Government

Thursday

Peter Hoskin

Why ministers block cuts

From our UK edition

After Michael Fallon's claim last week that the shadow cabinet hasn't got "the faintest idea" of the commitment necessary to tackle the debt crisis, this anecdote from Benedict Brogan's column should act as another warning to David Cameron: "Whitehall is gripped by short-termism, yet in a world dominated by the targets culture introduced by Labour, is this any surprise? When ministers themselves prioritise short-term results that can be ready for the Six O'Clock News or the autumn conference, how can the Civil Service hold out for the long view?

David Blackburn

Clegg: Are you one of the millions who turned to new Labour in 1997?

From our UK edition

Nick Clegg joins the ‘progressive’ debate with a double of salvo in The Times and in a pamphlet, titled ‘The liberal moment’, published by Demos. The philosophically anachronistic Labour party is his target. He writes: ‘The contrast between Labour and liberals is starkest in their different approaches to power. While Labour hoards at the centre, liberals believe that power must be dispersed away from government - downwards to individuals and communities, and upwards to the international institutions needed to tackle our collective problems. State-centered, top-down solutions are wholly out of step with the demands of our age.

Wednesday

Peter Hoskin

All political parties must face up to the debt crisis’ severity 

From our UK edition

The Independent's Hamish McRae writes a superb column today on just how far the next government will have to go to tackle Brown's debt crisis.  His main point is that unless severe action is taken over the coming years, we'll be stuck in a perilous position by the time the next global downturn hits.  But it's this passage which stands out: "To what extent will the deficit fix itself, and how much more needs to be done? We don't have to do the full 13 per cent of GDP and the present government proposed in the Budget that it should cut about half, 6.4 per cent of GDP, of that over an eight-year period. Vince Cable, who seems to have become the nation's favourite financial GP, suggests an eight per cent correction over five years.

Peter Hoskin

A report that should influence welfare reform for years to come

From our UK edition

Iain Duncan Smith's Centre for Social Justice has released a very important report today, and one which should influence the welfare debate for years to come.  At around 350 pages, it's a weighty enough tome, but I'd recommend that CoffeeHousers give it a flick through. Its subject is how to fix a benefits system which incentivises worklessness.  At the moment, unemployed people are eligible for so many benefits – there are 51 in total – that they can accumulate an income which rivals, or sometimes even exceeds, the wage they'd get by taking a job.  And even if they could get more money in work, the current benefits system still acts as a disincentive.

James Forsyth

Losing perspective 

From our UK edition

At The Spectator, we’ve been so close to the spending debate that one worries about losing perspective. But this post from Faisal Islam gives one a sense of just how important today’s revelations are: “We have never seen this level of detail on a budget situation before. Much of what was implied or left out of the budget is stated in astonishing detail here. It is a total disaster for the treasury and the government, but some will argue the Tories have taken a big risk with financial confidence in publishing it.

Tuesday

James Forsyth

Osborne: Tories will hold emergency Budget if they win the election

From our UK edition

George Osborne has just announced at The Spectator’s inaugural conference, Paths to Prosperity, that there will be an emergency Budget in June or July of 2010 if the Tories win the election. Osborne told Andrew Neil that the aim of this Budget would be to reduce borrowing for fiscal year 2010-11, which will already be under way at that point, and for the years thereafter. Presumably this will be done through a combination of tax rises, spending cuts and asset sales.

James Forsyth

Ouch | 15 September 2009

From our UK edition

From the write up in The Times of the latest Populus poll: “Almost half of voters think that anyone would do a better job than Gordon Brown as Labour leader. Nine months at most from a general election, a Populus poll for The Times suggests that 48 per cent of voters believe that “literally anyone” from Labour’s ranks could do better, without naming alternatives.

David Blackburn

The irrefutable fact about cuts is that they are needed now

From our UK edition

I did Lord Myners a disservice by suggesting he’d gone off message by saying that spending would continue until recovery was “firmly rooted”. Peter Mandelson’s cuts speech yesterday supported that line, renewing the cuts versus investment dividing line. Steve Richards argues that the government’s approach is correct and Tory policy is a recipe for disaster. He writes: ‘He (Cameron) is now pledged to a revolutionary shrinking of the state without being able to specify how he will go about making the big changes. His speech last week about cutting the subsidies on meals in parliament was beyond parody. Yesterday Mandelson made use of the space that has opened up in policy terms by highlighting the differences.

Monday

Fraser Nelson

Striking the right balance

From our UK edition

How worried should we be about national debt? I just had a rather enjoyable spat with Will Hutton on Simon Mayo's Five Live programme. The situation is atrocious, I said. And that set him off: why did I use such a word? I replied that we are spending more in debt interest than educating our children or defending the realm. That is a dismal state of affairs, and will soon become even worse. Forget about the economics, it is a moral failure to blithly keep spending now and knowingly saddle the next generation with billions upon billions of our debt to pay off. Hutton said all this was hysterical, that an 80 percent debt ratio has been managed before and will be managed again. But last time, I said, the debt was the price of winning a war.

Sunday

James Forsyth

The government’s latest ‘child protection’ idea is positively harmful

From our UK edition

Alsadair Palmer neatly sums up the absurdity of the government’s new child protection plans in the Telegraph: “Once it receives your application, the ISA will invite people to submit information about you. The ISA’s officials will be looking for any claim to the effect that you have done something which might have caused “physical, emotional, financial or developmental harm” to a child. Don’t ask for a definition of such “harm”, for there is none – the term will be interpreted in any way the Government’s assessors choose. Those assessors will not be required to ascertain whether or not “harm” actually took place, nor whether you were in fact the cause of it.

