Uk politics

Monday

Isabel Hardman

The caveats to nil Zil lane usage for ministers

How many ministers will be using the Zil – sorry, Games – Lanes during the Olympics? The Prime Minister’s official spokesman said this morning that the lanes would be used on a flexible basis, and that ministers would stick to public transport. ‘The approach is that where possible they will use public transport,’ he said, but he added that ‘operational or security reasons’ might mean ministers are forced to use the lanes. ‘Operational’ and ‘security’ offer a conveniently wide range of situations in which someone might have cause to hop in the ministerial car and zoom down a clear road,  including the tube being too rammed with tourists for a

Matthew Sinclair

The Treasury sides with the consumer over climate policy

Tim Yeo is now posing as a friend of the consumer. Launching the latest report from the Energy and Climate Change Committee this morning, he attacked the Treasury for ‘refusing to back new contracts to deliver investment in nuclear, wind, wave and carbon capture and storage’. The report argues that could ‘impose unnecessary costs on consumers’. The basic logic of his claim is this: investments are more expensive when they are riskier. Investors expect to be compensated for the risks being taken with their money. If the Government offers guarantees that reduce the amount of risk energy companies run by investing in expensive sources of energy like offshore wind, then those firms

Isabel Hardman Isabel Hardman

The new rebel PPS

Tim Montgomerie has some excellent intelligence on ConHome this morning that Francis Maude is about to gain a new PPS. The Cabinet Office Minister’s former aide was Angie Bray, who was sacked after voting against the government at the second reading of the House of Lords Reform Bill. But Maude’s replacement PPS, Stuart Andrew, is also a rebel. He was one of the 81 who defied the three-line whip in the autumn to vote for a backbench motion calling for a referendum on Britain’s relationship with the European Union. As Tim points out on his blog, this is a sign that rebels might still have a hope of a job in the

Isabel Hardman Isabel Hardman

The UK Border Agency’s Bermuda Triangle

Bringing the UK Border Agency to heel has been one of the mammoth tasks facing ministers since the coalition formed. Ministers have recently been rather keen to suggest that backlogs in claims and migrants disappearing without a trace were coming under control – Immigration Minister Damian Green said at the start of this month that ‘we have gripped it and dealt with’ the problem of people overstaying their visa, for instance. But lest senior staff at the UK Border Agency were starting to pat themselves on the back for a good job well done, the Home Affairs Select Committee has released a damning report this morning which says performance is

Friday

Isabel Hardman

More smoke from the Libor fire

A new cache of emails released today by the Bank of England reveal its deputy governor Paul Tucker was warned that it was ‘plausible’ that Libor rates were being ‘influenced by commercial incentives’. Tucker insisted in his appearance before the Treasury Select Committee that he and colleagues ‘thought it was a malfunctioning market, not a dishonest one’. But an email sent by an unnamed official to Mr Tucker on 22 May 2008 points to a possible manipulation of Libor. It contains notes of a meeting which say: ‘There is a long-standing perception that Libor by virtue of the manner in which it is set is open to distortion: panel banks have no obligation to

James Forsyth James Forsyth

Letwin fails to consult about the consultation on consultations

Oliver Letwin’s decision to launch a consultation on reducing the amount of time that government has to spend on consultations has sparked controversy in Whitehall. Sticklers for procedure are complaining, in a way that only Sir Humphrey himself could do justice to, that other ministers hadn’t been consulted about the decision to launch a consultation on shortening consultations. Now, this is all quite trivial. But it does reveal just how bureaucratic modern-day government has become. This problem has been exacerbated by the Equalities Act and the rise of judicial reviews. Indeed, I understand that there is now a board of civil servants whose job is to review the equality impact assessments being

Jonathan Jones

Public finance statistics point to a miserable autumn statement

Today’s round of public finance statistics bring mixed news for the government. The headlines have focused on the fact that borrowing last month — at £14.4 billion — was £0.5 billion higher than in June 2011. But considering that the monthly borrowing figures end up being revised by an average of £1.7 billion (usually downwards), we shouldn’t get too fixated on a difference of a few hundred million. What is perhaps more worrying is the trend in the financial year so far. Superficially, the numbers look pretty good: a total of £14.9 billion in borrowing since April, compared to £38.4 billion in the same three months of last year. But this year’s

