Conference 2010 Lookahead | Tuesday 5 October

The who, when and where of today's Conservative party conference.

Look out for

Today's big speech will be from Iain Duncan Smith this afternoon at 14:30. Following George Osborne's announcement yesterday that universal child benefit would be cut, he will be under pressure to articulate his plan for the future of the entire benefit system. Critics of the child benefit cut, including from within the Conservative Party and the right-wing media, have called for the cut to be "softened", so Duncan Smith's response today will be closely scrutinised for signs of this.

In addition, David Cameron hinted in an interview this morning that child benefit would not be included in the planned "universal credit", as it would be tantamount to a "means testing system for every single family in the country", where as Iain Duncan Smith has previously suggested that child benefit would be part of the universal credit.

Signs of trouble

Justice Secretary Ken Clarke, due to speak this morning, could be a source of concern for coalition operatives -- always unpredictable, this weekend he went on record to register his concern that Britain could be heading for a double-dip recession, striking a pessimistic note ahead of a conference at which the Tories will be striving to strike an optimistic note.

In addition to his economic pronouncements, the former chancellor will use his conference speech today to announce new plans to create jobs for prisoners. He is expected to announce plans to involve private companies in creating jobs for prisoners, and perhaps even the creation of special "workplace prisons". Tory grassroots are already reported to be unhappy with Clarke's previous announcements that rehabilitation and community sentences will be used to ease the burden on prisons, and today's speech, with its rhetoric about jails providing "a regime of hard work", will be an attempt by Clarke to appease his critics within his own party.

On the fringe

The New Statesman hosts a panel discussion, chaired by Mehdi Hasan, entitled Gaza life support: Is aid a failure of politics?, with Alan Duncan MP, Robin Kealy from Medical Aid to Palestine, NS contributor Ed Platt, and Chris Doyle, director of the Council for Arab-British Understanding. 1pm, Cullinan Suite, Copthorne Hotel.

Elsewhere, David Davis MP, Alex Deane of Big Brother Watch, and Matthew Elliott, founder of the Taxpayers' Alliance and campaign director for the No2AV campaign, come together for an event entitled Civil Liberties under the Coalition. 3.15pm, Austin Court.

Today's agenda

10:00 Public services - Andrew Lansley and Michael Gove

11.30 Cutting crime, reforming justice - Ken Clarke and Theresa May

14.30 Reforming welfare - Iain Duncan Smith

15.45 Tackling global poverty - Andrew Mitchell

Caroline Crampton is assistant editor of the New Statesman.

Getty Images.
Show Hide image

Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.