Uk politics

Tuesday

Isabel Hardman

GOD draws near to Bank of England job

Paul Tucker rather drove a steamroller over his hopes to be the next Bank of England Governor during his testimony to the Treasury Select Committee yesterday. We said on Coffee House last night that the suggestion that Tucker and co discussed a possible manipulation of Libor as far back as 2007 had seriously wounded his bid – although Tucker argued that he ‘thought it was a malfunctioning market, not a dishonest one’. Paddy Power agreed that Tucker was in trouble – and has duly lengthened the odds against Tucker getting the job. Before his appearance, he was 6/4, but those odds are now 5/2.  The new favourite for the job, according

Isabel Hardman Isabel Hardman

J’accuse backfires

Andrea Leadsom seems to have backed down a little from last night’s suggestion that George Osborne ‘should apologise’ for saying that Ed Balls had ‘questions to answer’ about Libor. This morning, perhaps after a cheery morning phone call from someone at CCHQ, she took to the airwaves to clarify what she had said:  ‘Look, I was talking about a very specific point last night, which is the extent to which the Labour party may have leaned on the Bank of England, which Paul Tucker completely refuted. I want to be very clear here: this is an inquiry about the banks’ behaviour, and Ed Balls still has a huge amount to

James Forsyth James Forsyth

Cameron will pick party over coalition on Lords reform

The government’s apparent decision to pull the programme motion on the Lords Reform Bill is an admission that it would have lost the vote tonight, and heavily. The rebel numbers have more than held up today and by mid-afternoon even previously loyal MPs were contemplating jumping in to the rebel camp. The question now is what the coalition does next, does it plough on with the bill and try to guillotine it at a later date or quietly drop it. Certainly, the Tory opponents of the bill are in no mood to back down. They are making clear that even if the government comes back offering twenty days of debate

James Forsyth James Forsyth

Lords reform is in the long grass

The look on Nick Clegg’s face as he entered the chamber to hear Sir George Young announce the withdrawal of the programme motion said it all. The Deputy Prime Minister knows that Lords reform is now in the long grass and it will only come out of there if either the Tory rebels back down or Labour agree to a programme motion, both of which are unlikely scenarios. Source close to Nick Clegg say that the Prime Minister informed the Deputy Prime Minister today that he needed more time to build consensus on his own side. The public plan is now to try for a programme motion again in the

Isabel Hardman Isabel Hardman

The Osborne/Balls stalemate

George Osborne and Ed Balls are now locked into something of a staring match over the Libor scandal, with one waiting for the other to flinch. After Paul Tucker’s evidence to the Treasury Select Committee yesterday cleared the Shadow Chancellor and his ministerial colleagues in the Labour government of leaning on the Bank of England, Balls demanded an apology from Osborne for his comments to the Spectator. Andrea Leadsom, one of the members of the committee, saw enough in Tucker’s testimony to publicly call for an apology. This is significant because Leadsom is not the sort of MP who openly briefs against her bosses. She may have a slightly rebellious

Fraser Nelson Fraser Nelson

Yellow dove down

The Lib Dem dove has been shot by a well-aimed Tory arrow tonight, and you can bet that more than a few of Nick Clegg’s allies will feel deeply betrayed. The Lib Dems walked on the coals of the tuition fee rises, and for what? The Tory leadership cannot really claim to be giving its full backing to Lords reform. Yes, William Hague was sent on the radio this morning – in theory to urge obedience over the reform. But when the Foreign Secretary started laughing you had the feeling that he did not quite take his mission very seriously. Every Tory MP knows that the whips have given mixed

Monday

Shiraz Maher

‘Unprecedented’ sanctions could still be powerless

Are sanctions among the most pointless tools in contemporary diplomacy? That certainly seems to be the case in Syria where sanctions have been in place against the Assad regime ever since he launched a brutal crackdown against his own people 16 months ago. Last week, Wikileaks began releasing a massive tranche of emails from Assad’s inner circle which will make uncomfortable reading for many companies in the West. They reveal that in May 2011 a subsidiary of Finmeccanica, the Italian defence manufacturer, sold over £30 million worth of equipment to the Syrian government just when an EU trade embargo was being placed on the regime. As recently as February of

