Uk politics

Tuesday

David Blackburn

Love and marriage

It’s all a bit of a puzzle. How will David Cameron incentivise marriage? In an interview with the Mail, Cameron dismisses IDS’s transferable tax allowance scheme. “It would be wrong to say that they are Conservative Party proposals.”                      Considering the scheme will cost £4.9bn, the pro-cuts Tories can ill-afford an incentive that would benefit the middle class in the immediate term. Cameron and Osborne are searching for a cheaper way to honour the pledge. Pete and Fraser debated whether marriage should and could be financially incentivised. On balance I side with Pete, marriage should not be financially incentivised.

David Blackburn

The case for NHS reform

Britain remains the sick man of Europe. Professor Sir Mike Richards’s report finds that although progress has been made on cancer treatments, diagnosis rates, and therefore the chances of survival, lag behind European standards. A deluge of statistical analysis supports Richards's findings. The European Journal of Cancer’s recent research into solid cancers, such as breast cancer and melanoma, demonstrated that the speed of diagnosis and survival rates in the UK were “20% below” the European average. Additionally, the table below, which is taken from 2009’s OECD health data, illustrates that the gap between the number of cancer deaths per 100,000 population in Europe and the UK has widened.

Peter Hoskin

Burnham enters the fray

Oh dear.  The Labour leadership speculation is back in full effect, thanks to Paul Waugh's scoop in the Standard.  According to Paul, Andy Burnham is "prepared to throw his hat into the ring" to succeed Gordon Brown, should it all go wrong for Labour in the next election.  Apparently, he's even lined up Tessa Jowell as his campaign manager – although, naturally, the Health Minister is downplaying the claims. One thing's for sure: this story is badly timed for Labour – with their recent progress in the polls – and Brown could well do without another bout of leadership wrangling to undermine his premiership.  But what about Burnham – has he got what he takes to become Labour leader?

Peter Hoskin

The good and/or bad news for the Tories is that there hasn’t been a Brown Bounce

If you're still scratching your head over the latest opinion polls, then I'd recommend you read Anthony Wells' latest post over at UK Polling report.  In it, he outlines four potential reasons for the diminishing gap between the Tories and Labour: Cameron's "reverse" over the Lisbon Treaty; increased economic optimism; Labour performing better; and the absence of positive feeling towards the Tories.  To my mind, it's probably a case of "all of the above," to varying degrees – but, as Anthony concludes, "we can't tell for sure." One further point that's worth making is that the reduced gap between the parties isn't due to a "Brown bounce".

Peter Hoskin

Paranoia rather than camaraderie

Another one for the Brown as Nixon folder, courtesy of Rachel Sylvester's column today: "'It’s about style of government,' says one senior figure due to give evidence [to the Iraq Inquiry]. 'Blair would have a war Cabinet, but a small caucus would meet beforehand. The civil servants were frustrated. Gordon is just as bad. He gives lots of time to Peter Mandelson and Shriti Vadera and ignores the officials. There’s a darker side to the Brown machine — he’s more suspicious. It’s cliquiness driven by paranoia rather than camaraderie, but it has the same result.

Peter Hoskin

The clock is ticking on Iran

When I visited Israel last year, various sources there were convinced – adamant, even – that Iran was within a year or two of creating an atomic bomb.  That may or may not have been the case, but it's still ominous that that hypothetical timeline is nearly up.  We can all too easily forget that, in the background to all the column inches and comment pieces expended on Iran, there are genuine and pressing concerns that the country is on the cusp of becoming a nuclear power. Which is why the two latest news stories from the country are particularly worrying: the capture of a racing yacht by the Iranian navy and Tehran's plan to massively expand its uranium enrichment programme.

Monday

James Forsyth

The Tories need a more positive message

The Lib Dem’s policy to make everyone’s first 10 thousand pounds of income tax free is, whatever its imperfections, a significant doorstep offer. By that, I mean it is something that those canvassing for the Lib Dems can say in an attmept to get the voters to listen to them rather than shut the door in their face. This is something the Tories are short of. At the moment, the Tories have a bunch of smaller policies — abolishing HIPS, freezing council tax, only millionaires paying inheritance tax — that by all acounts go down well on the doorstep. But they lack a big policy that defines the party to voters. When I talk to Tory candidates I always ask them what their message on the stump is.

