Uk politics

Benefit reform – one theatre in Cameron’s war

The Observer has received letters revealing that George Osborne plans to deliver net savings of ‘at least £2.5bn’ from the Employment Support Allowance by limiting the amount of time people can spend claiming it. Here is Osborne’s letter to IDS, Cameron and Clegg: ‘Given the pressure on overall public spending in the coming period, we will need to continue developing further options to reform the benefits as part of the spending review process in order to deliver further savings, greater simplicity and stronger work incentives. Reform to the employment support allowance is a particular priority and I am pleased that you, the prime minister and I have agreed to press ahead

The government should return the unions’ fire

The TUC is mustering in Manchester and its leaders are in bellicose mood. Brendan Barber has called for a general strike; Bob Crow, brimming with the satisfaction of having wrecked London’s transport earlier in the week, has called for his members to ‘stand and fight’ the government’s cuts. These statements have a ‘Me and my executive’ air to them, so ludicrous as to be beyond parody. But the message is rousing and clear. Not so the government’s – as Fraser argues today in his News of the World column. The government is caught in an intellectual cul-de-sac. Its sole refrain is that these cuts are Labour’s cuts and they are

Field caught between reality and fantasy

Frank Field’s been thinking. He will make his report on poverty next week and he hints at its contents in an extensive interview with the Times (£). He is convinced that there is more to social mobility than money and he has some brilliantly simple ideas to alleviate poverty. He advocates creating four or five terms in the school year to shorten the long summer holiday, which he argues disadvantages the poor. ‘They have less help at home so they lose out even more in long holidays. They drop behind, they are not being read to or tutored or talked to in the same way as many middle-class children. They

Beating the vested interests

This is the next of our posts with Reform looking ahead to the Spending Review. Earlier posts were on health, education, the first hundred days, welfare, the Civil Service, international experiences (New Zealand, Canada, Ireland), Hon Ruth Richardson’s recent speech and how to sell the case for cuts.  On Thursday, I took part in a spending review debate in West Bromwich, part of a series the BBC held across England (my colleague Patrick Nolan wrote about his experiences in London and the East here) to discover the public’s views on what should be cut or saved in their local area.    I felt a bit of an intruder talking to

Battling for the budget rebate

A plain speaking man, Janusz Lewandowksi. This week, the EU Budget Commissioner said, not without a clear note of pleasure, that ‘the rebate for Britain has lost its original justification.’ The EU veers between incompetence and arrogance. Baroness Ashton embodies the former, Lewandowski the latter. His statement encapsulated why a majority of Britons want out of this club into which they have never been allowed to enter. Put simply, it was hectoring and counter-factual. Mrs Thatcher negotiated the rebate to balance Britain’s net contribution, which was excessive owing to Germany and France’s disproportionate profit from the Common Agricultural Policy (the most glorious misnomer). At the time, the EU was run

What you need to know ahead of the spending review – making the case for cuts

This is the next of our posts with Reform looking ahead to the Spending Review. Earlier posts were on health, education, the first hundred days, welfare, the Civil Service, international experiences (New Zealand, Canada, Ireland) and Hon Ruth Richardson’s recent speech. Last night the BBC showed 12 major regional television debates examining impending cuts to public sector spending. I spoke at the debates in London and the East of England (held in Ipswich). There were interesting similarities and differences in the two debates and these illustrated some important lessons for the spending review. Both debates showed that there is still work to do to explain to the public, and some

From the archives – Boris for Mayor

Boris Johnson has announced his candidacy for a second term as London Mayor. Here is what he wrote for the Spectator on the campaign trail last time round. How, as Mayor, I would help our brave troops, The Spectator, 17 December 2007 Even if the story is exaggerated, the underlying psychology is convincing. It is reliably reported that last month a woman in her thirties was doing her daily laps of the pool in Leatherhead, Surrey, when she became aware of an obstacle. A section of the swimming-pool had been roped off to allow 15 wounded soldiers to receive the therapy needed for their rehabilitation. It is hard to know

Same old problems – and solutions – for Royal Mail

Two years ago, Richard Hooper wrote a report on Royal Mail which recommended part-privatising the service, among other measures. And today, with the official update to that report, we learn that his views have barely changed at all. If anything is different between then and now, it’s that the need to modernise Royal Mail has become even more urgent. The number of letters they’re sending has plummeted by more than forecast, and their pensions deficit has become even more unsustainable. The rot has quickened – and, yes, it’s up to the government to combat it. For their part, the coalition are using Hooper’s update to stress just how crucial privatisation

A miracle! And a good idea

I’m not sure if the sun will ever rise in the east again: Michael Howard has supported a Ken Clarke prison policy. The Justice Secretary has launched a pilot scheme at HMP Peterborough that uses private bond investment to fund inmate remedial programmes to cut re-offending. The Social Impacts Bond will provide £5million to produce £8million over the course of six years, assuming the scheme is a success. The situation required boldness. For once tabloid melodrama is accurate: reoffending is the scourge of our times and its incidence has risen steadily over the last decade. According to Dame Anne Owers, the former chief inspector of prisons, one cause is that

