George osborne

Scottish independence by numbers

It’s far from the first poll on Scottish independence in recent years, or even in recent days, but YouGov’s effort for Channel4 this evening contains some noteworthy findings nonetheless. What is does is replicate the conditions that — for the reasons that Peter Kellner explains in a very useful blog post here — Alex Salmond would like in 2014. Which means two questions, one after the other. First, status quo or ‘devo-max’? Second, status quo or full independence? And the results? By YouGov’s count, 58 per cent of people are in favour of ‘devo-max’ for the first question, with 42 per cent against. And, for the second question, 39 per

Osborne visits China, but can’t escape Europe

Yet another day here in Westminster that’s all about the economy. Nick Clegg has just delivered a speech on the subject to Mansion House, focusing on ‘responsible capitalism’, which we’ll blog shortly. And two prominent forecasting groups, the Ernst & Young ITEM Club and the Centre for Economic and Business Research, have suggested that we’re effectively back in recession. They both reckon that the economy shrank in the final quarter of last year, and is wilting even further in this current quarter. But, like the OECD, they also predict that this ‘double dip’ will be relatively short-lived and relatively mild. Against that backdrop, enter George Osborne. The Chancellor spoke from

Labour’s new strategy in the cuts blame game

Even as Ed Balls embraces the need for austerity today, he takes a very different position to the coalition on why it’s necessary. The government has always blamed the need for cuts on the ‘awful economic inheritance’ bequeathed it by Labour. Balls, on the other hand, puts the blame squarely at George Osborne’s door. In his Fabian Society speech, he said: ‘George Osborne’s economic mistakes mean more difficult decisions on tax, spending and pay.’ His argument is that, by cutting ‘too far and too fast’, the coalition has caused the economy to stagnate and thereby created the need for more austerity. Labour has, of course, long been trying to shift

James Forsyth

Simon Hughes speaks out against the benefit cap

In the Cameroon effort to redefine the politics of fairness, the benefit cap of £26,000 a year is key. When George Osborne announced it in his 2010 conference speech, he explained it – rightly – as a matter of fairness that ‘no family on out-of-work benefits will get more than the average family gets by going out to work’.   The Tories were also aware of just how potent a wedge issue it would be. If Labour opposed the cap, they would be in favour of some households in which no one is working receiving more from the state than the average salary people achieve by working. This is, to

Balls’ attempt at credibility falls short

‘I must be responsible and credible in what I say.’ No, it’s not Bart Simpson writing on the blackboard at the start of The Simpsons, although it may have been said with just as little enthusiasm. It’s Ed Balls on the Today programme this morning, explaining his decision to endorse George Osborne’s public sector pay freeze. Balls’ interview in today’s Guardian is his biggest effort so far to sound ‘responsible and credible’ on the economy. His admission that ‘we can make no commitments to reverse any of [the cuts], on spending or on tax’ is nothing new – in his September conference speech he said ‘no matter how much we

Osborne sparks the unionists’ fightback

Edinburgh It became clear last night why George Osborne was put in charge of the Coalition Government’s fightback against Alex Salmond and separatism: he is the only one who has the ability to really score points off the Nats. The Chancellor’s intervention on currency and bank notes – suggesting that an independent Scotland might not be able to keep the pound and that, if it did, it might be banned from producing Scottish bank notes – hit the SNP hard. Osborne’s remarks shook one of those comfortable certainties which the SNP has been peddling for so long – that Scotland would simply keep sterling after independence and everything would progress

Osborne the Unionist

There’s much chatter in Westminster today about the fact that George Osborne is chairing the Cabinet committee on Scotland. Osborne is, of course, the Conservatives’ chief electoral strategist as well as the Chancellor of Exchequer. This has led to some suggestions that he wouldn’t be too upset by a referendum defeat that would make it an awful lot easier for the Tories to win a majority at Westminster. This is unfair: Osborne is a Unionist. What those around Osborne have long been interested in is the option that the coalition seems to be ruling out: fiscal autonomy. The circle around Osborne have long believed that it is only when Scottish

Cameron’s fairness agenda

The politics of the ‘undeserving rich’ is again dominating the news this morning. David Cameron tells the Sunday Telegraph that ‘The market for top people isn’t working, it needs to be sorted out’. While the Mail on Sunday reports that George Osborne is planning to create a new criminal offence of ‘criminal negligence’ that could be used against those bankers who endanger the financial system. Perhaps the most significant aspect of Cameron’s Sunday Telegraph interview, though, is his attempt to redefine ‘fairness’. Cameron has tried to do this before, arguing that it isn’t just about redistribution but about people getting out what they put in. As Matt d’Ancona notes, this

The cross-party talks that may test the coalition

Whenever politicians talk about social care, they tend to promise ‘cross-party talks’. It’s their little euphemism for ‘we don’t want to commit to a policy by ourselves.’ Don’t get them wrong, it’s not that they don’t have ideas for fixing a system that is straining under the weight of an ageing population; the Dilnot report, released earlier this year, gave them plenty of recommendations to work with. It’s just that they don’t want to be the ones to implement the tax hikes or spending cuts that will be necessary to fund it. If they can talk it through with the other parties — the thinking goes — then this crucial

Miliband’s New Year message: The same, but different

Well, folks, the 2012 model of Ed Miliband looks and sounds rather like the unfancied 2011 model. Just compare the New Year message that he released today with the one that he issued a year ago; the similarities are plenty. His main argument this year is that the Tories are the party of gloom — resigned to years of stagnancy, unemployment, pestilence, etc — whereas Labour are the party of a bright new future, there to show that ‘optimism can defeat despair’. Or, as he put it at the end of last year, ‘Even in these tough times, we must keep the flame of optimism burning.’ There are some differences, though.

