OBR to discover £12bn higher structural deficit for 2011-12 than was originally thought
"Ministers are set to be told this autumn that a £12bn black hole has opened in the public finances, in a forecast that threatens to derail the coalition’s deficit reduction strategy and prolong austerity well into the next parliament. The Financial Times has replicated the model of government borrowing used by the independent Office for Budget Responsibility, which suggests the structural deficit in 2011-12 is now £12bn higher than thought, a rise of 25 per cent." - The FT (£)
Lib Dem conference: Vince Cable proposes to swap 50p tax rate for a levy on homes worth £2m...
"Business secretary Vince Cable has suggested Liberal Democrats could allow the 50p rate of tax on top earners to be dropped if the Tories agree to impose a “mansion tax� in return. Cable’s solution to what has become a difficult impasse for the coalition parties is to replace the 50p tax with a levy on homes worth more than £2m. Hinting at a potential deal, he said the idea was “out there as a proposal� as it was important to be pragmatic about the issue." - CityAM
- Firms must explain top wages, Vince Cable will say -Â BBC
- Post Office mutualisation proposals unveiled -Guardian
- The LibDems should back enterprise, not soak the rich - Mark Littlewood, in the Daily Mail
> Yesterday on ToryDiary: Cable reveals new idea to curb top pay, Alexander new measure to grab more tax
...but Lib Dem President Tim Farron calls cutting the 50p rate "morally repugnant" and "economically witless"
"Mr Farron told Lib Dem activists that the party's ministers were reining in the Conservatives – who would be an "absolute nightmare" if they were governing unleashed – as he dismissed growing calls for the levy to be slashed."." - Daily Telegraph
- The Coalition could split before next election, party president Tim Farron warns Tories - Daily Telegraph
- Coalition divorce inevitable, says Tim Farron - BBC
- "For now they are in a blissed-out conference bubble, but the bad times ahead could see them crushed by right and left" - Jackie Ashley, in the Guardian
- "Local politics is not just what liberals do, it has long been at the very heart of who we are" - Tim Farron, writing for the Guardian
- "If you listen to Nadine Dorries, ConservativeHome and the Daily Mail, then Nick Clegg is leading the government; but when it comes to the NHS, the Bankers and fair taxation, Nick seems to be leading the opposition too!" - Tim Farron's speech in full
> From yesterday -Â WATCH:Â Nick Clegg: "It simply would be incomprehensible" to struggling Britons if the Coalition were cut the 50p tax rate
Nick Clegg would veto any transfer of power from Europe...
"Party officials said Mr Clegg had made it clear to David Cameron that any attempt to translate euro-sceptic Tory rhetoric into policy would be opposed by the Liberal Democrats. Mr Clegg is expected to address the question of Europe in his speech on Wednesday and will stress the need to help eurozone countries rather than use the crisis to leverage powers from Brussels." -Independent
- Danny Alexander writes for the Times (£), saying "This is no time to seek a new deal with Europe - Britain must help to restore stability, make sure its voice is heard and drive the recovery"
- Outcry at Lib Dem vow to save hated human rights laws - Daily Express
- The Daily Telegraph has the first half of their list of the 50 most influential Liberal Democrats
> From yesterday -Â WATCH:Â Nick Clegg tells his party: "Sometimes we've got to be a bit awkward"
...as Mark Pritchard MP warns the Prime Minister he faces rebellions if a referendum isn't called next year
"Writing in The Daily Telegraph, Mr Pritchard says that the EU has become an “occupying force� which is eroding British sovereignty and that the “unquestioning support� of backbenchers is no longer guaranteed. He says the Government should hold a referendum next year on whether Britain should have a “trade only� relationship with the EU, rather than the political union which has evolved “by stealth�." - Daily Telegraph=C 2
- We're fed up with Europe, so give us a vote - Mark Pritchard, writing in the Daily Telegraph
- John Redwood blogs: "Mark Pritchard reflects the growing Conservative frustration over the EU"
Mary Ann Sieghart: Clegg's chance to fill a central vacancy
"His luck is that the other two parties have made room for him. Ed Miliband has moved Labour to the left. It is no longer trusted to run the economy competently. Voters still blame Labour for the economic mess that the Coalition inherited and they have more faith in the Coalition's remedy. Obviously this helps George Osborne more than Clegg, but if the Government's medicine works, the Lib Dems will be able to claim some credit at election time." - Mary Ann Sieghart, in the Independent
Two other proposals to emerge from the Liberal Democrat conference:
- "Sarah Teather, the children and families minister, has announced that funding for the pupil premium will double to £1.25bn as she unveiled a raft of announcements to highlight the role her party has played in government to ensure a "fair start for every child"." - Guardian
- "Britain is preparing to rip up centuries-old rules by introducing passports which do not contain details of the holder’s sex. The move, following pressure from the Lib Dems, is designed to spare transgender people and those who have both male and female sexual organs from having to tick ‘male’ or ‘female’ on their travel papers." - Daily Mail
Boris accused of being a serial seducer with 'no moral compass' by former colleague - Daily Mail
Business leaders:Â Jobs and growth "stifled by failed planning laws"...
"Britain’s “creaking� planning system is driving investors away and threatening economic recovery, a group of leading businessmen declare today. They have thrown their weight behind ministers’ controversial planning reform, arguing that it is vital to simplify the process in favour of new retail, technology and pharmaceutical ventures. In a letter to The Times, they say that the changes — bitterly opposed by countryside groups and environmentalists — are essential to providing jobs and growth." - The Times (£)
> Yesterday on Local Government: Purple Book shows Labour split on home ownership
...but now the Women's Institute comes out against the government's planning framework
"The Women’s Institute is joining the fight against the Government’s controversial changes to planning rules and is calling on its 208,000 members to write to their MPs and organise public meetings." - Daily Telegraph
- "Lawyers will rake in thousands of pounds fighting drawn-out court battles after the Government’s controversial planning reforms are brought in, MPs have been warned. The proposals are so lacking in clear definitions that they will amount to a ‘free-for-all’ and a ‘field day for lawyers’, according to legal experts." - Daily Mail
Brian Monteith backs Murdo Fraser's Scottish party plan
"I regularly argued at party gatherings that we should be proud to be seen as Conservatives and Unionists, that we should wear our hearts on our sleeves and become more strident, more robust and more radical. When I look back I now believe my approach was wrong; not because being Conservative and Unionist was intrinsically anathema to Scots, for past evidence suggested otherwise, but because the form of Conservatism that was being offered appeared foreign to many voters. The policies appeared to come from the top down rather than grow up from Scottish roots." - Brian Monteith, writing in the ScotsmanÂ
And finally... the new (tattooed) face of the Liberal Democrats
"Party volunteer Matthew Wheeler is definitely proof that politics does not have to be bland, drab and conventional. For the unemployed 31-year-old is covered from head to toe in tattoos. A multi-coloured haircut tops off the non-conformist look, although Matthew did follow the traditional dress code of male politicians by wearing a standard grey suit to the conference." - Daily Mail
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