Conservative party

David Cameron's Europe speech already had a Tutankhamun-style curse on it before events forced him to postpone it, with the much longer delay from its original date of mid-autumn causing a feeding frenzy in the media, in his own party, his coalition partners, and in the opposition. By the end of last week, it was difficult to find an opposition MP or columnist who hadn't written a whimsical piece imagining they were Cameron giving the speech (or indeed twisting readers into an even greater willing suspension of disbelief by imagining they were John Major talking to Cameron about the as-yet undelivered speech as David Miliband managed to do).

Another week, another former Tory cabinet minister working a room. Last week I brought you news of Liam Fox entertaining the great and good of the Tory party. Now I hear that Andrew Mitchell has been making an extra special effort to be nice to absolutely everyone. The former chief whip was being very friendly to the commentariat at a drinks party at a recently opened hotel in Westminster. He shunned sceptical news journalists, but made determined passes at those with influential column inches. Whatever could he want them to say? George Osborne was at the same private party, pressing flesh like a coiffured madam in a brothel.

David Cameron has postponed his speech on the European Union because of the hostage situation in Algeria where a standoff has been taking place in a gas plant in the Sahara Desert. There are conflicting reports, but it seems about 300 Algerian and 40 international hostages were taken and several have been killed in a rescue attempt. The PM has suggested that worse news will follow saying:- 'We should be prepared for the possibility of further bad news in this very dangerous fluid situation.' No10 said earlier that Cameron had not been informed about the Algerian rescue attempt before it began and has told his Algerian counterpart that he wishes he had been "contacted in advance". The Japanese government has asked the Algerians to desist.

The Prime Minister met a group of Tory backbenchers in Downing Street this afternoon to discuss Friday's Europe speech. I have spoken to the group's ringleader, John Baron, who has stressed the confidential manner of the discussion, but has given Coffee House readers some exclusive details of what went on. John Baron, Peter Bone, Edward Leigh, Mark Reckless, Philip Davies and Steve Baker attended the meeting. They were representing the 100 Conservative backbenchers who had signed the original letter in June calling for legislation in this Parliament for a referendum in the next. The meeting, which had a good atmosphere, lasted 20-25 minutes, and Baron and colleagues reiterated to the Prime Minister the letter's two demands.

Number 10 has got quite the job to do over the next few days if it is to get backbenchers ready for David Cameron's EU speech on Friday. Tory MPs are now obviously in a high state of excitement, but their expectations will inevitably be disappointed to some degree. Some are already expressing fears about this, including the MP leading calls in parliament for a referendum. John Baron, who chairs the All-Party Parliamentary Group for an EU referendum, tells me that he is worried the 'mood music' in Europe isn't quite as positive about renegotiation as the Prime Minister might hope. He says: 'The chance of repatriating powers, I think they are slim: but I wish him well.

The date of David Cameron’s Europe speech has been moved yet again. But this time it has been pulled forward, to this Friday. Downing Street realised that they weren’t going to be able to talk about anything else until the speech was done. The mood in the party ahead of the speech is not good. There’s considerable irritation among Tory Cabinet Ministers that they haven’t been consulted about the speech. Another source of irritation for Eurosceptic ministers is that Ken Clarke has been allowed to — or, at least, not prevented from — joining up with Peter Mandelson and this new Centre for British Influence Through Europe.

Ed Miliband’s speech to the Fabians is being rather over-shadowed today by Lord Heseltine’s attack on David Cameron’s EU policy; the political media like nothing more than a 'Tories split on Europe' story. I suspect, though, that Labour won’t mind this too much. Heseltine’s criticisms make the Tories look divided and allow Labour to claim that even Cameron’s own growth adviser thinks his Europe policy is wrong. Of course, there is nothing surprising about Heseltine’s criticisms: he is an ideological pro-European. He wanted Britain to join the euro, something that would have been a total disaster for this country, and even now believes that we will join the euro one-day.

An impressive turnout in the Churchill Room of the Carlton Club last night for Liam Fox’s New Year drinks. My eyes in the room reports that a smiling Liam claimed he had ‘invited 180 people’ and 162 had turned up. Interestingly, the big beasts came out for the former Defence Secretary, who is said to be eyeing a political comeback. Chancellor George Osborne stopped by, as did Party Chairman Grant Shapps, and Chris Grayling joined the party together with ‘a smattering of Whips’. Though he was left high and dry by colleagues during the scandal that ended his frontbench career in October 2011, his friends were back for the free bar and mini fish and chips.

David Cameron’s big Europe speech is now less than a fortnight away. It will be, I suspect, the most consequential speech of his premiership. When you look at the challenges involved, one can see why the speech has been delayed so many times. Cameron needs to say enough to reassure his party, which has never been more Eurosceptic than it is now. But he also needs to appeal to European leaders, whose consent he will need for any new deal. At the same time, he’s got to try and not create too much nervousness among business about where all this will end up. I understand that he intends to argue that Britain needs to remain inside the single market. But he will commit to a renegotiation of Britain’s terms of membership, starting after the next election.

The benefits debate in Westminster will rage on long after today’s vote in the Commons. It’s not just a straight row between the government and opposition over who is really on the side of hard working people, nor is it just a debate within the two governing parties. It seems that divisions are now opening in the higher echelons of the Tory machine over just how hard to push the rhetoric. More outspoken MPs — like Dr Sarah Wollaston — have taken to the airwaves to decry the term ‘scroungers’ and ‘skivers’, but most surprisingly even Lynton Crosby, who Labour are desperate to paint as a rather rash and extreme antipodean, is calling for things to be toned down. Or at least that’s what someone told the Fiancial Times.

David Cameron and Nick Clegg will launch the coalition’s mid-term review tomorrow. There will be some announcements in it. But I understand that some of the most interesting, new coalition policies are being held out from it. The government wants to keep some of its powder back for later. There are also some final details to be worked out in certain areas. I’m informed that there’ll be a Quad on childcare this week. The coalition is close to agreement on a package which, as I say in the Mail on Sunday, would see working mothers receive thousands of pounds of help with childcare costs for the under fives. This will follow on from moves to liberalise the sector which will be announced in the next week or so.

David Cameron's New Year message is a rather sober one, but it's not downbeat. The theme is 'realism and optimism' and the Tory leader's aim is to demonstrate to voters that his policies are putting the country on the right track, and to that end he makes some strong points on deficit reduction, unemployment, education, welfare, tax and pensions. Encouraging optimism about Britain's trajectory is important because 2013 is going to be a difficult year, not just for the Conservative party internally on issues such as Europe and gay marriage, but for the Coalition, as new cuts come in and critics call on the government to change tack. Ed Miliband's Dickensian pre-Christmas PMQs offered a little taster of that.

The Andrew Mitchell story has always been about class. If all Mitchell was alleged to have said was ‘you supposed to f’ing help us’ there would have been some clucking and some mockery but no serious calls for his resignation. But the word ‘pleb’ and the phrase ‘know your place’ made the charge toxic. This was also what made some in Number 10 so queasy about any kind of robust defence of Mitchell; the Cameroons believe that whenever the conservation is about class the Tories are losing. This class angle is also what enabled the Labour Party to make political hay out of the issue.