Uk politics

Wednesday

James Forsyth

Huhne’s partner involved in lobbying row

From our UK edition

Another lobbying scandal has hit the coalition. The Times is reporting that Carina Trimingham, Chris Huhne’s partner, boasted of having ‘excellent contacts… from Cabinet members to more junior ministers’ to a lobbying firm she was seeking work with. She also allegedly urged this firm to ‘make use of my skills and contacts.’ Trimingham has told the paper that she will not take on any role that involves energy and climate change so there will be no conflict of interest. She also points out that having worked in politics for more than a decade Huhne is not her only contact. A spokesman for the Energy and Climate Change Secretary says that Trimingham has offered assurances that she won’t work in any area under his department.

Tuesday

David Blackburn

The dangers of ever-closer union

From our UK edition

Yesterday, Fraser wrote that 'reporting of European issues tends to ignore public opinion'. Today, Philip Stephens has neatly illustrated Fraser's point in his Financial Times column. Musing on Britain's possible exit from the European Union, Stephens writes: 'I am not sure this is what the prime minister intends; nor, when it comes to it, that British voters will accept such an outcome.' Stephens' conjecture ignores the European Union's own polling, which, as Fraser says, shows most Britons to be hostile to the EU. That said, Stephens' article is substantial. He argues that 'fiscal union carries its own remorseless logic: the progressive exclusion of Britain from Europe’s economic decision-making'.

Campbell Robb

The government’s housing policies don’t match its strong rhetoric

From our UK edition

Yesterday's housing strategy offered a mortgage guarantee for first-time buyers of new properties, one of the few new announcements in a document largely consisting of re-hashed policy. At best, the mortgage guarantee helps to provide a boost to house builders and welcome relief for some credit-worthy borrowers who simply can't build up a sufficient deposit. At worst, it encourages risky lending, subsidises high house prices and raises unrealistic expectations for young families. Unaffordable, reckless lending (at least, up until the credit crunch and collapse of the sub-prime market) threatened the stability of the financial sector and caused misery to thousands of homeowners who later found themselves falling behind on payments and threatened with eviction.

Fraser Nelson

Osborne chooses more debt over more cuts

From our UK edition

Reading today's newspapers, it seems that the biggest decision of Osborne's mini-Budget has already been made. Evaporating growth means lower tax revenues, so the choice is between protecting his deficit reduction plan or keeping total spending cuts at less than 1 per cent a year. Increasing savings to, say, 1.3 per cent a year would mean he could easily meet his deficit targets. But it seems the decision has been taken to borrow even more. In his March budget, Osborne laid out plans to increase government debt by 51 per cent over the course of a parliament – lower than the 60 per cent that Labour had planned. It now looks as if Osborne will increase debt by even more than that 51 per cent.

James Forsyth

Party funding reforms won’t happen

From our UK edition

The recommendations of the Committee on Standards in Public Life's review into party funding are not going to happen. Both the Labour and Tory members of the review have issued notes of dissent to it. Nick Clegg has, on behalf of the government, issued a statement gently rolling the report into the long grass. Interestingly, the Tory party - which was for a while attracted to additional state funding - has now ruled it out completely. Unlike Clegg's statement saying it shouldn't be done while economic times are so tough, the Tory rejection of it is not time limited. One other thing worth noting is that Labour, via Margaret Beckett's dissent, has not set itself against trade union members having to opt in to pay the political levy.

Monday

James Forsyth

There’s merit in the Coalition’s housing proposals

From our UK edition

The government's announcement on housing today is an attempt to square the circle. On the one hand, a return to excessive lending and sub-prime mortgages is clearly not a good thing. Critics say, with justification, look where government backed mortgages got America. But on the other, there are clearly problems when people who aren't fortunate enough to have parental help aren't getting on the housing ladder until well into their thirties. Conservatives who understand the importance of a property-owning democracy should be concerned about this. The Coalition's solution — and this is the most genuinely coalition piece of policy we've seen in months — is partial government indemnities for people taking out 95 per cent mortgages on new build properties.

