Uk politics

The coming war with Libya

From our UK edition

If the West is not ready to intervene decisively against Colonel Ghadaffi, it needs to get ready for a post-revolutionary Libya, where the dictator and his bloodthirsty family seek revenge on pro-democracy activists and countries like Britain. Think of Ghadaffi's previous record: the Lockerbie bombing, targeted assassinations like in the 1970s, and attacks on US soldiers in Germany. Libya could in future represent a threat to Britain akin to al Qaeda. So, the British government needs to think how it will deal with Ghadaffi MK II. Its policy should draw on past examples of containment and isolation. Libya's neighbours will have to be incentivised to bolster European - and especially Italian - attitudes.

Clegg defines his liberalism

From our UK edition

I do feel for Nick Clegg. He’s taken an oppositionalist party into government, and they hate it. He is politically and psychologically prepared for what goes with power; grassroots LibDems less so. And this brings problems. Yesterday, he was complaining that his party is “too male and too pale”; but his main problem is that there are too few of any. At the peak of Cleggmania, the Lib Dem had 30 per cent of the the vote. Now it’s 10 per cent in the polls. If things continue at this rate, he won’t need a ‘ring of steel’ for his next conference: a phone box will suffice. So, what can he do? His speech tries to define a new word: ‘liberal’. He has this to say: 'For the left, an obsession with the state.

Clegg’s pitch for the middle

From our UK edition

‘Governing from the middle for the middle’ was the message of Nick Clegg’s unapologetic speech to Lib Dem conference. His effort to redefine the Liberal Democrats continued as he tried to move the party away from its traditional yoghurt-weaving concerns and instead focus on appealing to ‘alarm clock Britain.’ Clegg’s view is that the left wing protest votes that the party used to get are gone for the foreseeable future, repulsed by coalition, and that the Lib Dems need to reach out to new voters. The calculation is that Labour is seen as being for those on benefits and the Tories for the rich, so the Liberal Democrats should try and seize the middle.

Clegg urges his party to face reality

From our UK edition

The cultural change Nick Clegg is trying to bring to the Liberal Democrats was summed up by one exchange during his Q&A with party delegates. One delegate, a member of the Federal Policy Committee, got up and said how conference had "sent the government a message" with its decision to amend the coalition’s health reform plans. To which a visibly exasperated Clegg replied, "you’re part of the government."   Clegg was uncompromising in his message that the party has to accept the realities of coalition government. After he had dismissed a series of questions about whether he was too close to Cameron, Clegg said — only half-jokingly — to the hall "who else would like some of that?

The Lib Dems vote to amend Lansley’s NHS reforms

From our UK edition

Lib Dem conference has just overwhelmingly voted to amend Lansley's NHS bill. In the end, the Lib Dem leadership simply accepted the amendments because it was so clear they were going to pass. Evan Harris, the former Lib Dem MP, warned that the party would not accept the leadership simply ignoring these amendments. He said "we expect Liberal Democrats in government to follow what we overwhelmingly vote for." Harris predicted that if they went along with Lansley's bill, the Lib Dems would be associating themselves with the "retoxification of the Tory brand".

Balls sets Labour against Clegg (again)

From our UK edition

It's not just the protestors who are rallying against Nick Clegg today. Here's what Ed Balls has to say about the Lib Dem leader, in interview with the Guardian: "'Clegg looks an increasingly desperate, shrill and discredited politician, losing both public and party support. People think that if Clegg says something, it cannot be the truth. The Liberal Democrats need to have some real hard thinking about what they stand for' He says it would be impossible for Labour to govern with Clegg after the election, arguing: 'I don't see how Nick Clegg could change direction again with any shred of credibility, or how he could work with Labour now, but that is not true of Liberal Democrats more widely.

In protest at the Lib Dems

From our UK edition

The Liberal Democrats have, as Clegg’s team like to joke, gone from being the party of protest to the party people protest. Here in Sheffield, at Lib Dem spring conference, there’s a growing group of demonstrators standing just outside the secure zone. They are keeping up a steady chant of ‘Lib Dem scum, Lib Dem scum.’ The authorities are clearly nervous about trouble this weekend. There are a huge number of police out on the streets, a number more akin to a full party conference rather than one of these smaller spring affairs. There is a 10,000 strong demo planned for tomorrow. If there is going to be trouble, it will likely be a spill-over from this.

The growing clamour for intervention

From our UK edition

In the last two days, Nato and European leaders have declared that Gaddafi must go, but both have baulked at taking unilateral action. Their reticence has sparked a response from those in favour of intervention. Speaking in Brussels today, David Cameron said that situation on the ground may be getting worse and that Europe and the West in general “must be ready to act if the situation requires it”. Liberal interventionist Bill Clinton went further. Speaking at the Women in the World summit, he said: “I wouldn’t do it if they [the rebels] hadn’t asked… [But] it’s not a fair fight. They’re being killed by mercenaries.

Clegg’s unedifying slip reveals an underlying truth

From our UK edition

Project Merlin, the deal between the government and the banks, was meant to turn the page on banker bashing. But the deputy prime minister is still stuck on the previous page, telling Radio Sheffield today ‘I want to wring the neck of these wretched people’ the bankers.   The language isn’t very statesmanlike and is sure to infuriate many of his coalition colleagues (it is also hardly sensible for the deputy prime minister to be using language which appears to condone violence ahead of a conference where the police are preparing to deal with a riot). But it does reflect a political reality: the banks remain public enemy number one.

