Uk politics

Time to recognise that the hospital is dead

For many years, it has been Government policy to move healthcare out of hospitals and into community units and homes, and concentrate specialist surgeries in centres of clinical excellence. This is politically contentious: former Secretary of State for Health Patricia Hewitt was closing local maternity units, but she had to deal with the humiliation of Ivan Lewis, a minister in her department, fighting her changes in his own constituency. But the time has finally come to break our national addiction to hospitals. In a report published today by Reform, Professor Paul Corrigan, who was a health special advisor to Tony Blair, argues that “the old model and concept of the hospital are failing”, leading to poor standards of care in far too many bankrupt institutions.

What the riots mean for Ken Clarke

The more we learn about the riots, the more it is becoming clear that experienced criminals were responsible for a lot of the looting. The Standard reports today that in London a quarter of those charged in relation to the riots had already been convicted of ten or more offences. What remains to be seen is if these hardened criminals instigated the riots, or simply took advantage of them. The involvement of these veterans of crime demonstrates the need both for better work on rehabilitating prisoners and for longer sentences to keep habitual criminals off the streets. The problem with Ken Clarke is that he, admittedly partly for budget reasons, only wants to see one side of this equation. The riots have been overshadowed by the brewing financial crisis.

Britain sues the ECB

As the EU debt drama continues unspooling like a perversely watchable soap opera (the FT’s Neil Hume describes it as ‘eurozone crisis porn'), an intriguing sub-plot has emerged: Britain is suing the European Central Bank. The Treasury is unhappy with an ECB move to limit the kind of euro-denominated products that can pass through UK clearing houses, suspecting it’s a bid to shift financial activity from London to Paris/Berlin. So it’s taking legal action, the first of its kind by an EU member state. This is not the first UK-EU disagreement that has surfaced in recent months, underlining the tensions between Britain and the Continent as financial centres across Europe fight over a (shrinking) business pie.

Downing Street’s boundary review problem

I understand that Number 10 will lean on Cabinet ministers not to object to what the boundary review does to their seats. This is an intriguing development because at least three Tory Secretaries of State are deeply unhappy with the proposed changes to their constituencies. It’ll be fascinating to see whether Downing Street can persuade them to hold their peace on the matter. Their disquiet reflects broader grumbling throughout the Tory parliamentary party. All sorts of conspiracy theories are doing the rounds. Number 10 needs to move quickly to offer some reassurance to nervous MPs. If the boundary review’s plan is to be made agreeable to the Tory parliamentary party, Cameron is going to have to persuade an awful lot of MPs to retire.

A brutal no score draw at PMQs

Cameron and Miliband went six rounds on the economy at PMQs. Miliband tried to portray Cameron as just another Tory who thinks that "unemployment is a price worth paying". Cameron, for his part, wanted to paint the Labour leader as someone whose policies would send Britain tumbling into a sovereign debt crisis. At the end, it felt like a bit of a no-score draw. Interestingly, Cameron stressed that "every week and every month, we’ll be adding to that growth programme". We’ll have to see whether he’s talking about more small-bore measures, or something bigger on infrastructure investment. Labour had a new tactic today, trying to fact-check all of Cameron’s answers from last week.

Clegg sounds a dire warning on the economy

Nick Clegg gave a speech on the economy earlier this morning. As Tim Montgomerie notes, Clegg came close to admitting that the economy is nearing crisis. He said, "The economic context is much worse than before. Yes, facts have changed" and added that the "government is not blind to deterioration in economic environment". These warnings tighten a knot in already sick stomachs; but, with the Eurozone mired in a crisis that is fast becoming existential, banks under mounting strain, rising unemployment, widespread talk of further Quantitative Easing and the very public internal debate in the coalition about the need for tax cuts, Clegg’s comments don’t come as a great surprise.

A report to worry the two Eds?

The Institute for Fiscal Studies enjoys quasi-divine status in Westminster: chancellors and their shadows bother it for its blessing, and Budget Day is never complete until its judgment has been passed. Both parties have bent a suppliant knee before the institute in the past, but the IFS became particularly important to Labour after it declared last autumn that George Osborne’s policies to be ‘regressive'. This is why the IFS report on the tax system, released today, is important. The review, conducted by Sir James Mirrlees, is a damning indictment on tax system that has fallen from 5th to 95th in the World Economic Forum’s tax competitiveness rankings.

Miliband: We can’t spend our way to a new economy

David Cameron and IDS have been promoting the Work Programme this afternoon and they reiterated that jobseekers must learn English to claim benefits if their language difficulties are hampering their job applications. It’s another indication of the government’s radical approach to welfare reform. Aside from that, the main event in Westminster today was Ed Miliband’s speech to the TUC. Miliband was widely heckled by the Brothers, especially when he told them: “Let me just tell you about my experience of academies as I’ve got two academies in my own constituency. They have made a big difference to educational standards in my constituency and that is my local experience of that.

Inflation target missed again

Today's inflation figures remind us of the trouble the Bank of England will have if – as most analysts suspect – it embarks on another phase of Quantitative Easing. CPI inflation was 4.5 per cent in the year to August, and RPI at 5.2 per cent, both up a touch from July.  CPI inflation has now overshot the Bank of England's 2 per cent target for 60 of the past 75 months. It has been at more than 3 per cent since the start of 2010. As a result of last month's figure, Governor Mervyn King wrote his now-standard letter to George Osborne to "explain" why inflation is above the target.

