Conservative party

Lansley offers reassurance

From our UK edition

After Gove, a minister whose agenda has gone less smoothly — and it showed. Andrew Lansley's speech to Tory conference was part re-re-restatement of the case for reform, part massage for any residual tensions left over from the summer. Here's a five-point summary of the things that stood out to me: i) An appeal to NHS workers. Lansley began not just by paying extended tribute to NHS staff, but by encouraging everyone else to do the same. "I want to thank them," he said, "and I know we all want to thank them" — to which the audience duly responded with applause. Although this was designed to sweeten some of the less romantic rhetoric later on, it was still telling that Lansley should be quite so effusive at the start.

Taking the ‘cat-flap’ seriously

From our UK edition

              Today’s ‘cat-flap’ between Ken Clarke and Theresa May exposes one of the largest divides in the Conservative party today. May, along with most Tory MPs, wants to get rid of the human rights act, while Clarke and the attorney general Dominic Grieve want to keep it. May, to the surprise of her colleagues, used a pre-conference interview with the Sunday Telegraph to make clear her desire to get rid of the act. After this, there was always going to be a reaction from Clarke & Co. One ally of the Justice Secretary tells me that his comments today were spurred, in part, by an irritation that he hadn’t seen the text of the Home Secretary’s speech before she delivered it.

Gove: the Tories are the party of state schooling

From our UK edition

Apologies for my recent, extended absence, CoffeeHousers — Vietnam and my immune system just didn't get on. But I'm back now, and firmly embedded in Manchester, where Michael Gove has just given his address to the Tory conference. Although, I must say, "address" doesn't really cover it. This was more a political variety show, short on new policy (because Gove's existing policy is going quite well enough, thank you very much), and big on spectacle and optimism. It started off with a video conversation between Gove and David Cameron, who was in a local school that is on the verge of becoming an academy. There was nothing surprising in what they said, although it was a revealing exchange nonetheless.

The full story on NHS spending

From our UK edition

I make no apologies for returning to government spending on health. The Tory promise in the election to ring-fence health spending and increase it in real terms every year even during a period of public spending cuts was distinctive and much-touted during the 2010 election campaign. A quick recap: during my extended interview with Health Secretary Andrew Lansley which went out live on the BBC News Channel on Sunday evening, I suggested that higher inflation than anticipated when the health spending promise was given would make it more difficult to meet the Tory promise of real annual rises. Indeed I put to him a projection for real health spending which showed it would decline.

The Tory split over the ECHR

From our UK edition

Ken Clarke is speaking at a Daily Telegraph fringe event and he was quick to play a few of his favourite European games in response to Theresa May’s assault on the Human Rights Act and the European Court of Human Rights. Nick Watt reports that Clarke claims May did not brief of her examples of the HRA being abused. And he cast doubt on their veracity: according to Lucy Manning, Clarke jovially challenged May to substantiate her claim that a criminal was not deported on human rights grounds because they happened to own a cat. This may seem like fun and games, but it reveals the tension over the HRA and the ECHR that exists within the Tory party, in addition to that which dominates the coalition.

Good Boris

From our UK edition

Boris Johnson must be one of the very few politicians in the world to make the audience laugh before they even start their speech. Just by walking on stage, he has the effect of a good comedian: the punters start to smile, in anticipation of some good one-liners. In today’s case, Boris got a standing ovation before he opened his mouth. Here is the man judged by Ladbrokes as the most likely next Conservative leader, but he had not come to stir. The Prime Minister – who lavished praise on the Mayor last night – was in the hall. It was all Big Society (BoJo division): affordable housing and a reprise of his January speech about restoring London’s identity as a union of villages.   But, he sounded several clear notes of defiance.

What Fleet Street made of Osborne’s speech

From our UK edition

The abiding image of this conference may be the sight of Steve Hilton apparently shepherding the turbulent Andrew Tyrie into a booth, from which Tyrie emerged singing George Osborne's praises. "A huge step forward…you can some consistencies," he said, which was an endorsement of sorts. What did everyone else make of it? As you can see, David Cameron looked morose at times, but the mood in the hall oscillated between sobriety and quiet optimism, matching Osborne's blend of austerity and promise for the future. Fleet Street is similarly conflicted: no paper gives him an unqualified endorsement, but no paper entirely rubbishes him either. The Times concludes (£), as Tyrie did on Saturday, that Osborne is strong on austerity and weaker on growth.

The Tories await Boris

From our UK edition

In just over an hour, Boris will make his first appearance in Manchester. The Tory hierarchy is acutely aware that for at least the next 18 hours or so this will be Boris’ show. There’s a certain nervousness about what might be in Boris’s speech. One MP close to the leadership just came up to me and asked, "You guys don’t have any idea what he's going to say, do you?" Boris has, apparently, being telling people that he hasn’t written his speech yet, which is only increasing the anxiety that he might make some fruity comments on Europe or tax. One thing that’s certain is that the hall will be packed for Boris. The activists’ seem to love him more than ever this year.

What Osborne got right

From our UK edition

After being mean about Osborne’s sub-prime corporate debt policy, I should say that he got a lot right in his speech earlier today. His delivery was the best I’ve seen: he looked relaxed, and sounded conversational. This suits him: he’s not a hell-and-brimstone kind of politician. He dealt with the dire subject matter in a confident way and was not in the least defensive. And he showed a glimpse of the sunlit uplands, so conspicuously absent from Vince Cable’s doom-laden speech a fortnight ago. That said, it seemed apparent from the rest of his speech that he is bracing himself – and us – for a downward surge on the economic rollercoaster.   “Leadership for a better future,” said the words on the podium.

