Conservative party

Monday

James Forsyth

Harman the hawk

Harriet Harman’s response to David Cameron’s statement on the G8 and G20 was noticeable for her attacking the Prime Minister for talking about bringing British troops home from Afghanistan within five years. Her criticism was that talking about withdrawal undermined the troops in the field, she sounded more like John McCain than I ever expected Harriet Harman to. She chose to reinforce her point by using quotes from Liam Fox about the effect that timelines have on military morale. Her use of the Fox quotes suggests that Labour see the Cameron Fox relationship as a weak point in the government.

Peter Hoskin

Different Miliband, similar deceit

First, David Miliband was telling Brownies about the public finances.  Now, his brother's at it too.  Here's what he told the Daily Politics earlier: "Over thirteen years, Labour did increase spending on public services … In the coming five years, the Conservative coalition wants to undo all of that increase in spending.  So they want to return to a time before 1997.

Peter Hoskin

Miliband the conman

Who'd have thought it? There's David Miliband getting all self-righteous about the "cons" in George Osborne's Budget, when - oh dear - he slips in a small con of his own.  Here's the relevant passage: "[The Budget] was avoidable. Labour set out plans to cut the deficit by half over the next Parliament. The Tories have chosen to cut the whole of the deficit and more to the tune of £32billion in public services and £11billion in welfare." And here, going off Labour's own plans, is what he should have written: "[The Budget] was avoidable. Labour set out plans to cut the structural deficit by 'more than two-thirds' over the next Parliament.

David Blackburn

War of words | 28 June 2010

Yvette Cooper has condemned IDS’ ‘nasty’ rhetoric this morning and claimed that the government’s proposals are about ideological cuts, not welfare reform. It’s simple, but effective. IDS’ reforms are both radical and necessary. The plan is to incentivise movement out of areas of welfare dependency with regional tax breaks and housing guarantees. There is a clear link between this policy and the non-EU migrant cap, which will protect at least some low skilled or unskilled jobs. A policy that encourages fairness, aspiration and a first chance in life for those condemned to worklessness by accident of birth. But the coalition is losing the rhetorical argument.

Peter Hoskin

Osborne turns his attention to welfare

George Osborne suggested as much in his Today interview last week, but now we know for sure: the government will look to cut the welfare bill even further in October's spending review, and incapacity benefit will come in for special attention from the axemen. It was, you sense, ever going to be thus. With unprotected departments facing cuts of over 25 percent unless more action is taken elsewhere, the £12bn IB budget was always going to be a tempting target for extra cuts. Particularly as so much of it goes to claimants who could be in work. The questions now are how? and how fast?  The first answer seems clear enough: the government is keen to move a significant number of the country's 2.

Saturday

James Forsyth

Post-Budget polls show drop in Lib Dem support

ICM’s post Budget poll for the Sunday Telegraph confirms YouGov’s finding that the Lib Dems have dropped after the Budget. It has them down five to 16. By contrast, the Tories are up two to 41. Labour have also risen four to 35. YouGov has the Lib Dems on 16, the Tories 43 and Labour 36. These polls matter because they will add to the jitteriness that some left-leaning Lib Dem feel about such a fiscally conservative Budget. There is a feeling in Lib Dem circles that they could do with some things to please and reassure their base in the coming weeks. The Coalition is planning a policy push before the Commons breaks for the summer and I’d be surprised if there aren’t some things announced soon that are ‘Lib Dem wins’.

David Blackburn

Cameron and Clegg’s love-in deepens

What began as a coalition of expediency is maturing into a pact of principle – or at least that’s what Cameron and Clegg would have you believe.  Of course, relations may sour and enormous efforts are being made to preserve Cameron and Clegg’s public cordiality. Journalists are being briefed that plans are in progress to enable Cameron and Clegg to speak at each others’ party conferences.   It will be little more than a public relations exercise if it goes ahead, and an extremely hollow one in all probability. What are they going say? It’ll be a cartoonist’s dream, as Clegg is politely applauded by the contemptuous Colonels, and Cameron, shandy in hand, schmoozes the socks and sandals brigade.

Thursday

David Blackburn

The Budget PR battle enters a second phase

The government is on the defensive. The IFS’ pronouncement that the Budget was ‘regressive’ and the VAT hike ‘avoidable’ has given sustenance to the opposition and their supporters in the media. At the time, Harriet Harman’s response to the Budget seemed execrable. Now, I’m not so sure. Harman is like a Swordfish bi-plane attacking a battleship: she is so slow and obsolete that her superior opponents cannot bring their modern guns to bear. So she closes the range and scores a hit. Tuesday was one of her more successful strikes. As John Rentoul notes, Harman had a point beneath the bluster. The OBR is George Osborne’s weak spot; it downgraded growth forecasts in light of his Budget.

Fraser Nelson

The true meaning of Osborne’s Budget

To understand the budget properly, read James Forsyth's cover story in The Spectator today. Sure, it was about reducing the deficit - but within it lie several political strategies which explain how George Osborne hopes to win a majority Conservative government. James says that those around Cameron will not entertain this notion - they "have been persuading themselves that coalition government is the best possible result". But Osborne, he says, finds it deeply unsatisfactory and has a twin mission: fix the economy, and win outright next time. "He has been observing recently that Gordon Brown spent 13 years successfully creating Labour voters — mainly through state dependency — and that the Tories need to reverse this process if they are to win.