Fraser Nelson Fraser Nelson

We need a minister to defend the City of London

Is the City of London worth defending? Not many in the government seem to think so. Vince Cable, the Business Secretary, calls it a ‘cesspit’. George Osborne blames the financial sector for causing the crisis – the Barclays Libor scandal, to him, was not an isolated incident but indicative of the whole rotten system, ‘the epitaph to an era of irresponsibility’. The City’s global enemies look on, amazed. Not even the Brits are prepared to stand up for their extraordinary financial sector. As I say in my Telegraph column today, now is their time to strike. As the Americans are pointing out, much Wall St woe can be traced back to

Thursday

Isabel Hardman

When should George Osborne switch to Plan B?

Announcements from the International Monetary Fund are worded in such a way that everyone reading them comes away with something slightly different. So shortly after today’s report on the UK economy was released, Ed Balls put out a statement saying the report was a ‘very serious warning to the Chancellor that urgent action to boost jobs and growth is needed’. He concluded his press release by asking ‘how much worse do things have to get before the Chancellor finally changes course?’. Now, today’s report from the IMF is not cheery reading for George Osborne. It passes this bleak judgement on the economy: ‘Recovery has stalled. Post-crisis repair and rebalancing of the UK

James Forsyth James Forsyth

Cameron’s odd behaviour over Europe

Europe, as everybody knows, is one of those issues on which a Tory leader needs to pay particular attention to the words he uses. This makes David Cameron’s behaviour in recent weeks all the odder. First, we had that Brussels press conference in which Cameron sounded rather too enthusiastic about the EU for his own side’s tastes. This was followed by his Sunday Telegraph piece in which he stressed that ‘the two words “Europe” and “referendum” can go together’ for him. Now, those close to Cameron complain that the two positions were perfectly compatible and that in the first instance he was quoted selectively. But given the importance that it is attached

Graeme Cooke

Childcare costs could be election battleground

Parents of children under two now pay on average over £5000 a year on childcare, with costs increasing much faster than either earnings or inflation. In response, both the government and Labour have launched Childcare Commissions as vehicles for developing new ideas. Ministers have today asked for the views of ‘everyday experts’ –- parents, childminders and nursery owners –- in a consultation period lasting until the end of August. So far, so unspectacular. But there are a couple of reasons to think that childcare -– traditionally a second or third tier issue -– could become a key political battleground between now and 2015. First, electoral maths. Those struggling with high

James Forsyth James Forsyth

How long can the government ignore demands for free grammar schools?

The argument about grammar schools had been stuck in a rut. Opponents argued that the division between grammar schools and secondary modern was too binary. But with the advent of free schools this argument has lost its force. There is now a diversity of provision meaning that there’ll be no return to the old stark grammar/secondary modern split. Free grammars would also boost the number of state school children going to our best universities and unleash a new wave of educational philanthropy. As Terry Leahy, the former boss of Tesco who has as good a claim as anyone to the title of Britain’s most successful businessman, tells The Spectator this week,

Interconnect

Too much government meddling undermines the energy market

Pity Ed Davey. At some point in the next few months, the Energy and Climate Change Secretary is going to have to sit down and decide how much nuclear power is going to cost for the next few decades. It is not an easy decision. On one side are nuclear firms threatening to pull out of building new power plants if they do not get the price they want. All those jobs not created. All that low carbon energy not generated. All those windfarms that will have to be built instead, with all their protest groups and angry backbench Tories. On the other side are households and business, already worried