Peter Hoskin

Talkin’ ’bout long-term stagnation

From our UK edition

Politics is often a messy squiggle, but this morning's Resolution Foundation event did much to reduce it to a binary choice. Do we follow the US into a decades-long stagnancy around low-to-middle-income earners? Or do we not? James Plunkett explained the basic dilemma on Coffee House earlier, but more was said by a group of panellists which included Jared Bernstein, Martin Wolf, Steve Machin and Lane Kenworthy. Here, for the saddest CoffeeHousers, are eight points that I've distilled from my notes. This is more reportage than opinion, but I thought you might care to applaud or eviscerate some of the arguments that were put forward: 1) The UK triumphant. Or not quite — but at least we've outpaced the US on most measures of income growth for low-to-middle earners.

Fraser Nelson

How ambitious is Cameron on Europe?

From our UK edition

Someone forgot to pack his handbag. We heard yesterday that David Cameron has agreed to let Merkel pursue full fiscal union – and in return she will... drum roll please... let him repatriate parts of the Working Time Directive. There's nothing official from Number 10, but the well-informed Ben Brogan suggests this morning that this could well be Britain's price for agreeing to Merkel's deal. If so, this would be an opportunity squandered on a massive – perhaps historic – scale. Let's recap. Cameron is in an incredibly powerful position: leading a government which is, in defiance of public opinion, giving £9 billion of overseas aid to EU member states each year.

Hamish Macdonell

The SNP hit the jackpot

From our UK edition

Some political leaders might be a bit hesitant when it comes to approaching lottery winners in the hope of securing some of their dosh for the party cause – but not Alex Salmond. Back in July this year, when it emerged that a couple in Ayrshire – Colin and Chris Weir – had scooped a record £161 million on the EuroMillions, Scotland's First Minister reacted with astonishing speed. Within days Mr Salmond had written a letter to the couple congratulating them on their success and adding: 'When I heard the fantastic news that a Scot had landed the EuroMillions jackpot, I did wonder if this was the same Colin Weir who helped produce SNP party political broadcasts for a young party publicity vice-convener all those years ago.

James Forsyth

The government’s airport conundrum

From our UK edition

There is a growing acceptance in government that the South East needs more airport capacity. But, as today's Times outlines, there's nowhere near agreement on how best to achieve this. The big problem with a new airport on the Kent coast or 'Boris Island' is that the Dutch would not be prepared to open up the necessary air space. They control most of the air above the North Sea under international treaty because of Schiphol airport. I understand that feelers put out to the Dutch on this matter have been rebuffed. Another option is Heathwick. The idea is that an extra runway is built at Gatwick and then the two airports are joined together by a high-speed rail line. Initial work suggests that journey time between the two airports would be just 15 minutes.

James Plunkett

Are we facing an American nightmare?

From our UK edition

With the Chancellor’s autumn statement due next Tuesday, we're all talking about growth. The ECB and Bank of England now say the UK economy is set to grow at less than half the rate the OBR forecast back in March. That makes it all but certain that George Osborne will announce dramatic downward revisions to UK forecasts when he stands up in parliament next week. But before all the fighting about Plan As and Bs reaches fever pitch, it’s worth asking what the next decade looked like under the previous, more optimistic growth projections. The answer isn’t pretty and it helps highlight one major question that’s rarely asked in our debate about GDP: what kind of growth are we after? The chart below neatly sums up the problem.

Sunday

James Forsyth

The vote in Spain

From our UK edition

The expected triumph of the centre-right Popular Party in today’s Spanish elections promises to have some interesting consequences for British politics. The PP have been in close touch with the Tories here and plan to introduce an emergency budget based on the Osborne model: a clear deficit reduction plan combined with an increase in the retirement age. They hope that this will reduce the ever-upwards pressure on Spanish bond yields. Certainly, if the PP approach does succeed in gaining Spain credibility with the bond markets, it will bolster the coalition’s arguments about the importance of sticking to Plan A.

Daniel Korski

Are the Lib Dems pro-EU?

From our UK edition

This might seem a very odd question. A pro-EU position is part of the party's internationalist DNA. Listen to any EU-related speech by the likes of Nick Clegg or Paddy Ashdown and heartfelt support for the European project is apparent. The Liberal Democrats have also made a virtue of reining in Tory euroscepticism, for example rejecting a call for repatriation of powers in the Coalition Agreement. The Deputy Prime Minister remains, in private and public, pro-EU. And to many activists and MPs, the party's European stance is what makes it different to the Tories – and is the reason why they are Lib Dems. They see in Tory euroscepticism a boorish Little Englanderness they abhor and find out of synch with the way of the modern world.

