Share

Total Page Views

Search

Showing posts with label Labour. Show all posts
Showing posts with label Labour. Show all posts

Friday, 30 September 2011

Ed Miliband Has Offered An Alternative – But Will Anyone Vote For It?

Miliband's indisputable leftward shift has put Labour at ease with itself but risks making the party less relevant than ever.












Ed Miliband hopes his vision, that he set out at conference, will connect with 'the country's wider shared values'.

Many years ago, I was walking down a street in London with a rising Labour politician. On a lamppost we caught sight of a poster advertising a SWP meeting. "Is there a socialist alternative to Kinnock?" the poster asked. "Yes, there is a socialist alternative," laughed Gordon Brown. "But the problem is that no one will vote for it."

Ed Miliband is certainly no Trotskyist. But his speech to the Labour conference in Liverpool this week is already raising some of the same questions that the old SWP poster did. For Miliband is gambling that there is an alternative to contemporary orthodoxy. He believes that the experience of financial collapse, public spending cuts and recessionary inequalities requires a resetting of the collective moral and economic compass. Crucially, he believes that the electorate can be persuaded to embrace it.

Miliband chose his words very carefully. Terms like socialism and capitalism do not appear in his speech. But they were implicit in it. Read in conjunction with the recent New Statesman article by Miliband's strategist Stewart Wood, this week's speech adds up to an attempt to reclaim social democracy as Labour's core route-finding principle. Cautious it may be – Wood sees Labour's aim as the creation of "a better capitalism", which won't please everyone in the Labour ranks – but the argument is put with clarity. It is indisputably a leftward shift from the New Labour years. It is also what Miliband has always wanted, which helps, sort of.

The large question now is whether Labour will succeed in shifting the national argument so that his version of social democracy stands at the centre of public debate. Miliband's conviction that it can is central to his entire leadership. It was embodied in the many sections of this week's speech that tried to connect Miliband's own vision with the country's wider shared values. If he succeeds in setting an agenda of market, welfare and community reforms that voters really want to and do believe in, then he may indeed reshape British politics. But if he fails, Labour's slide to the political margins will continue.

Less than three days after the speech, most of the reaction to it has already fallen into one of two camps. These strike me as too crude in both cases. On the one side there are those who welcome Miliband's commitment and think he can succeed – this was the general mood at Liverpool. On the other there are those who dismiss what Miliband said and think his approach is doomed to failure – which is what the Conservatives will undoubtedly say next week in Manchester.

In fact, the impact of Miliband's speech could be less straightforward than that. This is not an argument between a wholly laissez-faire approach and a wholly dirigiste one. In reality it is an argument about shifting the balance within a narrower set of priorities than those who insist on talking about the end of neoliberalism ever admit. Even so, this was one of the few party leader's speeches that may be remembered for longer than a week after it was given. Most of its actual phrases may already have gone down our mental chutes into the waters of oblivion. But it is quite likely that a lot of people will remember this as the moment when Miliband turned the party away from the New Labour orthodoxy that compromise with global markets is inevitable.

But there are turns and turns. To take an obvious example, which Miliband will have to address eventually, there is all the difference in the world between maintaining the coalition's tax and spending levels and committing to raise them. There is also a gulf between attacking economic predators and extolling producers, as Miliband did this week, and putting strict regulations in place to deny the former and promote the latter. And there is a massive difference between being a party of free trade, a principal that the left has always managed to embrace, and being a party of protection.

If he is dumb, Miliband may be tempted to do what the Tories would love him to do and promise to clamp down directly, almost certainly ineffectively and in all probability with unintended consequences, on morally indefensible excessive pay and bonuses. If he is smart, he will use the bully pulpit, as he did on Tuesday, at least as much as the tax system to encourage the better capitalism, and the better companies, to which he aspires.

The idea that there might be a workforce representative on remuneration committees caused outrage in the rightwing press this week, but it ought to be just the start, not to an expanded role for the unions, but for well-argued and flexible new models of workplace co-determination of the kind that have done so much for German companies.

The best news for Labour I heard in Liverpool is that Andrew Adonis is planning to focus on new thinking about industrial policy, a subject riddled with old ideas, especially in the unions, but which is crucial to any long-term reimagining of the UK economy. It does not follow that the left's traditional state-centred responses are the new centre ground just because people are outraged by the bankers and by indefensible wealth.

The experience of the last three years suggests public opinion has moved to the view that government deficits are part of the problem, rather than the solution. Thursday's vote in Germany and this week's budget in France were the latest reminders of that. Labour was canny about the economy this week: Ed Balls got the balance right in his speech. But parties of the left are losing ground across the world right now and Labour shouldn't imagine there is a magic moral bullet that will enable it to buck that trend.

Labour's move to the left can be, and has already been, exaggerated – by friend and foe alike. Yet it has been a significant declaration by the party nonetheless. The coalition parties will undoubtedly respond, and not merely with abuse and caricature. Expect surprise moves that try to undermine Labour claims to ethical uniqueness.

Electorally, the danger for Labour is that the party will have convinced itself that it has rediscovered its own sense of ethical virtue without persuading sceptical voters that it can run the economy. The party may be more at ease with itself but less relevant than ever. Miliband may want to see himself as the new Clem Attlee. But his ratings suggest that the voters still see him as the new George Lansbury – an unworldly leader and an electoral failure.

Friday, 23 September 2011

What Ed Miliband Should Say At Labour Conference, But Won’t

It is now beyond question that Ed Miliband is moving his party to the left, or redefining the centre ground if you prefer, or drawing a line under the New Labour era. Or whatever.










The latest symbolic move has been to back Palestinian statehood in advance of a vote at the UN. This is a peculiar decision that makes no real sense before knowing what the Palestinians are putting on the table, except to send a strong message to the party faithful that Ed Miliband is shifting policy on the Middle East. This line on Israel/Palestine is one that Tony Blair and Gordon Brown would never have countenanced and that is the whole point.

Ed Miliband is determined to ditch the legacy of the Blair-Brown era (which is odd considering that he is its creature) and I can’t help thinking this is a terrible strategic error.

The opposition is hamstrung by the fact that it still hasn’t found the right language to take on the government. Miliband has squeezed himself into a tiny ideological sliver, where he can’t move any further to the left for fear of inviting ridicule, but can’t entirely embrace the achievements of the Blair-Brown years either.

In welfare to work, education and health, the Cameroons are engaged in implementing the Blairite reform agenda. The logic of Ed Miliband in the new post-New Labour era should make it possible to oppose this from the Left. But there are still too many Blairites around him to quite pull this off. With Liam Byrne in charge of the policy review it will be impossible to dump the New Labour policy agenda in its entirety.

Instead of trying to persuade people that Cameron is a Thatcherite in disguise, Labour should concentrate on questioning the Tories’ competence in government. Ed Miliband’s conference speech should recognise that all the most adventurous ideas of the new government are stolen from New Labour and give them a cautious welcome. He should then say that the job of opposition is to forensically examine the government’s record on delivery and stand back.

He won’t do this, of course, because to embrace the Blairite legacy would mean immediate death within the party.

Thursday, 22 September 2011

Let’s Get A Tighter Grip On Defence Spending

Britain’s performance on defence procurement is poor – it’s time to make those responsible face the consequences.














Equipped to do the job: British armoured forces in action in Afghanistan.

The history of defence procurement is not a happy one. Ensuring that our Armed Forces get the best possible equipment they need, when they need it, is easier said than done. Today, Labour will publish the findings of a comprehensive 10-month study into defence acquisition policy that will inform a wholesale review of party policy launched by Ed Miliband last year. There are few benefits of being in opposition, but being able to take a step back and reflect is one.

Labour can be proud of the fact that we increased the defence budget by 10 per cent in real terms during our years in power. Defence procurement was reformed and equipment, from drones to personal kit, was transformed – so much so that, by 2009, the last chief of the defence staff, Air Chief Marshal Sir Jock Stirrup, remarked that our troops had never been so well equipped. The welfare of our forces, and crucially that of their families, was also improved.

But defence procurement is a complex and challenging activity. The lead times are enormous and technology changes So what is to be done? It is often said that there is a “conspiracy of optimism” in defence procurement. At best, there is a tendency to muddle through in the hope that both the customer and supplier “get there in the end”. At worst, defence procurement has been based on unrealistic assumptions and over-ambitious plans that balloon beyond all recognition, along with the costs. This conspiracy of optimism has to be replaced by a culture of consequences.

This must apply to the defence industry. In the past, the taxpayer has been left carrying the can for some of its lamentable failings, with some suppliers seeing the UK government as little more than a cash cow. Too many times, once a company or consortia has been awarded a contract, the price begins to ramp up.

