Fraser Nelson

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.

In all the excitement, I forgot to flag up to Coffee Housers a fact that we dropped in the leader column of today’s magazine. Michael Gove’s new Swedish schools will, it seems, be allowed to make a profit. I said in the editorial that: “Crucially, it now looks likely that the new schools will be able to run for profit — as Anders Hultin, the architect of the Swedish system, argued in this magazine last week. This may come in the form of a ‘management fee’. But if this happens, then Britain’s obsession with the quality of schools could blossom into an education industry.” Hultin’s article was picked up by The Daily Telegraph. Profit, he says, means Britain would have an education industry.

I don’t know this lady’s name, but she is a genuine example of an enthused Tory grassroots activist. She was queuing behind me in security and I noticed her bag. “It’s my own kinda Blue Peter job,” she said. What inspired her to make the design? “Because my party was going nowhere for eight years, then David came along and changed that. When your party recovers, and you know your country will, then that’s something to be pleased about.” So pleased she made this handbag. Surely Smythsons should buy the design?

When David Cameron turned up to The Spectator’s party last night, I thought it only decent to ply him with a glass of fizz. After all, a magazine whose motto is “champagne for the brain” can hardly begrudge champagne for the guests. And what’s the harm, I thought – there were no photographers at the party. Right? Wrong. The picture is now on the front page of the Evening Standard – with yours truly beside Cameron having just plonked it in his hand a few seconds earlier. I promise, it wasn’t a set-up: we thought we’d cleared the place of photographers.

So how radical is David Cameron? I  was on a Radio Four panel yesterday for “Beyond Westminster” (now online) where, for once, I was not the only token right-winger. It was presented by Iain Martin and had Bruce Anderson, who wrote this week’s cover piece about Cameron, and Jackie Ashley. I was begging Iain to introduce her as being from “the left-wing Guardian” to repeat the intro that the BBC so often gives the “right-wing” Spectator (“Warning: the views you are about to hear are not from the consensus”). Iain asked me if I thought Cameron had the courage and the character needed to transform Britain. I concluded with words of endorsement that had TGF UKIP choking (on another thread). In spades, I said.

It’s not yet official, but everyone is couning on a big “yes” from Ireland – to the tune of about 64% says The Guardian. I say in my News of the World column tomorrow that this is far from a disaster for the Conservatives. It works well for them, in fact: it isn't nerds who want a UK referendum but any fair-minded person who has just witnessed the way Brussels bullies, bribes and cajoles to get its way. Tony Blair was the one who reneged on his promise of a rederendum – something which, in my opinion, should be a criminal act (but, as Stuart Wheeler tested, is not technically breach of contract). And who is to be EU President? Blair himself. It will be dawning on Cameron, fairly soon, why Europe is important.