James Forsyth James Forsyth

Charlotte Leslie becomes the latest 2010 MP to oppose Lords reform

Charlotte Leslie becomes the latest star of the 2010 intake to come out against the coalition’s version of Lords reforms. Explaining her decision, she emphasised to The Spectator her concerns that while the new Lords would be elected ‘they would not carry the great benefit of democracy, accountability’. As Leslie points out, this means that a Lord ‘could get elected on a myriad of populist promises, then fail to honour any of them’. She also has worries about the loss of expert knowledge from the chamber when it is elected. But her objections are, perhaps, best summed up by her attack on the argument that Tories should vote Lords reform

Fraser Nelson Fraser Nelson

Is the Work Programme working?

School and welfare reform are the signature missions of David Cameron’s government – but is welfare going wrong? Labour is crowing that today’s figures from the Work and Pensions department on welfare-to-work show it’s a failure. I’ve just come back from a DWP briefing with Chris Grayling, the minister responsible, and thought Coffee Housers would be interested in his take. It was Labour who first involved private companies into welfare-to-work, and the coalition has continued it – but pressed the reset button. Their scheme is called the Work Programme, the largest welfare-to-work programme on the planet with 750,000 clients. It means the government pays a £4,000 fee to a company

Isabel Hardman Isabel Hardman

What Labour did next on banking

When Ed Miliband gave his speech to Labour’s autumn conference last year, he rather tied himself in knots about how to end predatory capitalism. The Labour leader was trying to make it clear that he would stand up to vested interests, but the message was lost under a row about whether he was pro- or anti-business. Today Miliband managed to put that speech into context a little more, by announcing Labour’s plans to change the culture of banking in this country. Instead of predator banks, he wants ‘stewardship banking’, which builds ‘a long-term, trusted relationship with their customer’ and serves the real economy as well as the industry itself. The

Isabel Hardman Isabel Hardman

The day of the Lords arrives

Lords reform makes its way into the Commons today, but it’s hardly a relief for the whips that after weeks of threats from the rebel camp, the legislation is finally being debated. With tales circulating the House that there are 110 Tory MPs prepared to defy the whip on the programme motion, this could be the first time the Government is defeated on its legislative programme. The BBC’s Norman Smith tweeted this morning that the rebels were being told to vote against second reading rather than the programme motion if they were unhappy with the legislation. But even if, as Paul Goodman argues, not every rebel on that list of

Isabel Hardman Isabel Hardman

Shots in the arm for the economy

There’s an interesting paper out from a number of members of the Conservative Free Enterprise Group this morning. The report, called Policy Bites: Seven Shots in the Arm of Britain, makes these seven recommendations for reforming the economy: 1. Over 65s still in work should continue to pay National Insurance contributions on their earned income to fund NIC holidays for young low-paid workers. 2. Exempt businesses with up to three employees and less than £75,000 annual turnover from employment regulation. 3. Reform the Treasury to place greater emphasis on supply-side reform. 4. Give planning permission for a third and fourth runway at Heathrow. 5. Create a new Ministry of Infrastructure

Isabel Hardman Isabel Hardman

Tucker denies Labour leant on Bank over Libor

So Labour ministers did not ‘lean on’ the Bank of England to encourage lowballing of Libor rates, according to Paul Tucker. The Deputy Governor of the Bank told the Treasury Select Committee this afternoon that he had held conversations with officials about how able Barclays was to fund its operations. This is the exchange between Pat McFadden and Mr Tucker. McFadden asked whether any minister had tried to ‘lean on’ him over Libor: ‘Absolutely not.’ Asked whether Shriti Vadera had leant on him: ‘I don’t think that I spoke to Shriti Vadera throughout this whole process.’ Ed Balls? ‘No’ Other ministers? ‘No’ He confirmed that the ‘senior official’ that he

James Forsyth James Forsyth

Is Lords reform heading for a slow or quick death?

