London

A potent Tory tag team in the Sun today, as David Cameron and Boris Johnson join pens to take on the unions. The tone of their article is as blunt as anything we've heard from them on the matter, particularly the Prime Minister. "Let's call these threats what they are," it says about the prospect of strikes during the Royal Wedding and the Olympics: "nothing more than headline grabbing to score political points". And it continues to deliver a warning to union bosses: "you can try to drag this country back to the 1970s, to a time when militants held our country to ransom, but you will not succeed." It's not all frontal assault, though. There's a subtler vein of divide-and-conquer in all this.

'Tis the season to bash a banker – or it is if you're a Lib Dem, at least. After the stresses of last week, Nick Clegg lets off steam with an aggressive interview in the FT. "They don't operate in a social vacuum," he says of the City's moneymen, before seething that, "it is wholly untenable to have millions of people making sacrifices in their living standards, only to see the banks getting away scot-free." He even suggests that the government should consider a one-off bonus tax, like that introduced by Labour last year.   Will anything come of it? On the evidence so far, probably not. The coalition – from Vince Cable to George Osborne – has certainly not shied away from tough rhetoric on lending and bankers' bonuses.

It’s costing more than the government cuts in welfare, more even than the UK’s Irish bail-out, but what exactly is all that money set aside for the 2012 Olympic Games actually being spent on? You might be surprised. In this week’s Spectator, Andrew Gilligan and I disclose, for the first time, all the petty, legally-binding demands made by the 115-member International Olympic Committee (IOC) of London. This is information that the government, the mayor and the London Olympic organisers never wanted you to see – even though it forms a binding part of the Host City Contract signed when we won the right to host the games in 2005. Paul Charman, a researcher in East London who contributes to the website GamesMonitor (www.gamesmonitor.org.

Andrew Gilligan explains why Lutfur Rahman’s victory in Tower Hamlets is a potentially alarming development. Obviously, this is a humiliation for Ed Miliband. The victory of a de-selected Labour councillor is bad enough, but what does he say about Ken Livingstone’s involvement in Rahman’s campaign? Widening those imploring eyes, offering an apologetic shrug and saying "Ken will be Ken" probably won’t cut the mustard this time. Perversely, Livingstone might benefit from Rahman’s victory, as it has allowed him to resuscitate his ‘Red Ken the insurgent’ pose – and you can’t get much more cynically subversive than this latest stunt.

One of the most significant things we have seen today is George Osborne’s announcement that Crossrail, Mersey Gateway, the big science project Diamond synchrotron and universal broadband would all go ahead. Osborne has decided that it is worth cutting deeper now in other areas to protect the kind of investments that will make Britain a more attractive place to do business down the line. As I said after the Budget, Osborne’s desire to protect this kind of capital spending is a key part of his plan – along with his reductions in corporation tax – to boost the private sector in Britain as the public sector is downsized. The Crossrail announcement is also a big boost to Boris Johnson’s re-election bid.

The coalition’s immigration cap is, as several Conservative Cabinet ministers have pointed out privately, flawed. It threatens to cap the kind of immigration that bothers almost nobody, high skilled foreign workers coming to this country to do a specific job. As Ken Clarke has told colleagues, the problem is that Labour — albeit right at the end of their time in office — stopped non-EU low-skilled immigration. So all there was left to cap was high-skilled immigration.   But there is a potential solution that would enable the cap — a Conservative manifesto promise — to remain in place, but also deal with Vince Cable and businesses’ objections http://www.thisislondon.co.

The first Boris vs Ken poll of the season carries an obvious health warning: there are other candidates to come, not to mention another one-and-half years of the current mayoral term. Yet Tories might still be pleased that their man is 9 points ahead of his predecessor and main rival at this stage. And that's even with Labour beating out the Tories, in the same poll, when it comes to London's general election voting intentions. Andrew Gilligan puts two and two together to create a striking parallel: Boris is more popular than the Tory party in London, whereas Ken is less popular than Labour. Stir in the fact that Livingstone is polling lower than he did in the 2008 election, and his enforced spell on the sidelines has clearly done little to bolster his reputation.

We all know that the state grew enormously under thirteen years of Labour government. The most obvious manifestation of this was public spending – an increase of 60 percent in real terms took Britain from having one of the lowest levels of government spending in the OECD in 2000 (36.6 percent of GDP) to having one of the highest in 2010 (52.5 percent of GDP). But while reducing spending is clearly the most pressing issue facing the coalition government, we should not overlook another area where the state has grown dramatically: regulation. The British Chambers of Commerce’s ‘Burdens Barometer’ estimates that net cost of major regulations passed since 1998 is £88.

If I was a member of the Labour party I would be feeling pretty uneasy this afternoon as news of Ken Livingstone's victory in the mayoral candidates battle sinks in. There is a cold reality about cuddly uncle Ken which deserves serious examination: he is a ruthless political operative who will sell out everyone, including his own party, to win. But Ken is not just a divisive figure, he was also a sinister Mayor, presiding over an wildly dysfunctional London Development Agency, controlling policy for London through a cabal of advisers calling themselves 'Socialist Action' and getting chummy with divisive and radical islamists including Yusuf al-Qaradawi.