Uk politics

Sir Mervyn King: Quantitative easing is reaching its limit

Quantitative easing isn’t an eternal elixir of economic health. That was the admission from Bank of England Governor Sir Mervyn King last night at a speech in Cardiff. Sir Mervyn said there were limits to the BoE’s policy of printing money to buy bonds, which could not ‘continue indefinitely’: ‘One thing we can see clearly is that the recovery and rebalancing of the UK economy are proceeding at a slow and uncertain pace. At this stage, it is difficult to know whether some of the recent more positive signs will persist. The Monetary Policy Committee will think long and hard before it decides whether or not to make further asset

Margaret Thatcher and the Tory party’s change on Europe

Charles Moore’s biography of Margaret Thatcher promises to be the most important British political book in decades. Tonight, we got a preview of it when Charles delivered the Centre for Policy Studies’ second Margaret Thatcher lecture. The subject was Thatcher and Europe. I won’t say too much about it because we’re running a version of it in the coming issue of The Spectator. But one thing that Charles demonstrated was that even when Thatcher was campaigning for British membership of the European Community, as then was, she was never in favour of the European project. One of the other thing that Charles’s lecture brought out was the shift in the

Despite everything last week, David Cameron is still on the up

Finally, some good news for the government – the public seems unconcerned by its recent difficulties. In spite of plebgate and George Osborne’s train ticket dominating this weekend’s papers, polling out today shows the Conservatives have managed to reverse their voting share decline in the wake of their party conference. The Populus/Times poll places the Tories on 35 per cent, up five points from September while Labour are down by the same amount. This brings Labour’s lead down to where it was before this year’s budget in March 2012: The Guardian/ICM polling shows a smaller increase, with Labour on 41 per cent and 33 per cent for the Conservatives. This is

Alex Massie

A lesson for Alex Salmond from George Orwell

I’ve written a piece for today’s Scotsman noting that there are some parallels between Scotland’s independence stushie and the pre-Iraq War rammy a decade ago. Only this time it’s the nationalists who are, if you will allow the comparison, the neoconservatives. Just as pro-war advocates back then (and I was one of them) cheerfully labelled anyone who opposed the war of being “objectively pro-Saddam” so the nationalists today essentially argue that anyone opposed to independence is anti-Scottish and, implicitly, objectively so. This is as tedious as it is stupid and the kind of thing liable to further hamper the party’s already faltering attempts to win what the Americans call high

The illusion of economic recovery

GDP per head is still 7 per cent below its pre-recession peak. That’s one of the sober reminders of the weakness of our recovery in a new ONS report, released as part of its National Well-being project. In fact, GDP per head fell by 7 per cent from 2008 Q1 to the recession’s trough in 2009 Q2 — and has recovered by 0.0 per cent since. That is, the 2.4 per cent recovery in GDP up to 2012 Q2 (which still leaves us 4.1 per cent below our pre-recession level) has not been enough to outweigh population growth. The GDP index has risen, but only thanks to Britain’s ever-rising headcount.

Isabel Hardman

Government to postpone badger cull

Conservative backbenchers will be wondering this morning whether they should bother replying to any letters from their constituents about any unpopular government policy. Environment Secretary Owen Paterson is to announce today that the planned badger cull will be postponed following concerns about its mounting cost. Defra is insisting that the delay, until next year at the earliest, is not a U-turn. This is accurate: the vehicle hasn’t turned around in the road, it has run out of fuel and ground to a juddering halt. Studies had found that there were perhaps twice as many badgers as originally estimated, and many farmers feared they would not be able to afford to

Government defeated on ‘poll tax mark two’

The government suffered an awkward defeat in the House of Lords this afternoon on its changes to council tax benefit. Rebels on an amendment to the Local Government Finance Bill calling for an independent review of the changes to be carried out within three years of their introduction included 16 Liberal Democrats. Labour has dubbed the changes, which will mean councils will have to design their own local schemes to help low-income households with council tax bills, the ‘poll tax mark two’ because two million families will have to contribute towards their council tax for the first time. Liberal Democrat Lord Shipley told the Chamber: ‘The problems for individuals could

James Forsyth

Cameron irked on Europe as backbenchers rattle the referendum cage

Throughout his statement on the European Council, David Cameron seemed slightly irritated. One sensed that the headlines of the last few days have rather got under his skin. Cameron began by declaring that the Council meeting had made ‘limited progress’, which is hardly much to report to the House. He also was unable to resist another pop at Chris Bryant; complaining that he still hadn’t apologised to him when the Labour MPs asked a question. It was striking what a pro-European tone Ed Miliband took in his response to Cameron. It was all about how Cameron was losing control of his party over Europe and needed more friends there. When

Isabel Hardman

Dave vs Angela, round 2

David Cameron appears to be looking for a suite of examples for his party that he’s still fighting their corner. He’s about to deliver his speech on offenders, and his spokesman has just suggested he’s up for a real scrap on the European Union budget, too. The FT’s splash this morning is that Angela Merkel is threatening to cancel next month’s European budget summit if Britain refuses to approve any other deal than a total freeze on spending. The paper reports that Merkel believes there is no point in holding the summit if Cameron is going to veto any deal on the table. The problem for the German Chancellor is