Wednesday

David Blackburn

RIP Lord Walker

Peter Walker, Baron Walker of Worcester, has died aged 78. He served as a Cabinet Minister in both the Heath and Thatcher governments. He was what might be termed derisively as a ‘Wet’, and was a leading figure on the liberal side of the Conservative Party for thirty years. He was a founder member of the Tory Reform Group, which propounds One Nation Toryism and economic efficiency, ideals that have, it might be argued, profoundly influenced David Cameron’s leadership. Walker served with distinction throughout the Thatcher government, carrying the brief for Wales, Energy and Food and Fisheries. As Energy Secretary, he was a key figure during the Miner’s Strike.

Peter Hoskin

Osborne winning the Budget PR battle – but VAT remains a thorny issue

Well, that's gone as well as can be expected for the coalition.  Most of today's newspaper coverage highlights the severity of George Osborne's Budget – but, crucially, it adds that the Chancellor had few other options.  The Telegraph calls it a "brave Budget".  The Times says that it delivers "the best of fiscal conservatism combined with no small measure of social justice".  And even the FT – no friend of the Tories in recent years – suggests that Osborne might be "remembered for doing Britain a great service." The sourest notes chime around the government's welfare cuts and the hike in VAT.  Already, it's clear that the latter will be particularly difficult for the Tories and embarrassing for the Lib Dems.

Tuesday

Peter Hoskin

What Harriet Harman won’t tell you

By her usual standards, Harriet Harman was quite effective in her response to George Osborne's Budget earlier.  She was clear, direct and had a few gags at Vince Cable's expense.  And she also benefitted from what, on the surface, was a strong central attack: the Office for Budget Responsibility, she said, has downgraded its jobs forecasts on the back of the Budget.  And so, she followed, this is a Budget which destroys jobs. But there were a few things that Harman wasn't letting on.  First, as Jim Pickard points out at the FT, the OBR forecasts haven't shifted by all that much from their previous incarnation.  And, second, they are still more optmistic than most independent forecasts (conveniently collected by the Treasury here).

Peter Hoskin

Unspectacular, but quite effective

Well, that was excitingly unexciting.  There was little in George Osborne's Budget that we didn't expect, either in terms of rhetoric or policy.  But it still felt new and different nonetheless.  Here we had a Chancellor setting out exactly how much spending he will cut, and putting plenty of emphasis on both our deficit and debt burdens.  It drew a stark contrast with the Brown years, and was a solidly understated performance in itself. There will be plenty of attention paid to the hike in VAT, and rightly so.  But there were some macroeconomic forecasts which were just as eyecatching.

Peter Hoskin

Budget 2010 – live blog

1343, PH: Harman has sat down now, so we'll draw the live blog to a close.  I'll write a summary post shortly. 1342, FN: I wish I could trash Harman's response, but it's actually quite good.  Many a Tory would be secretly cheering her trashing of the LibDems. "The LibDems denounced early cuts, now they're backing them - how could they support everything they fought against, how could they let down everyone who voted for them?" Again, a fair point. "The LibDems used to stand up for people's jobs, now they only stand up for their own." Her main point - that forecasts for unemployment have risen - is a fairly strong one if true. Osborne did indeed shy away from admitting to VAT rise plans in the election campaign.

Peter Hoskin

Osborne makes the “progressive” case

During the Brown years it was "stability," but it looks as though the watchword for Chancellor Osborne's first Budget will be "progressive".  This is the word that's being bandied about behind-the-scenes, and the coalition seems confident that it has the policies to match the rhetoric.  As the Guardian reports today, it's likely that the personal income tax allowance will be raised by £1,000 or so, to help shield the least well-off from tax rises elsewhere.  And the paper quotes a Tory aide saying that the richest will pay more, "both in absolute terms and as a percentage of their income." Whether he drops the p-word or not, the arguments behind it are comfortable territory for Osborne.

Monday

Peter Hoskin

Osborne looks to the long-term

There are plenty of details for Budget-spotters to look out for tomorrow, but among the most important is just how far Osborne reaches into the future.  The current expectation in Westminster is that he will offer quite a few glimpses into the long-term.  A possible commitment to reduce the main rate of corporation tax to 20 percent over the next five years, perhaps.  Or similar provisions for making the first £10,000 of income tax-free. There are, of course, economic and political motives behind this.

Ed Holmes

Why a public sector pensions levy makes sense

Today's papers are awash with stories that a public sector pensions levy will be announced in tomorrow Emergency Budget. Trade unions have already issued dire warnings, ranging from the PCS's promise to "organise the widest possible popular opposition," to Bob Crow of the RMT’s rather prosaic: "when someone’s winding up to give you a kicking you have a clear choice — you can either take them on right from the off or you can roll over and hope that they go away."  Public sector workers, however, should not be so dismissive.   In our report, released on Friday, we argue for an "Irish style" graduated public pensions levy of 7.5 percent.  We estimate this will ‘save’ 322,000 jobs.  Why?

Peter Hoskin

The two sides of the VAT question

There are two main aspects to the VAT issue: one distasteful, the other less so.  The distasteful one is the issue of whether the government has a mandate for hiking VAT in tomorrow's Budget.  Of course, government is often the art of the unexpected, so we shouldn't be surprised to see measures implemented that weren't explicitly raised in the election campaign – particularly when it comes to tax rises.  But all the claims that there were "no plans" to raise VAT do jar against reports like: "Osborne insisted the budget measures would be spread fairly across society, suggesting capital gains tax will rise and promising a new banking levy.

Peter Hoskin

Who is prepared to cut, and who isn’t?

One of the leitmotifs of this Parliament  – and something which, by many inside accounts, is helping the coalition immensely – is the willingness of the civil service to wield the axe within their own departments.  And now, courtesy of Reform and the Institute of Chartered Accountants, a new survey suggests that this mentality may stretch beyond Whitehall.  It quizzes public sector "finance decision makers," and the headline finding is that: "82 per cent of respondents think further savings can be made within their organisation in the next year without affecting the current level of service they provide.