Uk politics

The Brussels budget imbroglio

The EU budget negotiation, now a month away, promises to be David Cameron’s next big European test. The Prime Minister has repeatedly declared that he wants to see the EU budget frozen at 2011 levels and that he’s prepared to use the need for unanimity to achieve that. The Economist this week has a very useful scene-setter for the budget talks. It sketches the contours thus: ‘Countries are coalescing around loose (yet often divided) groups. There are the ‘friends of cohesion’: the net recipients of regional spending, such as Poland, Hungary and the Baltic states. And there are the ‘friends of better spending’: the net contributors, such as Germany, France,

Isabel Hardman

Is the government being inconsistent on teacher training?

To be fair to Kevin Brennan, he seems to have updated his attack line on Michael Gove since his ‘don’t-call-teachers-names’ press release that Labour sent out overnight. The party’s shadow education minister is now attacking the Education Secretary for inconsistency, arguing that his announcement today on improving teacher training contradicts the decision to allow academies and free schools to employ unqualified teachers. He has just told BBC News: ‘But what’s rather strange about what the Government is doing is at the same time it’s saying there should be more rigour in the testing of teachers as they go in to the profession, it’s saying more and more schools can hire

Isabel Hardman

Rising energy bills add to pressure on government

EDF’s announcement that it is raising gas and electricity bills by nearly 11 per cent will increase pressure on the government in two ways. The first is that these sorts of hikes in the cost of living mean that while ministers have been cheered by recent pleasing statistics on growth, jobs and inflation, voters might not feel as though things are going so well for them. If their own experience of the economy is one where their rent, shopping bills and energy bills are soaring while their wages are frozen, then they may not feel quite as sympathetic to the government as official statistics suggest they should. The second is

Isabel Hardman

Michael Gove to toughen up teacher training

Michael Gove is announcing tougher tests for trainee teachers today, with calculators banned from maths assessments, and the pass mark in tests for English and Maths being raised to the equivalent of GCSE grade B (which still doesn’t sound that taxing), along with a new test in verbal, numerical and abstract reasoning. The Education Secretary says the changes ‘will mean that parents can be confident that we have the best teachers coming into our classrooms. Above all, it will help ensure we raise standards in our schools and close the attainment gap between the rich and poor’. It’s part of the government’s drive to demonstrate that it is, in David

Can Ed Balls leave his past behind?

A large part of the Tory message at the next election will be ‘don’t let Labour ruin the economy again’. One of the things that will help the Tories make this a topic of the campaign is Ed Balls’s constant desire to defend the record of the last Labour government. As Jonathan noted earlier, when Andrew Neil pointed out that Labour was — contrary to Balls’s earlier denials — running a structural deficit in 2007, Balls got into a long-winded attempt to justify both that and his denial of this point last year.

Isabel Hardman

David Cameron rebuked by statistics chief over PMQs comments

David Cameron’s taunt at Ed Miliband yesterday during Prime Minister’s questions that the ‘good news will keep coming’ was taken by some as a hint at today’s GDP figures, which the PM has early access to. Now the chair of the UK Statistics Authority Andrew Dilnot has written to Cameron to rebuke him for the line. The letter, which you can read in full here, says: ‘The Pre-Release Access to Official Statistics Order 2008 states that recipients of pre-release access must not disclose ‘any suggestion of the size or direction of any trend’ indicated by the statistic to which the recipient has been given such access. It is clear from

Isabel Hardman

Herman van Rompuy’s revelatory Downing Street lunch

David Cameron had lunch with Herman van Rompuy in Downing Street today to discuss the UK’s position on the EU budget. Despite the Prime Minister’s tough talking in public about his determination to veto any real-terms increases in the money available for the multi-annual budget, the Downing Street spokeswoman refused to confirm that there was in fact any mention of this threat at today’s meeting, which Nick Clegg apparently popped into briefly. She said: ‘Discussions focused on the multi-annual budget. Both the Prime Minister and the Deputy Prime Minister made clear the Government’s position that we do not support a real-terms increase in the EU budget. They reiterated that at

James Forsyth

Adding a bit of mongrel to Number 10

The saga of whether Lynton Crosby, the hard-charging Australian strategist who ran Boris Johnson’s successful mayoral campaigns, will join the Cameron operation continues. I understand that contrary to popular belief the obstacle to Crosby coming in is not the money. One senior source tells me that ‘If it was just about money, Andrew Feldman would be sent out to raise it’. Amongst senior figures, there’s also confidence that a compromise could be reached on both Crosby’s desire for control of polling and his desire not to lose all of his current corporate clients. But the blockage is the level of control that Crosby wants. There’s a sense among the Number

Isabel Hardman

Iain Duncan Smith’s latest welfare cut kite

It is strange that the government has chosen to trail a speech by Iain Duncan Smith on an issue popular with voters on the same day as good economic news. The Work and Pensions Secretary has already reached an agreement with Chancellor George Osborne that it is possible to cut a further £10 billion from the welfare bill (when he originally said he would block those cuts), and is now starting to prepare the ground for some of those cuts to take place. He knows that while the public supports further welfare cuts, the Lib Dems will not without a credible package which ensures the rich are paying more. One