Isabel Hardman

Cameron tries to show he’s still got it with tough crime announcement

It’s clear the government has had a bad week when the Prime Minister pops up on a Monday with a crowd-pleasing policy announcement. Recent re-launches have been shared by senior Lib Dems and Tories following the collapse of Lords reform, for example, to demonstrate that the Coalition is still working well. But today, the Lib Dems are nowhere to be seen: the Prime Minister’s big crime announcement is a response to a terrible week for the Conservative party, rather than the coalition as a whole. Cameron is using law and order as a traditional Conservative area, arguing that ‘retribution is not a dirty word’ and that alongside a ‘tough’ approach

Theresa May won’t deny she told Andrew Mitchell to go

Theresa May’s political stock has risen this week. Announcing an intention to opt-out of EU law and order directives pleased Tory MPs while her decision not to extradite Gary McKinnon was popular. But we’ve also seen the Home Secretary operating -rarely for her – beyond her brief. She played a key role in pushing Andrew Mitchell out, something she effectively confirmed on the Sunday Politics. When Andrew Neil pressed her on this, she simply replied ‘I’m not going to talk about private conversations’. Here is the exchange:- listen to ‘Theresa May dodging Andrew Mitchell question, 21 Oct 12, BBC1 Sunday Politics’ on Audioboo

Fraser Nelson

Ed Miliband’s winning strategy

Ed Miliband has adopted a rather simple strategy: do nothing, and wait for your opponents to screw up. It’s lazy, but undoubtedly effective. The Tories are playing along perfectly. The last week has given plenty ammunition for his new theme — which he repeated during his union Sponsored Walk yesterday — ‘they think they are born to rule, but they are not very good at it.’ The Sunday Times reports MPs’ anger that No 10, the most visible part of Whitehall, is turning out to be one of the most dysfunctional. David Cameron’s odd fuel tariff announcement last week did have normally loyal Cabinet members wonder what on earth is going on

It isn’t Miliband’s anti-austerity message that should worry the Tories but his pitch for small business support

Ed Miliband’s speech to the anti-cuts rally today was well-pitched. The lines about how any government would have to make cuts guaranteed him the jeers that he needed to show that he wasn’t pandering to his audience. What should worry the Tories, though, is not the generic anti-austerity and pro-NHS rhetoric but the direct pitch for small business support. One of the big changes since the 1980s is that those who run small and medium sized enterprises now view the banks as part of the problem not the solution. This provides a significant political opening for Miliband, and one he is intent on exploiting. It’s worth noting that he was

Class warfare is back, and not just in politics or from the left

Class is back with a vengeance, and not just thanks to the Andrew Mitchell saga. Today’s newspapers are chock full of stories across the news spectrum linked back to class. The Mail, for example, has declared all-out war on the government, with a splash of ‘Who do you they think they are?’ — a front page one could expect to see from the Mirror. The Mitchell-Osborne matter receives the double page treatment, lambasting both affairs with ‘Exit Mitchell, four weeks late’ and ‘Move Mr Osborne? But he can’t possibly sit in standard class’. Their coverage is summarised in a strong op-ed by Simon Heffer discussing class attacks on the Tories. The Telegraph has

Camilla Swift

Red Ed’s sponsored walk

At Prime Minister’s Questions this week, David Cameron referred to today’s TUC rally as the ‘most expensive sponsored walk in history’, a joke that the Tories have now taken one step further. Ahead of Ed Miliband’s speech to marchers at tomorrow’s anti-cuts demo in central London the Conservatives have launched Red Ed’s Sponsored Walk, a satirical fundraising site for Ed’s charity walk, with all proceeds going – somewhat unsurprisingly – to the Labour party. His online sponsors currently include Unite, GMB and Unite, who’ve ‘sponsored’ Ed to the total price of £12.4 million, accompanied by threatening messages such as ‘Don’t let us down Ed’ and ‘Remember who got you your job’.

Trade unions are capitalist, community-minded, and Conservative

Last week there were reports that Unite were going to be offering unemployed people a chance to join their trade union for as little as 50p a week. In doing so, they would be offered services such as  legal support and education facilities. Instead of welcoming this as a brilliant Big Society idea to help the jobless, some Conservatives indulged in their traditional union-bashing – making no distinction between the politics of Len McCluskey and the services that were being offered to vulnerable people. The principle behind this idea is something that every Conservative should support. The more help that can be offered to those without work, the better. I wish

David Cameron turns to Sir George Young again

Sir George Young’s appointment as chief whip is testament to both the respect David Cameron holds him in and the Prime Minister’s intense dislike of reshuffles. This is the second time that Cameron has asked Young to step in after a colleague has imploded, the first time was in 2009 when Alan Duncan was caught complaining about how MPs were ‘treated like shit’ and ‘forced to live on rations’. I suspect, though, that one thing that marked Young out this time was that his appointment would not require any other changes in the government ranks. Sir George is one of the politest people that you’re ever likely to meet. I

Isabel Hardman

Andrew Mitchell resigns as chief whip

Andrew Mitchell has just announced his resignation as chief whip following the row about his altercation with a police officer at the Downing Street gates. His resignation letter, which you can read in full here says: ‘Over the last two days it has become clear to me that whatever the rights and wrongs of the matter I will not be able to fulfil my duties as we would both wish. Nor is it fair to continue to put my family and colleagues through this upsetting and damaging publicity. ‘I have made clear to you – and I give you my categorical assurance again – that I did not, never have