First, we need firmer and fairer contracts that incentivise good performance, with industry asked to provide higher warranties for performance. There should be far greater penalties for those that fail to deliver on time and on cost, and the MoD should not be afraid of taking companies back to the initial approval stage, or indeed calling time on contracts that are simply not working. Experience should triumph over hope.

Second, in the case of de facto and actual monopoly suppliers to the MoD, there should be what is known as “open book” contracting once a contract is let. This means far greater transparency of costs and profits in a long-term partnering approach. Within such an approach, there should be not just an agreed price but an agreed target level of profit, too. If the MoD’s requirements change due to operational imperatives – where, say, our Armed Forces need something extra on top of the original specifications – industry must not be allowed to cash in and make super-normal profits on the change in price.

And third, we need shorter, less complex projects with streamlined processes and decision-making. In defence procurement, time is money.

But we also need that same culture of consequences inside the MoD. In the commercial world, promotion and bonuses are based on performance. But in the MoD, there is little sense that poorer performing individuals in very senior roles are ever held accountable. The people leading Integrated Project Teams (IPTs), who manage major procurement programmes, should have the authority, accountability and responsibility for project execution. Currently, they are given as little as four or five days’ training and tend to come from either the Civil Service or from the military – this does not always make them best able to manage hugely challenging commercial contracts.

These problems are compounded by the frequent changes in project managers. The norm in the MoD is to move jobs every two years. This leads to constant changes of strategy and emphasis, which are not helpful and avoid the need for managers to live with the consequences of their actions.

This autumn, the Government will publish its White Paper on the defence industry, but all the signs are that it will have little to say except – as is the case with the Bombardier contract for new trains – that we should give up at home and simply “buy off the shelf” from abroad. Today, Labour will present a host of ideas to reform defence procurement. But in beginning to shape policy for the future, all parties need to be honest about the past and learn from their mistakes.

Michael Dugher MP is shadow minister for defence equipment rapidly, as do our requirements, with the enemy having a say in all of this. And despite all the investment and improvements, we made mistakes. The problems of defence procurement have plagued all governments, but the huge delays and massive cost overruns continued on our watch.

That is why Labour in government commissioned the Gray Report in 2009 to identify the serious failures in acquisition. The current Government liked the report so much that it hired the author, Bernard Gray, to head up defence equipment and support at the Ministry of Defence.

The fact is Britain’s record is poor. Over the period for which there is consistent data (2003-2010), major projects costing the taxpayer in excess of £200 million, and those that were planned to take four to five years between “Main Gate” decision and entry into service, exceeded their most likely out-turn estimate of costs by more than 10 per cent on average – with extremes of up to 40 per cent. These programmes also slipped by 40-50 per cent – some by as much as 250 per cent – from their expected schedule.

So what is to be done? It is often said that there is a “conspiracy of optimism” in defence procurement. At best, there is a tendency to muddle through in the hope that both the customer and supplier “get there in the end”. At worst, defence procurement has been based on unrealistic assumptions and over-ambitious plans that balloon beyond all recognition, along with the costs. This conspiracy of optimism has to be replaced by a culture of consequences.

This must apply to the defence industry. In the past, the taxpayer has been left carrying the can for some of its lamentable failings, with some suppliers seeing the UK government as little more than a cash cow. Too many times, once a company or consortia has been awarded a contract, the price begins to ramp up.

First, we need firmer and fairer contracts that incentivise good performance, with industry asked to provide higher warranties for performance. There should be far greater penalties for those that fail to deliver on time and on cost, and the MoD should not be afraid of taking companies back to the initial approval stage, or indeed calling time on contracts that are simply not working. Experience should triumph over hope.

Second, in the case of de facto and actual monopoly suppliers to the MoD, there should be what is known as “open book” contracting once a contract is let. This means far greater transparency of costs and profits in a long-term partnering approach. Within such an approach, there should be not just an agreed price but an agreed target level of profit, too. If the MoD’s requirements change due to operational imperatives – where, say, our Armed Forces need something extra on top of the original specifications – industry must not be allowed to cash in and make super-normal profits on the change in price.

And third, we need shorter, less complex projects with streamlined processes and decision-making. In defence procurement, time is money.

But we also need that same culture of consequences inside the MoD. In the commercial world, promotion and bonuses are based on performance. But in the MoD, there is little sense that poorer performing individuals in very senior roles are ever held accountable. The people leading Integrated Project Teams (IPTs), who manage major procurement programmes, should have the authority, accountability and responsibility for project execution. Currently, they are given as little as four or five days’ training and tend to come from either the Civil Service or from the military – this does not always make them best able to manage hugely challenging commercial contracts.

These problems are compounded by the frequent changes in project managers. The norm in the MoD is to move jobs every two years. This leads to constant changes of strategy and emphasis, which are not helpful and avoid the need for managers to live with the consequences of their actions.

This autumn, the Government will publish its White Paper on the defence industry, but all the signs are that it will have little to say except – as is the case with the Bombardier contract for new trains – that we should give up at home and simply “buy off the shelf” from abroad. Today, Labour will present a host of ideas to reform defence procurement. But in beginning to shape policy for the future, all parties need to be honest about the past and learn from their mistakes.

Michael Dugher MP is shadow minister for defence equipment.

Miliband To Face The People

Ed Miliband is to face direct questions from members of the public at Labour's national conference next week as part of his effort to show that the party is listening to ordinary people.












Some 2,000 members of the public, recruited through the local media, have been invited to submit questions on any subject which will be put to the Labour leader without any pre-checking, said party sources.

The question-and-answer session on Wednesday comes as Mr Miliband seeks to change the party's rulebook to allow non-members to take part in the election of future leaders by becoming "registered supporters".

The Labour leader hopes to secure the change at an eve-of-conference meeting of the ruling National Executive Committee on Saturday, when he will also push for the abolition of elections to the shadow cabinet.

In a foreword to the conference agenda, Mr Miliband argues that the party must use next week's gathering - taking place in Liverpool under the slogan Fulfilling the Promise of Britain - to show it has "the confidence to change".

In his keynote speech on Tuesday, he will tell his party that it is time to "rip up the rulebook" in order to challenge an economic and political settlement that has become the consensus over the past decades.

In a video message to supporters, Mr Miliband said there is a "quiet crisis" among the "hard-working people of Britain" over living standards, worries about their children's futures and irresponsibility in society.

He said: "We've got to change those things - we've got to do it by taking on the vested interests that hold our country back, from the banks to the energy companies. We've got to stand up for the grafters, the hard-working majority in Britain."

Writing in the conference magazine, Mr Miliband accused the Conservatives of being "out of touch" with ordinary people and too close to a "powerful and privileged few", of making "reckless choices" on issues such as NHS reform and the cuts programme and having "no vision for a better Britain".

"It is up to Labour to be the voice of those families whose living standards are being squeezed ever tighter, who worry that their children will find it tougher to get on in life and feel angry that irresponsible behaviour is rewarded," wrote Mr Miliband.

Labour Pledges Better Defence Deals

Labour has tried to draw a line under its history of disastrous military equipment spending programmes as it presented a report aimed at ensuring overruns never happen again.













Shadow defence minister Michael Dugher outlined the findings of a 10-month review into defence procurement which investigated how to cut delays and budget overspends in future deals.

Mr Dugher admitted that by holding its review Labour was "confronting the past" of contracts signed during its 13 years in power.

He said: "It is inescapable that the problems of defence procurement which plagued all governments continued on our watch. A future Labour government has got to do much better, which was why we wanted this review. We need big changes going forward."

Shadow defence secretary Jim Murphy claimed the 96-page report, which includes 37 recommendations, is "extensive, open and ambitious".

He said: "We have lived for far too long with a conspiracy of optimism. No more can we have a culture of frequently missed deadlines and estimates which are extended to the detriment of a delivery timetable. There must be more openness in the system and more ruthlessness when there are overruns.

"Being prepared to cancel projects when time and budget exceed 20% of their estimate is, therefore, an example of the recommendations to which we will give very serious consideration."

He said equipment was delayed too often because new technology offered improvements while the original order was still being built - delaying getting much-needed equipment to the frontline.

"The search for the exquisite can delay the deployment of the excellent," said Mr Murphy.

Sunday, 18 September 2011

Liberal Democrat Leaders Say Fair Taxation Is Key To Cutting Deficit

Danny Alexander outlines plans to kickstart economy by ensuring money hoarded by Labour is spent on infrastructure.












Liberal Democrats should fight the next election by aspiring to lift those earning less than £12,500 out of paying income tax, says Danny Alexander.