When a growing economy still feels bad

David Cameron was right; the good news has kept on coming. This morning’s first estimate from the ONS puts GDP growth in the third quarter at 1.0 per cent. Cue much justified squabbling over what the ‘real’ number is. A significant portion of this growth will be a one-off, post-Jubilympics bounce-back, suggesting slower underlying growth. As Jonathan pointed out yesterday, ONS first estimates have a margin of error of 0.7 percentage points, meaning that even with these factors built in, the real figure could lie between 0.3 and 1.7 per cent. Gaps of this magnitude are no small matter. But behind these arguments about the number itself lies a different

James Forsyth

Economic growth faster than expected as Britain exits recession

The economy is out of recession. It grew by 1 per cent in the third quarter of this year, which is the fastest quarterly growth rate since 2007. This positive number makes it a lot easier for the coalition to claim that the economy is ‘healing’. Expect to see ministers heading to TV studios to talk about how a million more private sector jobs have been created, how there are record number of new start ups and that inflation is down. Being out of recession makes it a lot easier for the coalition to defend its economic record. Today’s number should also serve to boost consumer confidence, to provide a

Labour prepares for the worst (good news on the economy)

Whether or not he did accidentally suggest that he knew what tomorrow’s GDP figures will be at Prime Minister’s Questions, David Cameron did have a jolly good point about the way Labour responds to good news on the economy. He told Ed Miliband: ‘It’s only a bad week if you think it’s bad that unemployment’s coming down, it’s only a bad week if you regret inflation coming down… every piece of good news sends that team into a complete decline, well, I can tell him, the good news will keep on coming.’ As Fraser blogged at the weekend, Ed Miliband’s strategy is predicated on the government continually cocking up. It’s

Why British GDP figures are almost ALWAYS wrong.

Will it be 0.5 per cent? 0.8 per cent? 1 per cent? Whatever figure the ONS tells us GDP grew by in the third quarter of 2012, there’s one thing you can be pretty sure of: it won’t be the actual amount GDP grew by in Q3. In the past 51 years, just 12 of the ONS’s 205 first stabs at quarterly growth have survived later revisions. To be fair, the ONS recognises this, and cautiously labels tomorrow’s figure a ‘preliminary estimate’. But just how wrong is it likely to be? If tomorrow’s figure is +0.5 per cent, does that mean we can be pretty confident that growth was between,

Lloyd Evans

PMQs sketch: Miliband gives up on Songs of Dispraise and attacks Cameron on competence

Goodness, he’s enjoying himself. Ed Miliband is brimful of confidence these days and he handles himself like a master juggler at PMQs. He flicks out deft gags and acerbic asides while keeping the central question in the air. He’s having fun. And it’s a pleasure to watch. Greatly helpful to him is the government’s pledge to deliver at least one major and one minor cock-up every week. Last Wednesday it was Cameron’s improvised announcement that energy companies must give customers the lowest tariff. Today he tried to explain this. ‘There were 400 different energy tariffs last year,’ the PM told the Commons. ‘That’s totally baffling.’ ‘The only people baffled,’ said

Salmond’s darkest day could be yet to come

For years Scotland has been waiting to see when his luck would run out – well, now it has. Alex Salmond: gambler, tipster, political animal and First Minister now has another moniker: author of the country’s first scomnishambles. Yesterday marked, without doubt, the First Minister’s worst day in office. First, he lost two MSPs. Left-wingers Jean Urquhart and John Finnie announced they were leaving the SNP because of the party’s conversion to Nato. That decision, taken at SNP conference last weekend, has alienated many left-wingers in the party because they see it – rightly – as part of Salmond’s attempts to take the SNP into the moderate, centre ground of Scottish politics. But

Isabel Hardman

Did David Cameron break an embargo on GDP figures?

Last week David Cameron found himself in trouble after Prime Minister’s Questions over a slip of the tongue about energy bills: this week he’s managed to get himself into trouble over what looks like yet another slip of the tongue at PMQs. The Prime Minster appeared to suggest that tomorrow’s GDP figures, which are under strict embargo, will be good news for the government. The heat was on for Cameron, as Ed Miliband was performing reasonably well, with some good jokes (including ‘I asked him a question about the railways – I have to say the Chancellor shouts, it’s not the ticket that needs upgrading, it’s the Chancellor of the

Isabel Hardman

Nick Clegg to tell business leaders: we’re your friends

Nick Clegg is giving a speech this evening in which he will try to re-sell the Liberal Democrats as friends of business. Admitting that he hasn’t ‘said enough’ about the party’s pro-business policies, he will tell the guests at Mansion House: ‘Many in the corporate world do not – automatically – see the Liberal Democrats as natural allies. Perhaps that’s because, most recently, we’ve rightly earned ourselves a reputation as loud critics of corporate irresponsibility… Not least in financial service following the crash in 2008. Yet, historically, the Liberal Democrats are a party of industrialists and small business… And, since coming into government, we’ve been taking decisions, day in, day

James Forsyth

David Cameron must rule out votes for prisoners at PMQs

The issue of prisoner votes has turned into a question of trust between David Cameron and his backbenchers. Most Tory MPs well remember that the Prime Minister’s initial intention was to comply with the Strasbourg court’s ruling; he only changed his mind after seeing how strong feelings were on the issue on the Tory benches and in the country. For this reason, Cameron needs to scotch all this talk of a draft bill on votes for at least some prisoners at PMQs today. If he doesn’t, he’ll have just as large a rebellion on his hands as he did last time. The issue will also drive a further wedge between