David Laws: Cameron's true-blue wingman

The Lib Dem will say things even David Cameron won’t.

David Cameron has continued his efforts to open up some “clear blue water” between his own party and their Liberal Democrat coalition partners. In an interview with the Mail on Sunday, he trails a plan to scrap housing benefit for under-25s. He says:

A couple will say, “We are engaged, we are both living with our parents, we are trying to save before we get married and have children and be good parents. But how does it make us feel, Mr Cameron, when we see someone who goes ahead, has the child, gets the council home, gets the help that isn’t available to us?”’

‘One is trapped in a welfare system that discourages them from working, the other is doing the right thing and getting no help.
It’s a measure guaranteed to be unpopular with Liberal Democrats, but also seemed tailor-made to discourage anyone under the age of 25 from voting Conservative.

For a glimpse into what this cut could mean for many young people, you can't do better than to read Petra Davis' piece on it from earlier this year.

There are also hints that plans to limit child benefit to a couples first three children are back on the table, although the MoS states that he won’t be doint that “unless he wins public support, and even then it won’t be until after the next election.”

However, David Cameron receives help from an unexpected quarter this morning in his efforts to assert his diehard Tory-ness. David Laws has given an interview to the Sunday Telegraph in which he discusses the need for deeper tax and spending cuts. Only health, education and pension spending should be protected, he argues:

We are going to have to see a shrinking of the state share of the economy until it is back into kilter with the amount of tax people are prepared to be pay… Future UK governments should consider a further substantial rise in the personal tax allowance, along with lower marginal tax rates of tax at all income levels.

Whenever Laws makes an intervention like this (which he has done periodically since leaving the Cabinet in 2010), the likes of Paul Goodman at ConservativeHome call for his return to the top ranks of government, although quite who Laws could practically replace is far from clear.

I’m not so sure Laws is headed back to a ministerial position, though. He seems to be doing an excellent job of being David Cameron’s true-blue wingman, saying the truly Tory things that a Conservative PM fearful of his chances of ever securing a majority shies a way from. Laws blurs the lines between the coalition partners. If he comes back inside the Cabinet room, the differences and disagreements will suddenly look a lot starker.

David Laws during the coalition negotiations in 2010. Photograph: Getty Images

Caroline Crampton is assistant editor of the New Statesman. She writes a weekly podcast column.

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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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