The Liberal Democrats should fight the next general election by aspiring to lift anyone earning less than £12,500 out of paying income tax, Danny Alexander said.

The chief secretary to the Treasury, a close ally of Nick Clegg, also set out the "next steps in our plan for growth", including a pot of £500m drawn from "unallocated funds" across Whitehall. Later, in an interview with the BBC's Andrew Neil, Alexander said these funds had been taken from savings found across government and did not amount to a stimulus.

Although this money comes from within the "spending plans", he said, the cash will now be disbursed with more urgency to kickstart infrastructure projects currently struggling for credit, with the hope of galvanising private spending.

It is the third indication from the Lib Dems in the past week that they intend to concentrate efforts on accelerating capital projects, which marks a subtle shift in emphasis towards greater public spending, without busting the headline deficit reduction plan.

Clegg made a speech on the subject last week, announcing that Alexander was now in charge of 40 projects across Whitehall, ensuring they are implemented rather than delayed.

They are pressing because they believe that if government funds already allocated can be spent rather than hoarded – which they believe was the case under the last Labour government – modest upfront sums "gear" up to become substantial amounts of fresh capital.

The business secretary, Vince Cable, also evoked the policies of Franklin D Roosevelt in the 1930s when he called for a "New Deal-style stimulus" for capital investment in an interview on Saturday with the Guardian. In his Q&A with Neil on Sunday evening at the party conference, Alexander refused to back Cable's language, but said he preferred to express it as the government "straining every sinew" to get the economy growing more.

As well as further schemes to drive capital investment, and the aspiration of the party going further in its bid to take the low paid out of tax, Alexander also set out measures to increase tax revenues.

He repeated a pledge made in last year's conference speech that there would be a clampdown on tax evasion, with 2,250 HMRC staff working on evasion and avoidance. He said the government was already raising £2bn in this way this year, which he pledged would rise to £7bn annually by the end of the parliament.

In one month's time, an "affluent team" will begin looking at the 350,000 wealthiest taxpayers who each earn more than £2.5m a year, in addition to the 5,000 who are already monitored: "These are the people who pay or should pay the 50p rate of tax," he said in his speech on the first morning of conference.

"My message to the small minority who don't pay what they owe is simple – I agree with the chancellor. We will find you and your money and you will pay your fair share," he said.

He was sanguine about the 50p rate of tax – which Tory colleagues expect will be dismantled if a review winding up in January shows it yields little revenue. Once Alexander had said he believed it was "cloud cuckoo land" the rate would be discarded despite Tory colleagues regarding him to agree he was not ideologically committed to it should it emerge to be unlucrative.

Tories say the debate behind the scenes is turning not on whether the 50p tax rate stays or goes but rather on what amount the replacement levy raises – the sum the previous Labour government intended it to raise when they introduced the tax; or the amount the 50p rate has actually brought in. The question then becomes what tax on the wealthy be brought in its stead.

Alexander said: "Fair taxation of the wealthiest is key to our deficit reduction plan. Of course, if a better way can be found to raise the money from this group, I will be willing to consider it."

Later in his interview with Neil, Alexander talked about ensuring the "tax burden" on the wealthy remained high.

Earlier in the day, Clegg also made it clear the party's negotiations on the 50p rate would not see them martial an ideological commitment to it, but rather they would accept its replacement by some other form of levy on the well-off.

He told the BBC's Andrew Marr programme: "It stays unless we can first make more progress on lowering the tax burden on people on low and middle incomes, and secondly making sure as the chancellor himself has said we can find other ways the wealthiest can pay their fair share."

In Birmingham, Alexander's speech was remarkable for placing an emphasis on how to push ahead with another aspect of the Lib Dem income tax policy, at the other end of the scale.

He told the conference hall: "In the next parliament, I want us to go further; our aspiration should be that someone working full time on the minimum wage should pay no income tax at all. An income tax threshold of £12,500 – think what that would do to work incentives, think what it would mean for basic fairness. Let's put that on the front page of our next manifesto."

The coalition agreement pledges that both parties in government will raise the income tax threshold to £10,000 by the end of the parliament and it is one of the policies the party is proudest of.

The policy has received support on the centre-right of the political spectrum with Tories sympathetic to its aims of cutting tax for the less well paid, but it has been criticised for being poorly targeted; in its original form this was a tax cut enjoyed by all, regardless of income.

The policy also has its Tory critics within the cabinet who fear a policy that removes people from paying tax would sever the relationship between government and the people.

Now the Lib Dems have committed themselves to raising the tax threshold still further, putting on the record an early indication of how they might seek to differentiate themselves from the Conservatives towards the end of the parliament.

Alexander's speech was occasionally heckled by one audience member with a shout of "rubbish" when Alexander criticised the Labour policies of Gordon Brown – a reminder that some delegates in the hall do not agree with the party leadership's decision to back plans to eliminate the structural deficit by the end of the parliament.

The coalition is currently trying hard to devise policies that will stimulate the British economy without busting either of the two targets they hope to hit at the end of the parliament – eliminating the structural deficit by 2014-2015 and bringing down the debt-to-GDP ratio.

While insistent they will not resile from the so-called "plan A" both on and off the record, the new imperative is to find ways of using existing capital spending commitment to encourage the private sector to part with their capital and increase the amount of capital in the economy.

On Friday, the business secretary Vince Cable, published a pamphlet for the CentreForum thinktank in which he suggested that alongside a new round of quantitative easing, he also believed new infrastructure projects were necessary including new roads built as toll roads.

This would have the advantage of encouraging the private sector to embark on a capital investment with a certain revenue stream not coming from the public purse.

Insisting his proposals amounted to a radical Keynesian package – using language and ideology not associated with the Conservative chancellor, George Osborne – Cable said that in the face of a stagnating economy ministers had to "pull all the levers available to government. We are not powerless."

Cable said: "It was four years after the Great Crash that Roosevelt came in and several years before they could do anything. Dams started being built 10 years after the Great Crash. What I have set out is a Keynesian approach to a demand crisis, but operating in a new world in which governments are highly constrained by these very febrile international financial markets. We constantly have to pay attention to them."

Now Alexander will disburse a "Growing Places fund", which he hopes enable the creation of local infrastructure across England.

"£500m to deliver key infrastructure and unlock development and create jobs. Providing a one-off upfront capital investment to kickstart developments that are stalled due to cash flow problems or lack of confidence.

"Putting local areas in the driving seat, enabling local government to invest in the key strategic infrastructure projects that they have identified as priorities and getting people into work."

Alexander said: "As Liberal Democrats, our judgments about what needs to be done should be driven by the liberal economy we want to build – sustainable, balanced, competitive, fair. To get there we must break down the vested interests – the enemies of growth that stand in the way of future prosperity."

"Too many businesses are being held back by congested roads, slow railways, inadequate broadband. Now more than ever, we need to get on with this work."

Hugh Grant: style watch

OK, so Italian politics has its problems, but at least they know how to dress. Hugh Grant, on the other hand, here lends weight to the old style adage that British men can't do casual.

When it comes to rocking a three-piece suit with a pocket square, the Savile Row gent still leads the world, but a certain type of British man still flounders as soon as let off the strictest dress code leash.

The trouble with this outfit is that the messages are mixed: was he trying to look smart but didn't have time to pull himself together and tuck his shirt in, or was he aiming for casual and put a suit jacket on as an afterthought? I suspect he was aiming for the kind of rakish dishevelment that Bill Nighy has made his own. But to pull that off takes effort.

Only the most perfectly fitted jacket looks good rumpled. Lucky for Hugh he's only addressing the Lib Dem conference. He'd never make it at London fashion week.

Saturday, 17 September 2011

Liberal Democrats Vow To Fight Rightwing Policies Of 'Ruthless' Tories

Nick Clegg signals combative approach to coalition describing PM's party as political enemies who must be taken on.












Nick Clegg speaking at the Liberal Democrat party conference.

Nick Clegg's Liberal Democrats have vowed to face down "ruthless" and "extreme" forces in the Tory party to protect the British people from right-wing policies that would widen inequality and benefit the rich.

At a rally on Saturday night to open his party's annual conference in Birmingham, Clegg underlined the Lib Dems' newly combative approach to the coalition, describing David Cameron's party as "political enemies" who must be taken on when necessary in the national interest. After a traumatic year during which the Lib Dems' popularity has plummeted and their leader has been accused of abandoning his party's principles, Clegg struck a markedly more assertive note.

While trumpeting his party's successes so far in influencing health and tax policies, he said it was more prepared than ever to "fight tooth and nail" for what was right. "We are prepared to be awkward," he said. "We are not here to make things easy. We're here to put things right."

