Conservative party

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 persuasion. The obvious question is whether David Cameron will choose to correct than tilt, or maintain it.

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 understands the instincts and aspirations of C1 voters, can firefight stories and fulfill the strategic communication role.

Michael Gove has reignited talk of a Tory Lib Dem pact by urging people in Hull to vote Lib Dem to keep Labour out at the local elections. Gove’s intervention was not planned but it does reveal how he thinks. Gove’s department is the most coalitionised. Not only is there a Lib Dem minister there in Sarah Teather, tellingly the only Lib Dem minister not to moan to the Telegraph’s undercover reporters about her colleagues. But there is also David Laws, who is acting as an unofficial adviser to Gove. Anthony Wells’ thorough analysis of an electoral pact suggests that it could do well in the seats where it matters.  Obviously, all this discussion of pacts could be overtaken by events if AV passes.

The man known to the Cameroons as ‘The Master’ casts a long shadow. David Cameron has re-launched his public service reform agenda and there was more of a whiff of Blair in the air. His speech was understated. He eschewed references to radicalism and appealed to continuity instead. The favoured phrase of the moment is ‘evolution not revolution’, and Cameron traced the lineage of his reforms to those of the thwarted Blair administration (and the market reforms of the Thatcher and Major years). He was so deep in New Labour’s intellectual territory that he was at pains to stress that the ‘spending taps have not been turned off’.

It’s a far cry from the egregious Tory right of Sayeeda Warsi’s imagination. Mark Pritchard, Secretary of the 1922 Committee, has looked at the result of the Oldham and Saddleworth by-election and has concluded that the Tories and Liberals may have to reach an arrangement for future by-elections. He said: "I think this has wider questions for other by-elections that will invariably come along over the next few years, and that is whether we have an open discussion now over whether we have some sort of close co-operation with the Liberal Democrats in Westminster by-elections...a quid pro quo type of arrangement.

Today saw the latest Cameron Direct event, and the Prime Minister defended his government’s position of bankers’ bonuses and Europe, and he devoted a section to profess the fortitude of the coalition itself. But Cameron realises that he needs to offer positive news, both to a country acclimatising to austerity and to a party that has broken out in a rash of ill-temper. Fuel duty was his chosen tonic. There were no commitments, but Cameron promised to review the level of duty or road tax as part of the March budget. This lends a little weight to the rumours that fuel duty and/or road taxes might be cut or a fuel duty stabiliser introduced to cheer anxious motorists and avert the threat of strikes.

The latest issue of The Spectator is out today, and I thought CoffeeHousers might like to read the cover story by Nick Cohen. Its theme is brilliantly captured by Jonathan Cusick's cover image (left) of the yellow Lib Dem bird shot through its heart with a Tory arrow – but there's more to it than that. The era of spending cuts is returning us to two-party politics, says Nick, and the Lib Dems are being squeezed out of the equation. Here it is in full: Liberal England dies again, Nick Cohen In 1935, George Dangerfield published The Strange Death of Liberal England, one of those rare histories that survive long after the author’s death.