Uk politics

Friday

Isabel Hardman

‘David Cameron stands for being Prime Minister’

From our UK edition

'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 asked its readers has produced some fascinating results, and it is well worth reading it in full here.

Thursday

Richard Marsh

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

From our UK edition

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.

Jonathan Jones

QE is no substitute for a growth strategy

From our UK edition

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.

Isabel Hardman

The battle to be the party of the armed forces

From our UK edition

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 burden since WWII. Smallest army since Victorian times. This isn't Conservatism.

James Forsyth

QCs could be the solution to the banking inquiry row

From our UK edition

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 power to take on QCs.

Isabel Hardman

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

From our UK edition

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 did not stop the housing association putting up its rents, and nor should it have done, as the rise was to fund work on the homes to bring them up to a decent standard.

James Forsyth

Inquiry debate leaves acrimonious atmosphere

From our UK edition

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.

James Forsyth

Osborne and Balls are playing high stakes on Libor

From our UK edition

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

From our UK edition

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.

Lloyd Evans

Ed’s ahead with banking inquiry

From our UK edition

Low party interest parading as high political principle. That was the theme of today’s PMQs as the party leaders clashed over the scope and nature of the inquiry into the Libor scandal. David Cameron’s pungent language was intended to reflect public anger at the banks. He spoke of ‘spivvy and illegal activity’ in the City, and he promised that crime in financial centres would be pursued as rigorously as crime on the streets. One of the grandest of Tory grandees, Nicholas Soames, warned him that new regulatory mechanisms mustn’t be allowed to damage the City, ‘which remains a vital asset for our country.’   And he was followed by the very grandest of all the Tory grandees, Sir Peter Tapsell himself.

Isabel Hardman

Bob and Bollinger banking

From our UK edition

This is the memo from Bob Diamond, released yesterday, on which many of this afternoon's questions at the Treasury Select Committee will hinge. It records a conversation with Bank of England Deputy Governor Paul Tucker, and is worth reproducing in full here: Further to our last call, Mr Tucker reiterated that he had received calls from a number of senior figures within Whitehall to question why Barclays was always towards the top end of the Libor pricing. His response was 'you have to pay what you pay'. I asked if he could relay the reality, that not all banks were providing quotes at the levels that represented real transactions, his response was 'oh that would be worse.

Isabel Hardman

Bob’s long afternoon at the crease

From our UK edition

This afternoon's rather lengthy Treasury Select Committee hearing with Bob Diamond suggests that Ed Miliband might be on to something with his calls for a judge-led inquiry. We were two hours into the session when John Thurso remarked: 'If you were an English cricketer, I suspect your name would be Geoffrey Boycott… You've been occupying the crease for two-and-a-half hours and I'm not sure we're a great deal further forward.' If Boycott were watching, he'd remark that his mother could have batted away the majority of the questions thrown to Diamond with a stick of rhubarb. This committee meeting provided the former Barclays chief executive with a pretty flat pitch.

James Forsyth

Exclusive: Osborne, ‘They were clearly involved’

From our UK edition

After a subdued PMQs, the politics of the Libor scandal has just been ratcheted up another notch. In an interview with The Spectator for this week's issue, George Osborne has said that those around Gordon Brown ‘were clearly involved’ in the discussion about how to keep Libor down during the 2008 financial crisis. In the interview, George Osborne gives short shrift to Barclays’s accusation that the Bank of England urged it to get its Libor down.

Tuesday

Dominique Lazanski

An internet filter would be counterproductive

From our UK edition

Following Claire Perry's campaign for porn prohibition, the Department of Education has now launched a consultation on parental internet controls. For those of you unaware of the policy proposals, it is something we should be concerned about as it poses a very real threat to our internet freedoms. This year, Perry held an independent inquiry on online child protection. The report, released in April, recommended that internet users who wish to view pornography should have to opt-in to it. In other words, there should be default blocking of legal content by internet service providers unless users request this block be turned off.  From a technical point of view, the introduction of a default adult content filter will be a blunt instrument to deal with the issue.