In an interview with the Observer, his deputy Simon Hughes goes further, telling the Conservatives they have no mandate to drive through a rightwing agenda. Hughes says the Tories have shown themselves to be "ruthless" operators in the first 16 months of the coalition over the referendum on electoral reform and boundary changes and says the resurgent right of the party is "extreme" on issues such as Europe and tax.

He says Tories must come to their senses and realise that they did not win the last election – and that they rely on the Lib Dems for power.

"Not only did they not win but they got a third of those who voted," he said. "The Tory party is not the dominant party in British politics that it used to be. It is absolutely not the dominant force in Scotland and Wales that it used to be. The Tory right have forgotten that."

In a rebuff to Conservative hardliners he adds: "There is absolutely no majority in parliament for your views. If there is a coalition government in the national interest then extreme remedies and answers are not appropriate."

The comments are bound to infuriate Cnservatives as the conference season opens. Many Tories are beginning to resent profoundly the way the Lib Dems are already watering down Tory changes on health and education and blocking Cameron from developing a more hardline approach on Europe.

Clegg and his ministers are now convinced they can claw back some of their pre-election popularity if they can demonstrate that they are reining in the Conservatives and stamping their own mark on government. Deep division between the coalition partners will surface in Birmingham over tax, welfare, health, pensions and last month's riots.

The party leadership will announce it will veto the abolition of the 50p tax rate for people earning over £150,000 – a key demand of the Tory right – unless and until other measures, such as a mansion tax, are imposed. It will also unveil plans to exempt the first £12,500 of earnings from tax, raising the target from its current level of £10,000.

Hughes says the party has to make the fight against wage inequality in the private sector a key theme. He said he is pushing hard for measures to limit the gap between the highest and lowest paid staff in the private sector. "The differentials are obscene and you really cannot just stand by," he said. "Liberal Democrats have to be clear. If Labour is really relaxed about the stinking rich, some of us are not relaxed about it."

Hughes also insisted that reform of party funding was essential to stop the Conservatives running ruthless campaigns – as they had against electoral reform. "The Tories can be nastier – with a result – if they are allowed to collect more and more money legitimately," he said.

On tax, he said the UK properties of wealthy non-domiciled individuals should be hit. "It would be entirely reasonable to say that if someone is not domiciled in this country but has six mansions they should be paying more into the system." Danny Alexander, the chief secretary to the Treasury, will announce the commitment of £600m to boost infrastructure projects and will attack bankers who fail to lend to businesses. "Our judgments about what needs to be done should be driven by the liberal economy we want to build," he will say.

On Saturday night, the Lib Dem equalities minister, Lynne Featherstone, dismissed suggestions that Cameron had been a major force behind the move to legalise gay marriage when she claimed ownership of the policy. "Conference, this is a Liberal Democrat policy," she said.

Clegg said his party had shown courage entering a coalition that was now shaping policy by "cutting taxes, not for the rich, but for millions of people on low and middle incomes". The Lib Dems could have "bottled" the chance to govern but instead "rose to the challenge", he said, "and we did it knowing it meant working with our political enemies and almost certain short-term unpopularity".

The party leadership was celebrating the failure of former health spokesman Evan Harris to force a vote on the NHS. The Lib Dems believe they are making more progress to dilute the reforms behind the scenes.

Thursday, 15 September 2011

PMQs: Ed Miliband Lashes Chancellor Over Childcare

During Prime Minister's questions the Labour leader slipped a cheeky reference to George Osborne's alleged links to dominatrix Natalie Rowe.



Ed Miliband used his time at the Dispatch box to criticise the Government's plans to cut support for childcare at a time of rising unemployment for women. He then accused Chancellor George Osborne of "lashing himself to the mast" in his refusal to change course over the economy.

The apparently deliberate reference produced laughter from the Labour benches.

Lest anyone be in any doubt what the meant, Mr Miliband added after a pause: "not for the first time, perhaps".

On Monday, old – and strongly denied – allegations resurfaced about George Osborne's links to an escort agency charging clients for sadomasochistic sex.

David Cameron Under Pressure To Soften Hardline Deficit Strategy

Institute of Directors, the Prince's Trust and the TUC join the opposition in demanding action to boost the flagging economy.












David Cameron has been urged to take urgent action to boost the economy.

David Cameron is under growing pressure to soften his hardline deficit reduction strategy after a wave of redundancies in central and local government sent unemployment surging beyond 2.5m.

With the City predicting joblessness would hit 2.75m next year, the Institute of Directors, the Prince's Trust and the TUC joined the opposition in demanding urgent action to boost the flagging economy.

Cameron admitted the official figures – which included the highest female unemployment in 23 years and almost a million young people shut out of the labour market – were "disappointing".

But he insisted that the coalition would not do a U-turn as it attempted to repair Britain's public finances over the course of the current parliament. He said: "All governments are having to take difficult decisions about cutting public spending. Anyone standing here would have to make those decisions. This government is reducing the welfare bill and reforming public sector pensions. If we weren't taking those steps you would have to make deeper cuts in the rest of the public sector."

Ed Miliband, the Labour leader, said the government's plan for an expanding private sector to replace jobs lost as a result of the austerity programme was not working after the Office for National Statistics reported on Tuesday that 111,000 jobs were lost in the public sector in the three months to June 2011, against 41,000 created in the rest of the economy.

"The message to all those people who have lost their jobs is the prime minister is not going to change course," he said. "For every two jobs being cut in the public sector, less than one is being created in the private sector. Isn't that the clearest sign yet that your policy just isn't working?"

Ministers had been preparing for poor unemployment figures after evidence emerged in recent months to show the economy's recovery from the deep recession of 2008-09 had almost stalled.

The ONS said joblessness was rising on both measures used by the government, the internationally agreed Labour Force Survey (LFS) and the more narrowly based claimant count.

Using the LFS yardstick, unemployment stood at 7.9% in the three months to July, while a 20,300 jump to 1.58m in August left the claimant count jobless rate at 4.9%. Unemployment among the under-25s rose by 77,000 in the three months to July, taking the total of unemployed 16-24 year olds to 972,000.

A spokeswoman from The Prince's Trust youth charity said: "It is deeply concerning that youth unemployment has risen sharply, with young people hit hardest and those out of work for more than a year increasing by nearly a fifth. To tackle this downward spiral of youth unemployment, government, businesses and charities need to work together on schemes that work. More than three in four young people supported by The Prince's Trust last year moved into work, education or training."

Scotland was the one region of the UK to see a fall in unemployment between May and July. Alex Salmond, the first minister, said the decline was due to extra spending on infrastructure projects and support for small and medium sized companies.

Analysts said the weakness of the labour market was highlighted by a fall in vacancies, a 40% jump in redundancies and a record number of people working part-time but in search of full-time jobs.

Scott Corfe, senior economist at the Centre for Economic and Business Research, said: "The UK government will now be under immense pressure to deal with unemployment, especially given President Obama's announcement of a $450bn (£280bn) job creation package in the US last week. The focus of a UK jobs creation package would almost certainly be on private sector deregulation and measures aimed at reducing the risk associated with hiring new workers – rather than a slowdown in the pace of deficit reduction – given the political costs of moving away from plan A."

Graeme Leach, chief economist at the IoD, said it was time for the Bank of England to announce a second round of quantitative easing (QE), with the Bank of England buying bonds in order to create money. He said: "The storm clouds are gathering, with falling employment and rising unemployment at a time when it is difficult to see how this might reverse. Today's figures reinforce our belief that we need to launch QE2 as soon as possible."

The TUC general secretary, Brendan Barber, said: "These are terrible figures. They are further evidence that the recovery has been choked off by a self-defeating rush to austerity. Government policies are hurting, but they aren't working."

Nigel Meager, Director of the Institute for Employment Studies, said: ""It's hard to avoid the conclusion that policy-makers now need to stop sitting on their hands and start looking for ways to get spending power into the economy quickly."

Sunday, 11 September 2011

The Liberal Democrats Aren’t Especially Liberal – Or Even Democratic

The junior Coalition partner’s policies have made a mockery of its historic name.












What is Sarah Teather's party actually delivering for Britain?

If the Liberal Democrats didn’t exist, under what circumstances would you choose to create them? I’ll assume that it’s the “Liberal” bit of their historical accident of a name that matters (not many anti-democrats run for election these days). If we did feel the need for a Liberal Party, I guess it would be because neither the Labour nor Tory organisations were being sufficiently, well, liberal in their policy-making.