Fraser Nelson

The odds on independence

Whenever a London bookmaker made odds on Scottish politics, my former colleagues at The Scotsman used to make easy money*. The world of Holyrood, where yours truly served a one year tour of duty, has its own political weather system that it’s hard to understand from a distance – so likelihoods are given very high odds. But today Ladbrokes gives odds that I think are pretty fair: 20-1 on independence before 2015. The SNP’s rout in Glasgow North West a fortnight ago is part of a wider reluctance to separate from England. The financial crisis, and the way that RBS somehow became the new Darien Scheme, has spooked everyone.

Peter Hoskin

The doubts that remain after Brown’s Afghanistan statement

So there we have it.  Gordon Brown has confirmed what we all expected: that 500 more British troops will be sent to Afghanistan, bringing the total UK presence up to around 10,000.  The "surge" will be rounded off when Obama announces something like 35,000 extra US troops tomorrow. Although greater manpower is A Good Thing for the mission in Afghanistan – and the mission in Afghanistan is certainly an important one – I can't help but have some qualms about the twin UK and US announcements.   For starters, there's the simple issue of numbers.  500 more UK troops and 35,000 more US troops falls short of the bar of 2,000 and 40,000, respectively, that some military figures had set.  It may not make much difference.

Mark Bathgate

Labour’s free for all

The potentially huge exposure of UK banks in Dubai, depreciating some UK bank share prices again this morning, is a reminder of just how much UK bank lending grew in recent years. The above chart shows the growth in external claims of the UK owned banks around the world over the past decade. The sums lent almost quadrupled to nearly $4 trillion in 8 years.  Anyone interested in discovering which bubbles the UK banks (and now taxpayers) have funded can find the data on the Bank of England website - $1.2 trillion in the United States, $125 billion in Spain, $183 billion in Ireland, $50 billion to the UAE/Dubai. Bank profits soared, and the “New North Sea Oil” of booming bonus pools was taxed to fund ever growing government spending.

James Forsyth

Tory corporation tax plans become clearer

During the Tory party conference, I wrote about how the Tories were developing plans to radically cut corporation tax. In recent weeks, the Tories have been dropping plenty of hints about this agenda but giving little detail on it. After reiterating the Tories' existing plans to lower the rates of corporation tax at the CBI conference last week, David Cameron said: "and we want to go further." Today, in an interview with the FT, the Tory treasurer Michael Spencer reveals that he is "hopeful that, over the next parliament...we will get corporation tax down towards the 20 per cent level." Spencer is close enough to the leadership to know what he is talking about, and his comments track with what is being said in private.

Peter Hoskin

Will Darling’s politicking make the Tories weaken their IHT pledge?

Ok, so the Age of Austerity means that promises made in sunnier times will need to be forestalled - or even cancelled altogether.  But it's still revealing that Labour are thinking about reversing their plan to raise the threshold at which inheritance tax is levied. After all, this is what Brown regards as The Great Dividing Line: the Tories implementing a tax cut for their "rich friends," on the one side, and Labour implementing policies "for the many," on the other.  Darling's decision to raise the IHT threshold to £350,000 for single people and £700,000 for married couples undermined that crude message.  Reversing the policy may, in Labour strategists' eyes, strengthen the dividing line.

David Blackburn

The return of the Mansion tax

The Liberal Democrats unveil their tax plans later today, and Nick Clegg insists that his radical plan will “put fairness back into the tax system”. It is expected to be a left of centre plan: don’t expect to hear anything about “savage cuts”. The Mansion Tax is back, albeit in slightly more expensive clothes. The original proposal levied a 0.5% charge on properties valued at over £1million, which was a determined effort at suicide. Following criticism from senior MPs, staring nervously at their irate constituents, Clegg and Cable have raised the threshold to £2million and the levy to 1% - a humiliating retreat, revealing the dangers of making policy on the hoof.

