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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

Tom Burgis

George Osborne

Welcome to our rolling coverage of the Autumn Statement.

George Osborne has missed his fiscal targets and cut corporation tax.

We’ll bring you all the day’s developments live. By Tom Burgis and Ben Fenton.

15.45: We’re winding up the blog now, but you can follow events as they unfold through constantly updating stories on the front page of FT.com

15.31: A representation of the “flamethrower of uncertainty” can be found in the documentation of the OBR. It is also known as a “fan chart”. I doubt George Osborne is a fan of it, though.

15.24: Chote speaks of the “flamethrower of uncertainty”- a favourite phrase, unsettlingly enough, of the OBR, which is a chart showing forecasts in a wide range that makes the chart lines look like a firebreathing dragon.

15.18: Chote says that the variation in the possible range in the forecast of net debt figures for the UK is a large number, but is “dwarfed by the scale of uncertainties” on the issuance of debt. I think that’s the second time he has said that in his address.

15.12: The Spectator is running a rather scary chart showing the lost output of the current “seven-year slump” in the UK.

15.07: Robert Chote, director of the Office for Budget Responsibility, is live now, going through his department’s figures that underpinned the bad news Mr Osborne has just had to deliver.

15.05: Gavyn Davies has blogged for the FT with his view on the autumn statement while the FT’s Lucy Warwick-Ching has collated some very interesting instant reaction from personal finance experts.

14.49: Hannah Kuchler on the FT’s UK desk has been keeping an eye on business reaction to the autumn statement.

She says:

The CBI, the employer’s organisation, urged the government to stick to its guns on deficit reduction to retain international credibility, saying it was no surprise that austerity would last longer than expected.

John Cridland, director-general, welcomed investment in infrastructure and support for exports, but said the proof was in the delivery. He said:

“Businesses need to see the Chancellor’s words translated into building sites on the ground.”

But the British Chambers of Commerce was less positive, declaring the statement not good enough for a country meant to be in a state of “economic war”.
The government is just “tinkering around the edges”, John Longworth, the BCC’s director general said, adding: “The Budget next March must make truly radical and large-scale choices that support long-term growth and wealth creation. That means reconsidering the ‘sacred cows’ of the political class, including overseas aid and the gargantuan scale of the welfare state. Only a wholesale re-prioritisation of resources, to unlock private sector finance, investment and jobs, will be enough to win the ‘economic war’ we are facing. The danger is that our political class is sleepwalking with its eyes open.”

14.40: Lionel Barber, the FT’s editor, just passed by the live news desk so we asked him what he thought of the autumn statement.

The Chancellor is in a hole, but the good news is that he’s stopped digging. The FT supports the government’s fiscal stance, but is there more to be done on monetary policy to boost growth? That’s the question.

14.26 Who says the British don’t like doing things the French way? Might we surmise from this tweet from the BBC’s Robert Peston’s interview with Danny Alexander, Osborne’s Lib Dem No2, that the UK’s crediworthiness might be going to way of its Gallic cousins’?

[blackbirdpie url="https://twitter.com/Peston/statuses/276330461142327296"]

Others are more chipper:

[blackbirdpie url="https://twitter.com/MJJHunter/statuses/276330252601524225"]

 Read more

Kiran Stacey

The FT, the Guardian, the Mail and the Independent all agreed this morning; the reshuffle was David Cameron’s turn to the right. In came Chris Grayling, out went Ken Clarke. In came Owen Paterson to Defra, in came Michael Fallon to the business department. One Number 10 official remarked yesterday described Grayling as “a good rightwing appointment”. I don’t think I have ever heard someone so close to Cameron saying anything like that before.

Our analysis on how important a moment this could be can be found here.

The problem is, Labour doesn’t seem to get it (to coin a phrase). Ed Miliband decided instead to attack the prime minister for carrying out a “no change” reshuffle: Read more

Helen Warrell

It is not often that political parties admit to having made mistakes, and this particular mea culpa has been a long time coming. But in an opinion piece for The Times today, Yvette Cooper, the shadow home secretary, says that the Labour government was wrong not to have recognised sooner that immigration needed to be controlled. She writes:

We should have brought the points-based system in earlier to restrict low-skilled migration. And we should have adopted transitional controls for Eastern Europe.

This is an important moment, since Labour figures have always privately acknowledged that they cannot really take the Home Office to task on its immigration reforms until they have publicly addressed their own historical mistakes in this area (although Jonathan Portes, an economist who worked as a civil servant in Downing St at the time, would argue that no such apology is necessary). Ed Miliband is due to announce a new policy approach on immigration tomorrow, and it seems that a certain amount of self-punishment is required in the run-up. Cooper says candidly in her article that this is not the “easiest subject” for Labour to discuss, and suggests that the party lost touch with the electorate’s anxieties about the effect that migration would have on jobs and communities: Read more

Kiran Stacey

David Cameron is fond of saying that u-turns are not a problem, they are actually a sign of strength and a government that listens to voters and is willing to change its mind.

