Uk politics

A brutal no score draw at PMQs

From our UK edition

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

From our UK edition

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?

From our UK edition

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

From our UK edition

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

From our UK edition

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

From our UK edition

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

From our UK edition

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

From our UK edition

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

From our UK edition

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

From our UK edition

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

From our UK edition

“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

From our UK edition

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

From our UK edition

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

From our UK edition

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.

Huhne ramps up the rhetoric on 50p

From our UK edition

Chris Huhne’s comments to Prospect magazine about the 50p tax rate are typically provocative. The millionaire, former City boy accuses the Tories of wanting to abolish the 50p tax rate to help ‘their friends in the City to put their feet up’. He even suggests that the Lib Dems would not vote through any Budget that contained its abolition. Huhne’s intervention comes at a time when George Osborne is trying to build support for abolishing—or, at least cutting—the 50p rate. Tellingly, the letter from economists opposing the 50p rate was drawn up with the help of one of the Chancellor’s closest lieutenants.

Hague says he’s been held back on Europe by the Lib Dems

From our UK edition

William Hague’s comments in an interview with The Times that the Liberal Democrats are restraining the Tories on Europe will increase the grumbling among Tory backbenchers about the power of the junior coalition partner. Hague tells the paper that ‘A point of difference in our manifesto was the aim to repatriate some powers. Clearly that’s something I’m in favour of, but that’s the area we had to compromise on in return for other compromises.’ (In many ways this is a statement of the obvious. But in the current uncertain European environment, his remarks are news). In an attempt to reassure euro-sceptics, Foreign Secretary stresses that the Conservative party ‘would like to see powers returned from the EU to the United Kingdom.

Cameron’s well-schooled argument

From our UK edition

When Michael Howard offered David Cameron the pick of the jobs in the shadow Cabinet after the 2005 election, Cameron chose education. Howard was disappointed that Cameron hadn't opted to shadow Gordon Brown but Cameron argued that education was the most important portfolio. A sense of that commitment was on display today in his speech on education, delivered at one of the new free schools that have opened this term. His defence of the coalition’s plans to make it easier to sack bad teachers summed up its refreshing radicalism. He simply said, "If it's a choice between making sure our children get the highest quality teaching or some teachers changing career... I know what I choose.

Who cares about abortion?

From our UK edition

Thanks to Nadine Dorries' amendment to the Health and Social Care bill, abortion rights have been discussed a great deal this week – both inside and outside of Parliament. In her cover article for this week's Spectator (out today), Mary Wakefield says that this debate has revealed a "strange and unpleasant consensus... that abortion is not just a necessary evil, but a jolly good thing." In the piece, Mary asks "Why are we so keen on abortion?": "The fact is that unless you’re a fan of infanticide you’ve got to agree that somewhere along the slippery ascent from that little Alka-Seltzer of pluripotent cells to the birth of an actual baby, your child becomes human.

Pickles to take charge of dealing with Britain’s 120,000 “problem families”

From our UK edition

I understand that following a meeting in Downing Street this morning, Eric Pickles, the Communities and Local Government Secretary, has been put in charge of dealing with Britain's 120,000 "problem families". In the aftermath of the riots, David Cameron promised to put all of these families through some a family-intervention programme by the time of the next election. This policy, though, was bogged down in the bureaucracy as it cut across so many different departments. Pickles' department will now have sole responsibility for this commitment. It will receive extra budget, with the money coming from education and work and pensions, and staff to deal with this.