Coalition

Whatever happened to Labour’s economic message?

For some weeks now, Labour have struggled to project a clear voice on the economy. You can see what they’ve been trying to do: pitch themselves as an alternative to immediate, deeper cuts, whilst also accepting the requirement to deal with the deficit. But, as I’ve said before, this all too often comes across as nervous equivocation; a kind of “on the one hand, on the other hand” stuttering that won’t persuade many observers either way. You sense that Team Miliband have tried to correct this in recent weeks, with a few punchier performances, but, even then, mistakes and deceptions have greased into their offering. Anyway, I mention this because

The Gove reforms grow even more radical

Local authorities are already doing their utmost to block the coalition’s schools reforms, so just how will they respond to this story on the front of today’s FT? It reveals how Michael Gove is planning to sideline local authorities from the funding of all state schools – not just free schools and academies. The idea is that state schools will get cash directly from the state, without any need for the council middlemen that currently control the system. Here’s an FT graphic that captures the change: The money would be allocated to schools in proportion to the number of pupils they have, and headmasters would have much more freedom in

The pledge divide

Over at the FT’s Westminster blog, Alex Barker asks why it is that David Cameron’s expensive personal pledge on pensioner benefits has survived the spending review while Nick Clegg’s personal pledge to scrap tuition fees, which would have cost roughly the same amount, has been spectacularly ditched. As Alex argues, one reason is that Clegg himself was not particularly attached to his pledge on fees. Indeed, he had tried to change the policy several times in opposition. The other is that George Osborne, who is the Tories’ chief election strategist as well as the Chancellor, is determined to protect the Cameron brand. When one right-winger made the case to him

Going beyond the IDS reforms

Iain Duncan Smith deserves credit for fully understanding the nature and scale of the welfare problem. But that’s the easy bit. Finding a solution with the right balance of carrot and stick and making it somehow affordable in these austere times is the tougher part of the equation. And it’s not at all clear that the IDS proposals have either enough carrot or enough stick.   He has certainly gone some way to tackling the lunacy of huge withdrawal rates – if by entering the workforce your new post-tax pay packet is less than the benefits you stand to lose, then don’t be surprised when an entrepreneurial work ethic fails

The London-Jakarta link should be strengthened

President Obama’s return to Indonesia this week was remarkable, in part, for the limited attention it has garnered outside his childhood nation. You can’t walk through an airport bookshop without being inundated by bestsellers about China’s rise. India has always occupied a special part in British hearts. But Indonesia is different. There are few in the British foreign policy establishment who really know the place. Some British military officers know a few Indonesian counterparts through their time at Sandhurst and the Defence Academy. The human rights lobby grew familiar with Indonesia over years of protests against the Sukarno/Suharto dictatorships and the country’s mistreatment of East Timor. But, on the whole,

Ten things you need to know about the welfare White Paper

I’ve sifted through yesterday’s welfare White Paper, and thought CoffeeHousers might appreciate a ten-point guide to its contents. This is by no means the entire picture – and some of it will be familiar from past Coffee House posts – but hopefully it should capture the broad sweep of IDS’s reforms: 1) The problem. Fundamentally, the issue is that there are a lot of people stuck on out-of-work benefits: around 5 million at the last count. This means different things for different groups. For the Treasury and taxpayers it contributes towards an unwieldy working-age welfare budget that has increased by 45 percent, in real terms, over the past decade –

50p tax: the coalition’s most expensive policy

In my cover story for this week’s magazine, I say that the damage of the 50p tax, various bank levies and general banker-bashing is far greater than Osborne realises. Here are the top points I seek to make:   1. We may hate to admit it but the British tax base, and our chances of reducing the deficit, are heavily reliant on a handful of very rich people. The highest-paid 1 percent will generate 23 percent of income tax collected in the UK in the year before the 50p tax (see the table below). And spot the correlation between the top tax rate, and the burden shouldered by the richest

A considerable achievement

This morning’s welfare event was one of the great “Who’da thunk it?” moments of this government so far. Here we had the Lib Dem leader providing backing vocals for a former Tory leader who has not only become a minister, but who is implementing an agenda that only a few months ago was little more than an idea in a think-tank report. Reviewing that Centre for Social Justice report for Coffee House at the time, I said it deserved to influence welfare policy for years to come. Now, it looks as though it will do just that. The immensity of Iain Duncan Smith’s achievement should not be underestimated. No doubt,

The Lib Dems are spared by idiotic students

The violence at today’s student protest is, politically, a boon to the coalition. The story now is not the Lib Dems breaking their word but the storming of Millbank. The violence will also have cost the no-fees cause much public sympathy, we don’t like attempts at aggressive direct action in this country. There are questions that need to be answered after today, why were the cops so unprepared for the protest turning violent? I crossed through the protest at lunchtime and then it was quite clear that there was potential for trouble. I’m also bemused as to why it is taking so long to put a stop to the violence

Lloyd Evans

Cheating on the students

Writhe, squirm, cringe and cower. The Commons wanted to inflict ritual punishments on Nick Clegg today for his broken pledges on student fees. The plan nearly succeeded. With Cameron in China, (finding out what happened to our manufacturing base), Clegg took his place at the dispatch box opposite Harriet Harman.    Long practice has given Harman some skill, and even self-possession, at the dispatch box. She had an exceptionally easy target today. As she stood up to give Slick Nick a roasting, the streets around parliament were swelling with angry university-goers waving photos of Clegg signing his fateful election pledge on fees. The LibDem manifesto was being burned in public.

