Uk politics

Time to scrap the minimum wage?

Today’s youth unemployment figures are simply appalling. It’s now 21 per cent amongst the under-25s, above the peak of 18 per cent seen under the 1990s recession. For the first time since then, Britain’s youth joblessness is worse than the European average. This is a tragedy, and not one we should accept as being a grimly inevitable aspect of the recession. Ed Miliband said in PMQs that a million young people are on the dole: a statistic everyone should get angry about. And we can think of what has gone wrong. The above graph shows how Britain has nothing left to boast about in unemployment. Blair used to love heading

James Forsyth

Miliband attacks Cameron on jobs

Ed Miliband chose to ask all six questions on the economy today, making only the quickest of references to the Liam Fox story that the Westminster village is currently obsessing over. Armed with ammunition from the latest unemployment numbers, Miliband did a solid job of pushing Cameron onto the back foot. But there was one moment which will worry Miliband’s supporters: the spontaneous way the government benches fell about when Miliband claimed that Scottish and Southern Energy’s decision to start selling its electricity on the wholesale market was the result of his conference speech. Three Labour backbenchers did ask questions about Liam Fox. Cameron said he would look at publishing

Right to reply: The truth behind the poverty figures

This morning, Fraser published a piece criticising the Institute for Fiscal Studies’ definition of poverty. Here is a counterpunch from Julia Unwin, Chief Executive of the Joseph Rowntree Foundation, which is the organisation that funds the IFS. This article is the latest post in our Right to Reply series.  Do we really need another debate about the usefulness of a poverty measure? Of course, no definition is perfect. One of the hardy perennials of the poverty debate is the question of measurement. I wonder what it says about us as a country: why do we spend so much effort thinking about definitions of poverty, and so little responding to the

A counterweight to France-German power

It was only a matter of time before the Franco-German drive to reshape Europe’s “economic governance” met with a counter-proposal. In international politics, a powerful state or group of states tends to lead others to band together in or order to provide some form of balance. This is now happening in Europe. David Owen and David Marsh are proposing the creation of a “Non-Eurogroup” (NEG), corralling the 10 EU countries outside the Eurozone into a group. Writing for the Financial Times, they argue that such an NEG would bring many benefits. They say: “Setting up the NEG would establish rights and responsibilities for non-eurozone members, ending the long-held European position

Which amendments to the NHS bill would the government accept?

The Lords has been debating the Owen/Hennessy amendment to the NHS bill, which threatens to upset the coalition. Owen and Hennessy have called for the bill to be referred to an extraordinary committee, which would report by 19 December, and they insist that the secretary of state must remain ultimately responsible for services.  Lord Howe opened for the government and spoke of the need to delegate power away from the secretary of state. The he added: ‘We are unequivocally clear that the Bill safeguards the Secretary of State’s accountability. However we are willing to listen to and consider the concerns that have been raised and make any necessary amendment to put

Gus O’Donnell’s resignation letter

Today, Downing Street has announced that the Cabinet Secretary, Sir Gus O’Donnell, will resign at the end of the year. Here is the letter he sent: Dear Colleagues I wanted to let you know that I am announcing my retirement today, after over six years as Cabinet Secretary and Head of the Civil Service. I will be leaving the civil service at the end of the year. I am extremely proud of the fantastic work that you do up and down the country – delivering services to the public. I have been a civil servant for 32 years and remain convinced of the importance of our traditional values of honesty,

Cameron tackles internet porn with more government

David Cameron is taking his woman trouble seriously. He will unveil plans to curb internet pornography at a meeting with the Mothers’ Union later today. The government will force internet users to opt in to view pornographic websites when they initially chose their internet providers. The government will also clamp down on sexualized advertising and a new website, Parentport, will be established to allow parents to report inappropriate images, articles of clothing, TV programmes etc. This is a fairly blatant pitch for the wandering female vote, which is exercising Cameroon minds at present. It’s a clear attempt to say: We’re going to help you to protect your children. The policy

Fraser Nelson

The poverty of the poverty measure

‘400,000 children will fall into relative poverty by 2015, says IFS’ we read on The Guardian’s front page today — yes, one of the most pernicious ideas of recent years is back. It’s the definition of ‘poverty’ as being figures on a spreadsheet, households deemed to fall beneath an arbitrary threshold. It’s almost entirely meaningless, and diverts energy and resources away from a real fight against poverty. I really do believe that, as ideas go, this one has damaged Britain more than almost any other over the last two decades — and it’s high time it was confronted.   The ‘poverty’ that the Institute of Fiscal Studies is talking about

Fox in the clear?

