Uk politics

Chaos thy name is Libya

Colonel Gaddafi’s strength appears to be diminishing: Foreign Office sources suggest that the latest YouTube footage suggests that the rebels are now 30 miles from Tripoli, there are reports of Libyan servicemen spiking their guns rather than fire on their compatriots and members of the Gaddafi family have failed to present a united front to the dissent that intends to depose them. But, chaos thy name is Libya. Communications have long been silent, except for the savage drone of state radio, conduit for Gaddafi’s prophesies of victory or martyrdom. Evacuees from Tripoli’s now hellish airport relate a city bristling with arms and testosterone – the fear is that Gaddafi and his dogs of war are sufficiently mad to fight to the last bullet.

Reforming schools: choice and autonomy

Last week Reform published its 2011 scorecard of the coalition government’s public service reform programme. Following on from articles on the health and welfare reforms, Dale Bassett, Research Director at Reform, explains why the coalition’s school reforms are not as radical as they appear.   The government is pursuing a dual agenda in education reform, altering structures (to increase decentralisation and autonomy) and centralising standards (to increase rigour and central accountability). Key government reforms include giving all schools the right to convert to academy status and allowing charities and groups of parents or teachers to establish new, independent, state-funded schools with the same freedoms as academies.

50,000 NHS jobs to go, apparently

An anti-cuts campaign website, False Economy, claims that 50,000 NHS jobs will be lost over the next four years. It’s a bald, headline grabbing figure and the response has been predictably feverish.   But tug a little, and the numbers unravel. One of the key points is made by False Economy themselves: that "most of the cuts are likely to be achieved through natural wastage" – in other words, by people moving on, or retiring, of their own accord. In figures highlighted by the Department of Health, for instance, one foundation trust expects to shed 14 per cent of its workforce through natural wastage by 2013. The health service may choose not to fill the vacancies that result, but this is hardly a wave of mass sackings.

Going for growth

The government says it has a growth strategy. Speaking to the Confederation of British Industry's annual conference last October, the prime minister said his government would adopt a "forensic, relentless focus on growth" in the coming years. The strategy has three elements: creating a framework for enterprise and business investment; directing resources into areas where Britain has a competitive advantage – such as wind technology; and making it easier for new companies and innovations to flourish. But for all this and the denunciation of Gordon Brown's legacy, the coalition still seems to be reading from a core part of Labour's pre-crisis script: businesses are spoken of primarily as agents for social work.

The emergence of a Cameron doctrine

Daniel Finkelstein makes a simple but important point in the Times today (£): a Prime Minister’s foreign policy is determined by events more than by instincts. The revolts in the Middle East are defining David Cameron’s diplomacy. The emerging policy is a realistic expression of Britain’s current domestic and international capabilities. Cameron’s speech to the Kuwaiti parliament did not match Harold Macmillan’s ‘winds of change’ speech because Britain no longer disposes of continents. Likewise, Tony Blair’s messianic tendencies belong to a past era. Colonel Gaddafi’s murderous stream of conscious could have given cause to evoke the moral certainty of an 'ethical foreign policy'.

Reforming welfare: a mixed bag

Last week, Reform published its 2011 scorecard of the coalition government’s public service reform programme. Yesterday, Thomas Cawston explained how the coalition can get NHS reforms back on track. Today, Patrick Nolan, Chief Economist at Reform, discusses why the government’s welfare reforms scraped through with a pass. The government’s welfare reforms are significant. The 2010 Emergency Budget and Spending Review announced cuts of £18 billion to benefits, so the DWP had to respond with a radical agenda. The Work Programme aims to incentivise providers to deliver better outcomes from welfare to work services and the Universal Credit promises to create a simpler system where “work always pays.

Ashdown goes Fox-hunting

There’s a quite remarkable op-ed by Paddy Ashdown in The Times (£) today which goes public with a lot of the griping about Liam Fox that one heard behind the scenes at the time of the Strategic Defence Review. Ashdown remarks that the ‘problem with the SDSR was not speed, but lack of political direction.’ He then details how ‘Sir David Richards, then head of the Army and now Chief of the Defence Staff, had to bypass the whole process (and his Secretary of State) to appeal to the Prime Minister to avert catastrophe in the Army.

The 50p tax in action

Today, we have seen the 50p tax in action: reflected in January’s bumper tax receipts. A jubilant John Rentoul has just tweeted: “Where is Fraser Nelson when you need him? The 50p income tax rate has brought in a ton of money. He said it would probably reduce revenue.” He is absolutely right – but not for the reasons he thinks. Were John self-employed, he’d know that the tax paid last month was in respect of the 2009-10 tax year – when the top rate of tax was 40p. Of course, many of the super-rich are on PAYE – but that has happened since last April. It doesn't explain a January uplift. Today’s surprise tax haul can be partly explained by the fact that folk sucked forward their income, to avoid the 50p rate.

Tehran’s latest provocation

The people of Egypt and Libya may have swung the spotlight onto their respective countries – but it is a spotlight that Iran is keen to exploit. Two of their warships have just passed through the Suez canal en route to Syria, the first to do so since 1979. They were given clearance by Egypt's new military stewards a few days ago. On one level, Tehran's actions are unimpeachable: Egypt cannot forbid access to Suez unless it is at war with the country at sail. But they are also, of course, designed to provoke. Why choose to do this now, other than to suggest something about the new latticework of power, and of power relationships, in a turbulent Middle East? Israel, for its part, is less than impressed.

