Kiran Stacey

British newspapersSince Thursday, the manoeuvrings over press regulation have taken increasingly more surreal turns.

First we had the prime minister abruptly calling off the talks, citing irreconcilable differences with Labour and the Lib Dems. Clegg and Miliband were only given a couple of hours’ notice about the announcement, journalists were given 30 minutes.

After that, it looked like the prime minister was heading for inevitable defeat in a vote today on the Lib-Lab proposals for a Royal Charter backed by statute. His aides seemed to recognise such, saying that the prime minister would promise to repeal such a law if there was a Tory majority in 2015. Read more

Kiran Stacey

George OsborneSome fascinating economic research by Ipsos Mori, published today, shows that George Osborne is the least popular chancellor in nearly a decade, with net approval ratings of -33. Nobody has had such bad ratings since Ken Clarke in the early 1990s.

At first sign this is unsurprising: this is the first recession we’ve had since the early 1990s (if you take 2008-now as one recession). But actually when you plot the popularity of chancellor’s against economic growth, the two are surprisingly unconnected.

Plotting chancellors’ approval ratings since 1976 tells us a few things: Read more

Kiran Stacey

Sometimes when a leader of the opposition has a lot of different attacks to make on a prime minister at PMQs, they try to spread themselves too thinly and end up not hitting home with any of their pre-prepared lines.

Not so today. Ed Miliband was faced with a choice selection of easy pickings with which to attack the prime minister, and blended them together perfectly to leave David Cameron looking red-faced and ineffectual.

The Labour leader began with an uncharacteristically well-delivered joke about the apparent u-turn on minimum alcohol pricing: Read more

Kiran Stacey

Justin Welby outside the LordsThis morning we reported in the FT that bishops in the House of Lords are leading an attempt to exempt children from the below-inflation rise in benefits. This follows on from the comments of Justin Welby, the Archbishop of Canterbury, over the weekend, who said:

By protecting children from the effects of this bill, they can help fulfil their commitment to end child poverty.

But just as interesting as the bishops’ response to government attempts to slash the welfare bill has been the reaction of Tory MPs to the archbishop’s comments. Read more

Kiran Stacey

Labour continues to pile the pressure onto Iain Duncan Smith over reductions in housing benefit to those who have one or more spare bedrooms in their social housing. At DWP questions today, Labour MP after Labour MP stood up to ask a question about what they call the “bedroom tax” (Tories hate the label but their “spare room subsidy” label misses the point).

Amid the barrage of questions, it became clear that DWP is about to offer a concession. IDS told the Lib Dem MP Greg Mulholland that guidance would be going out to councils tomorrow about what they can do for severely disabled children. Read more

Kiran Stacey

I’ve updated this post at the bottom in light of this afternoon’s parliamentary debate on the issue.

As the Tories contemplate the fallout from coming third in the Eastleigh byelection, different ministers have been floating different ideas for recapturing the votes lost to Ukip. One such idea is banning newly-arrived migrants from accessing certain benefits and NHS services.

Polls suggest immigration is a major reason for voters choosing Ukip, and Conservatives worry that trend will only accelerate when limits on movement from Bulgaria and Romania to elsewhere in the EU are removed.

A cabinet sub-committee has been convened to look into the policy options, but in the face of EU rules forbidding discrimination between citizens of different European countries, is there anything they can do, or is this empty populist rhetoric? Read more

Kiran Stacey

 

Jeremy Forrest, the teacher extradited from France last year

Jeremy Forrest, the teacher extradited from France last year

We revealed this morning that the first battle that Nick Clegg intends to pick in the coalition after his party’s victory in Eastleigh is over the European arrest warrant.

The EAW is one of a number of measures involved in the European crime and justice framework, which the Tories want to leave altogether. The prime minister has won plaudits among his own party for saying he would pull out of the 130 measures agreed among EU countries, but he needs the support of his coalition partners to do so, as it must go to a vote in the Commons.

Negotiations between the two parties are being led by Danny Alexander and Oliver Letwin, and according to sources close to the talks, have pretty much broken down altogether. Read more

Kiran Stacey

George Osborne and Danny Alexander will front two important pieces of analysis next month into why being in the UK benefits Scotland both in terms of its currency and its financial services sector.

The first of these papers could prove particularly interesting. It will argue that the best kind of relationship between Scotland and the rest of the UK would be full fiscal and currency union – ie remaining part of the UK.

But it will also give an intriguing answer on the terms on which Scotland could leave the UK and yet still retain sterling as its currency. Read more

Kiran Stacey

Joachim Gauck

Joachim Gauck

David Cameron’s European strategy hinges on the idea that he will be able to repatriate powers from Brussels to Westminster, before offering voters a choice between the new settlement and leaving the EU altogether in a referendum.

But the question that remains to be answered is exactly how much will other European countries be willing bend to Britain’s demands for such repatriation? Will the threat of Britain leaving be enough to persuade them to cooperate, or will they be so irritated by the way in which Cameron is going about his project that they happily wave goodbye to the UK?

In a speech this morning in Germany, the German president made it clear that he does not want to see the UK simply pack its bags and leave. Speaking from his Schloss Bellevue, his official residence, Joachim Gauck said: Read more

Kiran Stacey

Boris Johnson and Maria Hutchings doorknocking in Eastleigh

Boris Johnson and Maria Hutchings campaigning in Eastleigh

We are now just a week from the Eastleigh byelection and the likely result is starting to take shape.

The Lib Dems have emerged as the decisive favourites. They have run an impeccable campaign, from choosing a man who was the antithesis of Chris Huhne, to limiting the campaign to three weeks, preventing their rivals from getting their machinery properly off the ground.

For a full explanation of why the Lib Dem ground operation has been better than the Tory one, James Forsyth’s piece for the Spectator gives an excellent summary. Read more

Kiran Stacey

Andrew MitchellAs Andrew Mitchell begins to emerge from the shadows of the “plebgate” row, talk has turned to whether he could be brought back into the cabinet, or perhaps be given another plum government job.

The latest talk is that the former chief whip is one of two candidates (alongside Peter Lilley) under consideration to become the UK’s next EU commissioner when Cathy Ashton steps down next year.

Mitchell has not said anything in public about whether he would want to take the job. But his comment piece in this morning’s FT gives us some idea about what kind of agenda he would pursue if he was selected. Read more

Kiran Stacey

George Osborne and Danny Alexander

George Osborne and Danny Alexander

This June, George Osborne will unveil his spending review for the financial year 2015/16. The chancellor is expecting to have to make around £10bn of cuts to Whitehall departments, which, as we revealed in the FT a few weeks ago, would mean some departments taking a particularly heavy whack.

Our figures show that cutting at the same pace as the government has done so far, which is what Osborne has promised, would mean another £1bn taken out of both the business department and the money that goes to local government. The defence budget, possibly the most sensitive of budgets, at least within the Conservative party, would fall by nearly £770m. Read more