, and now it has finally come: an all-out attack over rising prices. In an interview with the Sunday Times (£), the shadow chancellor warns of Britain’s “cost of living crisis,” and demands that George Osborne reverse the VAT increase. Much of his pleading is made on behalf of motorists, who – as I pointed out a couple of days ago – face punishment at the petrol pumps. He doesn’t even mention spending cuts once, especially not where his own party’s are concerned. Rising costs, clearly, are the new weapon of choice. And it’s not just Balls. Ed Miliband

Fraser Nelson

Corporatism is not an adequate foreign policy

The events of the last two weeks have demonstrated that David Cameron needs a revamped foreign policy. This is not, in itself, a surprise. Foreign policies sketched out in opposition seldom survive contact with reality. Remember Bush saying he did “not do nation-building”? And who can forget the ignominious fate of Robin Cook’s “ethical foreign policy”? David Cameron sought to distinguish himself from the adventuring, idealistic Blair with what he regarded as a ‘pragmatic’ foreign policy – that is, promoting British exporters.   But as I say in my News of the World column (£) today, this rebounded spectacularly last week when his tour of the Arab world was overshadowed

Why Ed Balls shouldn’t brag if the OBR downgrades its growth forecasts

Some speculation (£) today that the Office for Budget Responsibility will shortly downgrade its 2011 growth forecast – and hence the growth forecast in next month’s Budget. If so, then you can expect Ed Balls to crow on and on about it. He did, after all, prime the attack in his recent clash with George Osborne across the dispatch box: “With consumer confidence falling, with inflation rising, with no bank lending agreement, no plan for jobs, no plan for growth, no plan B – does he really expect us to believe he can meet this forecast for economic growth this year or will he have to stand here at the

The case for retaining Harrier in Afghanistan

Lord Owen, among others, has responded to Colonel Gaddafi’s bloodcurdling lunacy by insisting that a no-fly zone be imposed over Libya. But, as Con Coughlin has suggested, it is unlikely that Britain could support such an operation without a fixed-wing attached to an aircraft carrier. The debate about the Strategic Defence Review and Britain’s military capability has reopened. The SDSR put Afghanistan first. As armed Forces Minister Nick Harvey explained in a recent speech to RUSI: ‘Throughout the next few years, the mission in Afghanistan remains our main effort. Having made this commitment in the SDSR, this shaped many of our other decisions: the proposed changes to the Army, for

It’s the Q1 2011 growth figures that matter now

The Office for National Statistics’ preliminary figures for Q4 growth, released a few weeks ago, were a curious beast. They they were, suggesting that because of a snow-laden December our economy had started shrinking again, to the tune of -0.5 per cent. And yet so many other indicators were doing rather nicely: from activity in the services sector to the Exchequer’s tax take. Many people, myself included, suspected it was only a matter of time before the ONS revised that -0.5 figure into more positive territory. Now time has passed, and the ONS has just revised the Q4 figure downwards, not upwards. Their preliminary figure wasn’t quite right, they say.