Conservative party

Low taxes work

I ration my writing about Sweden. As CoffeeHousers know, I can extol its virtues with room-emptying conviction. But it’s now a few days since its election, and as far as I can tell no English publication has told the extraordinary story of its conservative victory – and the economic turnaround driven by the largest tax cuts in Swedish history. It is now the fastest-growing economy in the West. I tell the story in the political column of this week’s magazine (subscribers, click here), but I will summarise it for CoffeeHousers here. Normally, conservatives are elected in Sweden as a kind of light relief, to punctuate decades of leftist rule. They’re

A salesman for the cuts

One of the biggest problems facing the coaltion has been presentational: how to sell the cuts? In the absence of a coherent, vigourous message, the Balls school of economic thought has been allowed to grease onto the scene – to the extent that some polls have three-quarters of respondents rejecting the government’s deficit reduction plan. But now, at last, signs that the coalition is getting into gear. It’s a process which began last week, when Matthew Hancock – a new Tory MP and former adviser to George Osborne – highlighted falling interest rates in Parliament (column 606, here); a point he has been pushing around Westminster ever since. And today

The trouble with Cable’s posturing

What are we to make of the fact that No.10 gave the thumbs-up to Vince Cable’s bizarre anti-capitalist rhetoric today? “Capitalism takes no prisoners and it kills competition where it can,” he fumed – and you can argue that, technically, he is paraphrasing Adam Smith. But he has been in politics long enough to know what signal his speech sent out (and the reaction it would trigger). Mood music counts for a lot in politics, and in business. And the mood music from this government sounds like a bunch of politicians happy to tax the bejesus out of the high-paid – regarding them as ATM machines to be raided, rather

James Forsyth

Vince’s land tax land grab

There was one notable bit of kite flying in Vince Cable’s speech earlier, an indication that he wants the next Liberal Democrat manifesto to contain a commitment to a land tax. This would give the party a distinctive policy going into the next election. With the proceeds of a land tax, they could abolish stamp duty and still have a lot of fiscal wriggle room allowing it to propose increasing the income tax threshold or spending more on certain public services. There’s already work going on in Lib Dem circles on how to model a land tax and to find how much revenue it would raise.  Here’s the key section

All so predictable from Cable

If Vince Cable has achieved anything, it’s to enliven a Lib Dem conference that had settled into cosy anonymity after Clegg’s speech on Monday. He has now delivered the address that David blogged about earlier – and all of the firebrand passages trailed in this morning’s papers were present and correct. “Capitalism,” Cable warned, “kills competition where it can.” And he followed that lead to kick the bankers where he could. In between passages extolling the virtues of “pro business, pro market” policy, he set about the “spiv and gamblers” who had triggered the financial crisis. To be honest, though, I find it hard to get too worked up about this. Sure,

James Forsyth

Lib Dem activists less than gleeful about the coalition

Last night, Liberal Democrats gathered for their traditional conference glee club. It is a light-hearted occasion with lots of communal singing and jokes. But some of the gags did seem to vocalise a certain unease about the coalition.   There was a very lusty rendition of a song that went like this, to the tune of The Twelve Days of Christmas: On the first day of coalition The Tories gave to me A referendum on AV On the second day of merger The Tories gave to me Absolutely zilch And a referendum on AV On the third day of coalition The Tories gave to me Sweet FA Absolutely zilch And

Whither the Lib Dems?

A striking aspect of the Liberal Democrat conference is how discussion of cooperation with Labour takes place in public while talk of any future work with their current coalition partner happens in private. Tonight, Paddy Ashdown told an Observer fringe meeting that the Liberal Democrats’ long-term goal should still be to become the dominant party of the centre-left in Britain. I must admit that I struggle to see how this is possible. The steps that the coalition needs to take to deal with what Nick Clegg calls the ‘invisible crisis’ of the deficit will alienate the party from the centre left. But then again, as one liberal Liberal Democrat said

Hughes retracts his claws (for now)

Few observers would have expected Simon Hughes to tear into the coalition with full force in his speech today. The mood in Liverpool is geared towards support, not destruction. But the deputy Lib Dem leader’s effusiveness was still fairly surprising. He reassured the audience that he is a “rock solid supporter of the coalition – which our party has democratically agreed will last for five years”. He echoed one of Clegg’s central messages from yesterday, saying that “when you move from the touchline to the pitch, there is a risk you may get some knocks and pick up a few bruises – but on the touchline you never get the

Why David Miliband is the most dangerous candidate for the coalition

Now how’s this for an opinion? Writing for Labour Uncut, Dan Hodges announces that David Miliband has won the Labour leadership contest. His piece starts: “This Saturday David Miliband will become leader of the Labour party. He will have won a majority of his Parliamentary colleagues and the wider membership, along with sufficient support from unions and other affiliates to secure not just victory but  an overwhelming mandate. The New Labour era will be over.” To most other observers, myself included, it still looks too close to call. But the more I think about it, the more I feel that David Miliband is best equipped to win this contest. If

Is Laws writing himself out of a return to government?

