Fraser Nelson

All hail, Jeremy Hunt, the axe man. Cameron’s first tax cut will be a licence fee cut* – and Hunt is planning to axe some stations to pay for it.  Hunt is thinking of axing 1Extra, apparently, with BBC3 and BBC4 already under threat. Also under Hunt’s axe would be the National Lottery’s runnng costs. The Sunday Times apparently has the details tomorrow, but I give Hunt this warning: if he even tiptoes in the direction of Cbebbies then he will have a revolution on his hands. Parents depend on it now, utterly. Personally, I’d pay £100 a year just for it – just for its kid-sedating powers. But it makes you think: digital television does allow a subscription model and the BBC could well spin off many of these channels.

Gordon Brown’s suggestion for a Tobin tax would, if implemented, crucify the City of London. We are the largest foreign exchange centre in the world and that Brown is seriously suggesting hitting this industry is a sure sign he does not expect to be in government after the election. It is the proposal that a British prime Minister should be dying in a ditch to kill off given that the City generates about a tenth of Britain’s economic wealth. The kind of proposal that might be aired by a Frenchman, purely to outrage Britain. It is, of course, a trick: Brown knows it won’t be agreed because it requires the approval of every major currency-trading country – and that will never be secured.

How close were Labour and the Soviets during the cold war? At the time, many newspapers were on the hunt for links - but allegations were hard to prove. Today, the Spectator tells the story from the horse's mouth - Anatoly Chernyaev, the Kremlin's link man with Labour in the 70s and 80s. Unbeknown to his visitors - Michael Foot (who welcomed Brezhnev as 'comrade') and even Charles Clarke (who comes out of this quite well) Chernyaev was keeping a diary. It shows how various Labour visitors begged for help - after all, Labour and the Soviets had a common enemy: the Conservatives. They said so in terms. Edward Short, as Harold Wilson's deputy, said: "if you, the Communist party of the Soviet Union, want a Labour government in Britain then help us". It goes on like this.

So David Cameron will let it rest there after all.  And in fairness to him, he can do nothing else. Thanks to the Blair/Brown stitch up, Britain has no options left. It never did. Cameron knows that and today’s speech was just a longwinded way of saying it. He is right not to promise what he calls a “made-up referendum”, that would accomplish nothing other then vent rage. But nor should he kid us all that he is going to renegotiate some powers back from Brussels. That would need the unanimous approval of all other member states, and it would never be granted. If Britain were to repatriate powers, then who would ask next? Where would it stop? The post-Lisbon EU is more powerful, bullying (as we saw with Ireland and Czechs) and it will refuse any request Cameron makes.

I'm midway through the Andrew Marr show - did the papers and am going back on in a bit to nod appreciatively at Sting - and the main topic is Miliband as EU Foreign Secretary. That Banana boy is being spoken of is not a compliment. The person they want in that job will be a cipher who will obey the orders of the ministers and visit cities that only Robin Cook* would have heard of. But it wil keep him out of the running to challenge Ed Balls for the Labour party leadership. Sting is banging on about how "we need the winter" and it is somehow under threat from global warming. The pity is that this nonsense can stop a guy buying his album. But it does sound quite good  - we heard him rehearsing. Anyway, I wonder if I will be next to Harman?

Up to now, MEPs can use Westminster’s facilities; but, yesterday, Nick Brown tabled a deplorable motion in the House of Commons - to ban Nick Griffin from parliament. Just in case there were any doubt, Andrew Dismore spelled it out, saying Brown's motion would "mean that the newly elected British National Party members would not be allowed to get into this place. Most Members are of the view that that should be the case." I bet they are. But why? Whose fault is it that Griffin was elected in the first place? As I argued in the News of the World a while ago: if I had my way, I'd base Griffin in Westminster so MPs would see his smug face walking past them every day.

One strange side-effect of the car crash that was the Liberal Democrat conference is that no one dares say the word “cuts” anymore. Since Nick Clegg promised “savage cuts” – alarming his base in the process – we’re back to the normal euphemism of “efficiencies”. This, like so much in life, will have Gordon Brown hopping mad. He didn’t want to say “cuts” in the first place, and the whole farrago will prove (in his head) that he should stop taking advice from people outside his coterie.   The next stage in the debate is to focus on growth. As James revealed in his political column for the current edition of the magazine, the Tory plan to do this is an aggressive cut in corporation tax.

What is the true price of Gordon Brown’s economic incompetence and inept bank regulation? The soaring national debt is one. And if you own a mortgage, you’ll find that you’re paying another. The gulf between the Bank of England base rate and the average mortgage rate is now at a huge high – as banks rip off their customers, trying to fill the hole in their balance sheets. This is an under-discussed topic. The “action we have taken” (a phrase Brown uses to try to lay claim to the Bank of England’s base rate reduction) would have a far greater effect on the economy if the UK banking system was not (still) so badly broken. The below graph, from Citi, shows spreads (ie, gap between base rate and retail rate) on key UK mortgages from 1995.