Nick Clegg: Plan B "not a Plan B"

DPM denies priorities have changed.

In an interview with the Financial Times, Nick Clegg has signaled that the coalition government will take on board the criticisms of the IMF and launch a "massive" push for growth, but has denied that the plan is a "Plan B", "insisting," the FT report, "the coalition’s deficit reduction plan had earned Britain market credibility."

In the interview, Clegg said that the government's "absolute priority" was to use the government's position as the holder of extremely cheap funds to inject credit into the economy, "massively amplifying the principle of what we did on credit easing". This chimes perfectly with the IMF's advice to ease monetary policy, but there is less word from Clegg as to whether or not he will take up the recommendation to perform fiscally neutral "growth-friendly" policies of infrastructure spending.

The Deputy Prime Minister denies, however, that the plan is in response to the IMF, saying:

From the top of government, a few weeks ago we decided this was the route we’re going to take. That’s the instruction we’ve issued to the Treasury.

And rather than accepting the accusation that the UK's switch from deficit reduction at all costs to a slower paced plan involving, in the Prime Minster's words, "radical" monetary policy and some fiscal looseness represents a Plan B (which George Osborne famously said didn't exist), Clegg instead seems to claiming that the prior tough talk was all an act. Apparently the coalition had no choice but to set out:

In very lurid terms the state of the emergency we were facing... That kind of language over a prolonged period of time can have a dampening effect on mood, which is very important in an economy.

Language or not, Plan B or not, something has definitely changed.

Nick Clegg speaks as David Cameron looks on. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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