Uk politics

Lloyd Evans rounds up the highlights of this week's Spectator debate on the future of the union. The motion was 'It's time to let Scotland go'. Margo Macdonald, MSP, opened on a friendly note and declared that she had no plans to fall out with anyone. She wants to preserve Scotland’s ‘social union’ with England. But her country can no longer ‘shackle itself to the shell of a declining empire’. Nor should Scotland send ‘broad-kilted laddies’ to fight wars in foreign lands, ‘using armoured vehicles that are more dangerous to our servicemen than to the enemy.’ England, she claimed, uses Scotland to maintain its ‘magic seat’ on the Security Council.

A speech earlier this week by unmasked-spy Jonathan Evans has put the threat of cybercrime back into the national consciousness. The MI5 director general spoke at Mansion House earlier in the week to warn of ‘real damage’ caused online — highlighting one London business which suffered a £800 million loss following an attack. He stressed the need to introduce snooping powers: ‘It would be extraordinary and self-defeating if terrorists and criminals were able to adopt new technologies in order to facilitate their activities while the law enforcement and security agencies were not permitted to keep pace with those same technological changes,’ he said.

On Tuesday next week, The Spectator will hold its third annual Schools Revolution conference. On the agenda will be the striking failure of new 'free schools' to keep pace with the rising pupil demand. Michael Gove, the education secretary, will be our keynote speaker. To book tickets, click here. A couple of month's ago, Fraser warned that the recent baby boom would lead to a schools crisis, with demand for places outstripping supply. Today's new figures from the Department for Education show that the crisis has already begun. This year, there are more primary school pupils than there were 30 years ago, but 3,800 fewer primary schools.

Last Thursday Mervyn King said ‘the case for further monetary easing is growing’, and today’s surprise inflation figures give the Governor and his policymakers more leeway to introduce the next round of QE, probably as early as next month. Consumer price inflation fell to 2.8 per cent in May from 3.0 per cent in April, below analysts’ average forecast of a flat reading. It’s the weakest monthly inflation since November 2009, with the main contributors being falling food and oil prices. This is good news indeed, especially given that inflation has been – and still is – eroding savers’ earnings by about 8 per cent over five years.

The Keynes vs Hayek debate is at its sharpest on the issue of employment. Can government create jobs (as Balls says)? Or does large public sector employment simply displace economic activity that would happen elsewhere (as Osborne says)? A fascinating study has been released today by the Spatial Economics Research Centre at the LSE showing the damage done by public sector employment to the real economy. Drawing on a huge amount of local-level data over an eight-year period, it’s a serious piece of research that is worth looking into and deserves to impact our economic debate. 1. First, what is seen. In the short term, hiring someone to work for the government means another worker, who in turn spends.

‘You attack poverty by knowing what you do changes the lives of those people.’ In that phrase on this morning’s Today programme, Iain Duncan Smith summed up the difference between his approach to combating poverty and Gordon Brown’s. As Fraser has put it, Brown saw poverty as ‘a statistical game… his great spreadsheet puzzler’. The aim of the game? To reduce the number of people living in households below the ‘poverty line’ — set at 60 per cent of median income. The easiest way to achieve this is to move people from just below the line to just above it by giving them a bit of extra cash (in the form of tax credits). Brown called this ‘lifting people out of poverty’.