BoJo to stand for a second term as London Mayor

Today, it seems, the uncertainty is going to come an end: Boris Johnson will confirm that he is running for a second term as Mayor of London in May 2012. In truth, though, we probably shouldn’t have expected anything else. The timings of the Parliamentary term, and the inavailability of safe seats, always made an early return to Westminster unlikely – even if that’s what Boris had wanted. Stir the Olympic Games into the mix, and the lure of City Hall must have been too powerful to resist. As Ben Brogan says, this could be a timely boost for the Tories. The Boris campaign will be launched, to much jubilation,

A lesson from New Zealand

This is the next of our posts with REFORM looking ahead to the Spending Review. Earlier posts were on health, education, the first hundred days, welfare, the Civil Service and international experiences (New Zealand, Canada, Ireland). Ruth Richardson, the former reforming Finance Minister of New Zealand, set the benchmark for the Spending Review in a lecture for Reform on Wednesday evening. The coalition Government has framed the Review in the right way – as a chance to reshape and redefine the role of government rather than just shave a few percentage points off the existing structure with all its structural flaws. Ruth Richardson explained what that should mean, addressing each

Labour get the inquiry they wanted

To these eyes, this afternoon’s phone hacking debate was a surprisingly sedate affair. Chris Bryant – proposing a motion to have an inquiry conducted by the Standards and Privileges committee into the News of the World’s actions – seemed to go out his way to depoliticise the argument, and other Labour MPs followed his lead. And so there was relatively little mention of Andy Coulson, with the emphasis instead on the wrongs that might have been done to the House by the police and the media more generally. It was, then, little surprise that Bryant’s motion was passed unanimously. There were some flashes of controversy and acid, though. Bryant himself

Robert Chote is the new head of the OBR

Now this should dispel any worries that the Office for Budget Responsibility is partisan in the government’s favour. Robert Chote, director of the Institute for Fiscal Studies and scourge of Osborne’s “regressive” Budget, has been appointed as the body’s new chief. It is, in many repsects, the most sensible and obvious choice. Not only is Chote respected across the political divide, but the OBR is an attempt to institutionalise the kind of fiscal oversight that his IFS has provided for years. I can’t imagine that the Treasury Select Committee will try to block this appointment. In case you missed it first time around, Fraser interviewed Chote for the magazine back

James Forsyth

The coalition’s shifting horizons

Nick Clegg’s speech today is meant to be one of a pair with David Cameron giving the other tomorrow. The speeches mark an attempt to set out an agenda for the government that goes beyond deficit reduction. The idea is that Clegg’s speech called ‘horizon shift’, which is all about making government policy more long term, goes hand in hand with Cameron’s speech tomorrow on ‘power shift’, the government’s plan to devolve power down. This twin-pronged approach came out of the political Cabinet at Chequers at the end of the last parliamentary term and a recognition that the coalition must be seen to be doing more than just reducing the

Clegg downplays the cuts

A noteworthy directional shift from Nick Clegg in his speech this morning. Instead of priming the us for “savage cuts,” as he once did, the Deputy PM is now deemphasising the severity of what’s to come: “Some of the hyperbole I have heard is just preposterous – this idea, that somehow, it is back to the 1930s. After the spending round, we are still going to be spending £700bn of public money – more than we are now.” To be fair, the basic message hadn’t changed: cuts are “unavoidable,” Clegg says, as we struggle to contain the deficit. But this new motif demonstrates just how keen the Lib Dem leader

A banking split

Blame Bob Diamond. Until the “unacceptable face of banking” (© the utterly acceptable face of politics, Peter Mandelson) was appointed chief executive of Barclays, the issue of banking reform was trundling along noiselessly in the background. But now it has spilled, violently, back out into the open. Critics of Diamond say that his very presence makes the case for splitting the retail and investmet divisions of banks – you can’t, they say, have someone who made their money via “casino banking” presiding over a high street banking chain. But the banks are warning that any such split would force them, and their tax dollars, abroad.   The government’s official position is

The Royal Mail – a tough sell

Some day soon – unless the coalition has already lost its bottle – a bill will be introduced to ‘part-privatise’ Royal Mail. It has to be done. But it will be a tough sell, for four reasons. First, the market for the Royal Mail’s product is shrinking. It’s a big fish, but its pool is getting smaller. It carries 75 million letters a day, but that’s down by 10 million just in the last five years. And 87 percent is mail sent by businesses. Apart from Christmas cards, the rest of us now correspond by email. Last year’s pre-tax loss was £262m: the reality is that the business is insolvent.

The Brown handover ceremony

A delicious prospect in store for political comedy fans, if not for the next Labour leader, according to a post by Channel 4’s Gary Gibbon: “[Gordon Brown] feels, I hear, that it is right that he be seen to say some words before the new leader is unveiled and be seen to hand over the torch. He doesn’t want people to think he is cowed or hiding. Final arrangements, a Labour source said, have not been agreed yet and they are ‘in touch’ with the various leadership candidates.”