Economy

The petition to get Iain Duncan Smith to live on £53/week has amassed more than 122,000 signatures. And counting, quickly. The petition was inspired by IDS remarking, on yesterday’s Today programme, that he could live on such a welfare settlement. The secretary of state could not have said anything else; yet these incidents always create media firestorms. The IDS blaze still burns this morning; but that may not unnerve the government: from its perspective, news bulletins devoted to IDS’ gait are preferable to those devoted to the vulnerable. After a gruelling, though not unsuccessful, 24 hours warring over welfare cuts, the government is mounting a flanking counter-attack. A scattering of economic

The leaders of both coalition parties are seeing ministerial colleagues and backbenchers trying to push them further way from the centre at present. Nick Clegg has Vince Cable continuing to push for what Ed Miliband might call ‘good borrowing’, telling the Today programme that he’d borrow to improve the economy, rather than to keep an inefficient economic model going. He said: ‘There’s borrowing for different reasons, and this was the point I was trying to make last week, that you can borrow simply to plug the hole in the deficit… The metaphor I’ve used which helps to explain it – there’s a difference between increasing your credit card in order

If you want to know what the Liberal Democrat’s message at the next election will be, read Nick Clegg’s speech to the party’s Spring Conference today. He kept to the refrain that the Liberal Democrats are for a stronger economy and a fairer society and you can’t trust the Tories with society or Labour with the economy. In a sign of the new, more disciplined Lib Dem machine there were no detours from this core theme. Listening to Clegg, you would have had no idea that the leadership had lost a vote on secret courts this morning. Clegg knows that his internal position hasn’t been this strong since the Liberal

Further to Isabel’s post this morning, I understand from a senior coalition source that the two parties have now reached an agreement on how to handle Tuesday’s vote on Labour’s mansion tax motion. The Liberal Democrat leadership has assured their coalition partners that they’ll back a government amendment to it. This amendment will concede that the coalition parties have different views on the issue. The only question now is whether the speaker John Bercow will call it. I suspect that this agreement has been helped by a desire to limit coalition tensions post-Eastleigh and pre-Budget. There is also reluctance on the part of the Liberal Democrats to get dragged into

So David Cameron says there is ‘no magic money tree’. In his big economy speech today, the Prime Minister said:  ‘Now of course there are plenty of people out there with different advice about how to fix our broken economy. Some say cut more and borrow less, others cut less and borrow more. Go faster. Go slower. Cut taxes. Put them up. We need to cut through all this and tell people some plain truths. So let me speak frankly and do just that. ‘There are some people who think we don’t have to take all these tough decisions to deal with our debts. They say that our focus on

Panic, once let loose, is hard to corral. And there seems to be plenty of panic on the Tory benches at Westminster. The Eastleigh by-election result, the stagnant economy and the rising sense that the Prime Minister has somehow lost his way all contribute to this. Each fresh setback – or perceived setback – now has an impact disproportionate to the actual size or importance of the problem. These things are no longer measured on a linear scale. Read, for instance, Ben Brogan’s analysis in today’s Telegraph and you will perceive an under-current of deep panic presently afflicting the Tory tribe in London. Similarly, when Paul Goodman is writing –

Jobs are being created in Britain, but the economy isn’t growing. In the last year, the number of people in work rose by 2 per cent, but economic output rose by just 0.3 per cent. As the below graph shows, employment is now 0.7 per cent above its pre-recession peak, whereas GDP is still 3 per cent below it. This adds up to a big drop in productivity. Output per worker is now 3.8 per cent below its 2008 Q1 level, and 13.3 per cent lower than it would be if the pre-recession trend had continued. In a piece for this week’s issue, The Spectator’s business editor Martin Vander Weyer

George Osborne spent an hour in front of the 1922 this evening. 40 Tory MPs took the opportunity to promote their own Budget ideas to him. From what I understand, the tone of the meeting was cordial with Osborne in relaxed form. A big theme was the cost of living with three MPs including Rob Halfon pushing the Chancellor on fuel duty. Osborne’s responses were non-committal but significantly he didn’t say that binning the fuel duty rise scheduled for September was unaffordable. Instead, a distinct vibe was given off that these MPs concerns would be accommodated. Two other MPs– Steve Brine and Henry Smith—made the case for a cut in