Ten years of Tony Blair and Gordon Brown making illegal anything that moved, while repeatedly trying to give the state the power to lock us up without charge for longer and longer periods? Yes, I can see a need for some more liberalism; that there could be a useful role for a party to react viscerally against Labour’s criminalising tendencies. Ten years of Margaret Thatcher? I’m hardly one to criticise my political hero, but I can’t deny that prolonged exposure to her governing style might make a voter yearn for something a little less prescriptive; a little more laissez-faire in matters social. Regardless of your own political disposition, then, I don’t think it’s hard to make the case that political space could exist for a party which prioritised the autonomy of the individual over either stateist or corporatist collectivism.

Now imagine that you are a Liberal Democrat. Your organisation has been in the wilderness for 80 years, since the time of Lloyd George. The general election of 2010 gives you the chance to share government with the Conservatives; this is the first time in recent history that an administration will have a serious Liberal presence. How would you behave? Me, I would be bending over backwards to demonstrate that not only is a liberal instinct a useful one to bring to the art of government, but that it also makes sense to have that instinct embodied by my organisation. Anyone anyone can call themselves a “liberal”. The trick is to convince voters that such an instinct requires a party to carry it.

Instead, what has happened? Andrew Lansley’s Health Bill, which made a tentative step towards liberalisation of health provision in the UK, is first of all postponed, and then watered down, largely at the behest of the Lib Dems. Even after the Bill passed the Commons this week, Baroness (Shirley) Williams and the dis-elected ex-MP Evan Harris continued to mutter darkly and publicly about their inability to support it. Lib Dems ensured that the planned GP consortia – supposed to act for us, the patients – will include hospital doctors and nurses; a prioritisation of the producer over the patient. Unelected peer and dis-elected ex‑MP – I withdraw my opening remarks about the party’s name: they’re not even democratic, let alone liberal.

Also this week, Nick Clegg gave a speech about the Coalition’s flagship free schools. These schools are the last, best hope of those children failed by local education authorities. Academic excellence through freedom of choice: what could be more liberal than that? Instead, Mr Clegg chose to focus on the importance of preventing anyone running such a school from making a profit – profit is bad, apparently, because successful schools might use the money to expand – and went out of his way to support an even greater role for councils – the LEAs – in controlling access. In a straight choice, the Lib Dem leader prioritises the producer interest.

I could go on. Lib Dems also want to delay the election of local police commissioners. Anti-democratic again; and when was denying a voice to the people a “liberal” characteristic? And I’ve not mentioned the party’s support for the Human Rights Act, largely because it defies parody, let alone analysis. “Votes for prisoners”, say Lib Dems. It’s not quite the heady fight of the People’s Budget of 1909, is it?

Ah yes, say Lib Dem activists, but think of all the good we bring to the Coalition. When pressed, they trumpet the lack of recognition of marriage in the tax system. I’m not clear why it’s liberal to penalise the natural pair-bonding affinity of human mammals, but there you are. They also claim to have secured the increase in the personal allowance for the poorest taxpayers, as well as the retention – thus far – of the 50p top rate.

The 50p top rate is economically illiterate, and needn’t detain us. Symbolism does matter, though, and if keeping it there for a few months longer means that those such as Simon Hughes (“Champion of University Access”, no less) continue to vote with the Government, so be it. But did we need the Lib Dems to make the case for the increase in personal allowances? Tories have campaigned against the complex and inefficient recycling of income from the poor, to the government, and then back to the poor, for years. More importantly, the Right-wing view of tax (to reduce it wherever possible) is truly liberal, because it seeks to free people from state dependency. Lib Dems view tax as an instrument of social engineering; hence the posturing over 50p.

Eighty years in the wilderness, 80 years protecting the flame, and they can’t even mount a coherent case for electoral reform (“AV is a miserable little compromise” – Nick Clegg. But then: “Vote for AV” – Nick Clegg). Measured as the opportunity to show that British liberalism deserves the vehicle of its own party, coalition has been a disaster for the Lib Dems.

We have to face up to this political category error. Just because we can all agree that there’s a need for some liberalism in our politics, just because some unpopular politicians have given themselves that name, we’ve taken the Liberal Democrats at their own valuation. But Shirley Williams and Evan Harris are not liberals, and nor are the other former leaders and big Lib Dem beasts who haunt the media airwaves with a greater prominence than the paucity of their electoral support could ever justify.

Not that a political position has to be popular in order to be worth holding; and if a party wants to act as a pressure group for the producer interest in health and education, or as a supporter of judicial activism on Human Rights, or to call for ever-greater European integration (as Danny Alexander did this week), then good luck to it. But it shouldn’t mis-name itself.

Where the Lib Dems have been politically effective in the Coalition, they have been anything but liberal. And when they claim to be liberal, they are merely copying policy which the larger party would implement anyway. Neither tactic makes them a worthwhile coalition partner for a Conservative; worse, from the Lib Dem point of view, neither tactic has demonstrated that the 80 years without them were a political loss for Britain. If the Liberal Democrats didn’t already exist, to answer my opening question, I suspect that few would contemplate breathing life into the politically unattractive, social democratic clay from which they are fashioned. We already have a party to represent the sectional producer interest. It’s called “Labour”.

Thursday, 8 September 2011

Alistair Darling: 'You Can't Just Tell Half The Story And Still Be Credible'

With the publication of his new memoir, the former chancellor talks about Gordon Brown, economic meltdown and the time he was locked out of the White House.












Alistair Darling's memoir contains an anecdote of such peerless absurdity, you literally could not make it up. The chancellor and Gordon Brown were visiting the White House in November 2008, for a crisis summit of leaders and finance ministers, and set off in a cavalcade from the British embassy. But such was the size and self-importance of Brown's entourage, who piled into the fleet of cars, that the chancellor was left to find himself a space in the very last car. When Brown's car pulled up before the steps of the White House, and the cavalcade drew to a halt behind, Darling was still at the back of the queue, stuck outside the gates on the street. He got out, walked up the drive to the door, and found it closed.

"It was a very funny feeling. You've seen the White House all your life, and then you're walking up the steps of this house, and the door's shut, and there's all the world's press behind you taking pictures, and I thought, well, what if no one answers? Because you'll look bloody silly walking back down the stairs."

What went through his mind? "Well, my thinking was – and I never thought I'd think this – I've never been so glad to see President Bush. Because the door opened, and there was the proprietor, the president of the United States."

As he recalls the moment he has a dry chuckle – the wry sort of funny-old-world laugh of someone long past the point when anything could upset him. But he wasn't laughing at the time, was he? "Well, as I walked up the drive, and especially when I had to negotiate terms with a guy with a machine-gun, no, at that stage I was getting very pissed off. I thought this is ridiculous. I just thought this is so typical of what is happening now. You know, [Brown's entourage] were totally absorbed, it was like they were there with the Sun King."

What did he say to Brown when he got inside? "Nothing," Darling says. "I don't think he even noticed."

There was always a touch of the eternal bridesmaid about Darling. He jokes that his obituary will bear the epithet A Safe Pair of Hands, which I suspect he would consider a compliment, and he has seemed most at ease in the background. But before his memoir even went on sale this week, pre-orders alone had already put it second place on Amazon's bestseller list – and its revelations about the depths of dysfunction within Downing Street have made it a political sensation. When I congratulate him on producing a bestseller he looks rather boyishly pleased, but says he's worried that people think he's written a gossipy Westminster kiss and tell – when he never really wanted to write about his relationship with Brown at all.

"I wanted to give my account of the banking crisis, to leave my record. But because the banking crisis became an economic crisis, the two are totally inter-related, and you can't tell what I did as chancellor without touching upon the other crises that hit the government. You just can't tell half the story – and to be at all credible, I have to touch on things that I still find difficult."

It may have been difficult, but he looks so much more relaxed than he ever did in office that I wonder if the memoir became a form of therapy, or at least catharsis. "No," he says very quickly. "No, I'm not someone who needs a cathartic moment." The denial has a hint of Scottish distaste for such self-indulgence – but it's so swift that I'm not entirely convinced."Well, maybe I actually do and I don't know," he concedes. "But it didn't start out that way."

He had to explain his difficulties with Brown, he says, because otherwise none of his story would make sense. For example, "You can't explain the reaction to the interview I did with you three years ago without going into what I regard as the more unpleasant aspects of political life." In August 2008 I interviewed him at his croft in Lewis, and his assessment of the economic crisis facing the world – "arguably the worst in 60 years" – provoked an almighty commotion, fuelled largely by Brown's own aides, who briefed the media that Darling was either deluded and plain wrong (or naive and unprofessional), or treacherously disloyal. Darling later described their assault on him as "the forces of hell".












Darling in Washington in 2008 at the summit during which he got locked out of the White House.

