Uk politics

Cameron creates cover for cuts

From our UK edition

David Cameron's speech today was, in many respects, the one he needed to make: the clean-break speech, which trashed Labour's record on the economy while also outlining how the coalition would deliver us to the sunny uplands. As it happens, it was also quite effective: a blend of policy specifics and punchy rhetoric.  And while we'd heard many of those specifics before – corporation tax cuts, reduced regulation, carbon capture, etc. – they cohered here as they rarely have done before. The most earcatching apsect of the speech, though, was the emphasis Cameron placed on government intervention.  Yes, there was a solid core of small state fundamentals.

Laws unto himself

From our UK edition

Wondering why David Laws put in such a convincing performance when defending the government's cuts at the dispatch box on Wednesday?  This little detail from Allegra Stratton's excellent profile of him might help explain: "A friend confirmed that for the past six months, as the official Lib Dem party line decided on by Vince Cable was no cuts, Laws had been telling friends he believed the markets wouldn't tolerate it. 'He has been saying privately the cuts have to start straight after the election,' they said.

Was last night’s Question Time a preview of how the coalition will deal with the media?

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All kinds of hoohah about last night's Question Time, for which Downing St refused to put up a panellist because of Alastair Campbell's involvement.  If he was replaced with a shadow minister, they said, they would happily get involved.  But, as the excutive editor of Question Time explains here, the Beeb wasn't prepared to go along with that.  So Campbell got to lord it up in front of the cameras. For the reasons outlined by Guido and Iain Dale, it was probably a slight mis-step by the coalition – but not one, in itself, that will have any important rammifications for them or the public.  For while it's not the government's prerogative to decide on the entire Question Time panel, it is their prerogative to choose whether or not they join it.

Encouraging early signs for the coalition

From our UK edition

Was the delayed ballot in Thirsk and Malton a referendum on the coalition government?  If so, the result released in the early hours of this morning will greatly reassure David Cameron and Nick Clegg.  The Tory candidate Anne McIntosh won the seat with 52.9 percent of the vote (up from 51.9 percent in 2005), and the Lib Dems came second with 23.3 percent of the vote (up from 18.8 percent).  Labour were pushed way down into third place on 13.5 percent (down from 23.4 percent). So, over three-quarters of the vote for the two coalition parties. I'd be hesitant to draw any firm conclusions from a one-off election, conducted under unusual circumstances.

A new approach to party management

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The newly-elected 1922 Executive is another demonstration of the strength of the right wing of the Conservative party. Paul Goodman notes that of the seven MPs elected to the executive who were are not new to Parliament, six are on the right. The only one who isn’t is Nick Soames, who is a special case. As one member of the ’22 executive said to me earlier today, Soames, because of his immense popularity and standing in the party, transcends his factional labelling. Of the five new MPs elected to the exec, three — Robert Halfon, Charlie Elphicke and Priti Patel — are definitely on the right of the party. On the Today Programme this morning, Cameron signalled a welcome shift in his approach to party management.

The IDS agenda could help to end the benefits trap

From our UK edition

Yesterday, it was Michael Gove's schools agenda. Today, it's the other main reason to get behind the coalition: IDS's plans for fixing the welfare system. The Secretary of State for Work and Pensions has given a speech outlining them this morning. You can read it here, and I'd certainly encourage you to do so. There are plenty of welcome ideas in there, but none more so than IDS's emphasis on removing disincentives to work from the tax and benefit system. We at Coffee House have banged on about his "dynamic" approach, developed at the Centre for Social Justice, for some time now - and with due cause.

Preventing a Balkan bailout

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Point six of ten on the Conservative-Liberal agreement reads as follows: “We will work to promote stability in the Western Balkans.” William Hague will get a chance to show what this means when he joins fellow European foreign ministers at a summit in Sarajevo on 2 June. As I argue in a new brief about Balkan policy, the meeting could not come at a better time. The region is beginning to look dicey once again. Though Balkan countries were asked by the West to proceed along the reform-laden route towards EU accession, which entails reforming their economies, making friends with erstwhile enemies and adjusting their constitutions, there is now uncertainty whether the EU actually wants them to join the club.

To increase capital gains revenues cut rates, don’t increase them

From our UK edition

To address the deficit, George Osborne will probably have to raise taxes. This is a grim truth to which most people are reconciled. But raising taxes and raising revenue are two different things. If the Chancellor is serious about closing that deficit, then he would doubtless be interested in the idea that a Capital Gains Tax raise from 18 per cent to 50 per cent might be a chimera tax. That is to say, one which raises no money at all. Worse, in fact, the odds are that tax revenues will fall and the deficit will be made worse by this tax rise. The international evidence is absolutely clear. As sure as night follows day, tax revenues go down when CGT rates go up.

Cameron’s public debate with his backbenchers

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So, did Cameron say anything particularly noteworthy during his interview on the Today programme?  In truth, not really.  Most of the answers were of the "let's wait and see what in the Budget" variety.  The ratio of spending cuts to tax rises: wait and see.  Plans for hiking capital gains tax: wait and see, and so on.   The only answers that weren't determined by the Budget seemed to be his racing tips for the sports bulletin.  You can hear them here. But that isn't to say the interview wasn't revealing.  For much of it, Cameron was quizzed about the objections that David Davis and John Redwood have raised to the planned hike in capital gains tax.

