Uk politics

Tuesday

Daniel Korski

Call in a bulldozer for growth

As the coalition considers how to develop a growth strategy, it would do well to call in Paddy Ashdown and hear about the ‘Bulldozer Initiative’ he launched while in Bosnia working for the United Nations. Not a highway programme, the Bulldozer Initiative was instead one of the smartest pro-business schemes I have seen. And something like it is now needed here. The brainchild of a French businessmen and based on the ideas of Peruvian economist Hernando de Soto, it involved building a partnership between politicians and businessmen to identify specific legislation and regulations that prevented companies from expanding their businesses and creating more jobs. The steering committee, made up of

Peter Hoskin

Ed Balls: I don’t think a double dip is the most likely outcome

And this, folks, is a day where Ed Balls is having his cake and eating it too. Not only is he basking in the grim light of the growth figures, but he is using the opportunity to recast his own stance on the economy. Speaking on the Daily Politics just now, he de-emphasised the argument that in-year cuts were to blame for today’s numbers, instead claiming that people have “changed their behaviour in anticipation of what’s coming in the future.” And, more ear-catching still, he added: “I don’t think [a double dip] is the most likely outcome.” This, as Fraser suggested earlier, is surely necessary caution on Balls’s part. He

Fraser Nelson Fraser Nelson

What to make of the GDP fall?

“Recession here we come, a snow-dabbed double-dip” tweeted Faisal Islam, Channel Four’s economics editor. He summed up much of the hysterical reaction. It may spoil a good story, but here is what I suspect the broadcasters won’t tell you today. 1. Erratic GDP swings are common when recovering from a recession. Remember how stunned everyone was with the surging quarter three data? Now, we’re all shocked by plunging quarter four figures. I’d advise CoffeeHousers to treat these two imposters just the same. After the 80s recession, quarterly growth rates swung between -0.7 percent and 1.5 percent. Following the ERM-induced recession in the 90s, growth rates swung between -0.2 percent and

Kristian Niemietz

The pressing need to redefine poverty

What is ‘poverty’? It might sound a basic question but, when we hear about x percent of people ‘living in poverty’, what does that actually mean? The policy review conducted by Frank Field last year offered a number of insights into the issues of life chances and their determinants. But it failed to address that fundamental question: what is poverty? Until we know what we are measuring, it is impossible to attempt to tackle it. Poverty continues to preoccupy us. According to the British Social Attitude Survey, the majority view is that there is “quite a lot” of poverty in Britain today, and many expect it to increase over the

Monday

James Forsyth

Does it matter what the government is called?

Danny Finkelstein has written an interesting post objecting to Channel 4 referring to the ‘Conservative-led coalition’ last night. Finkelstein’s objection, and a valid one to my mind, is that ‘Conservative-led’ makes a judgment about the nature of the coalition. Of course, this whole spat has been set off by a clever letter from Ed Miliband’s communications director Tom Baldwin to broadcasters objecting to their use of the word ‘coalition’ to describe the government on the grounds that it implies that the government is a collaborative enterprise. I suspect that this whole row will rumble on for a while yet. It is tempting to dismiss the whole thing as absurd, as

David Blackburn

Outgoing head of the CBI slams the government on growth

Richard Lambert has launched an uncompromising but constructive assault on the government’s growth strategy, or lack of it. He said: “The government is…talking about growth in an enthusiastic and thoughtful way… But it’s failed so far to articulate in big picture terms its vision of what the UK economy might become under its stewardship. “What I feel is that a number of their initiatives – I’m thinking of the immigration cap, I’m thinking about their move on the default retirement age, about the carbon reduction commitment – have actually made it harder for companies, or less likely for companies to employ people. And what we want, actually, is a sense

