Uk politics

Prime Minister and Chancellor ‘stayed submerged’ on bankers’ bonuses

The irrepressible Lord Oakeshott is making mischief again: he’s using Sir Mervyn King’s comments about Goldman Sachs bonuses today to attack David Cameron and George Osborne. He’s just told Coffee House the following: ‘The Governor speaks for all on Goldman’s greed. He shows leadership where the Prime Minister and Chancellor stayed submerged. Starbucks are an also ran in the tax avoidance stakes compared to world champions like Goldmans.’ Then he took another covert shot at the Treasury by referring – not by name – to the appointment of former Goldman employee Mark Carney as the next Bank of England Governor: ‘Big banks like Goldman can’t have it both ways. If

Mervyn King vs. Goldman Sachs

What did the Governor of the Bank of England think of Goldman Sachs’ plan to wait until the 50p rate is cut in April to pay bonuses? At this morning’s Treasury Select Committee, Mervyn King declined Teresa Pearce’s invitation to label it ‘morally repugnant’ but did declare it ‘depressing’, ‘clumsy’ and ‘lacking in care and attention to how other people might react’. According to the BBC, Goldman Sachs has since decided not to press ahead with the plan — perhaps they heeded King’s warning that ‘in the long-run financial institutions, like all large institutions, do depend on goodwill from the rest of society’. Here’s the video and transcript of King’s

Collective responsibility and the Leveson report

Cabinet Secretary Sir Jeremy Heywood has signed off on an agreed breach of collective responsibility in the boundaries vote, but what does that mean for the way the government works from now on? The Prime Minister’s official spokesman argued this afternoon that this did not in any way set a precedent for the way the two coalition parties vote on other policies. He added: ‘The Cabinet Secretary was consulted. It has been formally agreed but only in this specific instance. Having consulted the Cabinet Secretary, they recorded their agreement to set aside collective responsibility on this occasion. The rules with regard to this allow for the setting aside on very

Eric Pickles ‘does God’, but does the government really agree?

Personally, I don’t wear a cross, on the basis that I’m not much of an advertisement for Christianity and I’d risk diminishing the brand. But for Eric Pickles, Communities Secretary, and Nadia Eweida, the former British Airways employee who has just won her appeal about cross-wearing at work at the European Court of Human Rights, it’s a basic freedom. It’s hard to gainsay the judges’ view that manifesting your faith is a ‘fundamental right’. Any organisation that doesn’t have a problem about Muslim women wearing scarves and Sikh men wearing turbans but which gets uppity about a small cross, really does have a problem with consistency. As Pickles says, the symbol should

Who cares about HMV? Shopping has never been better. – Spectator Blogs

How many people presently lamenting the demise of HMV (at least in its current incarnation) actually spent any money there these past, say, five years? Not too many, I suspect. And for good reason: HMV was not, by its end, very good. If it had been wiser or less complacent, it might have been better placed to survive. But here’s the thing: HMV was not merely the victim of technological change and new customer preferences it was also the wrong size. Because it had stores in most of Britain’s largest towns and cities and because it had been around for a long time we tend to think of HMV as

Tory MPs warn Cameron of ‘mañana moment’ for EU speech

Number 10 has got quite the job to do over the next few days if it is to get backbenchers ready for David Cameron’s EU speech on Friday. Tory MPs are now obviously in a high state of excitement, but their expectations will inevitably be disappointed to some degree. Some are already expressing fears about this, including the MP leading calls in parliament for a referendum. John Baron, who chairs the All-Party Parliamentary Group for an EU referendum, tells me that he is worried the ‘mood music’ in Europe isn’t quite as positive about renegotiation as the Prime Minister might hope. He says: ‘The chance of repatriating powers, I think

Briefing: Simplifying the state pension

There certainly seems to be something to be said for keeping an effective minister in the same post. After two years and eight months in the job, Steve Webb is by far the longest-serving Pensions Minister since the post was created in 1998. And, as last week’s mid-term review showed, pensions is one area where the coalition has much to boast about: the ‘triple lock’, the Hutton review, raising the pension age, ending default retirement and compulsory annuitisation, and introducing automatic enrolment. And today, Webb has announced the government’s new ‘single tier’ state pension. At the moment, the state pension system is fiendishly complex: there’s the basic state pension (currently

Hostilities deepen in Whitehall Wars

‘The relationship between my civil servants and me is summed up by trust and understanding. I don’t trust them and they don’t understand me,’ one Secretary of State likes to joke. The quip sums up the current, tense mood in Whitehall. Today’s Times has done a superb job chronicling just how bad things have got. Many ministers and special advisers feel that they are being made to do huge amounts of work to compensate for the failings og the civil service and being made to carry the can when the permanent bureaucracy messes something up. But before this is dismissed as just griping from ministers who are struggling with mid-term, it

Wind power is unnecessarily stretching the cost of living

The perfect news to greet a freezing Britain today — energy bills are set to take another hike thanks to a series of dodgy wind energy contracts. According to today’s Telegraph, a ‘shocking series of errors’ has resulted in deals worth £17 billion stacked in the favour of turbine manufacturers. As well as wasting taxpayers’ money, it appears the excessive costs of these contracts could be handed down to families, placing an extra strain on households at a time when family incomes are being pushed to the limit. Who do we have to thank? Although the contracts were awarded by the coalition in March 2011, the ludicrous deals were dreamt