"In some ways," he says, "I owe a debt of gratitude to the briefers. If they had done the usual thing – said they were happy with the chancellor, he's doing his job – it would all have blown over. But as it was it will be remembered. Very few things in politics cut through – and this one did, it cut through with a vengeance. The only critical thing you could say, really, is that I should have said 100 and not 60 years."

What a lot of people won't understand, I say, is why you didn't ring up Brown and say I'm the chancellor, tell your minions to shut up? "Well, you know, I did. I said this is just making it worse for everybody." So what did Brown say? "He just said it wasn't his people. I said well, if it isn't then some imposters are making a remarkably good fist of it. Anyway," he says, breaking off with a brisk shake of the head, "this is just – " but then he stops again. "No," he corrects himself, "it's not water under the bridge, because that weekend really scarred me."

He insists that he didn't think he had said anything controversial, let alone disloyal. Amid the furore, however, some critics interpreted his interview as a calculated strategy to undermine Brown. In fact, Darling says, he hadn't wanted to give an interview at all. He just wanted to go on holiday, to his family croft on Lewis.

"So my cunning plan was to say you'd have to come to the Outer Hebrides; I hoped the Guardian's finances wouldn't stretch to that. But it clearly didn't work." Does he regret what he said? "No, I thought it was important to tell the truth." The problem was, Darling's view of the truth differed radically from Brown's, who was busy telling journalists that the credit crunch would be over within six months.

It was the first very public sign of a clash between No 10 and 11, but Darling had realised he was no longer part of Brown's inner circle as soon as they became neighbours. He still doesn't know why. Had Darling shared, I ask, his colleagues' worries about Brown's famously "psychologically flawed" character before he succeeded Tony Blair? From his rather vague and evasive answers, I'd say that he did not, and was as surprised as many others when behaviour he'd attributed to Brown's grievance with Blair – secrecy, tantrums, paranoia – didn't vanish with his relocation to No10.

The contrast between the two personalities that emerges from Darling's memoir is so extreme, the miracle has to be how much they managed to achieve in spite of it. The person who Darling says kept him sane was his wife Maggie, an infectiously gregarious and irreverent former political journalist whom I met in 2008 on Lewis. At the time I remember wondering how on earth she could put up with Brown, and marvelled at the difference between the two families. I last saw her during the general election campaign, when she invited some women to No11 for drinks. As guests arrived she plonked their coats on the bed in their bedroom, for all the world as if it were a student house party. At some point in the evening her husband came home, and after a bit of chat went to bed. Later, another guest – a little worse for wine – tottered down the hall to retrieve her coat, swung the bedroom door open, and found herself gazing at the chancellor of the exchequer in his pyjamas in bed. As she backed out, doubled over with mortification, nobody was more convulsed with giggles than his wife.

When they left Downing Street for good a few weeks later, he says there was no lump in his throat or tear in his eye. In fact, after five bizarre days of post-election shenanigans between the party leaders, Darling was so fed up he wanted to leave by the back door. Did it feel farcical by then? "It did. Sitting in the flat, watching the TV, with helicopters going round and round overhead, and they were starting to film the back door. So Margaret said: 'This is ridiculous, we're going out the front door.' And she was right. She said we did our best for all these years. Why would we sneak out the back door? Let's leave with our heads high."

But he says no bit of him was secretly relieved to have lost the election. So what will he do instead of frontbench politics? "You continue to do backbench politics." Then if this is the end of your ministerial career, I begin to say – but he quickly interrupts.

"Well, it may not be."

Normally, when ministers lose office and write their memoirs they are practically giddy with indifference to any ramifications. Darling doesn't give the slightest impression of having detached from political life, or stopped caring for a minute. "One of the things I've noticed in myself," he agrees, "is that in some of the dark days in government, you could hardly bear to listen to the radio or watch the telly. But I've noticed since being in opposition I probably listen to more current affairs than I ever did. My interest in politics is as alive as it's ever been."

Interest in Darling remains as alive as ever as well. In the mounting economic crisis, he is looking like one of the few politicians who might have a clue what to do, and the day after we meet I run into a Tory MP who says she can't wait to read his book. An awful lot of her colleagues, she adds, believe it's only thanks to Darling that the country isn't in even more of a mess.

"Yeah, but people are always nice to you when you leave," Darling says when I cite his widespread popularity. "It's like at a funeral. People are always terribly nice about the deceased even though they had plenty to say when you were alive."

In 2008 I asked him if leading Labour held any appeal to him, and he said no. "Well," he laughs, "I'm consistent. No, I'm not remotely interested in that, nothing's changed there. To be leader you have to want to do it, seven days a week, 24 hours a day, and I don't. I really don't. And on the way down from Edinburgh last week, when the phone started going about the leaks of my memoir, it brought back so many memories. And actually, I've enjoyed the last year. Because it's great when people don't phone you."

But he admits: "There are lots of times in the last year – or even now – when I would like to be involved and in government again. What is so frustrating is that we were actually coming out of recession when we left office."

In Darling's view, countries across Europe are making the same mistake as Britain's government by imagining that cuts will reduce their deficits. "That's true when the economy is working at full capacity. But it is not true when it isn't." There is still time, he says, for George Osborne to change course and invest public money to boost growth. But is that politically plausible? "There's lots of things you can do in politics if you execute the manoeuvre in an elegant enough manner."

Nonetheless, he acknowledges that the Tories have convinced many voters that the deficit is not a consequence of the recession, but of Labour's profligacy. This, he insists, is categorically untrue – "But you're right, it's a huge political problem for us. One of the challenges for both Eds is to cut through that, because I think the policy we have of a more measured approach to these things is perfectly credible, and independent commentators will say the same thing. There is every chance, the ground is there. But like everything else in politics, you have to take your moment."

Would Labour be doing better under David Miliband – the candidate Darling endorsed last year, and met in secret the previous year to discuss deposing their leader? "It's impossible to tell," is Darling's diplomatic reply. What about the claims made by Daily Telegraph bloggers and Tory cabinet ministers that Darling's book has damaged Labour's chance of re-election? "I certainly hope not. Would I write it in five years' time, just before the next election? No. That would be damaging. But my book's main purpose was to chronicle the economic and banking crisis."

He thinks Europe is on the brink of another spectacular crisis, because Greece cannot possibly deliver its austerity package, and Europe's leaders are incapable of taking unified action to prevent catastrophe. "I know the EU sufficiently well," he says wearily, "and I've been in enough meetings to know that nothing will happen until it looks like the thing's about to blow up." What the eurozone urgently needs, he says, is a plan – any plan.

"Markets are rational and irrational at the same time. They are irrational in saying they want to cut debt immediately and they want growth, because you can't get the two. Markets are now worried about growth. What's really spooking them at the moment is that in Europe they don't see a plan, they see the eurozone coming together, making an announcement, and a few weeks later it seems to be unravelling. That is what really throws people. What people are looking for is, what is your plan?"

As for himself, he says his only plan for now is to make no plans. He doesn't know if or when he would return to the frontbench, or what else he would do. For a long time it was always assumed that if anyone was going to follow Downing Street with a major international finance position, it would be Brown. No one predicted that it would be Darling – but when I ask if he'd be interested in such a post, his reply is interestingly evasive. "Well, there aren't many of them – so, um, you know," and he lets the sentence tail off into silence. But according to the Westminster rumour mill, Osborne is ready to nominate Darling to lead the IMF if its new incumbent, Christine Lagarde, is forced to stand down in the face of a corruption trial in France.

"It's news to me," Darling says. "No, there have been no discussions about it – and nor will there be."

Would such a post appeal? "Er, er, well, put it another way, I need something to keep my mind occupied. I'm young, and I'd like to practise what I preach and work well beyond 65. So what I'll do I don't know."

Wednesday, 7 September 2011

David Cameron: A Professional Who Plays Like Anmateur

Who will trip David Cameron up? The most likely answer is “himself”.












The Prime Minister’s scorn for his opponent, and laughter at his own jokes, suggest a man without a care in the world.

The ease with which Mr Cameron dominates Ed Miliband is becoming a bit offensive. It is like watching a one-sided cricket match: any spectator of a sporting disposition is bound to wish for a closer game.

The Labour leader runs in to bowl six of the most awkward deliveries he can devise – this week to do with police commissioners and NHS waiting times – but is met by an impregnable defence.

Mr Miliband’s questions are not bad, but Mr Cameron’s retorts are better. The Prime Minister has a long training in this not very glorious kind of warfare: in September 1988, straight out of Oxford, he joined the Conservative Research Department, where much effort was devoted to digging out quotations which could be used to suggest that the Labour Party was mired in a set of absurd contradictions.

