Uk politics

Wednesday

Peter Hoskin

Ten things you need to know about the IFS Green Budget

An exciting day for policy freaks and numbers geeks: the Institute for Fiscal Studies has released its latest Green Budget, an annual survey of the state of the public finances. But if you can’t face wading through the complete 329-page document, here’s our quick ten-point summary of its main conclusions: 1) IFS forecasts “slightly lower” growth than the OBR. As this comparison shows: 2) But they’re more optimistic about borrowing. According to the IFS, borrowing won’t be as high as the government expects. The differences between their forecasts and the OBR’s are only minimal, but they’re there all the same: 3) The tax and spend forecast. Here’s a neat little

James Forsyth James Forsyth

Consensus reigns over PMQs

A very different PMQs this week: six questions on foreign affairs and almost total consensus between Cameron and Miliband. Miliband’s office had given No 10 advance warning of the topics they wanted to raise and the two agreed on pretty much everything. Miliband argued that ‘the best route to stability is through democracy.’ Cameron agreed but stressed that democracy means more than just elections. You get the picture. At the risk of disagreeing with Pete, I must say that the exchanges were a reminder of just how dull PMQs would be if it was not confrontational. For Miliband, the advantage in taking this more considered approach today was that it

Peter Hoskin

PMQs live blog | 2 February 2011

VERDICT: What a refreshing change that was. After several weeks of Punch ‘n’ Judy rivalry, the two party leaders finally put down their batons and stumbled upon a new way to do it. Much of the credit must go to Ed Miliband, for asking pacific questions about Egypt and Afghanistan in the first place. But credit, also, to Cameron, for answering them in a straightforward and statesmanlike manner. The rest of the House, for its part, was stunned into silence by this peculiar scene. Some of the blood rushed back into proceedings with the backbench questions, and as Cameron directed attacks at Ed Balls, but this must still go down

Matthew Hancock-Mp

IFS say Labour’s policy would mean higher interest rates

From the start of the financial crisis, the Conservatives have argued that when a country¹s finances are in a mess, the best way to manage demand is through monetary activism and fiscal responsibility. Going into this crisis, Britain¹s finances were indeed in a mess. We had the biggest structural deficit among major developed economies (according to the IMF, OECD, oh, and Alistair Darling). To claim there was no structural deficit is to oppose the truth. The principles of monetary activism and fiscal responsibility underpin the approach to the recovery too. By dealing with the fiscal mess, we can keep interest rates lower for longer, and avoid the sorts of financial

Tuesday

David Blackburn

When will mass protest come to Libya?

As several seemingly permanent Middle Eastern autocracies tremble, Colonel Gadaffi’s Libya rolls on. So far, there have been reports of minor protests in the localities about housing shortages, nothing more. With unemployment standing at 30 percent, the Libyan people are just as impoverished as those in neighbouring Tunisia and Egypt. Gadaffi’s dictatorship is scarcely benevolent, and, as for liberalisation, Libya remains one of the few completely dry countries on Earth. The secret of Gadaffi’s success then would appear to be expressing aggressive anti-American sentiment, whilst suppressing Islamism and democratic opposition at home. And all the while he entices rich Western powers (Britain) with the allure of Libya’s virginal natural resources.

Fraser Nelson Fraser Nelson

Treading the road to recovery

It will have been a quiet morning in the Balls household. Fresh economic indicators suggest that the British economy is not in some cuts-induced recession but, instead, doing rather nicely, thank-you. As I said last week, economic health is assessed by all manner of indices – and the ONS (which is forever having to tear up its GDP forecasts) might just have boobed last week with its preliminary Q4 GDP figures. Today we have the Manufacturing PMI surging to heights not even reached in the early 1990s:   Now, this might be a flash in the pan, you say. But then consider corporate liquidity – that is, how much debt