Fraser Nelson

Now will we learn the truth about Saif’s British ties?

From our UK edition

Now that Saif Gaddafi has been captured, the race will be on to interview him from a prison cell and ask what his business was with the various figures of the British establishment with whom he was so close. CoffeeHousers will remember the 2009 party at the Rothschilds' manor in Corfu: Saif, Mandy and Nat Rothschild. A little later, Charles Moore revealed in The Spectator that the trio were later reunited in a shooting party at Lord Rothschild's Waddesdon Manor in Buckinghamshire. I spoke to Lord Mandelson a few weeks after the piece appeared, and thought CoffeeHousers may be interested in the transcript. The noble lord was outraged at Charles' piece – because it suggested he was also hanging out with Cherie Blair that night.

Saturday

James Forsyth

Riots and responsibilities

From our UK edition

The riots are fast in danger of becoming the forgotten issue in our politics. The social and cultural problems that they laid bare have been knocked out of the news by the continuing financial and political drama in the Eurozone But if we, as a society, don’t work out how to address these problems then they will simply get worse. The essay by David Lammy, the MP for Tottenham, on what happened this summer in The Guardian magazine today is thought-provoking even if I don’t agree with all of its conclusions. . Interestingly for a man of the left, Lammy accepts the points that the riots were about culture as much as anything else. As he writes, ‘the mothers sitting nervously in my surgeries were not just talking about money.

Fraser Nelson

Nigel Lawson versus Mervyn King

From our UK edition

In this week’s Spectator we have a piece from one of our former editors, Nigel Lawson, where he confronts this idea that the West’s woes can be blamed on a new bogeyman called ‘global imbalances’. This is fast becoming the received wisdom, something that even the bankers can point to and blame. It gets everyone off the hook, and takes attention away from the basic failure to regulate the supply of money and quality of investments. CoffeeHousers may be familiar with the argument by now. Time and time again, we hear central bankers shrug their shoulders and say something like: ‘Don’t blame us central bankers and financial policymakers for the debt crisis.

Peter Hoskin

Assessing the sick

From our UK edition

Should GPs determine whether people on long-term sick leave are too ill to work? Perhaps not, according to the draft copy of a government-commissioned review into sickness absence. It proposes setting up a new, separate and independent body to assess those on long-term sick leave, on the grounds that doctors have no incentive — nor, perhaps, the specific knowledge — to prod and coax them back towards employment. The new service, it is said, would advise sick leavers, and their employers, about just what they can and can't manage. If the government does introduce this, it will be another sign of their intent to untangle the problems with sickness benefits.

Friday

Jonathan Jones

200,000 extra working pensioners

From our UK edition

Despite – or perhaps because of – the recession, pensioner employment has increased dramtically over the past few years. In his Telegraph column today, Fraser remarks on this important but largely ignored trend in Britain's workforce. 'A million jobs have been lost since the Great Recession began', he says, 'but the number of pension-aged people in work has increased by 200,000.' Here's that phenomenom in graph form: Why has this happened? Fraser puts his finger on one important factor: 'Crucially, they pay less tax. A pensioner manning the tills in Tesco will take home 12 per cent more than a working-age colleague on the same salary.

James Forsyth

Cameron and Merkel: all smiles but no progress

From our UK edition

David Cameron and Angela Merkel were clearly keen to show that, whatever the tensions over the role of the European Central Bank, they still get on. I lost count of the number of times in their press conference that they used the word 'good' to characterise their relationship and their discussions. But there did not appear to have been any actual progress on how to deal with the current crisis. Certainly, there was no softening of Germany's opposition to using the ECB as the backstop for the Eurozone. Merkel conceded that she had raised a European-only financial transactions tax with the Prime Minister but that, unsurprisingly, no progress had been made on this front.

Jonathan Jones

Farage scolds Europe’s wrecking crew

From our UK edition

In his cover story for last week's Spectator, Fraser described how the Frankfurt Group – which he dubbed 'a new EU hit squad' – has begun imposing it's will on Greece and Italy. In the European Parliament on Wednesday night, Ukip leader Nigel Farage made the same case against them – and quite forecefully, too: https://www.youtube.com/watch?v=bdob6QRLRJU It's now going viral, with over 75,000 views so far.