Isabel Hardman

Cameron hints at Coalition split on EU review

From our UK edition

Yesterday the Prime Minister made a point of showing his backbench how very willing he was to listen to their concerns about the European Union. Today, as he gave evidence to the Liaison Committee, David Cameron made a point of suggesting his Liberal Democrat coalition partners are a little less willing when it comes to reviewing the EU's powers.  Asked when he would launch the balance of competencies review, which will examine the impact of EU law on Britain, the Prime Minister said: 'I hope that we will be able to start the process before the summer, but we need to seek full agreement before we launch it.'  He added: 'Some preliminary work has been done but there does need to be proper coalition agreement before full work goes ahead.

Isabel Hardman

Diamond does not last forever

From our UK edition

Bob Diamond's resignation with immediate effect as chief executive of Barclays gives plenty of people in Westminster the scalp they were looking for. Labour had called for Diamond to go after the Libor scandal surfaced. The Lib Dems had called for Diamond to resign, with Vince Cable threatening to use as a last resort his powers to disqualify directors. In fact the Lib Dems have been so focused on getting Diamond out that I understand they have been intentionally avoiding the brewing row between Labour and Tories about the parliamentary inquiry, headed by Treasury Select Committee chair Andrew Tyrie. Diamond's resignation statement to the stock exchange was not exactly dripping with apology and remorse.

Isabel Hardman

Clegg: I feel lobotomised in government

From our UK edition

Nick Clegg gave a rather sombre speech to the CentreForum summer reception last night. Addressing the guests from a pulpit in the vaulted cloisters of Westminster Abbey, as the rain poured down outside, the Deputy Prime Minister admitted he felt 'lobotomised' in government. It was actually a clumsy attempt to praise the work of the Lib Dem-aligned think tank in helping the party retain its brain by dreaming up new policies when the constraints of Coalition might otherwise prevent it, but it did not go down well with those listening. Andrew Neil tweeted that Lord Steel, who he was standing next to at the event, had rolled his eyes at Clegg's turn of phrase. Clegg also used some of his speech to attack the eurosceptic beast that his Coalition partners are currently feeding.

Monday

Isabel Hardman

A fresh deal and a fresh settlement

From our UK edition

Pressure has been building all weekend for the Prime Minister to give some form of concession to his eurosceptic backbenchers in his statement on the outcome of the Brussels summit. James blogged shortly before David Cameron stood up in the Commons that Tory MPs were being reassured that they were going to like what they would hear him, which a pro-European MP suspected would be 'feeding a beast with an insatiable appetite'. This is the meat the Prime Minister threw to the eurosceptics: 'Far from ruling out a referendum for the future, as a fresh deal in Europe becomes clear, we should consider how best to get the fresh consent of the British people.

James Forsyth

Cameron’s position on Europe grows clearer

From our UK edition

David Cameron’s position on Europe is becoming clearer. ‘Fresh settlement, fresh consent’, the soundbite he kept using, is simply a euphemism for renegotiation followed by a referendum. It seems that this renegotiation will span the next election. Indeed, it will start as soon as a new EU treaty is proposed. In response to a question from Peter Lilley, Cameron said he will try to use any forthcoming treaty to attempt to bring powers back to this country. Those close to Cameron say that the plan is to get as much back before the next election and then accelerate the process as soon as there is a treaty negotiation under a Conservative-only government. When the referendum does come, it will most likely offer a choice between the new terms and out.

Clarissa Tan

Sir Mervyn and money-fixing

From our UK edition

Is manipulating interest rates really as shocking to the Chancellor and the Governor of the Bank of England as they make it out to be? The Libor and Euribor fixing scandal has shown several bankers at it, yet this weekend there were suggestions that at least some of these bankers thought that the regulators, the Bank of England and even the Treasury were aware of the scam - and had a shared interest in keeping the official borrowing rate down so as not to spread panic. This reminds us what an extraordinary situation the Old Lady of Threadneedle St finds herself in. On Friday, Governor Mervyn King lambasted banks and bankers for being ‘shoddy’ and ‘deceitful’ over the Libor scandal. The BoE is not directly responsible for Libor (though this article [http://specc.