Uk politics

Monday

James Forsyth

Charlotte Leslie becomes the latest 2010 MP to oppose Lords reform

Charlotte Leslie becomes the latest star of the 2010 intake to come out against the coalition’s version of Lords reforms. Explaining her decision, she emphasised to The Spectator her concerns that while the new Lords would be elected ‘they would not carry the great benefit of democracy, accountability’. As Leslie points out, this means that a Lord ‘could get elected on a myriad of populist promises, then fail to honour any of them’. She also has worries about the loss of expert knowledge from the chamber when it is elected. But her objections are, perhaps, best summed up by her attack on the argument that Tories should vote Lords reform

Fraser Nelson

Is the Work Programme working?

School and welfare reform are the signature missions of David Cameron’s government – but is welfare going wrong? Labour is crowing that today’s figures from the Work and Pensions department on welfare-to-work show it’s a failure. I’ve just come back from a DWP briefing with Chris Grayling, the minister responsible, and thought Coffee Housers would be interested in his take. It was Labour who first involved private companies into welfare-to-work, and the coalition has continued it – but pressed the reset button. Their scheme is called the Work Programme, the largest welfare-to-work programme on the planet with 750,000 clients. It means the government pays a £4,000 fee to a company

Isabel Hardman

What Labour did next on banking

When Ed Miliband gave his speech to Labour’s autumn conference last year, he rather tied himself in knots about how to end predatory capitalism. The Labour leader was trying to make it clear that he would stand up to vested interests, but the message was lost under a row about whether he was pro- or anti-business. Today Miliband managed to put that speech into context a little more, by announcing Labour’s plans to change the culture of banking in this country. Instead of predator banks, he wants ‘stewardship banking’, which builds ‘a long-term, trusted relationship with their customer’ and serves the real economy as well as the industry itself. The

Isabel Hardman

The day of the Lords arrives

Lords reform makes its way into the Commons today, but it’s hardly a relief for the whips that after weeks of threats from the rebel camp, the legislation is finally being debated. With tales circulating the House that there are 110 Tory MPs prepared to defy the whip on the programme motion, this could be the first time the Government is defeated on its legislative programme. The BBC’s Norman Smith tweeted this morning that the rebels were being told to vote against second reading rather than the programme motion if they were unhappy with the legislation. But even if, as Paul Goodman argues, not every rebel on that list of

Isabel Hardman

Shots in the arm for the economy

There’s an interesting paper out from a number of members of the Conservative Free Enterprise Group this morning. The report, called Policy Bites: Seven Shots in the Arm of Britain, makes these seven recommendations for reforming the economy: 1. Over 65s still in work should continue to pay National Insurance contributions on their earned income to fund NIC holidays for young low-paid workers. 2. Exempt businesses with up to three employees and less than £75,000 annual turnover from employment regulation. 3. Reform the Treasury to place greater emphasis on supply-side reform. 4. Give planning permission for a third and fourth runway at Heathrow. 5. Create a new Ministry of Infrastructure

Isabel Hardman

Tucker denies Labour leant on Bank over Libor

So Labour ministers did not ‘lean on’ the Bank of England to encourage lowballing of Libor rates, according to Paul Tucker. The Deputy Governor of the Bank told the Treasury Select Committee this afternoon that he had held conversations with officials about how able Barclays was to fund its operations. This is the exchange between Pat McFadden and Mr Tucker. McFadden asked whether any minister had tried to ‘lean on’ him over Libor: ‘Absolutely not.’ Asked whether Shriti Vadera had leant on him: ‘I don’t think that I spoke to Shriti Vadera throughout this whole process.’ Ed Balls? ‘No’ Other ministers? ‘No’ He confirmed that the ‘senior official’ that he

James Forsyth

Is Lords reform heading for a slow or quick death?

