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
Philip 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.
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
George 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
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
At 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 read: Read more
Last 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
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
As 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
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
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
Earlier 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
I revealed a few weeks ago that half the 2015 candidates picked so far by Labour are from the trade unions, a trend that will raise questions over Ed Miliband’s attempts to rebrand his party. Now some of his own MPs are openly admitting that the unions are dominating the selection process even more than in 2010.
Labour remains dependent on union funding, including from Unite, Unison and the GMB. Since he became leader of the party it has received 81 per cent of its donations from the unions.
Key to the debate is that the rules were recently changed, making it harder for non-union candidates without deep pockets to become a general election candidate. (Unite itself claims on its website that it was responsible for this change, saying its interventions had ‘changed the Labour party rule book’.) Candidates now need to run campaigns for 11 weeks instead of four and send out more mailshots than previously. Read more
Last year I got a call from someone at DWP. The call went roughly as follows:
DWP: We’ve got a story for you. Figures show that the benefit cap is working and it hasn’t even been brought in yet.
Me: Really? How do they do that?
DWP: Well the number of people who have come off benefits since we announced the policy is XXX thousand. [I forget the actual number the person used.]
The Tories’ recent shift to the right has been attributed to the influence of Lynton Crosby, their new elections adviser, in response to the rise of Ukip. The anti-Brussels party won more than a fifth of the votes in last Friday’s local elections.
There is a certain irony here. I can reveal that Ukip wanted to hire Mr Crosby about a year ago to become their elections supremo. But the asking price, supposedly £350,000 a year – or the equivalent – would have been outside the reach of Mr Farage’s chequebook. (UPDATE: My mole now says it was £750,000, suggesting that one of us can’t read our own notes.) Read more
It was an interesting tactic from Stephen Williams to use his “humble address” before the Queen’s Speech to make a remark about lobbyists in helping form the government’s programme. Talking about dropped plans to introduce a register of lobbyists and plain cigarette packaging, Williams said:
Some will conclude that the tobacco lobbyists will celebrate this as a double victory.
One lobbyist the Lib Dem MP may have been referring to is Lynton Crosby, Cameron’s election strategist, whose lobbying firm, as we reported this morning, has worked for British American Tobacco. Read more
The news this morning has been dominated by the piece written in today’s Times by Nigel Lawson, the former chancellor, who has said he would vote to leave the EU.
He repeated criticisms first made to the FT back in January, when he attacked David Cameron’s strategy of renegotiating powers from Brussels. He told us at the time:
It would be politically very difficult, if not impossible, for Cameron to agree to give up our budget rebate and that’s a precondition of any change.
One of the most interesting aspects of the Ukip successes today is watching how the Tories respond. We are getting signs that David Cameron is going for a placatory tone, backing away from previous characterisations of the party as “loonies and fruitcakes”.
But one of the more telling interventions came this morning from John Baron, who has led a campaign of eurosceptic Tory backbenchers trying to force the prime minister to legislate in this parliament for an EU referendum in the next.
Baron told the Today programme: Read more
Of all the campaigns in this local election, the Lib Dem one has probably been the lowest-key. As Westminster has focused on the steady rise of Ukip, and what that means for both the Tory and Labour vote, the Lib Dems have plugged away beneath the radar.
That suits Nick Clegg. His party is predicted to lose over 100 seats from today’s vote, and the less attention the media pays to Lib Dem failures, the better, from his point of view.
That was summed up by Clegg’s final day of campaigning, which was spent on a whistle-stop trip to the Harvey’s brewery in Lewes, where he met a maximum of 15 members of staff during a tour of the brewery, before conducting a few interviews and dashing back to London on government business. Read more