So when Mr Miliband said elected police commissioners are a waste of money, Mr Cameron hit him with a remark by Gordon Brown: “The Home Secretary will bring forward proposals for directly elected representatives to give local people more control over policing.”

Mr Brown said this in the Commons on 14 May 2008, but Mr Cameron cleverly implied that it had been in the Labour manifesto of May 2010, written by Mr Miliband, whom he proceeded to accuse of “a complete U-turn”.

When Mr Miliband switched to the NHS, Mr Cameron was once more ready and waiting with an inconvenient quotation, this time by John Healey, the shadow Health Secretary, who had apparently opined that “what Labour says matters less than what almost anyone else says”.

Mr Cameron’s professional technique is hidden by the swagger with which he plays his shots. The Prime Minister’s scorn for his opponent, and laughter at his own jokes, suggest a man without a care in the world. At one stage he committed the atrocious mistake of referring to “my housing minister”: the man is the Queen’s housing minister.

Confidence can easily degenerate into over-confidence, which is why Mr Cameron could one day get himself out by attempting a ludicrously risky shot. He is not averse to taking risks, as he showed in a reply to one of his backbenchers.

Nadine Dorries (C, Mid-Bedfordshire) complained that “the Liberal Democrats make up 8.7 per cent of this Parliament and yet they seem to be influencing our free school policy, health and many issues including immigration and abortion”, after which she issued a challenge: “Does the Prime Minister think it is about time he told the Deputy Prime who is the boss?”

Mr Cameron began, “I know the honourable lady is extremely frustrated,” whereupon he was interrupted by rude laughter in which he joined, after which he ended: “I’m going to give up on this one.”

The Prime Minister had not answered the question. Since it was an unanswerable question, or unanswerable without insulting Nick Clegg who was sitting next to him, perhaps that was the best way to leave it.

Tory backbenchers complain that Mr Cameron listens more to Mr Clegg than to them. Mark Reckless (C, Rochester and Strood) demanded that the Prime Minister “now listen to Conservative colleagues and take the opportunity to hold a referendum on Europe”.

Mr Cameron refused to do so. Perhaps it is his own side who will one day trip him up.

Support Grows For Keeping 50p Tax Rate

Politicians from Labour and the Liberal Democrats joined forces with trade unions to argue for a retention of the 50p top rate of income tax after 20 leading economists called for it to be scrapped “as soon as possible” in a letter to the FT.










Alistair Darling, the chancellor who introduced the rate in 2009, and Tim Farron, the Lib Dem president, said on Wednesday that lowering the top rate of tax would be unfair while the economy was still in difficulty.

Mr Darling said: “This has got to stay in place until we get out of the crisis. It would be grossly unfair to remove it. In the long run you have got to keep your tax rates internationally competitive which means something like the two rates we used to have. To remove it today would be grossly unfair. If they do not pay their taxes then it is poorer people who are going to pay.”

He was supported by Mr Farron, who said scrapping the 50p rate would be “phenomenally immoral and send an appalling message to the overwhelming majority of hard-working people in this country”.

Ed Balls, Labour shadow chancellor, also weighed in: “If we really are all in this together then the right priority to boost the stalled economy now should be temporarily reversing the VAT rise, which is costing families with children around £450 a year. This temporary tax cut would help to kick-start the recovery and give a much needed boost to millions of people regardless of their income.

“If the chancellor really wants to know how effective the top rate of tax is he should immediately ask the Office for Budget Responsibility, not just HMRC, to produce a report genuinely independent of government.”

Their warnings came after the Trades Union Congress also took issue with the suggestion of an immediate tax cut for top earners.

Brendan Barber, general secretary of the Trades Union Congress called the economists’ opinion “monstrously unfair”, adding: “At a time when cuts are biting hard and ordinary people are suffering the biggest squeeze on their living standards in years, the last thing we need is a handout to the wealthiest in our society.”

But DeAnne Julius, the former member of the Bank of England’s monetary policy committee and one of the signatories of the letter, defended her position to the BBC, saying many hedge funds had already moved to Switzerland and that, if marginal rates were raised on a small number of highly mobile people, “You end up not collecting the tax that you’d hoped to.”

“Only by returning to an internationally competitive tax regime will Britain enjoy long-term sustainable economic growth,” the economists say in their letter.

The signatories include many figures not usually associated with conservative causes, such as Bob Rowthorn of Cambridge University, and two former members of the Bank of England’s policy committee, Ms Julius and Sushil Wadhwani.

George Osborne, chancellor of the exchequer, is already facing pressure from the Tory right and CBI employers’ organisation to scrap the “temporary” top tax rate.

The Treasury believed that the 50p rate, introduced by the former Labour government in April 2010 on annual taxable incomes above £150,000, would eventually raise £2.7bn a year. Combined with restrictions on income tax relief for pension contributions and the abolition of the income tax personal allowance for people with annual incomes above £100,000, last year’s tax increases on the rich were designed to raise £7bn per annum.

The economists dispute these estimates, arguing the 50p rate “punishes” wealth and entrepreneurship. “It is often portrayed as a justified tax on the rich, but the economic damage it causes means that it is against the interests even of ordinary workers who don’t pay it,” they write.

Last month Mr Osborne said “there’s not much point in having taxes that are economically inefficient”. He added that the rate was uncompetitive internationally and targeted wealthy people who were already paying taxes on their capital gains.

Government officials, however, have suggested that the top rate is unlikely to be scrapped until 2013 at the earliest, when a pay freeze affecting millions of public sector workers is due to be lifted.

Nick Clegg, Liberal Democrat leader, will insist the 50p top rate can only be scrapped if other measures, such as a property or “mansion” tax, are introduced to ensure the wealthy pay their “fair share” towards cutting the deficit. The Lib Dems will also insist that the 50p rate’s abolition is accompanied by accelerated moves to raise the annual tax threshold to £10,000.

Other leading economists are more sceptical. Paul Johnson, director of the Institute for Fiscal Studies and not a signatory of the letter, said it was much too early to give up on the 50p rate: “The Treasury has been taking a punt on whether [the 50p rate] will raise money. It is taking a risk, but it is not a stupid punt.”

Scrap 'Reckless And Needless' Public Sector Reforms, Says Ed Miliband

Labour leader tells PM that money spent on elected police chiefs and NHS shakeup could be better spent recruiting frontline staff.



Ed Miliband and David Cameron clash at PMQs.

The prime minister, David Cameron, admitted that stand-alone elections for police commissioners will cost an additional £25m as he faced a barracking from Labour's Ed Miliband over "reckless and needless" public sector reforms.

Cameron faced accusations of "wasting money" which could be better used to recruit thousands of extra police officers, as he sought to defend moves to introduce elected police commissioners.

A plan to bring in elected police chiefs is set to go ahead after Liberal Democrat peers, who had been delaying the Tory initiated policy, accepted safeguards introduced into the legislation.

In a move likely to irritate many on the Conservative benches who feel their party is making too many concessions to Lib Dems and too few to their own side, the legislative delay will mean voting for the new posts will take place in November 2012 instead of at the same time as local elections in May.

The Labour leader told Cameron he was "making a bad policy worse by wasting money" after the prime minister said staging separate elections in November would cost £25m – money Cameron stressed would not come out of police budgets.

As MPs prepared to debate amendments to the health and social care bill on Wednesday afternoon, Miliband also criticised the NHS shakeup and urged the prime minister to "scrap both of these disruptive and dangerous plans".

Miliband told Cameron at the close of a heated exchange: "The truth is, under this government we are seeing two reckless and needless reorganisations of our public services, police numbers down and waiting lists up.

"Under Labour we saw police officers up and waiting lists down. Why don't you do the right thing for the future of our public services and scrap both of these disruptive and dangerous plans?"

Miliband seized on reforms to health and policing as MPs gathered for the first prime minister's questions session since July.

Regarding the cost of delaying the elections for police commissioners, Cameron told Miliband: "It is important to get this policy right and to make sure it works."

Turning the tables on Miliband, Cameron asked him why Labour was "so frightened of elections".

Cameron said the plan involved scrapping police authorities, which would save money, and accused Labour of making a "U-turn".

Labour previously had plans for "directly elected representatives to give local people more control over policing", said Cameron.

Miliband said: "We know what the public up and down this country know: this is the wrong priority for the country. What did we see during the riots? We saw visible, effective policing."

He went on: "The prime minister tells us we cannot afford the current police budget, we have got to cut the number of police officers by 16,000.

"But he tells the country it can afford £100m and more as a result of his decision to waste money on 42 elected politicians earning over £120,000 a year. That could pay for 2,000 extra police officers.

"Isn't the truth that this is the wrong priority at the wrong time for the country?"

