Liberal democrats

The Budget: compromise and non-compromise

It’s hard to overestimate the significance of Tuesday’s Budget. George Osborne’s statement won’t just determine the course of our economy for the next few years, but also the political life of this government. Spending cuts and tax rises may not inevitably “fracture the coalition,” as Peter Oborne puts it in the Mail today. But they certainly have the potential to. Happily for the coalition, the current political mood is so geared towards fiscal restraint that there will be little immediate opposition to Osborne’s general plans.  That will come once the effects of spending cuts are felt in individual constituencies  – months, even years, down the line. But there are a

The coalition is edging the public spending debate

Danny Alexander acquitted himself effectively this morning. The restructuring of government spending has gone beyond bland clichés about ‘efficiencies’; with care, the government is dismantling Labour’s unfunded spending projects. £8.5bn in unfunded projects signed-off since 1 January 2010 are on a stay of execution until the autumn; £1bn of unfunded projects signed-off before 1 January 2010 are also on their way to the block. £2bn will be saved almost immediately with the cancellation of the 2 year jobseekers’ guarantee, the young person’s guarantee, CLG regional leader board, the local authority business growth incentive and the county sports partnerships. Controversially, the government has also cancelled the Sheffield Forgemasters’ fund and the

Osborne gets upfront about our debt burden

A couple of weeks on holiday, and there’s plenty to catch up on.  First, though, George Osborne’s speech to Mansion House yesterday evening.  In terms of substance, it was fairly radical stuff.  And it’s encouraging that so many of the Tories’ solid plans for reforming the financial regulatory system have survived the coalition process.  But, really, it was one simple, little sentence which jumped out at me.  This: “Debt [is] set to still rise even at the end of this five year Parliament.” “So what?” you may be thinking, “we knew that already.”  Ah, yes, but we’ve rarely heard a politician be quite so upfront about our debt position before

Of Pigs and Cucumbers

Pleased to be back in Blighty and pleased too to see that the Economist has launched Johnson, a blog about language and politics. From the most recent entry: Germany has a cranky coalition government and garrulous politicians, and so conditions are good for political insults. In one intramural fight a health ministry official from the liberal FDP likened the CSU—Bavarian conservatives—to a Wildsau, or wild pig, for its rough handling of the liberals’ health-reform ideas. But the better insult was the riposte by the CSU man, who called the liberals a Gurkentruppe, literally a troop of cucumbers. Anglophone journalists have been puzzling over how to turn this into recognisable English.

How Hughes will play the coalition

Simon Hughes is an experienced campaigner, whose reputation is deservedly blemished by a handful of duplicities – Peter Tatchell, denying a referendum on the Lisbon Treaty and the like. Hughes has just appeared on the Daily Politics and, very subtly, split the Lib Dems from the Tories. It was very simple: the Tories are responsible for all that’s bad and the Liberal Democrats are benevolent. First, Hughes dissociated the Liberals from tax rises: “I hope that the chancellor’s hearing the voices that says VAT is not the right tax to change in the budget next week.” Those voices are, of course, his ‘colleagues in the Treasury’ – an enlightened check

Seeing it through

David Cameron’s address to the House contained no surprises. NATO and its allies are 6 months into a strategy to stabilise Afghanistan. All sides of the House were agreed that Britain should fulfil its commitments, but remain in Afghanistan not a day longer than necessary. That date is unknown. Like Blair and Brown before him, Cameron aspires to ‘improve Afghan security’. ‘Stability’ surely means the expulsion of al Qaeda from Afghanistan. How likely is that without the complete co-operation of the Taliban? (At what cost would that be secured?) And, as Julian Lewis MP pointed out, is al Qaeda more dangerous in Afghanistan than it is The Yemen, Somalia or

Hughes pushes Lib Dems into the mix on tuition fees

The first Sunday of the World Cup is predictably quiet on the political front. But Simon Hughes’ comments this morning about tuition fees are worth noting. Hughes said “So to me the big task is to make sure the moment that Lord Browne publishes his report in the Autumn the Liberal Democrat case is entered into the mix. That we talk to Vince Cable, who’s the minster and my very good friend and colleague, and David Willetts, and we make sure the government understands that there may well be ways of finding the money universities need, and they need it, without penalising students from disadvantaged background. I think that circle

