Unless there is a last minute U-turn in Whitehall tonight, one of the ways which George Osborne will pay for the various jobs and infrastructure schemes in Tuesday’s growth review will be to squeeze tax credits.
This is a result of protracted bargaining – Osborne wanted to freeze benefits, but the combined efforts of the Lib Dems and Iain Duncan Smith put a stop to that. Eventually the compromise was made that credits would come under the axeman’s blade instead.
So who suffers if these are frozen or cut? Read more
Nick Clegg has moved to strengthen his team in Whitehall with the appointment of Neil Sherlock, a KPMG partner in charge of public affairs, as his “director of government relations”.
Mr Sherlock is one of a new intake of Liberal Democrat special advisers – Spads in the jargon – who have been brought into government to ensure that Mr Clegg’s influence is felt across all areas of government policy.
The KPMG man is the ultimate Lib Dem insider. A former parliamentary candidate, he has written speeches and provided advice for a series of Lib Dem leaders (except Charles Kennedy, with whom he enjoyed frosty relations). His wife, Kate Parminter, is a Lib Dem peer in the Lords. Read more