The politics of the student protests

The student protests really are throwing up some extraordinary images. Who’d have thought that they’d end up smashing their way in to the lobby of Tory HQ, setting fire to placards, hurling bricks and other objects – and all as news helicopters buzz insistently overhead? It’s not Paris ’68, but it’s certainly not traditional British reserve either. I’d be tempted to say that this is the fury of a generation which, as I’ve written before, has generally been excluded from the political conversation – if, like Iain Dale, I didn’t suspect that this demonstration had been overtaken by a bunch of dubious fringe groups. So, instead, I’ll refer CoffeeHousers to

PMQs live blog | 10 November 2010

VERDICT: Earlier today, I wrote that the coalition “has few better defenders of its cause than Nick Clegg”. You wouldn’t have guessed it from this PMQs performance. Harman had him on the back foot over tuition fees from the off, and he struggled to give concise, clear answers in return. A pity, because Clegg is right when he says that the coalition has a better policy than Labour’s messy graduate tax – yet there was too much waffle, and too little directness, from him today. The deputy Prime Minister was better when he blazed with anger over Labour’s hypocrisy. But, on the whole, this was a bout to cheer the

Time for Sir Humphrey to retire

The British government is 99.9999999 percent staffed by apolitical Civil Servants with the statistically irrelevant remainder being political appointees. The Sir Humphreys, rather than being pushed around, are very much in charge. Too much in charge. Ministers get only two Special Advisers – or SpAds – each who are placed away from the Minister’s office and in the beginning of the Government’s term often had to fight to even join meetings with their bosses. Some are knowledgeable experts other researchers with little experience beyond a few years in an MPs office. In what looks like a partisan broadcast from Cabinet Secretary Gus O’Donnell, Rachel Sylvester in The Times (£) says

The new welfare consensus

The New Statesman’s George Eaton has already homed in on the key passage from James Purnell’s article in the Times (£) today, but it’s worth repeating here. According to the former welfare minister, he pitched something like Iain Duncan Smith’s Universal Credit to Gordon Brown, and the reception it received catalysed his departure from government: “Before I resigned from the Cabinet, I proposed a similar plan to Mr Brown. But he was scared that there would be losers, and his refusal to give me any answer made me think that there was no point in staying inside the Government to try to influence him.” This is of more than simple

Delay in Oldham is good news for the coalition

The longer we go before a date is set for the Oldham East and Saddleworth general election rerun, the better it is for the coalition. This delay allows the Tories to give the Lib Dems a head start; Nick Clegg’s party can pour resources into the seat while the Tories do very little until a date is set. There will be a Tory candidate in this election, but I doubt that a Tory victory would be a cause for celebration at CCHQ or in Number 10. The Tory leadership knows that a bad result for the Lib Dems would make their coalition partners jumpy and make it harder for the

Apocalypse soon

Writing in the Irish Times, Morgan Kelly has denigrated the Irish government’s handling of the economy. Comparisons are often counter-factual – Irish politics is not divided along lines of left and right, and the Celtic Tiger was made of tissue paper. But, to English readers – servicing a colossal national debt with their punitive tax bills, facing crumbling house prices, waiting for the moment when mortgages become beyond the reach of all but the cash rich, and encumbered with billions in worthless global bank assets – it is a truly terrifying read. I urge CoffeeHousers’ to read the whole piece, but here is its essence: ‘By next year Ireland will

Gove the bully?

There has been a telling development in the resistance against ‘free schools’ this morning. The Evening Standard reports that Brian Lloyd, the headmaster of a school in Bromley, claims he is being ‘bullied’ by Michael Gove into adopting academy status. In a matter of weeks then, Gove has morphed from ‘miserable pipsqueak’ into Judd Nelson in The Breakfast Club – an odd transformation even in caricature. But depicting Gove’s schools revolution as the agent of draconian central government is a cunning ploy by local education establishments.   However, test Lloyd’s case and the real picture emerges. Hundreds of parents have contacted the Harris Federation, an academy provider, to terminate Lloyd’s

Transparency is only half of the accountability story

And the word of the day is … accountability. Or at least it’s the guiding ideal behind these departmental business plans that the government is releasing. When David Cameron introduces them later he will call it a “new system of democratic accountability”. The idea is that, if we know what each department is tasked with achieving, we can praise them should they succeed – or attack them when they fail. Which is all very heartening. The Tories, in particular, came to power promising to lift the bonnet on the engine of Whitehall – and they are doing just that. But transparency is only one half of the accountability story. The

The Archbishop’s attack

The Archbishop of Canterbury’s intervention in the welfare debate isn’t going to change anyone views of the politics of the Church of England’s hierarchy. But what struck me was how even Archbishop is now using fair as shorthand for moral and right. IDS’ proposals do strike me as fair. They both offer long-term claimants a way to return to the routines and disciplines of a job while also creating an appropriate level of pressure to find work. One fascinating thing to watch is how often the Archbishop will speak out explicitly against government policies. Are we heading for a re-run of the 80s and all the controversies caused by Faith