Hain: the Liberals demanded that we cut now

Andrew Neil interviews Peter Hain for this week’s BBC Straight Talk. Mastering the obvious, Hain argues that Duffygate cost Labour dear: ‘PH:  The damaging incident of course was the Duffygate incident. AN:  In Rochdale, the old aged pensioner? PH:  In Rochdale, and that had a palpable effect.  I think we were just beginning to get a bit of traction – not necessarily to win but possibly to be the biggest party in the election – and that was a real hammer blow, and everybody knew it. AN:  You really think that affected the public’s perception of the then Prime Minister? PH:  I do, because I think people had started, not

Simon Hughes elected Lib Dem deputy leader

As expected Simon Hughes, has won the race to be Lib Dem deputy leader, congratulations. Both candidates pledged to assert the party’s independence within the context of supporting the coalition. Hughes intends to appoint Lib Dem spokesmen for all government departments to improve accountability in parliament. A renowned left-winger, Hughes’s inclination must run contrary to the Conservative dominated coalition, and I wonder how he will take Patrick Wintour’s news that the coalition is beginning to act as one politically, mastering a strategy to deflect Labour’s political assaults. Unquestionably, Hughes poses a potential threat to the coalition, but there is enough to suggest that even on the most divisive issues, such as

A day of elections at Westminster

By the end of the day, we will know the identity of the Liberal Democrat Deputy Leader and the chairmen of Select Committees as well as a sense of the shape of the Labour leadership contest. The races for the Select Committees are a mix of near certainties and unknown quantities. Keith Vaz is expected to return to the chair of the Home Affairs Committee. Michael Fallon is understood to have the backing of the members of the Treasury Select Committee, whilst his rival Andrew Tyrie is in with a shout of winning the cross party vote. The leadership races are clear cut. Simon Hughes’ team have briefed that their

Nats go nuclear on the Lib Dems

The Scottish and Welsh Nationalists have managed to prompt the first Commons vote where one of the governing parties has to vote against its own manifesto. They have put down an amendment calling for Trident to be included in the SDR, which will be voted on at 10pm tonight. The Lib Dem manifesto commits the party to ‘Saying no to the like for like replacement of the Trident nuclear weapons system, which could cost £100 billion. We will hold a full defence review to establish the best alternative for Britain’s future security.’ But the Coalition agreement states that the government will keep Britain’s nuclear deterent and says that the renewal

D-Day (plus one)

Cuts are here. The most important news of the weekend was the G20’s official backing for spending cuts. It was a significant volte face, and doubtless the sight of violent uprisings in Greece concentrated minds. Finally, George Osborne has been vindicated; but having convinced finance ministers, he must now carry the coalition and the country with him. The first thing to do is ignore Nick Clegg and his claim that cuts will not be savage. Cuts will re-configure government in Britain, the current invasive Leviathan will be dismantled; but the process will be painful in the short-term, it must be. Osborne has been influenced by the Canadian model, which turned

Cable, the free radical, dreams of a grand future

What is Vince Cable up to? He is on manoeuvres, keeps making attempted power grabs from George Osborne. Barely a week passes without him rattling the cage to which Cameron and Clegg have confined him  – that is, the unwieldy and yet fairly powerless Department for Business, Innovation & Skills. For all its bulk, the department doesn’t really do anything. It has the universities brief, which is important, but it is certainly not an economics department as Cable was pretending last week. “It is a bit like the German economics ministry and the finance ministry,” he claimed. “Two departments, working in parallel.” As if. Cable may like economics, but he