At the end of last week, Number 10 was optimistic that it and the whips were having some success in limiting the rebellion on the Lords. Some were even suggesting that the vote on the programme motion was winnable, after all. But that feeling has evaporated this morning. First, the weekend ring round by various senior figures did not meet with great success. Second, the ‘dear colleague’ letter signed by 74 MPs means that the programme motion is now pretty much certain to be defeated. Indeed, the rebels number considerably more than 74 when you include the PPSs who are planning to vote against it, the backbench opponents trying to

Isabel Hardman Isabel Hardman

Tucker’s down on his luck

‘This doesn’t look good, Mr Tucker.’ Andrew Tyrie made this observation towards the end of his Treasury Select Committee’s evidence session with Bank of England Deputy Governor Paul Tucker. He was talking about the minutes of a meeting in 2007 which suggested Tucker was aware of the lowballing of Libor, but he might as well have been summing up the witness’s hopes of taking the reins as the Bank’s next Governor. Tucker insisted he was not aware that lowballing was taking place, but the minutes themselves said: ‘Several group members thought that Libor fixings had been lower than actual traded interbank rates through the period of stress.’ John Mann leapt

James Forsyth James Forsyth

Clegg takes a hammering over Lords reforms

Nick Clegg was standing at the despatch box to move the second reading of the coalition’s Lords reform bill. But the reception he got was reminiscent of what used to happen to Lib Dem leaders at PMQs. He was barracked mercilessly by both Labour and Tory benches while his own benches remained oddly silent, only one of his MPs intervened on his behalf.   Watching the Tory benches during Clegg’s speech it was hard not to imagine a considerable rebellion tomorrow night. At one point, the interventions were coming in so thick and fast that Clegg appeared to be almost ducking at the despatch box. The Tories seemed to be

Friday

Shiraz Maher

Prevent strategy still needs political will

West Midlands Police have just announced seven arrests as part of an investigation into alleged terrorist activity. This follows the detention of six individuals on similar charges across London yesterday. Together, they reveal just how active the Islamist network in the UK remains and the potency of its ongoing threat. One of those arrested in London yesterday, a convert, Richard Dart (also known as Salahuddin al-Britani) first came to prominence last year when his step-brother featured him in a documentary called ‘My brother the Islamist’. It offered a rare observational view on the inability of one family to comprehend the militancy and millenarianism of their son. Dart was radicalised by

Isabel Hardman Isabel Hardman

Lib Dems push the boundaries

That the Liberal Democrats might try to scupper the boundary reforms if they don’t get their way on Lords reform has been the talk of the tearooms in Westminster for months. But today the threat comes to the fore as Nick Clegg’s departing head of strategy Richard Reeves warns the Independent that there will be ‘consequences’ if Tory MPs try to block reform of the upper chamber by voting down the Government’s programme motion for debating the legislation. This is what he told the newspaper: ‘There would be broader consequences for the Government’s programme, particularly around political and parliamentary reform. The idea that a failure to deliver a government commitment

Isabel Hardman Isabel Hardman

‘David Cameron stands for being Prime Minister’

‘What do you think David Cameron stands for?’ a Tory MP asked me recently. Unsure of his point, I burbled something about ‘responsibility’ and couple of other random abstract nouns. The MP shook his head grimly. ‘No,’ he said. ‘I’ll tell you what David Cameron stands for.’ I leant forward, intrigued. ‘David Cameron stands for being Prime Minister.’ It turns out that this MP isn’t the only one who thinks this way about Cameron’s motives. A survey of ConHome readers, published today, found that 50% believed he was only interested in being Prime Minister and did not have a strong vision for the country. The list of questions the site

Thursday

Richard Marsh

Closing cardiac units might be right, but it won’t be easy

Yesterday, Health Secretary Andrew Lansley reported to MPs on the state of the NHS. The state of the NHS, you’ll be relieved to know, is good, or at least it is in Mr Lansley’s estimation. Budgets are in surplus, waiting lists are down and, unless you are very unlucky, you won’t have to hang around for more than four hours in A&E before they see you. One thing, however, that the Health Secretary didn’t volunteer – curiously, since it was the biggest NHS news of the day – was the reorganisation of heart care for children, and the closure of three specialist surgery centres in England. This is probably just