Liberal democrats

Some day soon – unless the coalition has already lost its bottle – a bill will be introduced to ‘part-privatise’ Royal Mail. It has to be done. But it will be a tough sell, for four reasons. First, the market for the Royal Mail’s product is shrinking. It’s a big fish, but its pool is getting smaller. It carries 75 million letters a day, but that’s down by 10 million just in the last five years. And 87 percent is mail sent by businesses. Apart from Christmas cards, the rest of us now correspond by email. Last year’s pre-tax loss was £262m: the reality is that the business is insolvent.

MPs are back today from their long summer recess, and the Political and Constitutional Reform Bill is right at the top of the agenda. This is likely to dominate politics for the immediate future, since it might have profound effects on how politics in this country operates.   The Bill combines two different reforms in one package – the referendum on changing the electoral system to the Alternative Vote (AV) and reducing and equalising constituencies. These two issues address what Nick Clegg has called the “deep unfairness” in the electoral system. This unfairness is exemplified by the last two elections: Labour won a majority of 66 with a vote share

Curious times, getting curiouser, for Nick Clegg. The Lib Dem leader might have thought that bringing his party into government would ensure him a triumphant reception at their conference in two weeks. But, instead, he faces a number of stories that could unsettle proceedings. Today, we hear that more Liberal Democrat councillors have resigned in what they claim is protest at the cuts being implemented by central government. What’s more, a number of Lib Dem figures have added their voices to the general cacophony surrounding Andy Coulson. And that’s before we consider the underlying, but most urgent, threat to the stability of the coalition: the Lib Dems’ spluttering poll position.

The ever-pugnacious Ed Balls was on the Today Programme this morning denouncing Tony Blair for saying that the coalition was, broadly, right in its deficit reduction plans. As Balls warmed to his task, he started reeling off Blair’s failings—his advocacy of entry into the euro, his one-sided account of things in his autobiography and the like— and I wondered: if this is his opinion of the man he called Labour’s greatest ever-leader, what on earth does he think of the other men who have led the party?   But in all seriousness, the coalition needs to start hitting back at the ‘growth denier’ charge that Balls keeps hurling at them.

On Monday, I wrote that the question of whether the Budget is fair or not will “pursue the coalition more doggedly than any other”. Yesterday, we saw just how dogged that pursuit will be. But there’s no need for the coalition to panic as Mark Hoban did on the Today Programme yesterday. Instead, with policies from welfare reform to low taxes for low-income earners, they have built a firm redoubt from which to stage a counterattack. They can put the chase to their opponents. It is encouraging to see Nick Clegg do just that with an effective article in the FT today. He was bluntly dismissive of the IFS report

Nick Clegg is eviscerated by this morning’s press. The Independent, The FT and The Guardian gleefully report that the influential IFS has decreed the Budget (supposedly a model of fairness according to Clegg) to be regressive, that there is discontent fomenting on the Lib Dem benches and that the latest polls place Lib Dem support at 12 percent. None of this is news. The IFS is reiterating what it argued on Budget day: Osborne’s measures will hit the poorest in 2014-15. That is still some way off and action can be taken to lessen their impact. Besides, the coalition should have delivered its promise to raise the income tax threshold

The birth of the Cameron’s baby daughter is, obviously, wonderful news for the Cameron family. All the political chatter around it is, frankly, irrelevant compared to the happiness that they must be feeling.   But I do hope that David Cameron does take paternity leave. The Tories have talked a lot about making Britain the ‘most family friendly country in Europe’ and the PM taking paternity leave would be a good ‘nudge’ to employers and prospective fathers alike. One other timing issue worth noting is whether Cameron now goes to the UN summit in New York on the millennium development goals. The summit overlaps with Lib Dem conference but Clegg

A week ago, I wrote that Nick Clegg had an important couple of weeks ahead of him. Now, the next couple of months are looking even more significant for the Lib Dem leader. An article in today’s Independent captures the tone of what faces him: in the aftermath of the Charles Kennedy defection talk, Lib Dems have been shocked into demanding more from their leader. As the paper puts it, senior Lib Dems are calling for “more policy ‘wins’ … to demonstrate to doubters in his party that he was delivering on Liberal Decocrat priorities.”  Clegg probably hasn’t faced such sustained internal pressure since he defeated Chris Huhne to the

The Sunday Times (£) has news that Nick Clegg will not front his party’s ‘Yes to AV’ campaign next May. This makes sense. The deluge of abuse he received in Bristol yesterday was another indication that many have fallen out love with Clegg. The Lib Dem leadership fear that if Clegg heads the campaign it will descend into a referendum on Clegg and his decision to form a coalition with the Tories. That will probably transpire in any event, especially if Labour opposes the introduction of AV, which it looks set to do. It makes sense to protect the embattled Lib Dem leader from as much collateral damage as possible.

Nick Clegg faced a stormy Q&A session this afternoon and he isn’t in David Cameron’s league as a performer. He struggled through tough questions on VAT, DfID, a transaction tax, AV and the appointment of Philip Green. His answers were garbled, though he did stick to the government’s script. There was, however, one particularly damaging exchange. Clegg was heckled by a man who thought the coalition ‘lacked a mandate for its rather brutal social policies’, and added that Clegg should get out of the coalition before it was ‘too late.’ Clegg’s response was limply pugilistic. ‘You’ve obviously got an axe to grind.” He went onto say “it’s not in my