Gove must guard against the vested interests

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Polly Toynbee was on ‘mute’ on Sky News in my office, the remote wasn’t working, which is frustrating because I’d love to hear how someone mounts a passionate defence of why local government should have monopoly control of state schools. Very few things in politics are indefensible, but a system which doles out sink schools to sink estates is one of them. When Michael Gove was a journalist, he described comprehensive education as the greatest betrayal of the working class. And now, as Education Secretary, he is outlining a system that will give the poor the same choice of schools that the rich have. Who on earth could be against that?

Climate kamikaze

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Several months ago, European leaders went to Copenhagen to save the planet. China, India and Brazil on the other hand went to the climate negotiations in Denmark to showcase the changed distribution of power in the world. Unsurprisingly, the Europeans came home empty-handed, shut out of the key negotiations and powerless despite what was meant to be a standard-setting promise of 20 percent cut in the EU's greenhouse gas emissions. The US and the rising powers struck a non-binding deal, the value of which is still being determined.

Ed Balls’ fighting talk is getting him nowhere, yet

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The stock response of many Coffee Housers will be ‘Who Cares?’ but surely Ed Balls will be nominated for the Labour leadership? Labour may recognise that a Balls leadership would likely end in Footian catastrophe but he will, in all certainty, proceed to the next round. Surely? Like Pete and Ben Brogan, I reckon Balls and David Miliband allowed their supporters to declare in a steady trickle, hoping to build momentum as the June 8 deadline neared. In which case it is telling that Miliband Major has changed his tactics in response to Miliband Minor’s sudden surge. David Miliband now has the backing of 48 MPs, a very significant advance on yesterday’s figure. By contrast, Ed Balls languishes on 15 nominations.

Tactical considerations over the timing of the AV referendum

From our UK edition

A referendum on AV was the concession that Nick Clegg felt he needed to get a coalition deal with the Tories past his party. But the referendum poses obvious dangers to the coalition, just imagine the sight of Nick Clegg and the leader of the Labour party sharing a platform to denounce the Tories' 'reactionary' opposition to electoral reform.   The Guardian this morning reports that the Lib Dems are pushing for this referendum to take place in May 2011 at the same time as the Scottish and Welsh elections. There is, as the article notes, a huge benefit to the Lib Dems in getting this referendum in early before the cuts kick in and the coalition becomes unpopular.

German lessons

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Angela Merkel's fall from favour is something David Cameron ought to bear in mind as he looks for lessons to guide his term in office. The German chancellor could do no wrong when she was first elected. A new "Iron Lady", she was seen as a giant among pygmees. Tony Blair was leaving the scene, Nicolas Sarkozy had yet to be elected, the newspapers swooned, the voters applauded. Mrs Merkel was respected in the US and Europe. She made her unwieldy coalition with the Social Democrats work, almost singlehandedly picked the NATO secretary-general and ruled over EU meetings.

Gove’s school reforms get off the ground

From our UK edition

The arduous process of reforming our country's education system begins today.  After two school reform bills were announced in yesterday's Queen's Speech, Michael Gove is writing to all English primary and secondary schools inviting them to cut loose from local authority control and become academies.  This is but stage one of the reform process: changing the system that's already in place.  The really radical part will come after the summer recess, with the government's plans for pupil premiums and the like.

Laughs, politics and sincerity

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The opening of the Queen’s speech debate is, traditionally, a light-hearted affair. Peter Lilley opened up with a rather witty speech. He compared the Liberal Democrats to the bastards of the Major Cabinet, it is better to have them inside the Cabinet pissing out than outside the Cabinet pissing in. He went on to warn the new Prime Minister that the appropriate response to John Major and Gordon Brown’s microphone troubles is not to turn your microphone off but to keep ‘your receiver switched on to hear legitimate concerns.’ David Cameron would be well advised to heed this tactfully-expressed advice. Lilley ended with a heart-felt plea to bring the troops home from Afghanistan as soon as possible.

The debate begins in lively fashion

From our UK edition

The initial exchanges of the Queen's Speech Debate have just come to a close – and, I must say, it was all rather jolly.  Harriet Harman came prepared with gag after gag about the Tories' "marriage" to the Liberal Democrats, while David Cameron had a few about Harman's actual marriage to Jack Dromey.  There was much laughter, good-natured jeering and cat-calling.  So – business as usual. Underneath it all, though, there was a substantive clash between the two sides.  In a spritely performance, Harman wisely avoided an "investments vs cuts" style attack, instead charging the coalition with not having a mandate for many of its political reforms.  Whereas Cameron accused Labour of not facing up to its fiscal legacy.

What Harriet Harman can do for us all

From our UK edition

Today's the day, I suspect, when it will really hit home with Labour that they are now in Opposition.  Attacking a government's legislative agenda isn't something they've had to do for 13 years.  And while you could say that the Brown machine acted as an opposition in government – geared to destroy its rivals – this is different terrain, with different priorities.  It will fall to Harriet Harman to lead the charge from 1430 onwards. The FT's Jim Pickard has some sensible advice for Labour's stand-in leader.  But the crucial point is this: "It will be tempting to slam 'Cameron and Clegg' for 'taking £6bn out of the economy' and 'risking a double dip recession'.