Uk politics

There are still rumours in Westminster that David Cameron will cut taxes to stimulate the economy, but the speech he gave to the Canadian parliament on Thursday rather scotches this idea. Here’s what jumped out at me 1) No Obama-style deficit-financed tax cuts, please, we’re British. "The economic situation is much more dangerous and the solution for most countries can not be simply to borrow more. Because if the government doesn’t have the room to borrow more in order to cut taxes or increase spending, people and markets start worrying about whether a government can actually pay back its debt. And when this happens confidence ebbs away and interest rates will rise, hitting people with mortgages, and hitting companies that want to borrow to invest.

There is a strange pre-Lehman feeling in the air right now: the idea that something awful is going to happen, but no one knows what or when. This is laden with political ramifications. The problem for the Tories last time was not that George Osborne had been caught aboard HMS Deripaska. The greater problem was that a crash had arrived and the Shadow Chancellor had nothing to say. Brown, at least, seemed to have an agenda, and the Tory poll lead was reduced to one vulnerable point. I admire Osborne, but he can do far better in making the case for the government’s economic strategy. If there is a second crash, he’ll need all his skills to convey confidence – to sound as if he knows what he’s talking about.

                                      In July 1990, Nicholas Ridley told Dominic Lawson that monetary union was "all a German racket designed to take over the whole of Europe". He was immediately forced to resign from the Cabinet. In this week's magazine, which hits newsstands today, Lawson says that Nicholas Ridley was right (subscribers click here). Here, in full, is the article that ended his career: Saying the unsayable about the Germans, Dominic Lawson, 14 July 1990 It is said, or it ought to have been said, that every Conservative Cabinet minister dreams of dictating a leader to the Daily Telegraph.

As the Liberal Democrat leadership leaves Birmingham, it is a contented bunch. Their conference has gone as well as could be expected. There were no embarrassing defeats for the leadership and no gaffes by any of their ministers. But conference was yet another reminder of how much of a gap there is between where those around Clegg want to take the party and where the activist base wants to go. When I asked one of Clegg’s allies about this discrepancy, he told me that the important thing to remember was that the membership, who elect the leader, take a different view from the activists. As evidence of this, he cited how activists’ darling Simon Hughes actually came third in the 2006 leadership race and how Clegg managed to squeak past Huhne in 2007.

I’ve been away from Birmingham today but, even from a distance, it’s clear that Tim Farron has had a rather difficult day. It started with a story in The Times this morning about upset among his fellow MPs about his rhetoric on Sunday implying that the coalition partners would get divorced before 2015 and continued with him getting in a bit of a tangle about his leadership ambitions in interviews with Andrew Neil and Gary Gibbon. Farron’s problem is that he is an obvious candidate to run in any future leadership contest and so the leadership will constantly push him about his intentions.