At the end of last week, Number 10 was optimistic that it and the whips were having some success in limiting the rebellion on the Lords. Some were even suggesting that the vote on the programme motion was winnable, after all. But that feeling has evaporated this morning. First, the weekend ring round by various senior figures did not meet with great success. Second, the ‘dear colleague’ letter signed by 74 MPs means that the programme motion is now pretty much certain to be defeated. Indeed, the rebels number considerably more than 74 when you include the PPSs who are planning to vote against it, the backbench opponents trying to

Isabel Hardman

Tucker’s down on his luck

‘This doesn’t look good, Mr Tucker.’ Andrew Tyrie made this observation towards the end of his Treasury Select Committee’s evidence session with Bank of England Deputy Governor Paul Tucker. He was talking about the minutes of a meeting in 2007 which suggested Tucker was aware of the lowballing of Libor, but he might as well have been summing up the witness’s hopes of taking the reins as the Bank’s next Governor. Tucker insisted he was not aware that lowballing was taking place, but the minutes themselves said: ‘Several group members thought that Libor fixings had been lower than actual traded interbank rates through the period of stress.’ John Mann leapt

James Forsyth

Clegg takes a hammering over Lords reforms

Nick Clegg was standing at the despatch box to move the second reading of the coalition’s Lords reform bill. But the reception he got was reminiscent of what used to happen to Lib Dem leaders at PMQs. He was barracked mercilessly by both Labour and Tory benches while his own benches remained oddly silent, only one of his MPs intervened on his behalf.   Watching the Tory benches during Clegg’s speech it was hard not to imagine a considerable rebellion tomorrow night. At one point, the interventions were coming in so thick and fast that Clegg appeared to be almost ducking at the despatch box. The Tories seemed to be

Friday

Shiraz Maher

Prevent strategy still needs political will

West Midlands Police have just announced seven arrests as part of an investigation into alleged terrorist activity. This follows the detention of six individuals on similar charges across London yesterday. Together, they reveal just how active the Islamist network in the UK remains and the potency of its ongoing threat. One of those arrested in London yesterday, a convert, Richard Dart (also known as Salahuddin al-Britani) first came to prominence last year when his step-brother featured him in a documentary called ‘My brother the Islamist’. It offered a rare observational view on the inability of one family to comprehend the militancy and millenarianism of their son. Dart was radicalised by

Isabel Hardman

Lib Dems push the boundaries

That the Liberal Democrats might try to scupper the boundary reforms if they don’t get their way on Lords reform has been the talk of the tearooms in Westminster for months. But today the threat comes to the fore as Nick Clegg’s departing head of strategy Richard Reeves warns the Independent that there will be ‘consequences’ if Tory MPs try to block reform of the upper chamber by voting down the Government’s programme motion for debating the legislation. This is what he told the newspaper: ‘There would be broader consequences for the Government’s programme, particularly around political and parliamentary reform. The idea that a failure to deliver a government commitment

Isabel Hardman

‘David Cameron stands for being Prime Minister’

‘What do you think David Cameron stands for?’ a Tory MP asked me recently. Unsure of his point, I burbled something about ‘responsibility’ and couple of other random abstract nouns. The MP shook his head grimly. ‘No,’ he said. ‘I’ll tell you what David Cameron stands for.’ I leant forward, intrigued. ‘David Cameron stands for being Prime Minister.’ It turns out that this MP isn’t the only one who thinks this way about Cameron’s motives. A survey of ConHome readers, published today, found that 50% believed he was only interested in being Prime Minister and did not have a strong vision for the country. The list of questions the site

Thursday

Richard Marsh

Closing cardiac units might be right, but it won’t be easy

Yesterday, Health Secretary Andrew Lansley reported to MPs on the state of the NHS. The state of the NHS, you’ll be relieved to know, is good, or at least it is in Mr Lansley’s estimation. Budgets are in surplus, waiting lists are down and, unless you are very unlucky, you won’t have to hang around for more than four hours in A&E before they see you. One thing, however, that the Health Secretary didn’t volunteer – curiously, since it was the biggest NHS news of the day – was the reorganisation of heart care for children, and the closure of three specialist surgery centres in England. This is probably just