A noteworthy snippet in Andrew Pierce’s column this morning: “[David Laws] is hard at work on a book. The title – 22 Days In May – is hardly likely to set pulses racing, but the book will be the first insider account of the negotiations which led to the coalition. Laws is also planning to cover the early days of the Government – days which, of course, include his downfall.” Not that this would completely scupper his colleagues’ plans to draft Laws back into government, of course. But, as we’ve seen with the spate of New Labour memoirs, insiders’ accounts do tend to wait until the insider has left government

Clegg’s little bit of political S&M

Nick Clegg is making life horribly difficult for those of us on the right who spent the last few things portraying him as a figure of fun. He is now delivering the best speeches of anyone in the Cabinet, characterised by a quiet sense of urgency and direction. He’s in the business of making the case for cuts. He spoke to a party that spent much of the last decade attacking Labour from the left. For those delegates, it was a little bit of political S&M. It must have hurt – but they liked it. “We haven’t changed our liberal values,” he said – and then went on justifying Conservative

James Forsyth

Clegg speaks to the hall

Nick Clegg chose to speak to his party not the country today. His address was a justification of his decision to go into government with the Tories and a plea for his party to stick together over the next five, difficult years.   The crucial bit of the speech came when Clegg said of his party ‘maybe we got used to [being against every government that came along] ourselves’ but ‘imagine if we had turned away. How could we ever again have asked the voters to take us seriously?’ Clegg’s point was that opposition was not an option and ‘this country could not have borne five more years of Labour’.

Clegg shades the coalition yellow for his Lib Dem audience

It’s hard to know quite what to make of Nick Clegg’s speech just now. It never really soared as a piece of oration, but he skipped quite expertly across all the issues that might concern, delight and enliven a Lib Dem audience. And so we heard about how much the Lib Dems are contributing towards government; about how the cuts are a prerequisite for fairness; and about how the party will maintain its independence. On the whole, this was coalition politics shaded yellow. But Clegg managed to drop in a few unadulterated sweeteners for his audience – including a dig at the “still illegal” Iraq War. The overall response was warmer than he

Slapping down the pact

Here’s one of the most striking leitmotifs of the Lib Dem conference: how party figures are rushing to slap down talk of an electoral pact between themselves and the Tories. Vince Cable was at it yesterday, writing in the Independent on Sunday that: “Our parties remain totally independent and will compete in future national and local elections.” And Nick Clegg is expected to repeat that message, with even less equivocation, in his speech today. To some extent, this isn’t surprising. The Lib Dems could hardly go around beating the drum for a pact, some five years before polling day. But the 100 percent certainty of their denials still jars with

Live-blogging from the fringe: “Whose schools are they anyway?”

So where will the tension be at the Lib Dem conference? Easy: the free schools agenda. Clegg backs it, and when David Laws took over the agenda he backed Gove’s market-based reform. But the teaching unions are in a fight to the death against it. The Gove agenda would put power in the hands of parents, whereas it currently rests with unions and local authorities. The latter two have beaten everyone who has spoken about reform, from Callaghan to Thatcher to Blair. But Gove represents an existential threat. Luckily he is in coalition with the Lib Dem MPs, with whom both unions and local authorities have massive influence. The NUT

The Lib Dems’ Scottish question

If you’re looking for a spot of LibCon strife that might actually mean something, then how about Tavish Scott’s interview in Scotland on Sunday? Judging by what he says about David Cameron, the leader of the Scottish Lib Dems clearly isn’t one for coalition niceties: “I suspect that (David Cameron) doesn’t even think about Scotland. It is not even remotely on his radar screen. He has a Scottish Secretary, and that’s that.” With the Scottish general elections drifting into view, there’s little doubt that Scott is dissociating his Lib Dems from a Tory party that is unpopular and – as Alex has frequently noted – inept north of Carlisle. But

James Forsyth

Alexander’s arguments

Danny Alexander’s announcement of a £900 million clampdown on tax avoidance, evasion and fraud is designed to reassure Lib Dems that the coalition’s policies are fair, that it isn’t balancing the budget on the backs of the poor. In a deliberate echo of George Osborne’s comments about welfare, Alexander said that the years when people could treat tax avoidance and evasion as a “lifestyle choice” were over. This Alexander announcement is a preview of what we’re going to see at this conference, a series of sweetners to show the party that the Liberal Democrats are influencing government policy. But Alexander also tried to gird the party for the challenges ahead,

Fraser Nelson

How I learned to stop worrying and rate Nick Clegg

If Nick Clegg was a weak-willed, crowd-pleasing charlatan the the front page of yesterday’s Independent would not have read “Clegg: there is no future for the Lib Dems as a left party”. Turning up to a Lib Dem conference and saying there’s no point in being a party of lefty protesters is like William Shatner telling delegates at a Star Trek convention to “get a life”. He wants them to be a mature party of reform – many of them prefer to throw stones. His stance at conference is certainly courageous. And it fits a theme. For weeks now, Clegg has been surprising those (myself included) who did not take

Votes and jokes at the Lib Dem conference

The pro AV rally at Lib Dem conference demonstrated the problem with the AV campaign: they don’t think it is the best system. Pam Giddy, chair of Yes! To Fairer Votes, described it as “a small but important upgrade to our electoral system”; hardly the most inspiring campaign slogan. The Lib Dem MP Jo Swinson declared that “in an ideal world … there’d be a majority for STV”. Nick Clegg received a standing ovation and his speech went down well. He joked that one benefit of being in coalition with the Tories was “that he could no longer be accused of being the poshest man in the room” and that