David Blackburn

Strange things are happening between Whitehall and Birmingham. After the IMF downgraded its growth forecast for Britain yesterday, the BBC reported that some government were considering spending an additional £5bn on capital projects: transport links, broadband, housing and so forth: as a stimulus to ward off possible recession. The implication was that the Liberal Democrats were in favour of changing Britain’s economic course and the Conservatives were not. Chris Huhne appeared on Newsnight and quashed the story (30 mins – 33 mins). He said he didn’t recognise the £5bn figure and said there was “no such plan”, but conceded that the government would have to be “imaginative and creative…to get growth going”.

Chris Huhne can always be guaranteed to grate. Several Conservatives have cracked wry smiles at the energy secretary’s comments about the “Tory Tea Party tendency”. Mark Pritchard quipped that plenty of senior Lib Dems would soon be at leisure to throw their own tea parties and John Redwood dismissed Huhne’s cant as conference high-jinks. Redwood went on to challenge Huhne’s policies. Speaking to Sky News, he said he was “happy to hear ideas” about “promoting more competition”, pointing out that competition might reduce prices. Then he added that Huhne “has also got to understand it is his policies that are driving costs of electricity up in Britain because we are choosing to generate it in a very expensive way.

The Telegraph’s splash on Europe indicates that the issue, which proved so toxic to the last Conservative government, has risen again. Writing a stern op-ed for the paper, serial rebel and anti-Cameroon Mark Pritchard calls for a referendum. This will have irritated Downing Street no end, which is understood to have hoped that the whip-sanctioned Eurosceptic grouping that has formed around George Eustice might have contained the party’s factious elements. But some disgruntled MPs on the right privately say that last week’s well attended meeting of Eustice's group turned into something of a disappointment. The insistence that an exit from the EU was off-limits for the moment was apparently met by a singular lack of enthusiasm in some quarters.

Assorted acolytes from the teaching unions are padding around the Lib Dem conference, fomenting discontent around activists who are opposed to the coalition’s adoption of academies and free schools. Officials from NASUWT and the NUT have pricked the airwaves with tales of concern and frustration. Education minister Sarah Teather addressed the conference earlier this morning and she was unrepentant. She eviscerated Labour’s record on education and, by extension, the system that has been dominated by the teaching unions. She also pledged to double the pupil premium next year to £1.25 billion, which will allow schools to increase their expenditure on tuition, parental support, after school clubs and so forth.

Sandals are being rattled in Birmingham this morning. The Liberal Democrat conference opens to a chorus celebrating the party’s achievements in government. Nick Clegg tells the Independent that “Liberal Democrat fingerprints” are all over flagship coalition policies on schools, welfare, pensions, banking reform and the NHS reforms. He says of the latter that the Liberal Democrats have tempered the Conservatives. Clegg will reiterate this point at a rally later this afternoon. Despite news that the Liberals seek an electoral accommodation with the Conservatives, senior party figures are at pains to accentuate their differences with the Tories.