Lib Dems

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

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

David Cameron with Maria HutchingsIt was always going to be fascinating to watch how the two coalition parties would campaign when pitted against each other in the closely-fought Eastleigh byelection.

Commentators expected both sides to start criticising policies they have backed within the coalition, and to a certain extent that has happened.

But a press note just delivered by the Lib Dems has turned that on its head, becoming what must surely be the first election material to praise a minister of a different party for implementing government policy. Read more

Kiran Stacey

Nick Clegg in Eastleigh

Nick Clegg in Eastleigh

Nick Clegg yesterday won the race to become the first party leader to get to Eastleigh, where the Lib Dems are about to test their theory that they can hold onto their seats against Tory challenges in 2015.

Bravely, Clegg chose to tour a college where car mechanics were being trained, which given the circumstances in which Chris Huhne, the previous MP, had to resign his seat, helped the picture caption writers no end.

The Lib Dem leader gave off an air of unruffled determination, telling reporters he was “very confident” that his party would hold on to the seat. Read more

Kiran Stacey

Chris HuhneJane Croft, our law courts correspondent, brings us an interesting side note from yesterday’s (fairly harrowing) evidence session with Vicky Pryce at Southwark crown court.

According to Pryce, when David Laws resigned as Treasury chief secretary just 17 days into the job, Nick Clegg originally approached Huhne to offer him the job.

Huhne, who used to work for ratings agency Fitch, would have been a perfect fit for the role, which he used to cover in opposition. He was also one of the driving forces behind the Lib Dems’ pre-election economic programme, which was finely poised between those of the Tories and Labour. Read more

Kiran Stacey

Chris HuhneAfter pleading guilty to perverting the course of justice, Chris Huhne made this statement outside the court:

Having taken responsibility for something that happened 10 years ago, the only proper course of action is for me to resign my Eastleigh seat in parliament.

Contrast that with the letters he sent to David Cameron and Nick Clegg at the time. To Clegg, his party leader and rival, he wrote:

I am writing to resign, with great regret, as Energy and Climate Change Secretary. I will defend myself robustly in the courts against the charges that the Crown Prosecution Service has decided to press. I have concluded that it would be distracting both to my trial defence and to my official duties if I were to continue in office as a minister….

This is what Clegg sent in return: Read more

Kiran Stacey

Nick Clegg. Getty Images

The Tories are having great fun mocking Nick Clegg’s opposition to an EU referendum, pointing out that the Lib Dems went into the last election promising a referendum of their own. The Lib Dems in turn, point out that the wording of their manifesto actually mirrors what the coalition has put into law, namely that there should be:

an in/out referendum the next time a British government signs up for fundamental change in the relationship between the UK and the EU

But the Lib Dems made a huge issue of it, even walking out of the Commons in 2008 when speaker Michael Martin refused to let the party bring an amendment calling for a referendum. As the guardian’s Nick Watt points out, Nick Clegg said at the time: Read more

Kiran Stacey

Is this a first? An email has just popped into a colleague’s inbox stating:

The Joint Committee on the draft Care and Support Bill, chaired by Paul Burstow MP, is conducting pre-legislative scrutiny into the draft Bill and the policies it seeks to implement. 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

George Osborne and Nick CleggBack in September, Nick Clegg said he would block any attempt by George Osborne to freeze benefits in this week’s autumn statement. This put the chancellor in something of a quandary. He had been hoping to save several billions with the move, as well as winning the support of a public that is increasingly hostile to people who are claimants.

Another option remains on the table, however, is to allow benefits to rise, but not by as much as they would normally do if the link with inflation is kept. New analysis from the Institute of Public Policy Research suggests there could still be a fair amount of savings to be gained, for example, by increasing them by just 1 per cent.

The IPPR has produced a table of savings from possible options open to the chancellor: Read more

Kiran Stacey

Alex Salmond and David CameronDavid Cameron will meet Alex Salmond in Edinburgh on Monday morning to put the seal on a deal to transfer the power to the Scottish government to hold a referendum on independence.

As part of that deal, the British government will make sure there is a straightforward, single question, while giving way on allowing the Scottish government to give 16- and 17-year-olds the vote.

This is being treated with some consternation at Westminster, where many fear it will undermine the current constitutional settlement of only allowing adults to vote. Lord Forsyth, the Tory peer, called it a “backdoor way” of changing the voting rules, arguing that it should be debated properly in parliament. Read more

What a difference a political hat makes. Around 20 years ago, Vince Cable as a company economist angered Nigeria’s military rulers by pointing out corruption – but got away with it.

Returning to Nigeria as British business secretary to foster links, he chose somewhat safer topics, discussing areas for improvement for both countries.

The last time Vince Cable set foot in Nigeria was “during the dark days of military rule” in the mid-90s.

 Read more