I’m informed that a compromise will be presented soon after 5pm which could bring the Somme-like battle in the House of Lords to an end after weeks of late-night sittings and abrasive filibustering. Although one source tells me it may turn out to be less of a “compromise” and more of a potential way out of the impasse.
More here when it happens: For now here is Nick Watt at the Guardian explaining the situation earlier this afternoon. Read more
Now here is a startling statistic uncovered by my colleague Chris Cook.
Free schools will receive almost twice as much state funding for taking a poor pupil rather than a child from a more well-off background. Read more
It’s not quite Keys/Gray but amusing enough. You need to listen to this recording quite closely, the key moment is 17:01:45. You can hear an MP – I believe it’s Eric Ollerenshaw, Tory MP for Lancaster and Fleetwood – chatting to another member of the localism bill committee.They are about to take evidence from companies including Barrett, Taylor Wimpey and Redrow.
“We’ve got the bloody builders next,” he whispers. Read more
George Osborne could begin the sell-off of RBS early next year, marking the start of Europe’s biggest every privatisation, as my colleagues report this morning. If the bank is profitable by the turn of the year – and if the share price is substantially higher – an initial tranche of £5bn could be sold.
Intriguingly, I’m hearing separately that Lloyds Banking Group could be even earlier off the blocks, with ministers keen to start the LBG sell-off first. In theory this process could begin before Christmas. Read more
My former colleague Fiona Harvey revealed last October that Chris Huhne’s plan for a green investment bank was being thwarted by Treasury officials, who wanted it to be more like a fund. Then in December Mr Huhne let the cat out of the bag in public when he admitted that the Treasury had won the battle and the new entity probably wouldn’t have the powers to issue bonds*.
Without leverage, the fund will only have £1bn to spend (plus £1bn from asset sales) rather than the £4-6bn demanded by the renewables industry. Read more
There is increasing concern at the highest levels of the coalition that its own “localism” agenda has the potential to hamper economic growth in the coming months – just as the government is at its most vulnerable to any sign of downturn. Ministers at Eric Pickles’ communities department believe that many of their localist policies will help business to grow; but others suspect that the general theme – handing more power to communities – will instead empower “nimbies” who want to stop development.
Against this backdrop we revealed this morning that Vince Cable and George Osborne are drawing up plans for several planning changes which could be announced in the spring Budget. The proposals come as the new head of the CBI warned that the ”jury is still out” over whether Mr Pickles’ new planning system will “deliver”. Here are the ideas: Read more
It has become a favoured accessory of the modern political leader; the personal trainer. David Cameron is often spotted jogging around with his fitness coach, who also works for comedians James Corden and Michael McIntyre. Even Gordon Brown had one by his side to keep him in, er, peak physical shape.
Now my colleague James Crabtree has revealed that Ed Miliband has hired a personal trainer to get him into shape. It will be interesting to see how this pans out for Miliband, who – up til now – hasn’t shown much aptitude in the sporting sphere. Read more
As I revealed before Christmas, Network Rail has agreed to pay for an independent inquiry into allegations of misuse of public funds that have dogged the publicly funded company for months. You can read the full story here. The state-funded track operator believes it has no case to answer but wants to “close this chapter” through a QC-chaired investigation. There will be a “statement of full exoneration” if the key allegations prove to be groundless. As I disclosed:
Chaired by QC Antony White, the inquiry will begin at an undisclosed London location by February. In a letter to Network Rail’s 100 members, Mr Haythornthwaite said the inquiry would focus on allegations against Iain Coucher, former chief executive. He told members he wanted a “focused and effective gathering of hard evidence” that would “establish the truth around specific allegations of fraud”.
I wrote in yesterday’s FT about Caroline Spelman’s plans to sell off much of the Forestry Commission’s estate.
The environment minister is keen to rebut the idea that she is poised to flog every tree in Britain to private companies who will then chop them down and replace them with golf courses, leisure centres and business parks.
So what is her plan? Put simply there are two legs to the strategy.
1] The commercial forestry estates – largely monoculture conifers – which mainly grows logs for commercial sale, could be sold off under one of four options put forward. This could raise several hundred million pounds. As Julian Glover at the Guardian suggests: “The state has no business being a lumberjack.” Much of the forestry that covers the uplands of the north and Scotland is so unlovely that perhaps it might as well be in private hands. Alternatively, community groups could club together to buy some of this land and – perhaps – turn it back to native deciduous habitat.
Military police have been called in to examine allegations of improper conduct during bidding for the £6bn privatisation of the search and rescue helicopter service.
It has brought the deal to the brink of collapse.
We’ve broken the story online because the redoubtable Cathy Newman of Channel 4 News has been chasing the same tale. The main elements are:
– MoD police are investigating the access to information given to bidders and the relationship between a military officer, who has since left the forces, and CHC, a Canadian helicopter operator that is part of the Soteria consortium chosen as preferred bidder.
– Royal Bank of Scotland have pulled out of the Soteria consortium because their concerns over the allegations. It will make it much harder for the deal to be revived, even if the concerns over improper conduct prove to be unfounded.
– Ministers are urgently examining options on how to proceed, including re-tendering the contract and scrapping the private finance initiative model altogether.
This is the deal, remember, that so angered Prince William he raised his concerns with the prime minister.
Read on for more details. Read more
On the day the coalition was formed, Michael Gove entered Downing Street with his consigliere Dominic Cummings. Only one of them left with a job.
It was one of the clearest demonstrations of Andy Coulson’s power. On Coulson’s advice, David Cameron offered Gove the position of education secretary on the condition that he sacked Cummings. Gove did not take it well. Read more
David Cameron is not always a perfect performer at the weekly prime minister’s questions – sometimes the charming confidence tips over into a somewhat bullying manner.
But today showed why he is so effective in the post. In an otherwise unmemorable PMQs, Cameron demonstrated how to neutralise difficult questions by displaying a degree of candour. Read more