A sliver of Christmas comfort for George Osborne

There’s some rare good news for the government in today’s public finance statistics. Public sector net borrowing in November is estimated at £18.1 billion, down from £20.4 billion last year. This means that total borrowing for the first eight months of this financial year is £88.3 billion, down 11 per cent on last year. That’s lower than expected, and puts us on target to undershoot the OBR’s forecast of £127 billion in 2011-12. That’d be a relief for the coalition, after Labour hit them hard when the OBR upped their borrowing forecasts last month. But this deficit reduction cannot be put down to spending restraint in Whitehall. In fact, central

Another fine mess at HMRC

Today’s report by the Public Accounts Committee hasn’t so much been released as detonated onto the Westminster scene. The Exchequer is owed around £25 billion, it suggests, from major companies that have been handled too leniently, or just plain wrongly, by HM Revenue & Customs. And much of the blame is attached to Dave Hartnett, the outgoing civil servant in charge of revenue collection. Interviewed on the Today Programme earlier, the chair of the committee, Margaret Hodge, implied that Hartnett had too ‘cosy’ a relationship with big business. She went on to add that, ‘you’re left feeling that the sort of deals that are made with big business — “sweetheart”

Obsorne’s banking reforms are only the start of a solution

‘The most far-reaching reforms of British banking in modern history.’ That’s how George Osborne called it in Parliament this afternoon, in a statement that contained few surprises. What the government’s doing, in large part, is to follow exactly the recommendations contained in September’s Vickers Report. But is that really as far-reaching, or as radical, as the Chancellor would have us believe?   Certainly, many of these reforms are encouraging: measures such as ‘bail-ins’ and ‘living wills’ should facilitate the orderly winding-up of insolvent institutions, and reduce the necessity for taxpayer bailouts. But other parts of the government’s reform package are less convincing. For instance, additional capital buffers and reductions in

Clegg sets out his stall for 2012

Under cover of discussing the Open Society and its enemies, Nick Clegg today set out his personal agenda for the next year of this government. Indeed, Clegg’s speech to Demos earlier was perhaps the purest distillation of his politics since the big set-piece number he delivered at the Lib Dem conference in 2008. It contained many of the same themes as that earlier speech: ‘social mobility’, ‘civil liberties’, and ‘democracy’. And it added a couple more for good measure: ‘political pluralism’ and ‘internationalism’. The Deputy Prime Minister described these five political impulses as ‘the source of my liberalism’. As for the specifics, there was Tory-baiting to be found in Clegg’s

The coalition tees up its banking reforms

That was easy. Only a few months after Sir John Vickers released his final recommendations for reforming the banking sector — and after much less intra-coalition struggle than we might have expected — the government is set to announce that it will adopt them ‘in full’. Vince Cable revealed yesterday that he and George Osborne have reached common agreement on the matter. And, for his part, Osborne will appear before MPs today with further details.  As Robert Peston has already explained, ‘in full’, in this case, doesn’t quite mean 100 per cent — but it’s close. The main proposal to ringfence retail banking off from riskier investment banking will be

The growth script still needs writing

The Times is being a bit harsh on Cameron in its leader this morning. ‘On the economy’, it says, ‘Cameron has contracted out policy to George Osborne and then followed the usual (although not invariable) practice of postwar prime ministers of supporting his Chancellor’s decisions. But he has not added to this a convincing contribution of his own.’ Yes, Cameron has not done very well articulating his government’s growth policy. I’ve also noticed that he is not much good at describing the Loch Ness Monster and for the same reason. Unconfirmed rumours of its existence whirl around now and again. Grainy photos of something supposed to be a UK growth

Cameron targets his resources at problem families

The Prime Minister’s message today is, basically, that he hasn’t forgotten about the riots. In a speech this morning, he’s going to announce his biggest new policy in response to them so far: a network of ‘troubleshooters’ who will work with 120,000 of the country’s most unstable families, with the aim, of course, of stabilising them. The idea is that the troubleshooters can help coordinate various services — from police to Job Centres –— to focus on these people. According to the Sun, the families will, in turn, face ‘tough penalties’ if they don’t cooperate. Some of you may be wary of this scheme — and it’s easy to see

Lansley stakes his claim on the post-2015 budget

Look slightly to the left, CoffeeHousers, and what you’ll see is the cover image to this week’s Christmas double issue of The Spectator — a brilliant send-up of Bruegel’s ‘The Hunters in the Snow’ by Peter Brookes. You’re now able to buy your own copy, but we thought we’d pull out an intriguing little snippet from James Forsyth’s interview with Andrew Lansley, by way of a taster. The Health Secretary, it seems, isn’t just determined to see health spending rise in real terms in this parliament, but beyond that too: ‘I ask him whether, despite the ramifications of the autumn statement, the NHS budget will still be immune from cuts.

The government’s Sarkozy problem (and other euro dilemmas)

This week’s European Council meeting has been analysed by diplomats and commentators alike, but a number of issues have not been brought out as clearly as they need to be. The first is that Britain will now achieve political advantage, at the cost of economic setback, if the euro collapses. Although the government insists both that it is still wedded to the success of the euro and that it will not be isolated in Europe now or in the future, the simple fact is that eurofailure will ensure that efforts to organise among the 26, rather than the full 27, will finish. The economic costs would be considerable — possibly

The sort of influence we can live without

David Cameron’s decision, in the wee hours of Friday morning, to make clear that he would veto the proposed treaty change will have many far-reaching effects. One is that other European leaders know that Cameron is prepared to follow through on a threat to veto. As Charles Moore says in The Telegraph today, the dynamic that has existed throughout this country’s participation in the European project — that “Britain huffs and puffs, but always agrees in the end” — has now changed. This morning, those close to the Tory leadership were pointing out that a Cameron threat to, for example, veto the budget next year will be taken far more