Conservative party

A taxing problem for George Osborne

Today’s FT reports that additional council tax bands are being considered as part of the Budget process. But there are several problems with introducing new council tax bands. First, this would require a wider revaluation, something that the coalition has ruled out explicitly and that would almost certainly drive up council tax for most people.   A revaluation, as a parliamentary question from George Osborne’s former chief of staff Matt Hancock established, would cost around £200 million. It would also take two to three years to complete, meaning revenues from any new band wouldn’t start accruing until either very close to, or even after, the next election.    Finally, higher

Nick Clegg’s NHS squeeze continues

As I said last week, Nick Clegg is in a tricky position when it comes to this Health Bill. Thanks to the concessions that he secured and welcomed last year, he can’t now just slander it outright. But thanks to the concerns of his own party, he will also be reluctant to endorse it in full. The result is the sort of ambiguous performance that the Deputy Prime Minister put in on ITV’s Daybreak show this morning. He did get stuck into Labour for their ‘outrageous’ misrepresentation of the reforms. But when it came to actually supporting the Bill, it seemed to me that he used generalisations — such as,

The implications of today’s border security report

Today brought closure of a kind to last year’s border fiasco (which I covered for Coffee House here and here), with the publication of the report by the Chief Inspector of the UK Border Agency, John Vine. On first reading, there is no ‘smoking gun’ which would trigger a ministerial resignation. The report does find that, in early 2011, the immigration minister Damian Green had authorised the relaxation of one of the checks at the centre of the controversy: ‘Secure ID’, which verifies the fingerprints of foreign travellers with visas. But the report also finds that Green’s authorisation should have been superseded by later instructions from the Home Secretary Theresa

A question of trust for Andrew Lansley

It’s not too surprising that people trust ‘organisations representing doctors nurses and other health professionals,’ well above David Cameron and Andrew Lansley, when it comes to the NHS reforms. People are sceptical of politicians in a way that they aren’t of the health service, its unions and its workers. 64 years of ‘national religion’ status for the NHS, and many more years of gross political let-down, have made sure of that. But today’s YouGov findings still shine a fresh light on Cameron and Lansley’s changing approach to the reforms. A year ago, they clearly looked at charts such as that above and thought, ‘Woah, we’d better get those organisations on

If Cameron doesn’t talk about greater powers for England, Labour will

Action over Scotland is certainly producing a reaction in England. It’s not what you’d call an ‘equal and opposite reaction’ yet, but it’s there — and it’s crystallised by Tim Montgomerie’s article for the Guardian this morning. I’d recommend that you read it in full, but Tim’s basic point is that David Cameron could score a ‘triple crown of political victories’ by moving towards a more federal UK: ‘By offering to extend Scottish devolution he can be the Conservative leader who saves the union. By promising to balance Scottish devolution with a commitment to new arrangements for the government of England, he can radically improve his own party’s electoral prospects.

The tax debate at the heart of the Budget

The run-up to last year’s Budget was all about fuel duty. This year it’ll be all about direct taxes. The Lib Dems are determined to put their manifesto pledge of raising the income tax personal allowance to £10,000 front and centre. They already managed to turn this promise into government policy in the Coalition Agreement, and last year’s Budget announced that the threshold would rise to £8,105 in April this year. But Nick Clegg’s made clear that he wants to go ‘further and faster’ on this. The Conservative response at the Treasury – according to today’s Telegraph – is simple: ‘how are they going to pay for it?’ Initially, Nick

Balls the tax-cutter?

‘Balls urges tax cuts’, we’re told. Has he had a Damascene moment? Has the borrowed penny dropped? Nope, this is his longstanding and cynical campaign to cut VAT. Under the Labour years, when Balls was encouraging Brown to adopt a ‘scorched earth’ policy to the public finances, he urged against raising VAT to 20 per cent as Alistair Darling wanted. Not because he didn’t think it was necessary, but because he knew that if Darling didn’t do it, Osborne would. So VAT could be an election campaign tool, and then a stick with which to beat the wicked Tories (and the Lib Dems, who dropped the ‘VAT bombshell’ that they

Tory Ministers need to back the Health Bill

Tomorrow’s Downing Street meeting on the implementation of the health reforms is meant to send the message that the bill is definitely going ahead. Number 10 is keen to shore up the bill ahead of Liberal Democrat Spring Conference following the uncertainty caused by Rachel Sylvester’s column and Conservative Home’s call for the bill to be dropped. Indeed, I understand that at the Quad dinner on Monday night, Nick Clegg and Danny Alexander made the basic political point that the Liberal Democrats would feel absolved of the need to support the bill if any Tory minister came out publicly against it. But Tory ministers still need to muster more public

The Lib Dems prepare their strategy for future coalitions

Contain your excitement, CoffeeHousers: the Lib Dems are debating whether to change their ‘constitution’ so that their members have a greater say over future coalition negotiations. The amendment has been put forward Tim Farron and Norman Lamb, and proposes that, in the event of coalition talks, the party’s ‘negotiating team’ should have to consult with a ‘reference group consisting of not more than nine people appointed equally by…’ blah, blah, blah. In fact, you can just read the whole thing on page 41 of this document. The Lib Dems will be voting on it at their Spring Conference next month. But while internal Lib Dem governance may not be the