Red Vince sips clear blue water

Deprived of the comforts of third party opposition – the ability to say and do as he pleased – Vince Cable has had to put away childish things. Of necessity, the business and enterprise secretary cannot be a socialist. And Cable used yesterday’s speech at the Cass Business School to prove he’s no socialist.   He convinced. Cable will enact the coalition’s plans to reform regional development agencies, cut preferential micromanagement grants that supersede the judgement of markets, demolish stifling small business regulation, curtail short-term speculation on company takeovers to protect shareholders, cutting the deficit early and the part-privatisation of the Royal Mail. He also endorsed long-standing Tory policy of

Flotilla follies

Two groups in the Conservative party that have worried most about Con-Lib government are the social conservatives and the neo-conservatives. The latter have been particularly worried about UK relations with Israel. There is a real concern in parts of the Conservatives Party that three factors would come together to sour Anglo-Israeli relations: what the neo-conservatives see as the Foreign Office’s knee-jerk Arabism, the presence of many supposed Arabists in Cameron-Hague’s teams, and the anti-Israel bias exhibited by many leading Liberal Democrats. Whatever the truth of these allegations, they are held with considerable fervour. But Nick Clegg’s reaction to the conflict shows that the Lib Dem leader is both holding to

Will the coalition fall over Europe?

Well, well. Simon Hughes has just made firm Eurosceptic comments in the Commons. He said: ‘I’m also clear…that we need to revisit some of the decisions like the working time directive where I think we made a mistake, and there have been mistakes in the European Union. “And my great enthusiasm for the European Union and for better collaboration across Euope doesn’t make me blind to things that have not gone well and where we need to do better. And overly prescriptive regulation such as the working time directive is one of those. “I don’t take the view that there’s only ever a one-way traffic of power from this parliament

Hughes in the ascendant

The indications are that Simon Hughes will become Lib Dem deputy leader. Politics Home reports that Hughes is backed by 29 of the party’s 57 MPs, which make him the outright winner in the race with Tim Farron. Hughes also received the backing of 60 percent of party activists on the Lib Dem Voice website. The Tories will be both wary and pleased at this development. Hughes is left-wing, determinedly so, and among those who favoured a deal with Labour. Rumours abound that Cable’s resignation was contrived to promote Hughes, who is also said to be livid at being excluded from government – an Ashen-faced Hughes was spied shaking his

The novelty factor

Nick Clegg was run-through when he and Jim Naughtie last crossed swords. A different outcome today – the deputy Prime Minister was composed, defending the coalition’s tight agreement. Naughtie was in ‘we’re lolling in a cafe on a dusty street, a donkey brays at the dying sun’ mode, and never pressed Clegg.   First, Clegg assured Naughtie that government continued without David Laws, and he echoed John Redwood’s and William Waldegrave’s point that Chief Secretary is a political job in which the author of the coalition agreement, Danny Alexander, has every chance of excelling. Naughtie didn’t mention Lib Dems’ hypocrisy on expenses, which might have shaken Clegg. CGT tapering came next. Clegg

Stop the press! Danny Alexander didn’t break the law

There’s something Galsworthian about Danny Alexander, the man of property. A downy press secretary for the Cairngorm National Park bought a south London hovel in 1999, re-designated it his second home in 2005 when he became an MP, and the Bright Young Thing then sold it in 2007 for £300,000. The dashing Cabinet Minister’s recent mortgage claims of £1,100 per month suggest an existence amid more salubrious environs – Volvos, delicatessens and Oxfam. Alexander didn’t cheat his way to Cheam, or wherever he lives. ‘There is no suggestion that Mr Alexander has broken any tax laws,’ opine the authors of this morning’s expenses expose. Alexander was liable for capital Gains Tax courtesy

David Laws resigns

It was inevitable, but this is hugely regrettable as Laws is a star performer and I feel he has been the victim of a media gay-hunt that belongs to a bygone era. The sums of money involved are slight in comparison to some, and there are arguments that other ministers should resign for having committed similar or worse offences and for having shown markedly less contrition. But it is refreshing that a minister would resign over a personal transgression with haste and dignity.  His successor is understood to be a Lib Dem, probably Chris Huhne or Jeremy Browne. Huhne made his money working on hedge funds so he is a more or less a like for like replacement. I’m uncertain he shares Laws’s enthusaism for the Tory position