Uk politics

Let’s get real about the fiscal situation

Recently on Coffee House, and elsewhere, some people have been arguing that the deficit reduction isn’t happening fast enough. The latest, a paper from Tullet Prebon, argues that it’s wrong to say there are cuts. Its author, Dr Tim Morgan, reiterated its points on the Today Programme this morning. But it isn’t true — and the analysis itself proves it.   When this Government entered office, there was no credible plan to convince the bond markets that Britain was serious about dealing with its debts. So the new Coalition accelerated the pace at which the structural deficit was to be eliminated.   Some on the right and left disagree with

James Forsyth

Miliband’s reshuffle isn’t necessarily to the left

Ed Miliband’s reshuffle turned out to be a rather small affair. The news out of it is that control over the policy review passes from Liam Byrne to Jon Cruddas, although Byrne continues to shadow Iain Duncan Smith. Given that Byrne is a Blairite who has been pushing for a tougher line on welfare, and that Cruddas rebelled to vote against the second reading of the welfare reform bill, some will see this as a shift to the left. But Cruddas is a more interesting thinker than that. The Blue Labour philosophy that he is an advocate of is, in many ways, a rather socially conservative view of the world.

Basel III and the EU’s strange desire not to compete

Greece is the centre of European attention, but as George Osborne met with other EU finance ministers today there was another issue bubbling in the background — Basel III. This had been brewing for a while and is yet one of those matters that threatened to isolate Britain from the rest of the EU (though some would argue this is a good place to be). The Chancellor this morning appears to have agreed to the Basel III accord, which stipulates the amount and quality of capital that banks are required to keep. But this was after much haggling — and an Osborne outburst where he said signing on to the

How Britain is using spin to con the bond markets

Austerity, austerity, austerity. The A-word is cropping up everywhere at the moment, whether in France or Greece or Germany. And the UK isn’t immune from it either. If there is anything on which Britain’s political factions agree, it is the reality of fiscal austerity. Whether it’s Ed Balls banging on about ‘too far and too fast’, or the coalition saying that their programme of painful austerity is essential if the UK is to defend its triple-A ‘safe haven’ status, this is something on which our political class has reached consensus.   But, as we at Tullett Prebon argued in a briefing paper yesterday (available here as a pdf), the tale

James Forsyth

Brooks charges mean more trouble for Cameron

The news that Rebekah Brooks and Charlie Brooks have been charged with perverting the course of justice means that there’ll be at least one trial involving friends of the Prime Minister before the next election. In cynical political terms, that Charlie has been charged as well as Rebekah creates an additional political problem for David Cameron. Part of Cameron’s explanation for how close he got to Rebekah Brooks has always been that she married an old school friend of his. Undoubtedly, the Charlie Brooks connection added a genuine layer of friendship to relations between Rebekah Brooks and Cameron. I suspect that if it was not for Charlie Brooks there would

Walking beyond parody

As the Times’s Sam Coates suggests, this official Department of Transport video lands right in the middle of The Thick of It territory. Remoding (1:00 in), anyone?

Greece is still the word

Remember when Europe’s leaders were basically saying, ‘Don’t worry, it’s all sorted’? Remember when they were putting out communiqués that started ‘The euro continues to rest on solid fundamentals’? No doubt they’ll do so again, but those past shows of certainty still look kinda funny this morning. Despite some last-minute concessionary efforts by Europe’s beancounters, it still appears that Greece’s main parties will be unable to form a coalition, and are heading for another election. And we know what that could mean: victory for the left-wing Syriza coalition, a severe swing against austerity, Greece’s exit from the euro, etc. etc. Were Greece to leave the currency, two questions would present

The battle for the ’22

Elections to the 1922 Committee of Tory backbenchers have always been a test of the relative strengths of the right and left of the party. But this year, the split is between those who are backing the broadly pro-leadership 301 Group slate and those who view the ’22 as more of an alternative voice. The contest has become particularly heated after last week’s fiery meeting of the ’22 Committee. Intriguingly, Stewart Jackson, who was barracked when he tried to defend Nadine Dorries for her ‘posh boys’ attack on Cameron and Osborne, is standing for the executive. Given what he wrote on Sunday and that he resigned as a PPS over

Clegg goes mobile

Just as David Cameron is trying to move on from a tough few weeks by returning to themes that worked for him earlier in his leadership, Nick Clegg is also focusing on familiar territory. He’s given a speech this morning on the pupil premium — which he made a key component of his Lib Dem leadership bid back in 2007. And today’s speech marks the start of a two-week push on a key Clegg concern: social mobility. It’s not as if Clegg’s been silent on the topic recently, but this is the first time it’s been at the top of his agenda since he launched the government’s social mobility strategy