No 10 has intensive work ahead to prevent Tory criticism drowning out Cameron’s EU speech

The date of David Cameron’s Europe speech has been moved yet again. But this time it has been pulled forward, to this Friday. Downing Street realised that they weren’t going to be able to talk about anything else until the speech was done. The mood in the party ahead of the speech is not good. There’s considerable irritation among Tory Cabinet Ministers that they haven’t been consulted about the speech. Another source of irritation for Eurosceptic ministers is that Ken Clarke has been allowed to — or, at least, not prevented from — joining up with Peter Mandelson and this new Centre for British Influence Through Europe. As one put

Lib Dems and Labour to push for changes to benefits uprating bill

Round two of the row over rises in benefit payments is on the way, with Lib Dems and opposition parties tabling a series of amendments to the government’s legislation. I have learned that Lib Dem Andrew George has already laid his proposals for changing the welfare uprating bill, which will return to the House of Commons for the report stage and third reading next Monday. George’s amendments are backed by four other Lib Dem MPs: and two of them were neither rebels nor abstainers at last week’s second reading vote. While Charles Kennedy and John Leech abstained and rebelled respectively on the second reading, Dan Rogerson was loyal, and Alan

David Cameron’s Europe “Strategy” is Going to Fail – Spectator Blogs

This is unfortunate, not least because the Prime Minister is a greater realist than many of his erstwhile supporters. They, too often, seem to be another bunch of Bourbons. They helped destroy the last Conservative Prime Minister and they seem determined to help vanquish this one too. The country is not nearly so obsessed with Europe as the Conservative party thinks it is and, whatever the people’s frustrations with Brussels and the European Union, I still think it unlikely the electorate is liable to be impressed with or by a party that spends quite so much time and energy on the European question. Not that the Prime Minister is helping.

Why the armed forces make young people proud

The popularity of the armed forces as an icon of British pride among young people shows the value of seeing members of the military out and about in our regular lives. In a poll for British Future, 16-24 year olds picked the military as the institution that makes them proudest to be British. They rated it at 43 per cent, ahead of Team GB at 39 per cent and the NHS at 37 per cent. Only a couple of years ago the wider population never saw soldiers and sailors in uniform as they walked to the supermarket or boarded a bus. But the rules  changed and this is a generation which

Ministers hope pension reforms will calm concerns about stay-at-home mothers

Today’s pensions announcement contains an attempt by strategists to reassure those who worry that the government is abandoning the family. One of the gripes from the Tory backbenches about the mid-term review was that it provided precious little confidence that the tax break for married couples that they hope for will be forthcoming, with simply a promise that the Lib Dems could abstain in a vote on the matter. It was all very well announcing new childcare measures, MPs such as Tim Loughton complained, but what about those women who wanted to stay at home with their children? But the briefings ahead of today’s announcement have carefully sought to underline

Home Office won’t produce estimate of number of Romanian and Bulgarian migrants

Eric Pickles says he’s waiting for figures on how many Romanians and Bulgarians are expected to come to the UK when transitional controls on their freedom of movement expire on 31 December 2013. The problem is that the Home Office isn’t producing those figures, arguing that such an estimate would be impossible. I’ve spoken to a Home Office source, who told me: ‘There are no Home Office figures in terms of a projection of the numbers because there’s not really very much point in guess work about this because it really is just guess work. Instead, our view is that we should be focusing on the factors that are bringing

David Cameron continues with his ‘tantric’ European strategy

David Cameron told journalists before Christmas that he had a ‘tantric’ approach to his European policy speech: that it would be all the better when it eventually came. So today he decided to continue tantalising his party and the media by popping up on the Today programme a whole week before he’s due to give the speech, and refusing to give details of what that speech will contain. It’s an interesting strategy, as speaking so far before the speech won’t help the Conservative party remain calm. The next week was always going to be a little frenzied in the run-up to the speech. But here’s what we did learn from

Pickles refuses to disclose government number of Romanians and Bulgarians set to come to UK

The Europe debate is raging in the Sunday papers ahead of Cameron’s speech on the matter. There’s mounting concern among Tory Cabinet Ministers that the speech will not go far enough and will simply inflame the situation. One told me, ‘It would be better to make no speech than to disappoint.’ But I suspect that Tory spin doctors will be concerned about a second Europe story this Sunday, Eric Pickles’ confirmation under questioning from Andrew Neil that the government has a number for how many Romanians and Bulgarians are expected to move here from December 2013 when EU transition controls come to an end: listen to ‘Eric Pickles on housing

Ed Miliband’s economic lacuna

Refusing to publish your 2015 manifesto at the start of 2013 is, obviously, a sensible one. However uncomfortable Labour frontbenchers have felt over the past two and a half years about not being able to respond to the jeers of ‘well, what would you do then?’ from ministers at departmental questions, writing another one of the longest suicide notes in history would have left them in still greater discomfort at the polls. But how do voters know whether to trust you or not when they’ve only recently booted you out of government? Ed Miliband was trying to explain this tension to James Landale on Marr this morning. Miliband: But, James,