Daniel Korski

The government must continue to liberalise Europe’s market

For a long time, the terms of Britain’s Europe debate has been about the merits – or otherwise – of membership. This has occluded discussion about the need to promote a deregulated and economically liberal single market, for which the Conservatives have fought so successfully since Britain joined the then EEC in 1973.   Now Lord Brittan has shown the way. In a speech to Business for New Europe, he takes aim at the many illiberal practices that hamper economic development across Europe and hurt British business: “Portugal still has rules governing the minimum distance requirements between driving schools; and in Greece, directors of dancing schools need to live within

David Blackburn

The coalition needs to address bonuses

Much ado about bankers’ bonuses this afternoon. Tim Montgomerie reports that the proposed banking deal has run aground in Whitehall. The timing is inconvenient: Cameron and Clegg are due to fly to Davos to attend the World Economic Forum. The government hopes to allay public resentment by coercing banks into increasing their lending; which is also a crucial part of its nascent growth strategy. It adds to the impression that the government is failing to make progress in any other realm than cuts. For the time being, Tory spinners are content to distract attention by telling anyone that will listen about Ed Balls’ record on bank regulation and boundless enthusiasm

David Blackburn

Sexism is a red-herring; it’s family that matters

I’m afraid that women have been faking it, having us men on. You see they understand the offside rule and always have done. How could they not? It’s so simple that even a brace of abject football pundits know that an actively involved player is offside when he is closer to the opponent’s goal line than both the ball and the second-to-last defender, but only if he is in his opponent’s half of the pitch. Messrs Keys and Gray may not be too sharp on interpretation – unlike the ‘young lady’ (£) they berated – but they’re smoking hot on the theory. So do me a favour love and drop

Sunday

James Forsyth

DD’s classy intervention

David Davis’ interview on Jon Pienaar’s show this evening has revived the debate about whether or not it matters how posh the Cameron top table is. Andy Coulson was the most senior person there who understood what it is actually like to work your way up the ladder and with him gone that experience is missing. But what matters far more than the personalities involved is the policy outcomes. As I said in the Mail on Sunday, the most important thing for Cameron to do is to deliver for these voters. To cut their taxes and give them public services that offer them value for money. One other thing worth

Matthew Hancock-Mp

Re-introducing Ed

We already knew Ed Balls was behind Gordon Brown’s economic policy. He devised the policy on spending that left Britain with the worst deficit heading into the crisis, and wrote the bank regulations that his colleague Douglas Alexander attacked earlier today.   What we have discovered today, from Balls’ first foray into economic policy as Shadow Chancellor, is that he was also behind the old Brown ploy of twisted facts and absurd assertions.   First, he claimed the public finances are better than the Treasury forecast. Yet the independent Office for Budget Responsibility found that the structural deficit – the hole we have to fix – was worse than Labour

David Blackburn

The Irish government folds

Yesterday, Brian Cowen resigned; today his government has imploded. The Green Party, which was bolstering Cowen’s ruling coalition (if such a phrase is applicable in this instance), have left the government. The Fianna Fail-led coalition is now two votes short of a majority, and therefore the finance bill may not pass in its current form. If that is so, Ireland may return to the precipice on which it found itself a couple of months ago, and its principal creditors and trading partners with it. But there is more to this than balance sheets. In his statement, the leader of the Greens said that the people had lost confidence in the political process. It’s

James Forsyth James Forsyth

Sizing up the runners and riders to replace Coulson

I suspect the identity of the Prime Minister’s next director of communications is of far more interest to those who work in Westminster than those in the country at large. But the identity of Coulson’s successor will reveal something about the balance of power in the coalition and at the Cameron court. I’m told that the Tories are in no rush to make the appointment, they’d rather take their time and try and find the right person. Despite what Nick Clegg said on Marr this morning, I’m informed that this will be very much a Tory-run selection process. Those in the know say that as with the Coulson appointment, George

Fraser Nelson Fraser Nelson

Exposing the con man

  To the chagrin of CoffeeHousers, I have long rated Ed Balls and his abilities. He has a degree of brilliance, albeit tragically deployed in the services of a destructive economic agenda. But as we welcome him back, it’s worth reminding ourselves that his abilities are of a specific type. He understands economics (even though he did PPE) but his speciality is in creative accounting. His only tactic is to spend, borrow and cover both up by cooking the books. He is a trickster, not an economist. More Arthur Daley than Arthur Laffer. In my News of the World column today (£) I say he is dangerous to Labour as