Peter Hoskin

All across the political spectrum

Yesterday’s polls may seem like yesterday’s news – but it’s actually worth returning to YouGov’s effort from, erm, yesterday. It contained some distinctive questions, and results, all set around the left-right spectrum. How left wing is the Labour party? How right wing is David Cameron? That sort of thing. Of course, as Anthony Wells has already pointed out, the old labels of “left” and “right” are of decreasing relevance nowadays. But they do still tell us something about popular perceptions of the parties and their leaders. So here are the top line YouGov results in graph form:   From which, a few points stand out: Ed Miliband is regarded as

Peter Hoskin

Osborne’s tax headache

No doubt about it, George Osborne is being pulled in two directions ahead of the Budget. There are those, such as the Lib Dems, who would have him reduce taxes for the least well-off. There are those, such as Boris, who would have him reduce taxes for higher earners. As I suggested yesterday, this debate pivots around two particular measures: raising the personal allowance and cutting the 50p rate. Rachel Sylvester develops the story in a typically insightful column (£) for the Times today. It quotes an “ally of the Chancellor” to the effect that Osborne is minded more to raise the personal allowance than to cut 50p. “Not many

David Blackburn

A picture paints a thousand words

Crime maps have formally reached England and Wales. The Home Office has unveiled www.police.uk and citizens can examine incidences and trends of crime in their local area. Naturally, the website is broken at the moment. Nick Herbert, the Policing Minister, told the Today programme that the site crashed under the weight of 4 million users in an hour. The government hopes that this interest will be sustained, inaugurating a revolution in transparency and accountability. People power will trump the unelected authorities of the past. Crime maps merely record the facts of crime, but extensive trials suggested that they improve peoples’ knowledge of their neighbourhood and encourage locals to influence police strategy

Monday

James Forsyth

Wheeling and dealing over the AV bill

If the AV referendum is to take place on the 5th of May, the legislation paving the way for it needs to have passed by the 16th of February. But this bill is currently being held up in the Lords where Labour peers are objecting to the ‘Tory part’ of the bill which reduces the number of MPs and equalises constituency sizes. The coalition does not have a majority in the Lords, so all the talk of simply ramming the bill through was always slightly unrealistic. But the coalition’s concession that there can be public inquiries into the boundary review has created an expectation that Labour might now drop its

Peter Hoskin

Fox: Iran could have a nuclear weapon by 2012

As Cairo smoulders, it’s easy to forget about one of the most combustible ingredients in the Middle Eastern cocktail – Iran. Yet the threat still exists, as Tony Blair and Liam Fox have been keen to remind us. James Kirkup reports that the Defence Secretary has warned a Commons committee that Iran could have a nuclear device as soon as next year. Fox isn’t the first to make the 2012 claim. The director of the CIA did so last year. And a recent article by the former UN weapons inspector David Albright and Andrea Stricker – which I arrived at via Jeffrey Goldberg – explains just how Iran might pull

Jonathan Jones

Ten things you need to know about the NHS reforms

At last we have it: a defence of the coalition’s NHS reforms that is worthy of the name. It came courtesy of David Cameron, speaking on BBC Breakfast earlier, and you can watch it in the video above. Suffice to say, the Prime Minister dwelt on the endemic waste and excessive bureaucracy of the current system, yet he also found room to explain why choice matters, and why it won’t leave patients stranded. But, even then, the performance wasn’t perfect. Cameron may have thought he was being disarmingly honest by admitting that his brother-in-law’s fellow hospital consultants have qualms about the proposals, but one suspects it has served only to

Peter Hoskin

What are Osborne’s options?

One of the most eyecatching political reports of the weekend was squirrelled away on page 16 (£) of the Sunday Times. It’s worth clipping out for the scrapbook, even now. In it, Marie Woolf reveals some of the fiscal sweeteners that Osborne might sprinkle into the Budget. There are two particularly noteworthy passages: i) Raising the personal allowance. “The income tax threshold is already set to increase by £1,000 to £7,457 from April 1. However, Osborne is expected to raise it by about a further £500. Details of the additional concession are still being worked on, but it marks a victory for the Liberal Democrats, who have been arguing within

