Coalition

It’s cohabitation, not coalition now

The Tories and the Liberal Democrats are increasingly going their separate ways. But they’ll stay in government together until the election is called. As one Whitehall Lib Dem told me recently, ‘We’re not in a coalition now. We’re just cohabiting’ During the immigration bill, it was striking how Tory Ministers abstained on the Raab amendment while Lib Dem ministers voted against. Indeed, if there had been more votes, there would have been more coalition splits for the government had agreed to suspend ‘collective responsibility’ on various amendments. Oddly enough, though, this distancing is one of the reasons why the coalition looks likely to go the distance. In this week’s magazine,

Today’s GDP figures are useful ammunition for the Conservatives

That the UK economy grew by 0.7 per cent in the final three months of 2013, leading to the fastest growth annually since the financial crisis, is obviously very good news for the Coalition. The quarter-by-quarter figures have zig-zagged, but the overall growth for 2013 is 1.9 per cent over the year, which is the most important figure. These GDP figures from the ONS, published this morning, enable David Cameron to say that this is further evidence of the Coalition’s ‘long-term economic plan’ succeeding, and use the new Tory buzzword,‘security’. And though the economy is still 1.3 per cent below its pre-recession peak (see the graph below), George Osborne can

Nick Clegg: Tory benefit plan is ‘Chinese-style family policy’

Did Nick Clegg recite his entire Andrew Marr interview from memory? The Deputy Prime Minister managed to cram so many soundbites into his answers that anyone wondering what the months in the run-up to the 2015 generation election will be like will have sunk into a pit of misery at how dull and formulaic it is all going to be. Thank goodness for those trouble-making Tory MPs with their letters who are at least trying to make things a bit more unpredictable, eh? As well as doling out his favourite lines such as ‘flirting with exit’ ‘the Conservatives have decided to swerve wildly in this direction and that’ and the

David Cameron on tax, coalition, ‘green crap’ and Team Nigella

It’s 9.30 a.m. on a Friday and David Cameron is about to head for his Oxfordshire constituency and work from home. This is precisely the habit that his Cabinet Office minister, Francis Maude, is trying to beat out of the civil service, but the Prime Minister has a reasonable claim to some downtime. In the past five days he has met 150 businessmen and toured four Chinese cities. This morning, he has paid a visit to Tech City, London’s answer to Silicon Valley, and travelled to South Africa House to pass on his condolences following Nelson Mandela’s death. His last appointment, which will last for as long as it takes

The Tories have to fight on their ground, not Labour’s

At the beginning of the autumn, strategists from all three parties assumed that the theme of the season would be Labour’s poll lead narrowing as the economic recovery picked up pace. But that hasn’t happened. Instead, Labour’s lead has remained and its own poll numbers have actually ticked up. This is, largely, thanks to Ed Miliband’s reframing of the political debate about the economy, making it about living standards But the autumn statement showed that when the political conversation is focused on the broader economy, the Tories have the better of it. Thursday has weakened Ed Balls, strengthened George Osborne and begun to move the political debate off Labour’s turf

PMQs: Labour’s constant attacks make a Lib-Lab coalition unlikely

Today’s PMQs showed that Labour still have no plan for Nick Clegg other than to attack him. With Clegg standing in for Cameron, Harriet Harman didn’t try and tease out any differences between the coalition partners but instead attacked him as the best deputy any Tory Prime Minister could have and as an accelerator on the Tory agenda not a brake. On one level, this makes sense. There are a certain number of votes on the centre-left of British politics that Labour and the Lib Dems are competing for. Painting the Lib Dems as Tory accomplices helps Labour in this market. But on another, these highly personal attacks on Clegg

Osborne wants to talk about ‘the responsible recovery’ but energy bills are still Topic A

In the minds of government strategists, the autumn statement is the moment when the coalition gets to turn the conversation back to the broader economy and away from Ed Miliband’s focus on the cost of living. But the first five minutes of George Osborne’s pre-statement interview with Andrew Marr were dominated by the action the government is taking in response to Miliband’s pledge to freeze energy bills. The problem for the coalition on energy bills is that the £50 it is taking off bills now might well not be enough to stop bills rising next year. If household bills go up again in 2014, Miliband’s price freeze is going to

Cameron and the Romanians and the Bulgarians

For months now, Number 10 has been fretting about what to do about Romanian and Bulgarian immigration. From the end of this year, any Romanian and Bulgarian will be able to move here in search of work. Downing Street knows that if they come in large numbers it’ll negate everything that the government has done to try and get immigration under control. Fairly or not, it’ll be fatal to the Tories’ reputation for competence on this issue. David Cameron is, as today’s Times and Mail reveal, now planning a major intervention on this issue. He wants to achieve three things. First, show that his government is handling the issue better

Free Enterprise Group tells George Osborne: ‘Don’t play safe’

The Chancellor’s Autumn Statement is looming on the horizon, and the Free Enterprise Group, the loose alliance of backbench Tory MPs, laid out its proposed economic reforms at the Institute for Economic Affairs earlier today. The group sees the economic recovery as an opportunity to address some of the underlying challenges in the British economy before the general election. The group urged the Chancellor not to play safe, and proposed seven stimulatory tax cuts to benefit those on low and middle incomes: the so-called ‘squeezed middle’. 1). Create a single VAT rate of 15% – revenue neutral (Kwasi Kwarteng) 2). Move the majority of the cost of green levies onto

Ken Livingstone slams Labour’s ‘moral cowardice’

Ken Livingstone has risen once again from his political grave to criticise Labour’s ‘moral cowardice’ for borrowing through the boom rather than take difficult decisions with the public finances. listen to ‘Ken Livingstone: It was ‘an act of cowardice’ for Gordon Brown to borrow and spend’ on Audioboo

