Isabel Hardman

Policy Exchange's report on the face of modern Britain this morning is fascinating reading for anyone interested in the way this country has changed and will change in years to come. But it is especially fascinating reading for those wondering how on earth the Conservative party can appeal to ethnic minority voters. This is partly because it makes quite clear that the party is currently not appealing to those voters: indeed, while politicians have a bad habit of lumping 'ethnic minority' voters together without good cause, the one thing that does lump these groups together is a reluctance to vote Conservative.

What is the government's stance on Pfizer's takeover bid of AstraZeneca? Today the Prime Minister's official spokesman was asked this - and his answer didn't shed a great deal of light on the situation. He said the position was 'active in engagement, with both companies in terms of the importance to the UK of R&D and the science base, with regard to the decision as to whether or not going ahead is the right thing to do for either company and their shareholders, is entirely a matter for the companies, their boards and their shareholders'. But what if the takeover does turn out to damage jobs and the science base in this country?

Two front pages today report what they see as bad news, and both stories are certainly ones politicians need to worry about. The Guardian reveals a leaked letter showing jobseekers will face sanctions if they do not apply for or accept 'certain zero hours jobs under the new universal credit system', while the Indy splashes on research by the Resolution Foundation which found that self-employed workers are earning 40 per cent less than a typical employee. The paper says these workers are the 'hidden victims of the recession struggling by on low pay'. Saying that either of these stories represent 'good news' sounds far too flippant - but they do reflect the flexibility of Britain's labour market which has enabled many people to remain in employment and off the dole during the downturn.

What a very long PMQs today, presided over by a very bumptious John Bercow. The Speaker let the exchanges run into what he called 'injury time', made a rather poisonous jibe at Labour MP Fiona Mactaggart over her private schooling, and told the Prime Minister that as far as he was concerned, he had finished an answer when the PM didn't believe he had.

Much relief in Downing Street this morning as Nigel Farage announces that he's not standing in the Newark by-election. Coffee House readers had the best insight into the Ukip leader's thinking when James posted the details of a conversation he'd had with Farage about the constituency. And his prediction that Farage may well decide to not stand was right. listen to ‘Nigel Farage says he's not standing in Newark: 'You have to pick your battles'’ on Audioboo Farage has bottled it, he's frit. That's what every relieved Conservative MP is saying this morning. It's true: Farage got to the cliff edge, looked down, and edged away from what he saw. He didn't fancy the battle and didn't think that he could beat the Conservatives.

Patrick Mercer has gone out in style. One Tory MP, hearing that the whips had tried to dissuade him from triggering a by-election fight with Ukip at an extremely inconvenient time for David Cameron, told me: 'It's a waste of time. He's determined to damage Dave. He's Colonel Nicholson in Bridge on the River Kwai!' Mercer has left Cameron a little present in the form of this by-election. Even if Nigel Farage announces today that he won't stand in the contest (and James's post from last night on the Ukip leader's thinking is a must-read), Ukip can still repeat its success in Eastleigh by fielding an impressive formerly unknown candidate.

Patrick Mercer has been banned from Parliament for six months, the Standards Committee has confirmed, following revelations by the Telegraph and BBC Panorama that he agreed to table questions in return for cash. He had already resigned the Conservative whip. The question now is whether Mercer resigns as an MP, triggering a by-election in Newark which the Tories could try to hold on 22 May? Nigel Farage today said he would consider standing in a by-election this year. In 2010, Mercer won a 16,152 majority, with Ukip coming fourth with 3.81 per cent of the vote.

Treasury Questions today was rather formulaic. George Osborne spent a little while congratulating himself on today's growth figures (only to be cut off by Bercow, who complained his answer was 'far too long'), and loyal Tory MPs congratulated him too. Many of them chanted the phrase 'long-term economic plan'. Some Labour MPs helped out by saying it too, which Osborne thanked them for. He has his own new phrase, which sounds a bit like a Backstreet Boys single: 'Britain is coming back'. 'Britain is coming back, alright,' he (nearly) told MPs, before demanding that Labour congratulate him on the GDP figures.

A smart move by Ed Miliband today to put pressure on David Cameron over the televised leaders' debates next year. Every time the Prime Minister is asked about these debates, he makes supportive noises while muttering about the 'right formula', but doesn't commit to anything. He has also said that he felt the debates 'dominated' the coverage of the 2010 election, which is as close as he'll come to saying that Nick Clegg's shiny new qualities at the time rather detracted from Cameron's own appeal which his strategists had been setting so much store by. But as the Prime Minister hasn't agreed to anything, Labour's trying to get ahead of the game and appear to drag Cameron into a studio.