Uk politics

European Council statement: Leaders seize opportunity for economic ding dong

Why did the Prime Minister give a statement in the Commons on the outcome of last week’s European Council summit? Though he is expected to report back to MPs each time one of these jamborees takes place, David Cameron didn’t really have a great deal to tell them other than the tantalising suggestion that the leaders had made progress on cutting red tape and the declaration that ‘the EU is changing’. It was hardly one of those statements where Cameron can wave a budget cut or some other great policy victory at MPs. listen to ‘David Cameron’s statement on the European Council summit’ on Audioboo

Isabel Hardman

Off colour Ofgem?

Ofgem is the energy market regulator that is supposed to be examining what it is that is going well or badly in the market. But it doesn’t seem to be doing the greatest job. This week we will hear more details about the annual competition test announced by David Cameron at PMQs last week, but the problem is that Ofgem has only just concluded an examination of this anyway. That review of the retail energy market took two years and published a series of rule changes in June 2013. The changes were designed to address ‘widespread consumer confusion over energy tariffs, poor supplier behaviour and lack of transparency which is

Freddy Gray

Can you trust a government report on the alternatives to HS2?

As Britain’s train lines suffer in the wake of St Jude, the political storm over high speed rail continues to rage. The government and Labour are playing footsie with each other. Labour’s somewhat left-field idea to re-open the Grand Central Railway — at an estimated cost of £6 billion, compared to £43 billion for HS2 — has been matched by a fear-mongering government statements about the implications of not building a high speed rail line. The coalition’s ‘updated business case’ claims that, if Britain did not pursue the high-speed solution, a ‘patch-and-mend job’ would be necessary, which would be almost as expensive and mean 14 years of weekend closures. It

Alex Massie

Russell Brand: an adolescent extremist whose hatred of politics is matched by his ignorance

So, I recommend a trip to Sri Lanka. Wonderful place. Go now before everyone else does. Being (almost entirely) offline for a couple of weeks is a blessing too. But even good things come to an end. Which brings me to Russell Brand. Fair play to the New Statesman. Their decision to ask Brand to “edit” an issue has brought them all the publicity they could have hoped for. It would be churlish to begrudge the Staggers that. Celebrity sells. Or, at least, wins attention. Which is fine. Plenty of people seem quite enthused by Brand. Even if they disagree with his diagnosis of contemporary ills they enjoy the sight

Isabel Hardman

Energy competition heats up

Now that ministers are nearing a deal on those green taxes and levies, they are also trying to highlight their efforts to improve the energy market in general. Privately there were a number of Conservative MPs of a similar persuasion to John Major who I spoke to last week who sympathised with the former Prime Minister’s windfall tax proposal. They argued that the energy companies are benefitting from a broken market, and this tax would simply be a tax on the extra benefits of that broken market. But Greg Barker this morning argued that it would damage investment. He told ITV’s Daybreak: ‘We think we need to balance the demands

Coalition parties near a deal on energy bills

The good news for the Cameroons on energy is that it looks like they’ll get an agreement by the Autumn Statement to take at least some of the green levies off energy bill. The bad news is that this means that the debate sparked by Ed Miliband’s pledge to freeze energy prices for 20 months if elected is going to continue until, at least, December 4th. An agreement between Cameron and Clegg on energy bills does now appear to be close. The Lib Dem anger at Cameron using PMQs to try and bounce them into a set of concessions has been replaced by a fast-moving negotiation. As one senior Number

Isabel Hardman

‘Abandoning the North’: the new emotional HS2 debate

David Cameron insists that a project like high-speed rail needs cross-party support. That may well be sensible, but his desire for Labour to retain its support for the new line is founded more on the necessity of getting the legislation through Parliament, rather than a great belief in parties working together on the big things. The fact is that Cameron needs Labour votes because yet again he cannot rely on his own party, the party of government, to push the bills through. Labour obviously scents blood, not just because there’s sport to be had in making a Prime Minister squirm and plead for the Opposition’s votes, but also because dropping

Simon Stevens could turn out to be Jeremy Hunt’s Mark Carney

Remember the name Simon Stevens. He’s is the new chief executive of the NHS in England and is going to be absolutely crucial to whether the government can make its health reforms work. Stevens is a former Labour special adviser. However, he comes from the reformist wing of the party. He used to advise Alan Milburn and Tony Blair on the NHS. But a profile in today’s Guardian reveals just how impressively radical Stevens is. Denis Campbell writes that Stevens favours local pay in the NHS. He is also, Campbell says, keen on the idea of independent GPs competing with existing GP surgeries for patients, in the hope that this

Who feels grumpier about the recovery?

