Government

Sam Coates reports that the Tory right want Cameron to renege on the commitment to a referendum on AV. You can see why they want to do this but it’s ill-advised. The Lib Dems have destroyed their credibility by indulging blatant self-interest and the Tories should avoid making a similar mistake. The need for unity is absolute. It’s time to put-up and shut-up in the national interest. Right now, that means reaching an accommodation, either in coalition or in a minority government with Lib Dem backing or abstention. If that requires a referendum on voting reform then so be it. Besides, facilitating a referendum is not to endorse reform. The Tories have everything to gain - power and the moral high-ground.

Weirdness reigns in Westminster at the moment, as the entire political establishment sits drooling and waiting for insights into the Lib-Con talks. The latest negotiator to break cover was the Lib Dem's David Laws who managed, very artfully, to give very little away.  And so we were told that the Lib Dems are speaking with Labour, and that they are seeking "clarification" from the Tories over every issue from eduction to tax and electoral reform.  In other words: all the parties concerned are still negotiating. There is a growing sense - fuelled by reports that Nick Clegg is meeting his MPs later this evening - that we may not get a deal quite as quickly as expected.  It may be tonight, it may be tomorrow morning, it could even be later this week.

This morning, David Cameron and a large chunk of the Shadow Cabinet were talking in some detail about how the Conservatives will enable a Big Society. To do that, they are going to have to stop state-run organisation crushing community initiatives.   Take the case of MyPolice. This website was set up to let people offer tips on how policing in there area could be improved. Earlier this month, they were contacted by Her Majesty’s Inspector of Constabulary (HMIC) who told them that they were launching a site called MyPolice. The original MyPolice objected.But HMIC went ahead anyway, using the url mypolice.org.uk. This better funded website now comes top when you Google MyPolice.

It's unusual for Chancellors to stand with their wives on the steps of the Treasury on budget day, and to see the Darlings together this morning gives an indication of what they have been through. Brown doubtless thought him an automaton when he appointed him to the job - but I was wrong to say that he would be "no more a Chancellor than Captain Scarlett was an actor". He has defied Brown, bringing moderation and much-needed dullness to the worst fiscal crisis in Britain's peacetime history. In James's political column last week he suggested that Darling calls his autobiography "the forces of hell" - that he would defy Brown like that takes some guts. It felt strange to praise Darling in the editorial of tomorrow's magazine, given that he has presided over this fiscal collapse.

If the Tories win power (still a big “if” these days), William Hague will walk into King Charles Street, be greeted by the FCO’s Permanent Secretary Peter Ricketts, meet his new staff and be briefed on the Office he will lead and the foreign challenges Britain faces. There will be plenty on his plate. Calls from foreign dignitaries, preparations for forthcoming summits, a discussion of key priorities, and suggestions for how to reorganise the machinery of government. There will also be a need to prepare the FCO’s contribution to a cost-cutting exercise.      But there ought to be an early discussion about how the world is changing and the new context of Britain’s foreign policy.

So what's Alistair Darling up to?  When I first heard his "forces of Hell" comment last night – his description of those briefing against him from inside No.10 – I half suspected it was all part of Downing Street's grand plan.  You know, trying to defuse the bullying story by being honest – up to a point – about Brown's premiership, and then claiming that everything's alright really.  A bit like Peter Mandelson saying he took his "medicine like a man" – only with greater poetic license. Now, though, I'm convinced that this wasn't part of No.10's script.  The clue is in the hurried, and ridiculous, denials that have been issued since.

With even Michael Portillo predicting a hung parliament, what would Britain’s post-election government actually look like if the Tories did not secure an over-all majority.   The Tories could form a minority government, hoping to persuade enough MPs from other parties, but principally the Liberal Democrats, to vote with them on the key issues. Such a government would be inherently unstable, lurching from vote to vote and dependent on the relationship between a Prime Minister Cameron and Nick Clegg, the Liberal Democrat leader, as well as between George Osborne, the would-be Chancellor, and Vince Cable, who many think is a more qualified potential occupant of No 11.

Earlier this week I asked what Obama's experience could teach a Cameron government. At the same time, there has been a well-argued debate in The Times about whether the Tories should go negative or not. There is one point where the two issues converge - and that is in how a newly-elected government should deal with the country's economic legacy. Once in power, a Tory government will be tempted to be optimistic, to point to the sunny uplands. General Colin Powell said "positive thinking is a force multiplier" and the Cameron team come across as natural adherents to this viewpoint. There is also the fact that the modern Tory agenda - of decentralisation and trust in people - is at heart a positive philosophy of government, not a mistrustful statist one.

President Obama was going to be different. He was going to learn from Jimmy Carter's failures. He was going to avoid Bill Clinton’s fate. Like his well-run campaign, Obama's tenure in the White House was going to be cool, calm and effective. If Clinton failed by sending an over-cooked healthcare reform to Congress, Obama would succeed by leaving the details to lawmakers. If McCain's campaign was psychodrama, Obama's administration was going to be all collegiality.    It did not work out that way and now the knives are out for Obama's team. First there was Ed Luce's piece in the Financial Times. Now Leslie H. Gelb, a veteran DC insider, comes out and says it: the President must change key personnel now.

Has another dividing line faded into the sand?  It sure looks like it, going off this Times report on how both Labour and the Tories are considering hiking VAT to 20 percent.  If you recall, it was thought that Brown blocked Alistair Darling's plan to introduce the rise in last year's Pre-Budget Report - and all so he could attack the Tories over reports that they would do similar.  The PM will find it a lot harder to stage that attack after this morning. A few weeks ago, the rumour was that Labour would make keeping VAT at 17.5 percent a "main election pledge".  Whether that pledge now appears, or not, will say a lot about the shifting balance of power between Brown and his Chancellor.