At least it won’t go to penalties…

Who’s winning in the latest match between Vince Cable and the Conservatives? The Business Secretary did take an early lead, with the news that No.10 had grudgingly yielded to his demand to appoint Professor Les Ebdon to the role of ‘university admissions tsar’ — a man who has hardly been kind about the coalition’s universities policy in the past, and whose appointment had been blocked by the business select committee. But, according to the Telegraph this morning, the Tory leadership appear to have scored a goal of their own: Cable’s proposal for imposing penalties on graduates who pay off their student loans early is to be dropped. We can, and

How to implement a minimum price for alcohol

Pete posted earlier on the Prime Minister’s latest intervention on the issue of problem drinking. The new proposals — like a greater police presence in A&Es, and ‘drunk tanks’, special units where drunks are taken to sober up — are sensible enough, but seem small relative to the scale of the supposed problem, and focus on peripheral (though important) side-effects, rather than the core of the issue. The ‘big idea’ seems to be missing, even though the Conservatives have been flirting with it for some years, is a minimum unit price (MUP) for alcohol: far more controversial, but potentially far more effective. The last Labour government, in which I was an adviser, looked at this

Why Baroness Warsi has it wrong

For someone who has profited so well from her religion, it is particularly striking that Baroness Warsi should claim today that our societies are suffering because of ‘a militant secularisation’ which she claims is ‘taking hold.’ And worse, she says, that ‘one of the most worrying aspects about this militant secularisation is that at its core and in its instincts it is deeply intolerant. It demonstrates similar traits to totalitarian regimes.’ Not merely ‘militant’ and ‘worrying’, but ‘similar traits’ to those of ‘totalitarian regimes.’ Before addressing the numerous ways in which Warsi is wrong, I should note the one point on which I think she is right. It is true

Inflation falls as the VAT rise drops out

Late last year, the Tory party’s brains trust found that the inflation numbers corresponded directly to whether or not people thought that the economy was on the right track. When inflation was going up double-quick, the ‘wrong track’ numbers went up. But when the pace of inflation slowed, the ‘right track’ numbers increased. It is for this reason that the Tories are quietly confident that this year will see an uptick in economic confidence. They expect the inflation rate to fall steadily throughout the year as the VAT rise drops its way out of the calculation and the effects of the oil shock recede. Obviously, though, today’s inflation numbers will

Nick Clegg’s NHS squeeze

Andrew Lansley’s career prospects were boosted yesterday — when Simon Hughes said that he should ‘move on’ after the NHS reforms have been implemented. Since then, Downing Street has redoubled its defence of the Health Secretary; with a spokesman explaining tersely this morning that, ‘Simon Hughes speaks for himself ’. And Nick Clegg himself has added that, ‘Andrew Lansley is the architect of the NHS bill. He cares passionately about the NHS. He’s the right man for the job and he must see it through.’ Clegg’s general support for the Bill — and Danny Alexander’s — is worth noting because it’s one of the factors helping David Cameron hang on

Warming up for the Budget

The Budget negotiations within government are now underway. The quad of Cameron, Clegg, Osborne and Alexander held a meeting last week to discuss their priorities for the Budget on March 21st. They’ll continue this conversation over a working dinner tomorrow night. Already, we know that the Liberal Democrats main priority will be to get the personal allowance as close to £10,000 as possible. As The Sunday Times reports, they’re suggesting paying for this by taking away various reliefs for higher-rate taxpayers and closing some of the loopholes in the tax system. I also understand from Liberal Democrats close to Clegg that they’re also interested in some new green taxes. For

Lansley’s holding on — for now

After originally deploying Sayeeda Warsi against ConservativeHome’s anti-Health Bill sentiment, David Cameron is now doing his fighting for himself. He has an article in today’s Sunday Times (£) that says, with no equivocation, ‘I am at one with Andrew Lansley, the reform programme and the legislation going through parliament’. And, aside from that, it’s also an unusually spirited explanation of just what the government plans to achieve by these reforms. Much better than Cameron’s wavering performance in PMQs on Wednesday. For all its spirit, though, this article doesn’t come across as angry. There is a mention for ‘today’s opponents of reform,’ but nothing that could really be interpreted as a

Lansley’s battle should’ve never been fought

A small war has broken out over Lansley’s NHS Bill — ConservativeHome has three Cabinet members attacking it. I find that shocking. At least a dozen want the Bill killed, and why ConHome found just three is beyond me. Politically, it’s probably impossible for Cameron to drop it. But if it was torn up, I for one would shed no tears. For what it’s worth, here’s my take. It’s depressing to think that Alan Milburn’s NHS Plan of 2000 was both more radical and more sensible than what Andrew Lansley is serving up now. The whole debacle has shown politics at its most petty, partisan and pointless — a complete

Cameron should leave this terrible ‘tax breaks for cleaners’ idea in Sweden

There are times when you think, really, the Prime Minister should get out less. The good ideas he comes back with when he goes abroad are fine and dandy — of which, more later — but the bad ones are very bad indeed. One notion he is considering just now after attending a Nordic-Baltic summit is the Swedish/Finnish one of giving people who employ domestic help tax relief on half of the cost. On the plus side, you get more women in the workplace, by allowing them to subcontract the domestic drudgery, and you shift thousands of workers, mostly female, from the black economy to the respectable economy. For the