The Tories were expecting Ed Balls to be a little grumpy today after the ONS’ latest figures showed the economy was growing at its fastest rate in three years. And the Shadow Chancellor didn’t sound his cheeriest when he popped up to respond. In his official response, Balls said: ‘After three damaging years of flatlining, it’s both welcome and long overdue that our economy is growing again. But for millions of people across the country still seeing prices rising faster than their wages this is no recovery at all.’ And on the World at One, he said: ‘For people who are seeing their living standards falling, being told that somehow

Isabel Hardman

Breaking: Economy grew by 0.8 per cent in Q3

As ministers had hoped, today’s first estimate of GDP figures from the Office for National Statistics shows that the economy grew by 0.8 per cent in the third quarter of 2013. Citi had predicted 0.7  per cent, and while the economy is still 2.5  per cent below its pre-recession peak, ministers now have evidence of an upward trajectory, or, as the Treasury is describing it this morning, ‘real momentum’. The Tories will use this now to argue that Labour has got it wrong on everything, while Labour sticks to its line of welcoming the growth but pointing out all the other bad things. The sight of Ed Balls rather sourly remarking

Isabel Hardman

Three Tory whipping operations prepare for HS2 revolt

Critics of HS2 are scenting blood on all sides now. As the Sun reports, giving Ed Balls the final say on the project is another sign that the Labour party is at least constructing a coffin for the project, even if it isn’t driving the nails in just yet. Meanwhile, on the Tory side, I understand that there are three whipping operations springing up around the report stage and third reading of the preparation bill next week. The PM’s backbench envoy John Hayes and his PPS Mel Stride are the most active from the government side, even though Hayes is not a whip. One Tory MP observing these things tells

The ‘gangbusters’ economy

Tomorrow’s GDP figures are expected to show that the economy is no longer bouncing along the bottom but is now in steady recovery with a second successive quarter of robust growth. It is all very different from the start of the year when the country appeared to be on the verge of a triple dip recession. As I say in this week’s magazine, when in early February the Chancellor’s chief economic adviser Rupert Harrison told a crunch Downing Street meeting that the economy would be going ‘gangbusters’ by late summer, early autumn, the Prime Minister’s chief of staff Ed Llewellyn was so taken aback by the confidence of the prediction

The HS2 fight back begins next week. But will it work?

Ministers are increasingly aware of an uphill struggle on HS2. Next week, they will try to make the case for the line again, in the face of increasing opposition, with the publication of the Department of Transport’s strategic case paper, which will respond to criticisms from the Public Accounts Committee and National Audit Office on the viability of the project. Giving up on trying to win the economic case for HS2 (which has been widely lambasted), the government hopes to turn the tide by instead focusing on the capacity arguments. As James reported last month, the DfT will attempt to shift the HS2 debate to why we need a new

Isabel Hardman

MPs still fracked with nerves about shale gas incentives

In the days before Ed Miliband went all Marxist/brave on energy (delete as tribally appropriate), the debate around energy was more about fracking than it was about freezes. Shale gas has taken a back seat while ministers wonder what on earth they can do about bills to take the wind out of the Labour leader’s sails. But the political problems haven’t gone away. The debate is still about whether the incentives on offer are enough for local communities to accept fracking pads in their area. MPs whose constituencies sit atop the Bowland Shale don’t think the government is offering enough, and have continued to tell the Prime Minister that. He

Cameron’s 30-minute warning to the Lib Dems on energy bills

The Lib Dems are cross this afternoon about David Cameron’s PMQs announcements on cutting back on green taxes in energy bills. They are mainly cross because they were only given 30 minutes’ notice of the new policy before MPs crowded into the Chamber for the session, and are insisting that ‘nothing concrete has been agreed’. A source close to Nick Clegg told Coffee House; ‘Generally you would hope that an announcement of government policy would not be handled in this way. There was a quad discussion about this but nothing detailed was put forward and nothing concrete has been agreed.’ The source dismissed briefings from Tory sources that ‘one way

James Forsyth

Cameron ‘lost’ PMQs, but he’s moving into a better position on energy bills

David Cameron took a pasting at PMQs today. Ed Miliband, armed with a whole slew of lines from John Major’s speech yesterday, deftly mocked the Prime Minister. Cameron, faced by a Labour wall of noise, struggled to make his replies heard. At one point, he rose to his feet thinking Miliband had finished, only for the Labour leader to contemptuously signal at him to sit down. listen to ‘PMQs: Cameron v s Miliband on energy prices’ on Audioboo But Cameron did announce some policies today that might offer him a way out of the energy hole he’s currently in. First, he made clear that he wants to scale back the

Isabel Hardman

PMQs silence on Grangemouth benefits SNP

Ed Davey is currently answering an urgent question in the Commons on the Grangemouth petrochemical plant. He urged Ineos and Unite to return to talks, describing the failure of the negotiations as ‘regrettable’. As the questions from backbenchers to Davey continue, it’s worth noting that there wasn’t a single mention of the plant at Prime Minister’s Questions, even though the closure of that plant will lead to around 800 people losing their jobs. Ineos estimates that around 10,000 jobs rely indirectly on the factory. The SNP have already picked up on this silence, and can quite easily argue that it shows that Westminster doesn’t care about jobs in Scotland. Even

Isabel Hardman

Sir John Major and the Number 10 vacuum

When Ed Miliband announced his eye-catching energy policy, Tory MPs hoped that their party would respond in kind with something similarly interesting to voters but that would really work. They hoped this would underline that the Conservative party is the party of government, while Miliband was only suitable for opposition. George Osborne’s conference fuel duty freeze and his noises about green taxes and levies on fuel bills reassured many of them, but Sir John Major’s intervention yesterday has highlighted the vacuum caused by a refusal by Number 10 to engage with what one strategist described to me as ‘the footling little things’. One MP said after Major’s speech: ‘Number 10