As Miliband later moved on to the controversial health reforms, Cameron joked: "I'm not surprised you want to change subjects because on policing you were having your collar felt because you have done a complete U-turn on the policy you used to be committed to."

The Labour leader said the number of people who had to wait more than six months for an operation had gone up by more than 60% since Cameron entered Downing Street.

Cameron insisted the amount of time people were waiting for an outpatient operation had "actually gone down".

"As you know, we have targets for 90% of people to get their treatment within 18 weeks and those targets are being met," he said.

And he insisted the health reforms were now backed by a number of leading professional health groups as well as former Labour health minister and surgeon Lord Darzi – to the dismay of Miliband, who accused him of being "on another planet".

The Labour leader said the British Medical Association, the Royal College of GPs and the Royal College of Midwives "all rejected your bill".

E-Petitions Hit Parliamentary Snag

David Cameron's high-profile pledge to allow people to e-petition Parliament hit a hitch last night. A plan to stage the first debate to be triggered by a subject attracting at least 100,000 signatures was abandoned because of "problems" with the new system.












Fail: The highly-anticipated e-petition website crashed within hours of going live.

The delay was revealed by the backbench business committee, which controls the relevant part of the House of Commons timetable. Natascha Engel, the committee's Labour chairwoman, declined to explain in details what the problems were. The MP did protest that the committee had not been fully consulted about the operation of the new system, which had raised "quite a few problems".

In the interim, subjects will be considered for debate only if they are raised with the committee by an MP - the standard process before the introduction of the e-petition system.

Engel told the committee's weekly meeting: "Everyone really supports the idea of e-petitions and public engagement, but I think there are quite a few problems that have risen their heads. All of us really want, in the long-term, to make sure e-petitions work, but that they work properly."

The government has pledged that any issue reaching the 100,000-signature threshold on the e-petitions website will be considered for discussion by MPs in Parliament.

The prime minister said the idea was part plans for "fixing broken politics", saying: "It will allow members of the public to table a bill that could end up being debated and voted on by MPs."

Two petitions have reached the 100,000 landmark so far, the first a call for people convicted of involvement in recent inner-city riots to be stripped of state benefits the second a demand for all official papers relating to the 1989 Hillsborough disaster, in which 96 Liverpool football fans were killed, to be released.

The hold-up means neither petition can be debated until October at the earliest, after the Commons resumes sittings following the party conferences.

Even then, only one slot will be available each month - triggering warnings that the government has raised expectations that cannot be met.

However, supporters of the Hillsborough petition pledged to press ahead with asking the backbench committee to back a debate, at its meeting next Tuesday. Andy Burnham, the Liverpool-born Labour former Cabinet minister, said: "We'll put strong case for debate at earliest opportunity."

Shopkeeper Florist Raid Case: Ministers Plan Overhaul Of Self Defence Laws

Pressure is mounting on the government to speed up new legislation on self defence clarifying the law on self-defence in England in the wake of cases such as those of shopkeeper Cecil Coley












72-year-old shopkeeper Cecil Coley.












Police officers guard a house in Salford after a suspected burglar was stabbed to death during a break-in.












Police officers at the murder scene on Ethel Avenue in Salford.

Ministers are planning to clarify the law on self-defence in England, after a string of cases where home owners have faced prosecution for defending their property.

The arrest of Mr Coley, 72, on suspicion of murder following the death of Gary Mullings, 30, who had broken into his shop in Old Trafford placed the issue back in the national media spotlight.

Last month’s stabbing came just days after the Crown Prosecution Service decided no charges should be brought against householder Peter Flanagan, 59, who was arrested on suspicion of murder after the fatal stabbing of a burglar.

John Bennell, 27, was attacked after he broke into his home in, Pendlebury, Salford, in June.

The incident occurred just a few miles from Mr Coley's store in Old Trafford, Manchester.

The incidents led to calls for the Government to speed up new legislation clarifying the law on self-defence in England.

Kenneth Clarke, the Justice Secretary, had earlier said that householders who used “whatever force necessary” against intruders would not be committing a criminal offence .

David Cameron has also promised that the new Justice Bill would "put beyond doubt that home owners and small shopkeepers who use reasonable force to defend themselves or their properties will not be prosecuted".

Under the current law, home owners who use “reasonable force” – which is no more than is absolutely necessary – to protect themselves against intruders should not be prosecuted.

In late June Mr Clarke spelt out the sort of action that would be permitted under the new regime.

He made clear that it would remain illegal to pursue intruders to attack them or to shoot them as they fled.

Speaking about a person’s right to self-defence in their homes, Mr Clarke said there was "constant doubt" about the issue and the proposed legislation would make this "much clearer".

The Justice Secretary said: "It's quite obvious that people are entitled to use whatever force is necessary to protect themselves and their homes.

"If an old lady finds she has got an 18 year-old burgling her house and she picks up a kitchen knife and sticks it in him, she has not committed a criminal offence and we will make that clear.

“We will make it quite clear you can hit the burglar with the poker if he's in the house and you have a perfect defence when you do so."

He added: “We all know what we mean when we say a person has an absolute right to defend themselves and their home and reasonable force.

"Nobody should prosecute and nobody should ever convict anybody who takes those steps."

Labour said the law was "already clear" and the remarks were a "smokescreen" to hide confusion over sentencing changes.

Tuesday, 6 September 2011

MPs' Expenses: Labour's Margaret Moran Faces 21 Charges

Ex-Labour MP to appear before magistrates over charges including false accounting and forgery related to claims worth more than £60,000.












Former MP Margaret Moran, who is to face 21 charges in relation to claims she made for parliamentary expenses.

The former MP Margaret Moran is to face 21 criminal charges for allegedly making illegal parliamentary expense claims, the Crown Prosecution Service said on Tuesday.

The ex-Labour member for Luton South will be prosecuted on 15 charges of false accounting and six charges of forgery related to claims worth more than £60,000.

Investigations into Moran centred on allegations that she repeatedly "flipped" her designated second home, making claims for properties in London, Luton and Southampton over a four-year period.

Moran claimed more than £20,000 to have dry rot treated at her Southampton home, which is almost 100 miles from either her former constituency or Westminster, according to House of Commons documents. She has maintained that she is innocent of any wrongdoing.

She is the last of 10 MPs and peers whose parliamentary expense claims have been referred to a specially convened panel of police and prosecutors for assessment. Of those, seven have been referred for prosecution. The decision to prosecute comes more than two years after details of MPs' claims on their expenses were disclosed to a national newspaper. Detectives handed a file related to Moran's claims to prosecutors in December last year.

Keir Starmer, the director of public prosecutions, said that the charges followed a lengthy inquiry into claims made to furnish and improve her main residences.

"Having thoroughly reviewed the evidence gathered by the police, we have decided there is sufficient evidence and it is in the public interest to bring criminal charges against Margaret Moran.

"The summons relates to 15 charges of false accounting, contrary to the Theft Act 1968. It is alleged that she claimed expenses for the furnishing and improvement of main residences between November 2004 and August 2008 through a scheme intended for the maintenance of second homes or offices.

"Ms Moran also faces six charges of forgery, contrary to the Forgery and Counterfeiting Act 1981, where it is alleged that she submitted forged invoices in support of some of her claims," he said.

A decision on whether to prosecute was held up because of Moran's ill health. She had claimed that she was too unwell to be interviewed by detectives.

She has been summonsed to appear at City of Westminster magistrates' court, central London, on 19 September.

On 15 May 2009, the director of public prosecutions and the Metropolitan police commissioner set up a panel of senior police officers and senior prosecuting lawyers to assess complaints about parliamentary expense claims.

In total 10 files of evidence related to 10 individuals have been submitted to the CPS for a charging decision. Of those, seven cases including that of Moran have resulted in charges. No further action was taken in two cases and the request for a charging decision on one file was withdrawn by the police. There are no longer any cases to be considered by the panel.Former MPs David Chaytor, Eric Illsley, Elliot Morley, Jim Devine, and peers Lord Taylor of Warwick and Lord Hanningfield have been jailed over the scandal. Devine was released in August after serving four months of a 16-month sentence. Illsley and Chaytor were released and were tagged.

In 2009, Moran married her long-time partner of 30 years, Michael Booker, who lives and works at Southampton University as the safety adviser. They have no children. She has written that her personal interests include céilidhs, visiting historical sites, walking and eating curry.

Starmer warned the media over reporting of Moran's impending prosecution. "Margaret Moran now stands charged with criminal offences and has the right to a fair trial. It is extremely important that nothing should be reported which could prejudice her trial," he said.

A Labour party spokesman said: "Margaret Moran is suspended from membership of the Labour party and is no longer an MP."