Cameron's decision to drop Lords reform will test the coalition like never before

Which will crack first, Cameron’s hold on his party or the glue that binds the coalition?

So now we know. The reported abandonment of Lords Reform means the government’s legislative programme is being run, not by the Prime Minister, but by a group of 100 or so Conservative backbenchers who henceforth will be calling the shots. It’s quite a moment.

The received wisdom seems to be that that "no Lords Reform means similarly no boundary changes", there’s a minor sulk for a day or so and then everyone moves on.

This is quite wrong. From a Lib Dem perspective, the two great constitutional changes we wanted to achieve in government will have failed. There will have to be some mighty great bits of compensation in return – and it’s unlikely the Tories will deliver. Can anyone see Osborne – now guaranteed to be Chancellor until the next election according to the PM yesterday – agreeing to a radical green agenda? Ditto on delivering root and branch banking reform, the so-called "Vickers Plus" plan apparently favoured by Vince. Self-interest means neither the Labour or Conservative leadership will show any great enthusiasm for Party Funding reform. And even if they did, those emboldened Tory backbenchers now know they can stop anything they don’t like in its tracks.

But neither is the status quo acceptable to grassroots Lib Dems. Expect fireworks at the Brighton conference where Lib Dem members will be demanding Nick Clegg negotiates the earth in return for this latest Conservative debacle – but which he knows he cannot deliver because his Tory opposite number is holed below the water line.

Nick’s only power will be similarly to say a firm "No" to anything we find even vaguely uncomfortable going forward. The snooping bill should be firmly in his sights. But more than that, he needs to stop any of the legislation that the Tory right are itching to start pushing – attempts to abandon the European Convention of Human Rights and an EU referendum are two obvious areas in which Nick is more likely to be able to control Tory backbenchers than the PM. There’s an irony there.

And so we reach an impasse in which the sole government agenda item will become the centrepiece of the coalition agreement – reducing the deficit. And even there a fight is brewing as Vince pushes for Plan B and Osborne looks to cut Welfare. Another impasse looms.

And all the time the pressure builds. Tory backbenchers will be stretching their muscles, Lib Dem grass roots will be pushing right back. Eventually something is going to give. The only question is which is the weakest spot – Cameron’s hold on his party or the glue that binds the coalition?

One of them is going to crack first. And then the fun really starts.

 

 

Lords attending the State Opening earlier this year. Photograph: Getty Images

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

Photo: Getty
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The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.