Osborne’s serenade

From our UK edition

As James said, Osborne’s speech was a potent blend of economics and politics. One passage in particular stood out politically: when Osborne referred to those who booed when Ed Miliband mentioned Tony Blair during his speech. He said: ‘You know, there was a time when Labour seemed briefly to realise that to win elections it had to accommodate itself to the real world, stop being anti-business, make peace with middle Britain. Not now. It's over. Once they cheered Tony Blair, now they boo him. I fought three elections against Tony Blair, and I know the damage he did to our country. But it wasn’t just him they were booing last week. They were booing the millions of voters who once turned to Labour because they thought Labour had changed.

Explaining credit easing

From our UK edition

Having had a few more discussions, I’m a bit clearer about the government’s plan to do credit easing. The full details of the scheme will be released on the 29th of November as part of the autumn statement. But I hear that the scheme is intended to be worth between the high billions and the low tens of billions and it will be aimed specifically at small and medium sized enterprises, although it could be extended to all companies and expanded up to somewhere in the region of £50bn if the credit markets were to seize up.  I also understand that major supply side measures are being saved up for the autumn statement.

Osborne’s next trick: sub-prime companies?

From our UK edition

About 15 years ago, Bill Clinton wanted to promote home ownership among the low-paid, but was annoyed that banks wouldn’t lend freely or cheaply to that group. So, the federal government intervened with Freddie Mac and Fannie Mae selling government-backed mortgages at knockdown rates. Nothing showed up on the national debt, because the loan would — in theory — be repaid. The seeds for the sub-prime crisis were sewn.   Today, George Osborne wants to promote recovery and is annoyed than banks won’t lend freely or cheaply enough to small businesses. So, the Treasury will intervene by lending money indirectly by backing a new bond market that lends cash to small companies.

Osborne’s big step

From our UK edition

As George Osborne was addressing Tory conference, Standard and Poor reaffirmed Britain’s triple A rating. For the Osborne team, it sent out the perfect message — their deficit strategy is keeping the nation creditworthy. It was their piece of conference theatre for this year. The Chancellor’s address was a sombre affair. But, in some ways, it was his most impressive conference performance. It was a classic Osborne blend of politics and economics, but distinguished by a clear and precise analysis of why the economy was not recovering. Osborne’s big policy announcement was that the Treasury was now exploring credit easing.

Osborne, the caring chancellor

From our UK edition

George Osborne is pursuing the Tesco strategy: every little helps. In his conference speech today, he will announce that he has found £805 million to freeze council tax next year, which will save taxpayers £72. Not a lot, you might think – and that’s Labour’s view – but the chancellor is adamant that he won’t “stand on the sidelines” while living standards contract. Substantial tax cuts have been ruled out by Osborne, but he is expected to make further announcements on benefits. Last week, it was rumoured that he would reverse changes to child benefit for a parent who earned around £42,000 per year.

Willetts tackles the three Ds

From our UK edition

How the Conservatives should respond to “disorder, debt, and distrust” is the theme of David Willetts’ speech to the Conservative Policy Forum. Willetts, one of the most cerebral Conservative ministers, argues that the riots, the deficit and the anti-politics mood have come together to create a triple-challenge for the party. But Willetts’ speech is also the Tory response to Ed Miliband’s charge that they are breaking the promise of Britain: the idea that each generation does better than the next. Willetts, who has written a book on the subject, accepts that fairness between the generations is the biggest challenge in politics right now.

Hague does his leader’s bidding

From our UK edition

William Hague’s speech to conference today wasn’t the barn-burner of years past. It did include some jabs at Balls and Miliband. Hague joked that “their shadow Chancellor was Gordon Brown’s right hand man. And their leader was right hand man to the right hand man.”  But the overall tone was serious. Politically, two things struck me as significant about the speech. First, Hague showed how determined the Tories are to play the Cameron card. The speech ended with a long tribute to the Prime Minister which called him “the leader for a better future”. The Tories are convinced that of the three party leaders, Cameron is the only one who strikes the country as a plausible PM.

Is the health budget falling or not?

From our UK edition

Before the election, the Conservatives promised they'd "protect" the NHS, which they defined as increasing its real-terms budget year-on-year. This is a rather dangerous promise because it makes ministers hostage to inflation. Now that inflation has surged, expectations have been revised upwards, and it looks like the NHS budget will suffer a real-terms cut. In its monthly update of City consensus forecasts, the Treasury has released new figures for inflation over the next five years.Apply the latest inflation figures to health spending in the last budget and it implies a £1bn shortfall . The graph below shows the change over five years: Back in March, the IFS said that the government was in danger of breaking that pledge.

Any questions for IDS?

From our UK edition

At 6pm this evening, I'm interviewing Iain Duncan Smith at a Conservative Party conference fringe meeting. He is fighting a war on at least three fronts: the welfare-to-work programme, the creation of his Universal Credit (ie, rewriting the benefits system), and producing a government response to the riots and the conditions behind them. I may put questions to him from CoffeeHousers, so if you have any please leave them below. IDS is surprisingly candid for a Cabinet member, perhaps because he wants this to be his last job in government. He isn't watching his words, worried that he'll say something to damage his promotion chances.