He may be right: voters stuck with him through a spate of u-turns early in the government’s life – on selling off national forests, on GP commissioning, on sentencing. But today we have three in one day – will this now start to look like a government that doesn’t know what it’s doing?

Ken ClarkeThe key may lie in the way in which the u-turn is handled. When he announced he was abandoning plans to offer 50 per cent discounts on sentences for offenders who offer guilty pleas, Ken Clarke united the House in laughter by telling MPs:

I have done a few u-turns in my time, and they should be done with purpose and panache when you have to do them.

This is exactly the way Clarke has gone about his u-turn today on secret courtsRead more

Kiran Stacey

Nick Clegg has hit back at claims by David Cameron that he had signed up to plans to extend surveillance by the security services into social media messages and Skype calls.

The PM told hacks travelling on the plane with him to Japan:

You’ve got to remember that this was a national security council where sitting round the table was Chris Huhne, Nick Clegg, Ken Clarke – people from impeccable civil libertarian backgrounds.

 Read more

Helen Warrell

The two police chiefs who attracted so much controversy earlier this month with a plan to open up their forces to a £1.5bn private sector contract were summoned to the home affairs committee yesterday to explain their ideas to MPs. But anyone hoping this would help to clarify which elements of policing might be carried out by private staff and which would remain the remit of police officers and their civilian officials would have been sorely disappointed.

Confronting the committee, Chris Sims, chief constable of West Midlands police, and Lynne Owens, chief constable of Surrey, were keen to distance themselves from the idea that they were privatising the police force. Ms Owens said:

We will not give our crown jewels to a private sector company.

Mr Sims even denied that the procurement process was an outsourcing project – claiming that while Cleveland, Lincolnshire, Avon & Somerset, Cheshire and Northamptonshire police forces had all entered into contracts which effectively hand over services to a company, this was not the model West Midlands and Surrey would follow. Read more

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.

14.10 Thanks for joining us. You can find much more, including the full text of the chancellor’s speech and comprehensive analysis, including video interviews, at www.ft.com/autumn2011Read more

Kiran Stacey

The justice secretary is at it again. As if he hadn’t done enough to upset his cabinet colleagues by calling into question the cat anecdote Theresa May used to attack the Human Rights Act, he’snow condemned her even more explicitly in an interview with the Nottingham Evening Post.

According to PA, Clarke told the paper:

It’s not only the judges that all get furious when the home secretary makes a parody of a court judgment, our commission who are helping us form our view on this are not going to be entertained by laughable child-like examples being given.

We have a policy and in my old-fashioned way when you serve in a government you express a collective policy of the government, you don’t go round telling everyone your personal opinion is different.

 Read more

Helen Warrell

There is a growing confusion over the government’s target of reducing net migration to the tens of thousands by 2015 – at least, its chief adviser on immigration issues seems to think so.

As I reported last month, the 21 per cent increase in net migration over the past year, taking the total to 239,000 – more than twice the level the home office needs to reach in four years’ time – must have made uncomfortable reading for the department’s number crunchers.

However, speaking at London’s Global Immigration Conference yesterday, Professor David Metcalf, chair of the Migration Advisory Committee, suggested that the firm target of less than 100,000 was actually more of an “aspiration” for the government. He told the lawyers at the International Bar Association event:

There are certain tensions within the coalition about whether [the tens of thousands] is a firm target or an aspiration.

This is not the first time that such tension has been mooted. Read more

Helen Warrell

Tom McNally, the Lib Dem peer and justice minister, may face a less than positive reception when he returns to the Ministry of Justice after the party conference in Birmingham.

As the Guardian  reported today, Lord McNally has already weighed in against his Tory colleagues at repeated fringe events, suggesting that the decision to add the word “punishment” to the government’s legal aid and sentencing bill was the work of “little elves that work in No 10″ helping the prime minister to get the right-wing media on side.

These comments were followed by a remarkably frank discussion of the MoJ’s move to transform the justice system and reduce reoffending through payment by results, at a fringe meeting looking at who should profit from the penal system.

Asking rhetorically whether the introduction of private providers into the prison service was “a sin against the holy ghost [of public provision] or a sensible way of the government financing much-needed services and competition”, Lord McNally acknowledged that the PBR drive had ultimately pragmatic motives. Read more

Helen Warrell

David Cameron meets police officersGrumblings of discontent were heard along House of Lords corridors today as Labour and Lib Dem peers accused the coalition of rushing through legislation on the controversial police and crime commissioners with a cunning timetabling ploy.

Following the derailing of the bill by Lib Dem peers in May, the government has now provoked fresh displeasure by tabling the parliamentary ping pong – where the bill is batted back and forth between the two houses – for next Wednesday, the same day that the legislation on fixed term parliaments is also due to be debated.

Labour Lords in particular complained that it was extremely unusual for two such major bills to be scheduled so close together, and are accusing the coalition of what they have diagnosed as a “political stitch-up”. The idea, they say, is to get the contentious police reform package through parliament before Nick Clegg has to face any gip on the subject from Lib Dem party members at their conference, which starts the following Saturday. Read more