Osborne shouldn’t spend the extra money

Lucky old George Osborne. The British economy is not in "meltdown," but churning out tax revenue like a fruit machine. Figures out from the ONS today show that the tax haul for January alone was £58.4 billion – pushing the public finances into a surplus £3.7 billion for that month (an almighty £3.6 billion more than expected). If this rate continues (no reason why not, seeing as we're all getting drunk on Mervyn King's underpriced debt again), then Citi estimates he will have £8 billion more to play with than expected in the current financial year. So what will he do? Osborne's decision will tell us plenty about what type of Chancellor he is.

How young Arabs saved the old West

Three months ago the future looked bleak for the West. The countries that once dominated the world, invented capitalism, articulated mankind's universal desire for freedom and defended it against all enemies looked destined for an impoverished future squeezed by the authoritarian capitalists of the East and unsure about the righteousness of its ideological foundation. Even one-time liberals, whose life has been shaped in a struggle for human rights embraced China and its state-backed progress. Now, thanks to the pro-democracy protesters in the Middle East, the West is back. Not that it backed the democratic movements and now stands to reap the benefits.

Coffee House Exclusive: McBride joins CAFOD

                  The penance of Damian McBride continues. After being ejected from No10, and disowned by his mentor Ed Balls, I can reveal that our antihero now has a new job – head of media at the Catholic overseas aid charity CAFOD. He will be doubtless be brilliantly effective at briefing against its enemies (in CAFOD's case, hunger and the devil). I imagine the pay is several leagues below what he'd get from cashing in on his notoriety and publishing a hit man's confessions. The weird thing is that McBride could have done so well, had he steered clear of Balls. He was a Treasury civil servant, specialising in VAT, before Balls trained him up in the art of character assassination.

Reforming the NHS: accountability

Last week, Reform published its 2011 public service reform scorecard. It judged each major government department against the three criteria set out by David Cameron: accountability, flexibility and value for money. The report finds the Home Office’s policing reforms succeeding on all three fronts, but inconsistency across other government departments. The Government’s health reforms are awarded grade D overall, with an E for accountability, a D for flexibility and a D for value for money. Here's how the coalition can get its NHS reforms back on track.   The government has recognised the need for fundamental reform of the NHS. The proposals announced in the July 2010 White Paper are substantial.

Libya catch-up: Gaddafi on the precipice

Aside from official – and provocative – proclamations from Saif al-Islam Gaddafi, the news from Libya is still arriving piecemeal. The latest reports are that the protestors have prevailed in Zawia, in the west of the country, to add to their "liberation" of Benghazi last night. And there is some speculation that Gaddafi Senior has fled the country, which would certainly reinforce the sense that his power is being whittled down, potentially to naught. As for Britain, the questions about our prior relationship with Libya still hover awkwardly over proceedings, and over the heads of the last government in particular. There was the al-Megrahi deal, of course, as well as all those meetings in Gaddafi's tent.

Why a major reshuffle is unlikely

The clamour for a reshuffle is getting louder. Caroline Spelman is said to be a leading candidate for ejection, following her awful performance over the forestry sell-off. Many also want Ken Clarke's scalp. Party chairman Baroness Warsi has already been the target of gossip, while dissatisfaction with Chief Whip Patrick McLoughlin is palpable. Then there is the desire by Nick Clegg to bring back David Laws, if he is cleared of financial malfeasance.   However, most of the talk of a reshuffle is fuelled by self-serving backbench MPs who lost out of jobs in the coalition negotiations. Those from the 2005 intake feel the 2010 intake breathing down their necks, while older MPs hiss about the "cult of youth".

How far will Cameron go to break the state monopolies?

Call it the Big Society, decentralisation, people power, whatever – but David Cameron's vision for society just became a good deal more concrete. In an article for the Telegraph this morning, the Prime Minister makes a quite momentous proposal: that there ought to be a new presumption towards diversity in public services, whereby the private, voluntary and charitable sectors are as privileged as the state is now. Or as he puts it: "We will create a new presumption – backed up by new rights for public service users and a new system of independent adjudication – that public services should be open to a range of providers competing to offer a better service.

The Bahraini challenge

The debacle in Bahrain cuts close to the British bone. The Ministry of Defence has helped train at least 100 Bahraini officers and supplied a range of equipment to the Gulf state. Egypt was important because of its regional role and ties to the United States. But there was no link to London, anymore than there was one to Paris or Berlin. Bahrain is different. Only a few months ago, British officials were applauding the Khalifa dynasty for taking steps towards democracy. But the fact is simple: the steps were insufficient – not by British standards, but by Bahraini ones. It should serve as a wake-up call to the Foreign Office and those in government with close ties to Bahrain.

Cameron’s back is against the wall – now he must fight

Given that David Cameron will have a tougher fight than perhaps any postwar Prime Minister other than Thatcher, it’s a bit unfortunate that his team doesn’t like political combat. Losing to Rachel Johnson over forests last week exposed major weaknesses, and sent a message to the government’s enemies: that these guys have pretty poor political combat skills. Now word is out, the cuts protests in Liverpool today will be the first in a series of challenges. Cameron, too, is stung by the avoidable mistakes of the last few weeks – and is reshaping No.10 to account for them. Some changes are great, some less so, others downright worrying. Here's my overview: 1. The Big Society. Cameron has started from first principles.