Jonathan Jones

QE is no substitute for a growth strategy

So the Bank of England is firing up the presses again, and injecting another £50 billion of Quantitative Easing (on top of the £325 billion we’ve had so far), in a desperate bid to get the economy moving. The Bank’s certainly right that growth’s not forthcoming. GDP in the first quarter of this year was 0.2 per cent below where it was in the first quarter of 2011, and the prospects for Q2 aren’t looking too bright either — especially with the extra Jubilee bank holiday. Some are hoping that the Olympics will help brighten the picture in Q3 — David Cameron says he’s ‘confident that we can derive over

Isabel Hardman

The battle to be the party of the armed forces

Defence Secretary Philip Hammond has the unenviable task today of announcing a cull of army units as the force is cut from 102,000 to 82,000. The Army 2020 review, the launch of which was delayed beyond Armed Forces Day last weekend, also doubles the number of reservists to 30,000. This leaves it half the size it was during the Cold War era, and the smallest since the Boer War. This is obviously deeply unpleasant for those troops whose units are being abolished. It is also uncomfortable for the Tories, who have long enjoyed the reputation of being the party of the armed forces. Tim Montgomerie tweeted this morning: ‘Biggest tax

James Forsyth

QCs could be the solution to the banking inquiry row

There are, though partisans don’t want to admit it, problems with both a judicial inquiry and a parliamentary inquiry into the Libor scandal and the wider culture it has revealed. A judicial inquiry would drag on and, judging by the Leveson Inquiry, there’s no guarantee that the judge would understand the industry he’s meant to be examining. But, as yesterday demonstrated, the standard of questioning at any parliamentary inquiry is going to be patchy.   John Thurso, a Lib Dem member of the Treasury select committee and one of the most respected MPs, has been out floating a compromise solution. His idea is that the Joint Committee should have the

Isabel Hardman

‘Welfare suicides’ are awful, but they’re still a red herring

One of my first jobs as a junior reporter was covering the inquest of a man who had committed suicide at the end of a legal battle against a rise in his rent. His council house had been transferred to a housing association, and the rents were set to rise by £5 a week. Like all inquests, it was a grisly affair. It took evidence from a sobbing young relative, and included the details of how he killed himself. This case was a terribly sad mess, and there doubtless should have been more support at hand for a man frightened about falling into arrears with his rent. But his death

James Forsyth

Inquiry debate leaves acrimonious atmosphere

Following the vote just now, there will be a parliamentary inquiry into the Libor scandal. Andrew Tyrie, chairman of the Treasury select committee, will chair it because Ed Balls has agreed that Labour will participate in it as long as it concerns about membership and the secretariat are addressed; presumably, this means that Labour will argue that as it is a joint committee of both House there should be no government majority on it. The debate, though, has left an atmosphere of acrimony behind. It was noticeable that during the vote, Ed Balls walked past George Osborne who appeared to be trying to engage him in conversation. Also when Nicola

James Forsyth

Osborne and Balls are playing high stakes on Libor

The exchanges between Balls and Osborne just now are some of the most heated and most personal in parliamentary memory. I suspect that Balls would now not offer to cook Osborne ‘my 14-hour pulled pork South Carolina barbecue. I’d know he, as an American aficionado, would truly appreciate it’. The cause for this row is George Osborne’s interview in the new issue of The Spectator. The following paragraphs have sent Balls into a rage: ‘If exonerating the Bank is his first priority, his second is tying this scandal to the last government. He starts by blaming the regulatory system devised by Brown and Balls for allowing these abuses to happen.

Wednesday

Isabel Hardman

The Tory fight for Lords reform

Last night a group of Liberal Democrat and Conservative MPs met to discuss Lords reform. Public outbursts from the Conservative backbench have so far focused on opposition to the bill and the programme motion that the whips are trying to impose on the legislation, but the group of pro-reform MPs, who have informally dubbed themselves the Democratic Majority, are optimistic that the legislation will make a successful passage through the House of Commons. There are 27 Conservatives on board at the moment along all the Lib Dems, standing up the list of 100 MPs that the rebel leaders claim to have among their number. Ringleader Jake Berry, a member of