Nick Clegg fires the opening shots at Labour on economy

Nick Clegg’s blast at Labour today is just the opening salvo of a Lib Dem offensive against Labour on the economy. It is another reminder that coalition unity is strongest on the economy. Clegg’s jibe ‘Do you know why Ed Miliband suddenly wants to talk about the cost of living? Because they’ve lost the bigger economic argument’ could easily have been said by Cameron. While his argument that ‘healthy household budgets flow directly from a healthy economy. The two go hand in hand’ echoed George Osborne’s response to the GDP figures. At the top of the coalition, they are immensely frustrated that Labour has managed to change the conversation from

While we wait for George Osborne, Grant Shapps takes to Buzzfeed to talk about energy policy

The energy debate is in stasis. Everything, it seems, hangs on the contents of the Autumn Statement. EDF has announced a price rise; bills will go up by an average 3.9 per cent, which is considerably lower than the rest of the Big Six. Yet the company made clear that maintaining low prices will depend on George Osborne. A spokesman said: ‘If the Government makes bigger changes to the cost of its social and environmental schemes than EDF Energy has anticipated, the company pledges to pass these savings onto customers. However, if changes to social and environmental programmes are less than anticipated, the company may have to review its standard variable prices

How ‘Help to Buy’ helps the Tories

Few images are more seared in the Tory consciousness than that of Margaret Thatcher handing over the keys to people who had brought their council house under ‘right to buy’. The image seemed to sum up the aspirational appeal of Thatcherism. I suspect that there’ll be a slight homage to these images when Cameron meets some of those that the government’s ‘Help to Buy’ scheme is helping onto the housing ladder tomorrow. Number 10 wants to show that the full scheme, which has only been running for a month, is already being used by a large number of people. The economics behind ‘Help to Buy’ might make many on the

There mustn’t be a north / south divide when it comes to fracking

Michael Fallon, who among his many roles is the minister in charge of fracking, has told the Telegraph’s Jame Kirkup that ‘right across the South’ people should prepare for fracking coming to a neighbourhood near them. Considering that fracking will bring with it jobs, growth and cheaper energy this is good news. But it is also good news because it should prevent a north / south fracking divide. There was a danger that fracking would appear to be something that the Tories were happy to have happen in the north but not in their own southern backyards. The former Tory Cabinet Minister Lord Howell’s call for fracking to be concentrated

How the Tories will write their manifesto

This week, David Cameron will announce the creation of a series of policy commissions charged with drawing up policies for the next Tory manifesto. Strikingly, every commission will include on it the chosen representative of the Tory backbenches. The groups will, as I say in the Mail on Sunday, be made up of the relevant Cabinet Minister, a member of the Prime Minister’s policy board and the MP in charge of the 1922’s policy work in this area. The Downing Street Policy Unit will provide the secretariat. Number 10’s hope is that by bringing MPs into this process, they’ll feel more loyal to the manifesto once it is produced. As

Why do the Tories lead on the economy and leadership but trail overall?

One of the odd things about the polls at the moment is that the Tories lead on economic competence and leadership, traditionally the two most important issues, yet trail overall. There are, I argue in the column this week, three possible explanations for this polling paradox. The first possibility is that Ed Miliband is right, that the link between GDP growth and voters’ living standards is broken. A consequence of this is that voters put less emphasis on economic management in the round. Instead, they want to know which party will do most to help them with their cost of living. Then, there’s the possibility that the traditional political rules

David Cameron has lost the countryside

When hunt supporters visit the office of a Tory cabinet minister these days, they like to turn up armed and dangerous. And so it was when a delegation from the Countryside Alliance arrived for a private meeting with the Environment Secretary Owen Paterson a few weeks ago, wielding an alarming new poll of their membership. Setting the dossier down in front of Mr Paterson (one of their few allies in government), they spelt out the bottom line: 13 per cent of Countryside Alliance members now intend to vote Ukip in the next general election. Let’s be clear: given that the CA is basically the voice of the shires, that is

Coalition parties near a deal on energy bills

The good news for the Cameroons on energy is that it looks like they’ll get an agreement by the Autumn Statement to take at least some of the green levies off energy bill. The bad news is that this means that the debate sparked by Ed Miliband’s pledge to freeze energy prices for 20 months if elected is going to continue until, at least, December 4th. An agreement between Cameron and Clegg on energy bills does now appear to be close. The Lib Dem anger at Cameron using PMQs to try and bounce them into a set of concessions has been replaced by a fast-moving negotiation. As one senior Number

Simon Stevens could turn out to be Jeremy Hunt’s Mark Carney

Remember the name Simon Stevens. He’s is the new chief executive of the NHS in England and is going to be absolutely crucial to whether the government can make its health reforms work. Stevens is a former Labour special adviser. However, he comes from the reformist wing of the party. He used to advise Alan Milburn and Tony Blair on the NHS. But a profile in today’s Guardian reveals just how impressively radical Stevens is. Denis Campbell writes that Stevens favours local pay in the NHS. He is also, Campbell says, keen on the idea of independent GPs competing with existing GP surgeries for patients, in the hope that this

Is it still the economy, stupid?

The coalition wants this week to be all about the GDP figures, out on Friday. As I say in the Mail on Sunday, Downing Street is confident that they’ll show the economy is continuing to grow at a relatively decent clip and is already working out how to make political out of that. They have, as Simon Walters reports, already prepared a video mocking Labour’s claims that the coalition’s polices would lead to a million more people on the dole. Ed Miliband’s circle expects that the GDP numbers will again be positive. But they take the view that as long as prices are increasing faster than wages, squeezing voters’ living