Liam Fox demonstrated today why he’ll be staying in Cabinet. He’s a tough, eloquent and effective Commons performer who does not fall to pieces when the going gets tough. George Osborne and Michael Gove were both on the front bench with him. One MP told me he saw Eric Pickles in the corridors, giving Fox a hug that almost killed him. All this reflects well on them: in politics, it’s always worth noting who stands by colleagues, and who scarpers, when it hits the fan. Fox has, finally, made the two steps required to get on top of this scandal: an apology, and full disclosure to stop the drip, drip

Another voice: Against austerity

Here’s the latest in our Another Voice series of posts, which give prominence to viewpoints outside the normal Coffee House fold: You can’t help but notice that the UK economy isn’t doing too well. Part of this is down to international developments, sure. But part – as Mervyn King said in “http://www.bankofengland.co.uk/monetarypolicy/pdf/govletter111006.pdf”>his letterto George Osborne last week – is the result of “fiscal consolidation”, aka spending cuts. The IMF’s assessment, published a few days ago, shows both why debt has risen (lower tax revenues) and what is happening now (sharp contraction): And there’s much more contraction to come: So why keep on contracting if it is affecting economic growth? Clearly, the Prime Minister

The Fox hunt distracts from louring clouds

The furore surrounding the defence secretary is distracting attention from some stories that are threatening the coalition’s tranquillity. Benedict Brogan reports that the Health Bill is being amended out of existence by a cabal of Lib Dem peers, a campaigned that was mooted during the party conference season. The rebellion is apparently aggravating Number 10, which understood that Nick Clegg had secured his party’s support for the diluted programme which emerged after the recent “listening exercise”. Labour’s numerical superiority in the House of Lords means that ministers will have to be at their most mellifluous to bring the errant Lib Dems back to the fold, because Tory backbenchers are clear

James Forsyth

How Number 10 will judge Fox

Downing Street is busy stressing that the David Cameron doesn’t want to lose Liam Fox from the Cabinet. There is lots of talk of how the Prime Minister doesn’t want to pull the rug out from under anyone. I understand that to Number 10’s mind the crucial questions are whether Adam Werritty has made any money out of defence since May 2010 and if so, did Fox know about it? If the answer to both of these questions is yes, then the Defence Secretary is probably done for. But if it is no then Fox will have suffered some embarrassment but nothing more. Even if it turns out that Werritty

Crunch time for Fox

“I don’t believe that wrongdoing did occur”, said Liam Fox in his apology yesterday. With today’s front pages dripping with accusations, Fox has some work to do to substatiate that claim. The Guardian reveals that “Political lobbyists were paid thousands of pounds to help a Dubai-based businessman arrange a secretive meeting with Liam Fox”: “an invoice, seen by the Guardian, shows that Boulter enlisted the services of a lobbying firm to help him skip layers of bureaucracy and meet Fox for an urgent meeting on the 41st floor of the hotel. The invoice shows Boulter paid Tetra Strategy £10,000 for “project fees”. It is understood that the fees covered fixing

Boulter vs Fox

The Liam Fox imbroglio has just started to make more sense. The original story was broken by The Guardian (of whom more later) and the main source appears to have been one Harvey Boulter, an American mogul whom Fox fatally agreed to meet in June at the suggestion of his friend Adam Werrity. It was the kind of meeting that a civil servant would never have arranged. Boulter was, to use a political term, toxic. He was being sued for blackmail by 3M, in a court case being fought in London, and after landing this meeting with the UK Defence Secretary he tried to use it as ammo. According to

James Forsyth

Liam Fox’s apology

In a bid to save his Cabinet career, Liam Fox has just issued a statement, which he also read to the cameras, apologising for allowing ‘distinctions to be blurred between my professional responsibilities and my personal loyalties to a friend’. The defence secretary goes on to accept that he should have ensured that officials were present at meetings between him and Adam Werritty at which ‘defence and security related issues were rasied.’ He says that he has apologised to the Prime Minister for the Dubai meeting, at which Fox saw a commercial supplier with no official present. Apparently, the MoD permanent secretary will now be putting in place new procedures

Fraser Nelson

Chris Huhne: an apology

I have apology to make. I wrote on Friday that I suspected Chris Huhne’s mistweet “fine, but I don’t want my fingerprints on the story” was the Climate Change Secretary briefing against a Cabinet colleague to a Sunday newspaper. This was a horrid allegation to make, suggesting that a member of Her Majesty’s Government would spend his time and energy trying to ridicule a colleague for the benefit of a Sunday newspaper. I now accept that he was not. It was for the Saturday edition of The Guardian. Huhne has just fessed up to Jon Sopel the Politics Show on BBC One: “In the Eastleigh News website is a recording

Fox would lead anti-coalition Tories

So far, the Prime Minister seems to be playing down any potential fallout from the crisis dogging Liam Fox. No 10 seems to be saying “if the Defence Secretary goes, it won’t be such a big issue”. Much remains to be seen about the Defence Secretary’s career – and he may survive the crisis that is currently engulfing him. But it looks increasingly hard for him. Evidence is emerging daily that Adam Werritty was somehow a member of the Defence Secretary’s team, closer to Fox even than junior ministers. And there may be more trips to be uncovered and more meetings that he joined. He was, for example, spotted at