James Forsyth

Boris keeps on charming his party

Not since Michael Heseltine has there been a politician who is so adept at finding the g-spot of the Tory faithful as Boris Johnson. His column today in the Telegraph is a classic example of this. There’s some witty and perceptive BBC bashing, mockery of the Lib Dems and their priorities, and a demand that the Tories get what they need out of the coalition. His line ‘If we are really going ahead with Lords reform (why?)’ sums up Tory feelings on the subject far better than more earnest tracts have done. ConservativeHome is certainly impressed, saying that the Mayor of London is ‘real and raw in an age when

Another voice: How ministers are gaming the net migration target

International students are currently the largest single category of immigrants who count in the net migration figures, which cover all those intending to stay more than a year. In the most recent figures (the year to June 2011) there were 242,000 such students — making up 40 per cent of so-called ‘long term’ immigration. However, as a new report by IPPR sets out, international students are not really ‘long term’ immigrants at all. They are far more likely to return home after a few years than the other main immigration categories of work and family: the evidence suggests only around 15 per cent stay permanently. Clearly, it would be wrong

Cameron looks to his early leadership period for inspiration

David Cameron’s big parenting push this week is a reminder of what the Prime Minister would have liked to have been before the economic crisis intervened. Cameron believes that encouraging stable, loving families is the best way to prevent social failure. Doing that reduces the demand for government and, so the logic goes, shrinking the state then becomes a lot easier.   How the government can try and help people be better parents without falling into the nanny state is undoubtedly tricky. But Cameron’s emphasis so far has, rightly, been on simply giving people more information to help them make their own decisions. Part of this approach is a series

Pickles struggles for an answer on growth

The government is desperate for economic growth but where can it find it? This was the question posed to Eric Pickles on the Sunday Politics today, but sadly he was unable to provide much of an answer. The Communities and Local Government secretary gave a blustering interview, where he reaffirmed William Hague’s view that ‘growth will come from government creating conditions for us to work a little bit harder.’ But when pushed by Andrew Neil on what this (slightly condescending) idea actually means, Pickles jumped on the chance to blame Labour for the ‘something for nothing culture’. Pickles did add that the government’s chosen sources of prosperity are business investment

Hammond speaks out

Generally speaking, Philip Hammond is one of the Cabinet’s quieter members; a sort of human calculator designed to run a department efficiently and with the minimum of fuss. Which is why his interview with the Sunday Times this morning (£) is so eye-catching. There’s very little that’s understated about it at all. ConservativeHome’s Matthew Barrett has already put together a useful summary of the main points, so suffice to say that Hammond is dismissive about both Lords reform… ‘He believes the upper chamber “works rather well” as it is and that voters are “probably largely indifferent” on the subject.’ …and gay marriage: ‘He believes gay marriage is too controversial for

Friends in north?

For the Tories to have any hope of winning a majority, they have to face up to reclaiming seats in the North, but can they do so under Cameron? David Skelton from Policy Exchange suggests not in an interview with the Northern Echo today, where he outlines the ‘Cameron problem’: ‘You can’t get away from the fact that the Tory party looks pretty public school, pretty Southern and quite gilded. The fact is that the Tories can’t win an election if they can’t appeal to aspirational working-class voters in the North and the Midlands…If the Tories can’t find a way to get across the fact that voting Tory has become countercultural in

Embarrassment for Cameron, trouble for Hunt

Rebekah Brooks’s testimony at Leveson was embarrassing for the Prime Minister — but no worse than that. I suspect that tomorrow’s papers will have much fun with the fact that Cameron used to end his texts to her with the letters ‘LOL’ in the mistaken belief that it meant ‘lots of love’. But, as one friend of the PM’s pointed out to me, No.10 would have definitely settled for that being the headline story this morning. Jeremy Hunt, though, again finds himself in some difficulty thanks to a Fred Michel email which indicates that the Culture Secretary was seeking News Corps’ guidance on how to deal with hacking. As with

The coalition: two years in

As the coalition celebrates its second birthday, it seems as good a time as any to take a look at how it’s doing in the eyes of the public. First, here’s how the government’s approval rating — as measured by YouGov — has changed since its formation: As you can see, the coalition took office with reasonably good ratings, but the first ten months or so — which included the Comprehensive Spending Review and the tuition fees vote — saw public opinion turn against it. For the rest of 2011, the ratings stayed fairly flat, with the government neither regaining ground with the public nor losing any more — and

Fraser Nelson

The folly of Cameron’s gay marriage culture war

For some time now, a growing number of Tory MPs have been quietly informing the whips that they will not be voting to support gay marriage. They’ve been getting letters from their constituents, and even those in favour of the idea know that they can’t afford to support it. When a cabinet member spoke to the whips office recently, he was given a startling reply: don’t worry, it will never come to a vote. The consultation is ongoing, but the agenda is being dropped. The effect it’s having on the morale of the Tory grassroots is calamitous. I look at this fiasco in my Daily Telegraph column today, and here