Uk politics

Where will Cameron’s road proposal take us?

From our UK edition

Are we facing ‘toll road UK’, as the Mirror suggests this morning? That is certainly a possibility arising from David Cameron's plan to allow private firms to bid for chunks of Britain's motorway system — but I wouldn't get too excited just yet. It's a very distant possibility at the moment. After all, just note the details of the story. The routes that the coalition has in mind are very significant ones, but they still add up to only 3 per cent of the national network — ‘toll road UK’ may be pushing it. And then there's the fact that nothing has been entirely decided yet. We're told that, ‘The Treasury and the Department for Transport will carry out a feasibility study with a view to reporting back to Mr Cameron in the autumn.

Taleb in 30 minutes

From our UK edition

Nassim Taleb, the Lebanese-American academic whom we interviewed in The Spectator last month, is the subject of a Radio Four profile by The Economist's Janan Ganesh that was first aired last Monday but will also be on Radio 4 at 21:30 this evening. David Willetts is interviewed, saying that Taleb's work underlines the folly of long-term forecasts because ‘the big events that shape the world today are those which no one predicted four or five years ago’. The discovery of Shale gas, for example, could utterly change Britain’s energy requirements. Taleb’s heroes are Burke and Popper: his emphasis is on the need for humility, on how hard it is for any government to know what’s going on in society.

Downing St plans to boost construction

From our UK edition

In the last few months, there’s been a distinct change in the attitude of the Tories at the heart of government. They are now far more cognisant of just how difficult it is to drive change through the government machine. It is no longer just Steve Hilton and Michael Gove complaining about this, but Osborne and Cameron too. The Chancellor’s particular frustration at the moment is over the pace of planning reform. Osborne and his brains trust believe that simplifying the planning rules is one of the things that they could do to both give the economy a short term stimulus, by encouraging more construction, and improve its long term prospects. But the coalition is making slower progress on the matter than Osborne would like.

Is Andrew Lansley’s time finally running out?

From our UK edition

A few months ago, I was invited to speak at the Health Service Journal conference, and hugely enjoyed meeting various reformers from within the NHS (and, of course, their enemies). One representative from the NHS Confederation pointed out that in most countries which were run by coalitions, the junior party was always given control of health — because nothing good can ever come from it. When things are going well, you hear nothing. When flu epidemics strike, then health is a horrible brief. A good point, which David Cameron may be taking to heart. Patrick Hennessy reveals in tomorrow’s Sunday Telegraph that Cameron is mulling a pre-Olympics reshuffle which would replace the hapless Lansley with a Lib Dem.

The man behind the Budget

From our UK edition

In today’s Telegraph, I profile Rupert Harrison, chief economic adviser to George Osborne and the man who’ll do more than anything else (including his boss) to shape next week’s Budget. In the British political system, special advisers are given very little attention — even though the best of them are more influential than the average Cabinet member. The Treasury’s vast power, assembled by Brown, is still there. That can’t be said for Osborne: he spends half his time in Downing St, and is sufficiently detached from the Budget process that he felt able to take a couple of days’ holiday in America last week to jump in the motorcade and press some presidential flesh.

Labour miss out the details

From our UK edition

Labour's launch of its new youth jobs policy has been rather overshadowed by Harriet Harman's inability to explain the costing behind the policy on the Daily Politics earlier: not a good look for a party trying to show that it is fiscally credible. But more interesting than the number behind the policy is how it marks an attempt by Labour to toughen up its position on welfare. Those young workers who have been out of work for a year will have to take one of these minimum wage jobs or have their benefits docked.



 On the Labour front, the interview with Ed Miliband in the Times today is also worthy of comment.

Cameron and Obama bargain over fuel

From our UK edition

No wonder David Cameron and Barack Obama were being so chummy: they both knew that they could help each other. The Times carries an intriguing story (£) on its front page this morning, about how the two men discussed a plan to get fuel prices down in the UK and the US. The idea is that both countries — and perhaps more — would release some of their oil reserves. And so supply would go up, and prices would come down. As would our reliance on the oil-rich countries of the Middle East. Apparently, we're some distance from a deal yet, but you can see why both the PM and the President would want one to be struck — and soon.

Go on, George — scrap the 50p rate

From our UK edition

Will George Osborne scrap the 50p tax in next week's Budget? Whispers to this effect have been getting louder, and now the Guardian is saying that it will come back down to 40p, and it makes a lot of sense. As I argued in my Telegraph column a fortnight ago, this is the perfect time to do it. Axing the tax paid by 1 per cent of the population will be unpopular with the remaining 99 per cent, so if Osborne is going to take a political hit he should do so now. Anecdotal evidence of its harmfullness has been getting stronger: multinational companies saying they can't persuade people to relocate to Britain, and early figures suggest a drop in tax from the rich in 2010-11.

Hodge’s new nemesis: Sir Jeremy Heywood

From our UK edition

Margaret Hodge subjected senior civil servants to a fierce ear-boxing this morning. She accused them of trying to avoid the scrutiny of her Public Accounts Committee, and declared the current doctrine of ministerial responsibility unfit for the 21st century: ‘The senior civil service needs to acknowledge that we live in a different world from the world in which ancient conventions could prevail. Everybody wants greater transparency and accountability.’ Hodge also said she ‘has been rattling the cage too much for some’ and detailed some of the resistance she’s encountered.