Saturday

Daniel Korski

Hague hasn’t lost his mojo

There has been no shortage of depressing news for the Tories lately. But, the other day, Benedict Brogan wrote a lengthy post about William Hague that must have made particularly unpleasant in-flight reading for the Foreign Secretary as he jetted around the South Pacific. It argued that: “In his absence – and even when he is back in Britain – Mr Hague is the subject of a whispering campaign among his colleagues, who say that the spark of ambition has died in his heart, and with it his effectiveness as the front man for the nation’s diplomatic effort. The Foreign Office has got its mojo back, just when Mr Hague

Peter Hoskin

Why Coulson’s departure matters

Courtesy of the ConHome tag team of Paul Goodman and Tim Montgomerie, two articles that are worth adding to your Saturday reading list. Both capture why Andy Coulson’s resignation matters, if not to the general swell of British politics, at least to internal operations in Coalitionville. The wider argument of Paul’s article for the Guardian is captured by its headline: “Andy Couslon had a nose for the view of the aspirational voter.” But it also homes in on the point that Coulson’s departure tilts No.10 in favour of Steve Hilton – something that, rightly or wrongly, will bother the Tory right far more than it does Lib Dems of any

Peter Hoskin

And what about the Lib Dems?

After the gales of recent weeks, the past few days must have been relatively blissful for the Lib Dems. No fake constituents with hidden dictaphones. No massive student protests. No especial focus on their opinion poll ratings. But, instead, a mephitic heap of problems, or at least embarrassments, for Labour and the Tories. Warsi, Johnson, Coulson, even EMAs – Clegg & Co. have been spared the worst of it. Which isn’t to say that the Lib Dems will be unaffected by recent events. For instance, as Paul Goodman suggests, Andy Coulson’s departure unsettles the delicate balance of the coalition – and that will always have ramifications, however minute, for the

Friday

Peter Hoskin

From the archives: The resignation of Alastair Campbell

No need to explain why we’re looking back on the resignation of Alastair Campbell for this week’s entry from The Spectator archives. The piece itself is merciless stuff from the pen of Stephen Glover. Alastair Campbell’s redtop values have contaminated our politics, Stephen Glover, The Spectator, 6 September 2003 When I learnt of Dr Kelly’s suicide, my first thought was that he had been fatally drawn into Alastair Campbell’s world. It is what many people felt. It was a reasonable assumption that Mr Campbell or his office or someone responsible to the Prime Minister’s director of communications had deliberately put Dr Kelly’s name in the public domain – with disastrous

Fraser Nelson Fraser Nelson

How do you snare a spin doctor?

So, who’s next after Andy Coulson? This question is oddly important, and will certainly influence the direction of his government. It shouldn’t, but you have to understand the way the Cameron operation works – and of how life looked before George Osborne persuaded Coulson to come on board (hoodie hugging, husky-riding, etc). Coulson was an advocate of fundamental conservative values (crime, tax cuts, Europe) and emphasised their mass appeal. Tim Montgomerie has a list of possibles for this job. But how to persuade them? Whoever does it can kiss goodbye to their life (and family) for the duration. No.10 is a pressure oven, and there’s a horribly large chance that

James Forsyth James Forsyth

Two days, two major resignations

Of the two resignations of the past 24 hours, it is Alan Johnson’s that will change the contours of politics. The appointment of Ed Balls makes the dividing line on the economy far starker. But the Coulson resignation is still a highly significant moment. Those Tories who worked with Coulson are downcast today and will brook no discussion of what the whole episode says about Cameron’s judgment. But there’s little doubt that the PM has been harmed by this episode. Not in any limb-threatening way but harmed nevertheless. Cameron also needs a find to way to organise his operation to both ensure that there is someone at the table who