Welcome to the Westminster blog’s live coverage of chancellor George Osborne’s autumn statement. One of the most eagerly anticipated statements since the coalition government took power was expected to offer a gloomy prognosis on the economy. Michael Hunter and Gordon Smith from the FT main newsdesk covered the statement live from 12.30 with additional comment from FT colleagues.
Even Europhile economists must have pricked up their ears at the offer of £250,000 to the person who comes up with the best plan for winding up the euro. Only the Nobel offers a more valuable bounty to the dismal scientists.
But whatever you think of the goal, is the Wolfson Economics Prize – offered by Lord Wolfson, the youthful, Eurosceptic, Conservative chief executive of Next, the UK retailer – the best way to achieve it? These days, bright business ideas often emerge through collaboration, rather than competition.
The clash over next year’s EU budget has widely been viewed as a contest between the austere and the profligate. The end result, after a final round of negotiations collapsed in the wee hours of the night, is that the forces of austerity, led by UK prime minister David Cameron and his Dutch and Danish allies, prevailed over a spendthrift European parliament.
But there is another – often overlooked – element to the debate that animated the member states’ unexpectedly stubborn stance: a desire to punish a Parliament that has grown increasingly assertive – some say grasping – since the Lisbon treaty came into force in December. Read more
David Cameron did his bit for the age of austerity by flying into Washington last night on a commercial BA flight, dropping the practice of previous prime ministers of crossing the Atlantic in a specially chartered plane.
Onlookers noted Cameron snugly billeted alongside Ed Llewellyn, his owlish chief of staff, as he caught some sleep ahead of the two-day visit to Washington DC and New York.
The decision is supposed to save money, but it also gives Cameron a good excuse not to talk to the travelling press en route to Washington – an informal feature of previous prime ministerial visits.
Cameron is understandably wary of the way the media tends to cover trips to the White House. Gordon Brown’s encounters with the US president invariably ended up being stories about “snubs” – a storyline the new PM is anxious to avoid. Read more
The first £5.75bn of spending cuts has just been announced by George Osborne, Conservative chancellor and David Laws, his Liberal Democrat chief secretary in the Treasury garden. It is something of a spectator sport for large numbers of Treasury officials, who seem either keen to get the knives out, or who have too little work on, and are ripe for the chop.
But these cuts represent just the starter, “the first steps” as Mr Laws admitted. The main course is coming later. This near £6bn is tiny compared with the £40bn to £50bn that is coming from 2011 onward. So it is worth not getting too excited by today’s cuts. Read more
From Alex Barker:
Watch the mousetrap:
What an offer from Cameron. But I suspect LIb Dems have been bullied for too long to fall for such blandishments. There’s a growing sense that the Cameron offer is little more than a “mousetrap”. When the Lib Dems sit down to some serious talks on a coalition, Cameron will just accuse them of being difficult in order to strengthen his case for going it alone. The electoral reform concession was described to me by one Lib Dem as “total, unadulterated cynicism”. If Cam is serious, he’ll have a job on his hands winning the trust of these Lib Dems MPs, let alone the beardies in the party.
From Jim Pickard:
Know your history:
Apparently a commission into electoral reform was offered by Heath to the Lib Dems in 1974 and it was turned down; at least that is being reported on Left Foot ForwardRead more
Political scientist Dr Tim Bale of Sussex University says voters aren’t as scared of a hung parliament as the Tories would like, but also warns that Labour’s hopes of a swell in underlying support on election day are likely to be dashed. He goes on to examine poll reliability, the weather’s effect on turnover, and makes his own prediction
Jim Pickard is the FT's chief political correspondent, having joined the lobby team in January 2008. He has been at the FT since 1999 as a regional correspondent, assistant UK news editor and property correspondent.
Kiran Stacey is an FT political correspondent, having joined the lobby in 2011. He started at the FT as a graduate trainee in 2008, working on desks including UK companies and US equity markets before taking over the FT's Energy Source blog.