Clegg ushers in the next phase of the coalition

From our UK edition

What have the Lib Dems ever done for us? That's the question that Nick Clegg sets about answering in interview with the Independent today — and he does so with righteous vigour. "Brick by brick, policy by policy, decision by decision, sometimes almost invisibly," he insists, "we are putting in place good policies that will make a long and lasting difference." He dwells, and rightfully so, on the pupil premium and raised personal allowance. "All these things will outlive the immediate task of dealing with the deficit." This salesmanship is only to be expected from Clegg, speaking on the eve of his party's spring conference and in the aftermath of their electoral cremation in Barnsley.

Our monetary policy needs sorting — and quick

From our UK edition

Today’s decision to leave base rates at an emergency 0.5 per cent — the lowest since the Bank of England was founded in 1694 — shows how Britain is running out of options. Not even Mervyn King would deny that Britain has an inflation problem: global prices may be up, but the UK seems to have been hit worse than almost any major economy, as I blogged yesterday. With food prices up by 6.3 per cent and CPI inflation by 4.1 per cent, what’s happening to prices? The below graph, again out today from a FTSE350 survey, suggests that pay is up by just 0.5 per cent in the private sector. And it’s even worse in the manufacturing sector.   You could argue that one should not compound this pain by jacking up debt interest.

Liberal hawks

From our UK edition

From the moment David Cameron started agitating for a no fly-zone, he's been looking for allies. France and Denmark look like they will support him, with Russia and India opposed and China perhaps willing to abstain at the United Nations. But what about closer to home, inside the coalition? Since the formation of the coalition, every policy has been tested by what will it do for relations between the parties? Oddly, however, there has been no such test about Libyan policy. Newspapers have not been writing about splits, differences and agreements. That may be because Lord Ashdown went on the Today Programme and voiced conditional support for a no-fly zone. But the Lib Dem peer has always been a hawk.

What is happening to the Conservative party?

From our UK edition

Mark Wallace has been passed some very interesting information about local Conservative associations. He writes: ‘Apparently Andrew Feldman reported (at a meeting this morning) on a study CCHQ has carried out into the effectiveness of local Conservative Associations. In a “mystery shopper” exercise, CCHQ wrote to over 300 associations under the guise of being a person who wanted to join up, and asking how to do so. Over half of the letters received no response at all, which is bad enough. Weirdly, a handful who wrote back saying the applicant would need to pass a membership interview before they could join the Conservatives.

To strike or not to strike?

From our UK edition

The situation in Libya is still uncertain, but the fog of war is clearing to expose a depressing picture. Forces loyal to the Gaddafi regime are conducting a successful offensive. The Times’ Deborah Haynes confirms reports (£) that Zawiya has fallen and rebels have been forced from the oil town of Ras Lanuf. William Hague has spoken to Mahmoud Jabril, Special Envoy of the Libyan Transitional Council. The Foreign Office has issued a communiqué on the conversation and some of Jabril’s emotional concern escapes the bland text. In the words of the Foreign Office, he wants ‘the West to act to hinder Qadhafi's ability to inflict further violence on the Libyan people, including through a no fly zone.

Cuts? Regulation needs to be cut

From our UK edition

The cuts in spending are going to feel very unpleasant indeed. Rising interest costs, resulting from past expansions in public debt, are going to crowd out other parts of the budget. It is proving difficult to curb the cost of transfers, such as benefits and pensions, and this combines with the ring-fencing of health and development spending to leverage the cuts in unprotected departments. But, as I show in my report published today by the Centre for Policy Studies, the stark reality is that the spending clock is only being turned back to 2008-09, not to the dark ages.   In fiscal year 2014-15 the government plans to spend £758bn, equivalent to £647bn at 2009-10 values.

The threat of a general strike increases

From our UK edition

As expected, John Hutton’s review of public sector pensions has recommended that final salary schemes end. Hutton was across the broadcasters this morning, explaining that he was reflecting an “inescapable reality”: “The solution to this problem is not a race to the bottom, it's not to hack away at the value of public service pensions. It’s to manage the risks and costs sensibly. The responsible thing to do is to accept that because we are living longer we should work for longer.” Beside realism, Hutton’s guiding principle has been fairness.

High tax Britain

From our UK edition

The government says that the forthcoming budget is going to be all about growth. And rightly so: the economy is still in the doldrums, and without much stronger growth than we are currently witnessing, the coalition has no hope whatsoever of balancing the budget by 2015. But few of the measures being trailed in advance are likely to have much effect, so long as Britain is stuck with a highly uncompetitive tax regime.    International tax surveys highlight just how bad our comparative situation has become. According to KPMG, out of the 86 largest economies in the world, we now have the fourth highest top rate of tax.

Labour’s inflation pitch

From our UK edition

Curiouser and curiouser. We in Coffee House have been saying for some time now that – whatever Mervyn King thinks – Britain has the worst inflation in the Western World apart from Greece. An OECD report out today shows we’ve got it worse than most eastern countries too. Korea, Turkey and Estonia are the only eastern nations with higher inflation: But what strikes me most about today is that food prices are soaring here, to an extent far worse than the rest of the world. This is what voters notice most: putting food on the table is very expensive. As Micawber might put it: annual food price inflation 6.3 per cent, annual wage inflation 2.5 per cent, result: misery. And plenty of it.

The hunt for Hague’s mojo

From our UK edition

All hands to the Defence Select Committee this afternoon, for questions about the nation's security apparatus. Of course, most onlookers were not remotely interested in the answers. For them, this gathering was convened to see if William Hague might regain his "mojo". He didn’t get the chance. This was Letwin Hour. Or Letwin's Two Hours, to be precise. After a difficult fortnight for the government, the brain behind Cameron's premiership high-jacked proceedings. In insouciant tones, he explained the manifold complexities of the government's security policy to the committee. Real terms defence spending is likely to increase after the next spending round and Trident will be replaced; both are a response to perceived threats and Britain’s aspirations abroad.