Monthly Archives: May 2013

Jim Pickard

Lord Mandelson, who was de facto deputy prime minister in the last Labour government, is set to add a lucrative directorship with a Russian conglomerate to his portfolio of business interests.

Now a peer in the House of Lords, the former business secretary is set to take up the position of director at Sistema, a Moscow-based group with stakes in oil, energy, aerospace, banking, retail, tourism and telecommunications.

Lord Mandelson has set up a consultancy firm called Global Counsel which is run by Benjamin Wegg-Prosser, another former New Labour figure. The peer has fiercely Read more

Kiran Stacey

Philip HammondPhilip Hammond appeared on the Today programme this morning defending his position after being accused of dragging his heels on the spending review.

The defence secretary has not yet submitted his draft plans for how he could cut 5 per cent of his budget in 2015-16 (half of that asked of other departments), but he told the BBC he was not a “hold out” adding that he hopes to have an “adult conversation” about where the axe should fall.

But in case anyone was in any doubt of how willing he is to stand up to the Treasury, he added this:

We should be very clear that there is a difference between efficiency savings, which may be difficult to achieve but are painless in terms of the impact on the front line, and output cuts, which are of a very different order and require proper and mature consideration across government about the impact that they will have on our military capabilities.

 Read more

Jim Pickard

Ministers’ flagship “Help to Buy” housing support scheme is set to be undermined by banks refusing to take part, the former head of the Council of Mortgage Lenders has warned.

The scheme, which has been compared to the US’s Fannie Mae and Freddie Mac, was the centrepiece of the March budget and could see government guarantees on some £130bn of home loans over three years.

But after two months the banking industry is still unclear on the precise mechanics of the scheme, not least how much money banks will Read more

Kiran Stacey

Trident missileGeorge Osborne has been touring the TV and radio studios this morning talking about the deals he has managed to strike with some of the smaller government departments for how they are going to cut their budgets in 2015/16. Talking about the settlements made with departments including Justice, Energy and Communities, the chancellor told the BBC:

We are now about 20 per cent of the way there with a month to go. I don’t think any chancellor in history has made this much progress with a month to go.

Osborne still has a huge amount to achieve in the next month, particularly in the face of intransigence from big departments such as the MoD and the Home Office. But in the middle of the spending round process, another decision on a massive item of government spending will also come a step closer. Read more

Kiran Stacey

Nick Clegg

Nick Clegg this morning insisted he would stay in government until 2015, and would not need to create any “breathing space” for his party by pulling his ministers out before the general election. This is what he said in a speech in London:

The public will see me [campaigning] as leader of the Liberal Democrats. Constitutionally the government still ticks over. Ministers are slightly more “absentee landlords” in Whitehall offices during that six week period.

Of course, Clegg is right that the public is used to ministers leaving their day jobs and hitting the campaign trail during the weeks leading up to a general election. And he may also be right that voters would think it very odd if the Lib Dems pulled out of the coalition just before an election in order to assert their own identity more clearly. Read more

Kiran Stacey

Campaigners for equal marriageAt around 8pm last night, someone in Sir George Young’s office phoned someone in Ed Miliband’s office. Not enough Tories are going to vote against the amendment from Tim Loughton intended to wreck the gay marriage bill, the person explained. Labour would have to vote against or risk the bill being derailed.

Ed Miliband agreed, and encouraged his MPs to do the same. In the end, the amendment was defeated, but only thanks to Labour’s action. So it was no surprise to see headlines such as that in the Guardian this morning, which readRead more

Kiran Stacey

Jean ChretienLast night, politicians, government officials and a smattering of journalists gathered in the ornate surrounds of the Scotland Office to hear Jean Chrétien, the former Canadian PM, give his view on referendums.

Chrétien knows more than most world leaders about what it is like to try and stop nationalists in one part of the country from seceding – he won two referendums against Quebec separatists.

And in case coalition officials were beginning to feel comfortable with the convincing lead held by the pro-union side in the Scottish independence debate, Chrétien had a rather ominous message. Read more

Jim Pickard

David Cameron has defied calls for Downing Street to publish a list of Lynton Crosby’s clients amid concerns about the Tory election supremo and his private lobbying business.

The prime minister has in the past called for more transparency with regard to the lobbying industry, saying that sunlight was “the best disinfectant”.

But Mr Cameron has dismissed suggestions that there could be any conflict of interest in having Mr Crosby, an Australian pollster and lobbyist, from working part-time for the Tory party while still advising his private  Read more

Kiran Stacey

Nick Clegg leafletAs a fellow hack remarked to me on the way out of the Commons chamber after PMQs this week, imagine if it had been the other way round.

Imagine that David Cameron had not been in New York and had been taking prime minister’s questions instead of Nick Clegg, his deputy. And imagine that Lib Dem after Lib Dem – five in total – had stood up to attack the prime minister over their pet project – let’s say the mansion tax, for example. What would have happened?

Almost undoubtedly, there would have been fury on the Tory benches. Cameron would probably have told Clegg to get his troops in line and Conservative backbenchers would have complained quite fairly that the government agenda was being derailed by something that only one side really cared about. Read more

Kiran Stacey

The Tories have just published their draft EU referendum bill. Most of it is fairly meaningless technicalities. But the proposed wording is interesting. The party plans to ask voters:

Do you think that the United Kingdom should remain a member of the European Union?

Referendum questions are usually a source of tense, if technical political debate. The two things do watch out for are: Read more

Jim Pickard

It was yesterday afternoon while we were about to board a flight from Andrews Air Base in Washington that the pack of journalists following the prime minister were suddenly told to gather for a briefing.

“You’re going to want to hear this,” said a senior Tory source.

He was not wrong. The breaking news – under embargo for 10pm UK time – was that David Cameron had decided after all to publish draft legislation that would enshrine the 2017 EU referendum in law.

The idea must have seemed a political masterstroke: to nip in the bud the latest uprising of Eurosceptic Tory backbenchers and PPSs (those barely-noticed ministerial bag carriers who occasionally make news by resigning.)

The Cameron team were aware, however, that the story would eclipse the Read more

Kiran Stacey

Danny AlexanderEarlier this year, Danny Alexander told the FT he was going to use the levers of government to get companies to pay their fair share of tax. Specifically, he was going to stop companies from winning big Whitehall contracts if they haven’t complied with tax rules. He told us at the time:

If you work for the government, whether you’re an individual employee or a company that has got a contract with the government, you need to be behaving properly with regard to tax rules.

His comments came after an FT investigation showed some of the world’s biggest IT companies that provide services to the government, use ingenious and somewhat aggressive tactics to avoid paying UK corporation tax. Read more