James Murdoch recalled by parliament

The Culture, Media and Sport committee has recalled James Murdoch to give further evidence into phone hacking and James Murdoch's people are briefing journalists that he is happy to appear. Sophy Ridge reports that the committee had a long discussion about who to recall, but were largely in agreement and there was no vote. In truth, their decision was virtually inevitable after Tom Crone said he was certain that he and Colin Myler had spoken to Murdoch about the ‘For Neville’ email, which suggested that hacking was widespread. Myler has corroborated Crone's claims.  Committee chairman John Whittingdale has said that Murdoch will be asked to clarify this and other questions.

Miliband versus the Brothers

Ed Miliband is the Brothers’ man, or so the popular myth relates. Miliband has been trying to shake that perception ever since his election was secured by the union vote. He will make his most visible show of defiance yet in a speech to the TUC conference today. Miliband will refuse to countenance the proposed general strike over public sector pensions and instead urge the unions to change their ways. The Guardian reports that he will say: ‘The challenge for unions is this: to recognise that Britain needs to raise its game if we are to meet the challenges of the future and to get private sector employers in the new economy to recognise that you are relevant to that future.

Bumper turnout for Tory Euro-sceptic meeting

I hear that 124 Tory MPs attended the inaugural meeting of the Tory ginger group pushing for renegotiation of Britain’s relationship with Europe. Those present included at least one minister — Theresa Villiers, several PPS and a few whips who were keeping a beady eye on proceeding. George Eustice, the convener of the group, told the room that he wanted the group to work with the government rather than against it and that he wanted front-benchers to feel comfortable attending the meetings. The group intends to put out a series of proposals as to which powers should be repatriated before issuing a white paper on how the government should renegotiate Britain’s relationship with the European Union.

Bernard Hogan-Howe named as new Met commissioner

Theresa May has named Bernard Hogan-Howe as the new Metropolitan Police Commissioner. Hogan-Howe was the early front-runner and a finalist for the role last time round. He is apparently highly respected within the police force and has been a successful chief constable in Merseyside. His appointment has come earlier than was expected: the talk at the end of July was of completing the process later in the autumn. This suggests that the government is keen to repair the damage to its relationship with the Met and the reputation of the police caused by the phone hacking scandal and the riots. This will be essential if the coalition is to deliver its ambitious police reforms.

Boundary review leaked

The Boundary review, which was embargoed, has been leaked. Here are some immediate headlines from the proposals: George Osborne’s Tatton seat appears to have been abolished, though you imagine he’ll have little difficulty in finding anohter. After much speculation that his Twickenham seat would be subsumed, Vince Cable may have survived. The new seat covers what appears cover to be a fair tranche of his current area, but it's not exactly clear. Either way, Cable is someone you'd expect to find another berth if necessary.  Zac Goldsmith’s Richmond Park seat has been reworked, inheriting some wards from Lib Dem held Twickenham, and may now be a tougher proposition to hold.

Vice girl Rowe takes another hit at Osborne

“I said to George [Osborne] jokingly that when you're prime minister one day I'll have all the dirty goods on you, and he laughed and took a big fat line of cocaine,” says Natalie Rowe, a former madam of the Black Beauties escort agency, in an interview with ABC’s PM programme. She adds, "It's been said in the newspapers that he was at university. He wasn't. At the time he was working for [former Tory leader now foreign secretary] William Hague...I remember that vividly because he called William Hague insipid." This is not the first time that Rowe has made these allegations against Osborne, as the above picture attests. The chancellor has always vehemently denied her claims and at no point have they been substantiated.

Managing the boundary changes

MPs are queuing down the corridor on the first floor of Portcullis House as they try to get hold of a copy of the proposed boundary changes which have just been released under embargo. Boundary changes can make a huge difference to an MP, converting a marginal into a safe seat and vice-versa. Boundary reviews are a whip’s nightmare as they will set MPs of the same party against each other. The danger for the two coalition partners is that MPs’ take to rebelling on emotive issues for their parties in an attempt to win any selection head to head. This is why Cameron went out of his way to promise all Tory MPs that no one would be left without a seat at the Tory parliamentary dinner last Wednesday night.

Vickers provides the best of both worlds for George and Vince

It’s the moment of the truth for Britain’s banking sector: the publication of the Vickers report. The headline is as expected: the Commission recommends the imposition of a ringfence on banks' ‘core operations’ (such as consumer deposits and small business lending) from the riskier elements of their business. According to the FT (£), the banks will have discretion over where the ringfence will fall, giving lenders and users a degree of flexibility, which suggests that Vickers is not recommending the full separation of retail and investment banking, as some had hoped.

SNP stretch lead over woeful opposition

How long will Alex Salmond's honeymoon with the voters of Scotland continue? Given that his next mission is to hold and win an independence referendum, much depends on his popularity and that of his party. Today, a third opinion poll puts support for the Scottish National Party at just under half of the national electorate. Angus Reid, polling for the Sunday Express, puts support for the SNP has now hit a remarkable 49 per cent. Given that the Nationalists only won 45 per cent of the votes in May's election – enough to sweep all the unionist parties into the background – this new high just shy of 50 per cent really does represent an extraordinary development in Scottish political terms. The poll also shows how far the Liberal Democrats have fallen.