Isabel Hardman Isabel Hardman

Miliband and monopolies

Ed Miliband used his speech this morning on policing to attack the shambles on Olympic security staffing created by G4S. That was a sensible thing for an opposition leader to do, and he managed to give quite a sensible speech, all in all. He did not fall into the trap of saying that all outsourcing is bad – which would have been a strange thing for the Labour leader to say, anyway, given it was under his party in government that firms like G4S flourished. But he did point to what many across the political spectrum agree is a problem: that G4S effectively holds a monopoly on security and policing

Isabel Hardman Isabel Hardman

Cameron shows his hand on Europe

David Cameron’s interview with the Telegraph today reveals that the Prime Minister would not campaign for an ‘out’ vote in a referendum on Britain’s membership of the European Union. This will confuse some Conservatives, who had hoped that the ‘fresh deal and a fresh settlement’ that the Prime Minister described in the chamber earlier this month would either lead to a successful renegotiation followed by a referendum in which the government pushed for a ‘yes’ vote, or a failed attempt at renegotiation followed by a referendum in which the government pushed for a ‘no’ vote. But Cameron told Robert Winnett that he would never campaign for an ‘out’ vote. He adds: ‘It comes back

Wednesday

James Forsyth

Consulting on consultations

We’re approaching that point in the government’s life cycle when ministers begin to worry about whether they’ll be able to get things done before the next election. One Tory was complaining to me yesterday that the civil service will simply be able to run down the clock with any new ministers after the next reshuffle. This nervousness about their ability to get things done is reflected in the fact that, and don’t laugh, the government is holding a consultation on whether its consultations need to go on so long. Eric Pickles has long been pushing for this, arguing that the 12 week consultations were excessively cumbersome. They certainly mitigate against any rapid

Isabel Hardman Isabel Hardman

UK exports more outside EU for first time since 1970s

Ministers will be taking heart today that they seem to be finally breaking into buoyant markets outside the European Union. Figures from the Centre for Economics and Business Research show that for the first time the UK is exporting more to non-EU countries than it has been to its traditional main export market within Europe. Over the past three months, 51 per cent of British exports went outside the EU. Exports outside the EU have risen 13.2 per cent, while exports within the EU have fallen by 7.3 per cent. It is the first time since the 1970s, according to the CEBR, that non-EU exports have overtaken those inside the

Isabel Hardman Isabel Hardman

What the Casey report teaches us about problem families

Louise Casey’s report on troubled families has come in for a few knocks today. The ‘troubled families tsar’ interviewed 16 families to draw up a picture of the challenges that those within the 120,000-strong group that the Prime Minister identified after last summer’s rioting as in need of focused work. Peter Mullen in the Telegraph says the research spells out ‘the blinking obvious’, which in many ways it does: the lives of the families on this list are messy beyond most people’s normal experience. Casey has simply conducted a very small-scale exercise in qualitative research and then published it. Like many CoffeeHousers, I’m more of a quantitative data person myself. I do love a

Isabel Hardman Isabel Hardman

All eyes on the Work Programme

Today’s headline figures on unemployment are good news: a 65,000 fall in the number of unemployed people to 2.58 million in the three months to May and a 0.2 per cent fall in the unemployment rate to 8.1 per cent of the economically active population. The focus is now growing on the Work Programme to deliver on its promises. Liam Byrne’s response to the figures was that they were ‘fresh evidence that the beleaguered Work Programme isn’t working’. But as Fraser blogged last week, it’s rather too early to tell either way, actually. The CBI says that a 6,100 rise in the number of people claiming Jobseekers Allowance, and 441,000 people who have

Isabel Hardman Isabel Hardman

Restoring the coalition’s credibility

The coalition’s infrastructure shopping spree to cheer itself up after a miserable few weeks continues today. George Osborne and Danny Alexander are offering guarantees on up to £40 billion of ‘ready or nearly ready’ projects such as transport, communications and energy. They are also announcing a £6 billion temporary lending programme and a £5 billion export guarantee facility, which will give long-term support for British exporters. Today’s announcements are clever because they don’t commit any extra money, using the government’s balance sheet purely to guarantee the projects and get them off the ground. Osborne and Alexander have written a joint comment piece for PoliticsHome, in which they point out that their efforts