Peter Hoskin

The coalition feels the squeeze

The Institute for Fiscal Studies are out prowling the airwaves again, and they bring happy and unhappy tidings for the coalition. On the happier side, at least presentationally speaking, is their assessment that, “those being hit the very hardest [by tax and benefit changes] are those on [a] higher level of earnings” – just as Cameron and Clegg suggest. But far less marketable is the IFS’s claim that 750,000 people will be pulled into the 40 per cent rate of tax as a result of the threshold being reduced from £37,400 to £35,001 this April.   To be fair to the government, they have at least been upfront about this

Sunday

Matthew Hancock-Mp

Ed Balls won’t answer the important questions

So Ed Balls has made his decision. In articles and a TV interview today, he has decided that, instead of apologising for his part in bringing Britain to the state it’s in today, he will deny what he did. It was the consensus that Britain had the biggest deficit in the G7 going into the crisis, because that’s what the facts show. Contrary to Balls’ assertions, Britain ran a structural deficit for the seven years running up to the crisis – the figures are right there in Labour’s own Budget red books. And it’s the consensus that Labour left the biggest deficit since the war, since it’s a fact. Given

Saturday

Peter Hoskin

Has Maude shut the door in Boris’s face?

Nigel Lawson and Francis Maude are both interviewed in the Telegraph today, and the results are very different in each case. For his part, Lawson is in bombastic form – waxing sceptical on everything from the coalition to the Big Society. Whereas Maude is predictably more reserved and accepting. It’s the Maude interview, though, that contains the most politically significant revelation. Namely, this: “Boris Johnson, privately backed by several Cabinet ministers, is leading the charge for tougher union laws. But Maude, a key player in the Coalition’s dealings with the public sector, is reluctant. Tightening Thatcher’s labour laws is a ‘last resort’ he says. In the meantime, the Government should

Friday

Daniel Korski

Coffee House interview: Ursula Brennan

Few government jobs are as demanding as that of Permanent Under-Secretary, or PUS, in the Ministry of Defence. With Liam Fox as your boss, General David Richards as your colleague, and an exhausted, overspent department to run, it is no surprise that when Bill Jeffrey retired many of the government’s most senior officials – including, it is said, No 10’s Jeremy Heywood – balked at the challenge. Forward stepped Ursula Brennan, who until then had held the ministry’s No 2 job before a career in the Ministry of Justice, and what is now the Department for Work and Pensions. Here, Mrs Brennan has kindly agreed to answer a few questions

Peter Hoskin

Poll catch-up

Other sites have already covered this week’s opinion poll results, among them Labour’s largest lead since September 2007 and the public’s confusion over the Big Society. But there are a couple of findings that are worth dwelling on as we drift into the weekend: 1) Labour gaining ground in the blame game. Ok, so PoliticalBetting’s Mike Smithson mentioned this a few days ago. But, here at Coffee House, we’ve translated the numbers into the graph below. It shows that, over recent YouGov polls, Labour have been slowly receiving less and less blame for the spending cuts, while the coalition are receiving more: Expected, perhaps – but still noteworthy, not least

James Forsyth James Forsyth

Gove entrenches his reforms

In another sign of how the pace of Gove’s reforms is quickening, the education secretary has told local authorities that all new schools should be free schools or academies. This is a big step towards changing the default nature of the system from state-funded and state-run to state-funded but independent.   Local authorities will not be able to open a bureaucrat-controlled school unless they can satisfy the Secretary of State that there is no free school or academy provider willing to step in.   Gove has always argued that once free schools and academies become a significant part of the system it’ll be no more politically possible to abolish them

Peter Hoskin

Cameron’s gloomy brand of optimism

A weird, sprawling kind of speech from David Cameron in Davos this morning. It started off on an unusually, if expectedly, gloomy note: all talk of Europe’s debt-induced decline in the face of competition from India, China and Brazil. And he emphasised, of course, that Britain would, and should, stick to its current trajectory of “tough” deficit reduction. But it’s where it went from there that was more striking still. Cameron contrasted his position with that of “the pessimists”. These people, he claimed, have a charter which includes propositions such as, “we in Europe are incapable of solving our debt and deficit problems,” and, “we’re attached to liberal values that