Sunday

James Forsyth

A taxing issue for CCHQ

That Zac Goldsmith has non-dom status is an embarrassment to the Tories. Given the anti-politics mood in the country, the whiff of hypocrisy is extremely dangerous to any political party and for the Tories anything that helps Labour’s effort to portray them as a party dominated by a wealthy clique is damaging. I suspect, though, that this story will only get bigger if it turns out that there are other Tory candidates who have non-dom status. Given the way candidate selection has been handled in recent years, there is no guarantee that CCHQ has established that all candidates are both resident in the UK for tax purposes and do not have non dom status.

David Blackburn

The political case for environmentalism weakens

The Politics Show conducted a fascinating poll into the concerns of voters aged under 20. The Recession Generation are primarily concerned with, well, the recession. Economic recovery, public spending and tax came top of their list of priorities, closely followed by health and education. It’s clear that younger voters have exactly the same concerns as the wider population, and encouragingly for the Tories, those polled prefer David Cameron to Gordon Brown and Nick Clegg by a clear margin of 8 percentage points. The Liberal Democrats attracted only 18% of voters, indicating quite how damaging their tuition fee u-turn has been. Popular myth dictates that younger voters are consumed by tackling climate change.

Fraser Nelson

The Iraq inquiry we should be having

Do we still have the will to win in Afghanistan? If so, the question the Iraq inquiry should be asking is not “how did we get into this war” - we have had a number of separate inquiries into that already – but “why were the military defeated on the ground in Basra?”. If the Chilcot Inquiry were to focus on that, it might actually serve a purpose: not just in unearthing new information (which it has signally failed to do so far) but drawing lessons that just might help the troops in Afghanistan. I make this point in my News of the World column today. I am in a tiny minority of people who a) supported the war in Iraq, and b) still admits it. People like me feel every bit as angry as the anti-war people about what happened next.

Saturday

David Blackburn

A nation of property owners

An Abu Dhabian official has briefed Reuters that Abu Dhabi will rescue Dubai on a “case-by-case basis”. The official stated: “We will look at Dubai's commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts. “Some of Dubai's entities are commercial, semi-government ones. Abu Dhabi will pick and choose when and where to assist." This is potentially bad news for the UK taxpayer, who faces the prospect of provided further cover for British banks, who invested $50bn in the region at the height of the boom. The reason we're in the firing line?

David Blackburn

Outmanoeuvred Brown endangers recovery

The Times’ Ian King writes that Dubai’s predicament presents an opportunity for the City to attract new business. There is no reason why, with attractive incentives, London shouldn’t capitalise on Sheik Mohammed’s momentary lapse of reason. However, the appointment of Michel Barnier, an evangelical protectionist who makes Joseph Chamberlain look like the father of Free Trade, as EU regulating supremo is a disaster for Britain. The appointment raises further questions about Gordon Brown’s acceptance of Baroness Ashton as the EU’s foreign minister. Michael Fallon is no doubt: “Brown has been completely outwitted. We now have none of the three key economic jobs in Brussels.

James Forsyth

What today’s polls tell us

The national YouGov poll and the one of northern marginals out today give us a sense of the electoral lay of the land. The national poll result which has the Tories below 40 percent and failing to win an overall majority shows that the Tories remain quite a way from sealing the deal. However, the poll of northern marginals which has the Tories on 42 percent suggests that the Tory marginal seats strategy is working. Indeed, whenever you talk to Tory candidates in Labour held marginals you are struck by just how confident they are; something that is particularly striking given how jumpy candidates normally are. I suspect that the Tory strategic response to these disappointing national poll results will be three-fold.

Peter Hoskin

Lord Pearson makes his mark

He's only been in the job a few hours, but the new leader of UKIP, Lord Pearson, has already dropped a fairly intriguing bombshell.  Interviewed in today's Times, he reveals that he proposed, some months ago, a deal with the Tories whereby UKIP would disband* if Cameron offered a referendum on a ratified Lisbon Treaty.  Apparently, the Tories didn't respond to the overture – which seems rather tactless, if nothing else. You can see why Pearson has made the revelation now.  This "greater good"-style posturing could incite a few Tory supporters, and perhaps even parliamentarians, who are concerned about their party's stance on Lisbon.  Who knows? – it may even drive some votes UKIP's way.