David Blackburn

Hey big spender

From our UK edition

Perhaps Lord Myners hasn’t seen the cuts memo because he appeared on Sky News this morning trying to convince the world that Britain can and must maintain its current spending levels. Despite concerns over the budget deficit, a reality that even the Prime Minister acknowledges, Lord Myners said: "We're keeping people in their jobs we're keeping people in their houses we're being sensitive to the needs of the community. That programme must not stop until the recovery is firmly rooted. "We can afford to do it and it's quite evident from the fact that we are able to raise money in international bond market. The willingness to support us is there.

Saturday

James Forsyth

Can Brown make it through December?

From our UK edition

The question of Gordon Brown’s leadership won’t go away, but there’s a feeling that nothing will happen for a while yet. Andrew Grice writes in The Independent today that the coup might come in December: “Labour's hard left and the trade unions are the dogs that have not barked. The assumption is that they stick with him for fear of something worse, and calculate that their best hope would be to exploit a backlash against New Labour after an election defeat. I am told that their mood is now changing. Some left-wing MPs and union bosses are coming round to the view that they would have an overriding duty to avoid a massacre that could keep the party out of power for a generation.

David Blackburn

John Denham’s Mosley comparison merely sensationalises race-tensions

From our UK edition

Communities Secretary John Denham has compared the English Defence League (EDL), the group that has organised protests against what it describes as the ‘Islamification of Britain’, to Oswald Mosley’s Union of British Fascists. Whilst announcing that the government plans to re-engage predominantly white working class voters who are being seduced by the BNP, Denham said: “You could go back to the 1930s if you wanted to - Cable Street and all of those types of things. The tactic of trying to provoke a response in the hope of causing wider violence and mayhem is long established on the far-right and among extremist groups.

Friday

James Forsyth

The government needs to get a grip on its CRB craziness

From our UK edition

That the news that the government wants everyone who gives children a lift anywhere to be CRB checked broke on the same day that it emerged that Haringey council had sent a child to live with the ringleader of the airline bomb plotters is beyond satire. How have we got to a state where parents can’t team up to do a run to Cubs together without the state vetting them while simultaneously a council is sending a child off to be fostered by terrorists? As Mary has argued, CRB checks are one of the big obstacles to volunteering. If the Conservatives really do want to roll forward society, then they are going to have to deal with this CRB craziness and instead apply a bit of a common sense.

James Forsyth

What to make of the Simpson intervention?

From our UK edition

"What did he mean by that?" is the question one is left with after reading Derek Simpson’s interview with the Mirror. Simpson tells the paper that New Labour is dead and that "if you could convince me there is somebody who could take over and go down the Old Labour route without hesitation I'd share the view that if Gordon is not prepared to do it he should stand aside and let that person do it. That could save the Labour government.” This is, to put it mildly, rather off message and Unite have rushed out a statement this morning saying that Brown has Simpson’s “full support” and is the “only choice” to lead Labour into the election. But it doesn’t deny what Simpson said.

Tuesday

James Forsyth

Darling sells himself as a cost-cutter

From our UK edition

Alistair Darling’s speech today gives one a good idea of what Labour’s pitch is going to be this autumn. He stresses the importance of a strong, active government and argues that Labour will cut costs but not services. As he puts it, ‘Some seem in a hurry to cut services. We are focussing on cutting costs.’ He also takes a pop at the Tory position on inheritance tax: “I cannot accept that cutting inheritance tax for the few is a greater priority than getting people into work or investing in public services.” The inheritance tax pledge is fairly small beer in revenue terms but it is a big issue in terms of perception.

Peter Hoskin

Labour’s cutting confusion

From our UK edition

Yesterday, the Guardian told us that the health and overseas aid budgets wouldn't be spared from Labour cuts.  But, today, Steve Richards suggests that may not be the case: "The preliminary manoeuvring begins today when the Chancellor delivers a lecture on the principles that will guide the Government's approach, in effect arguing that while the Tories 'wallow' in the prospect of spending cuts he will take a more expedient approach, in terms of timing, pace, depth and in his view that the Government can still play a creative role as an enabler in the delivery of public services. But even this early message is hazy.

Monday

James Forsyth

The dangers of the government’s “mic-strike”

From our UK edition

Jackie Ashley complains in her column today about Labour misters going on ‘mic-strike’ saying that it will lead to Labour being beaten so badly that it might not be able to come back. Ashley is speaking for a lot of people in the Labour party, one hears frequent complaints these days about Minister who are prepared to pick up the cheque each month but not to put in the hard yards. The consequences of ‘mic-strike’ were evident this morning. William Hague was on the Today Programme talking about the latest revelations concerning the government’s relations with the Gaddafi regime but no Foreign Office minister was prepared to do a response. So, Ed Balls—who was on to do an interview about academies—had to answer the questions on Libya.

James Forsyth

The government contradicts itself on Megrahi

From our UK edition

David Miliband on the Today Programme on September 2nd: “We did not want him [Megrahi] to die in prison.” Ed Balls on the Today Programme on September 7th: “None of us wanted to see the release of al-Megrahi” Considering that Megrahi was sentenced to life imprison for his role in the Lockerbie bombing, I cannot see how both of these statements of the government’s view can be correct. If the government did not want him to die in prison, it wanted him to be released.

Peter Hoskin

Labour may outflank the Tories on health and overseas aid spending – but will struggle to do so on reform

From our UK edition

If you want some insights into where Labour are going next, then do read this story in today's Guardian.  The main points are that Brown and Darling have agreed not to spare the health and international development budgets from cuts; that Labour's public spending cuts will be set out over the next couple of months, beginning with a couple of speeches this week; and that Labour wants to frame its cuts as a return to the public service reform agenda.  As one "cabinet source" tells the paper: "The new economic context is a challenge for us, but New Labour in its original form never saw spending more money as the only solution. We need to revisit the original New Labour approach of public service reform.