Right to reply: Why QE isn’t a disaster for pensioners

From our UK edition

The best of all possible worlds for the pension industry is a buoyant economy. Workers have enough money to save, share prices rise and dividend growth is robust. Interest rates are positive in real terms so annuities are good value. The economy ground to a halt in 2008. The overwhelming priority for everyone is to get growth going again. Without growth the services that pensioners depend on — such as the NHS — will struggle. Traditionally, governments cut interest rates and raise spending to get the economy moving. The Bank of England has cut interest rates as much as possible and the government deficit remains very high. We have exhausted conventional policies, and yet the economy is not growing.

The questions Alex Salmond can’t answer

From our UK edition

Should Scotland be independent? I’d have thought that only a few people — most of them Scottish — would care enough about the question to come to a debate hosted by a think tank, but the Policy Exchange fight club was packed last night. The sole nationalist was the SNP’s Pete Wishart, allied with Sir Simon Jenkins making his English Nationalist points. Sir Malcolm Rifkind spoke against the motion, with yours truly his support act. As you might expect from a London audience, those opposed won easily. But two things struck me. The first is Sir Malcolm’s eloquence. He was brilliant, better than Salmond, a reminder of what was cut dead in the 1997 election — perhaps never to grow again.

Cameron dines with Obama… and Clooney

From our UK edition

https://www.youtube.com/watch?v=mX6mT0kpoyQ The Camerons weren’t the Obamas' only big-name guests at the State Dinner last night. They were joined by a host of stars including Warren Buffett, Richard Branson and George Clooney, who’s just returned from war-torn Sudan. In their speeches (above), the two leaders had very warm words for each other. Of Cameron, Obama said: ‘In good times and in bad, he’s just the kind of partner that you want at your side. I trust him. He says what he does and he does what he says.’ And the PM returned the compliments: ‘There are three things about Barack that really stand out for me: strength, moral authority and wisdom.

The significance of Clegg’s PMQs win

From our UK edition

Nick Clegg’s assertive performance at PMQs today was a demonstration of the fact that he now feels more confident than he has since his failure in the AV referendum. The deputy Prime Minister doesn’t crouch defensively at the despatch box anymore, and he brushed off some rather good one-liners from Harriet Harman. She joked that the only thing the deputy Prime Minister stands up for these days is the PM entering the room.   Clegg and his team feel that things are looking up for them, that they are setting the agenda. Even the Lib Dem’s lowly poll rating isn’t dampening their mood.   So, what does this change mean for the coalition? Senior Tories claim to be delighted that Clegg is happier, claiming it makes him easier to deal with.

Nick rises to Harriet’s limp challenge

From our UK edition

Basketball in America. Netball at PMQs. Harriet Harman, Labour’s venerable form-prefect, took her leader’s place today and lobbed a few rubbery missiles at the PM’s under-study, Nick Clegg.  It came down to arithmetic. Even if Hattie had stormed it at PMQs she had no hope of reviving her extinct career. But Clegg has it all to play for. He was ready for it too. Assured, combative and well-briefed, he filled his replies with fresh, punchy rhetoric. (Mind you, his match-fit performance should be credited to his party activists. Clegg must have spent the last 22 months fielding nasty questions from chippy wonks at Lib Dem constituency meetings.)  Hattie tried to upset him by accusing the coalition of ‘throwing women out of work.

Unemployment’s high, but at least it’s stopped rising

From our UK edition

So, new jobs figures out today. Which do you want first: the bad news, or the kind-of-alright news? The bad news is that employment’s showing no signs of growth: the total number in work has been stuck at 29.1 million since it fell there in the summer. It’s a touch better than the trough of 28.8 million we hit at the end of 2009, but still half a million below where we were when the recession hit. And we’re showing no signs of getting there any time soon: And the not-so-bad news? Unemployment’s slightly down on last month, which was slightly down on the month before. It’s not a big drop — well within the margin of error — and the number of unemployed still stands at 2.7 million, so this doesn’t exactly count as good news.

The Bond Bubble’s getting bigger

From our UK edition

George Osborne is planning to launch a 100-year bond, says the FT — a sure sign that the Bond Bubble is getting even bigger. These devices are usually used by American universities: the California Institute of Technology issued one at 4.7 per cent, MIT did one at 5.6 per cent, and a few American companies have tried at 6 per cent. The Mexcians sold a billion bucks' worth of century bonds a while ago at 6.1 per cent, so it would only be a matter of time before HM Treasury — a world leader in, ahem, novel debt vehicles — was going to do the same. The US Treasury Borrowing Advisory Committee suggested that the Fed does this last month. It’s not quite as crazy as it sounds: in today’s yield-starved environment you can get away with anything.

Cameron and Obama, sans yellow mustard

From our UK edition

Above is what they call the ‘raw video’ of David Cameron's and Barack Obama's trip to a basketball game last night. It's the unrefined version of what Downing St hopes will be refined, packaged and sent to your television screen at hyperspeed: images of the PM and the President dressed casually and chatting away as the game goes on. Like I said yesterday, it's political theatre — designed to benefit both men. They were then both interviewed at halftime, which you can watch here.