Sketch: Nick Clegg's speech

Members should “prepare for vitriol and abuse".

When Nick Clegg revealed his message to his members was to go back to their constituencies and “prepare for vitriol and abuse" observers wondered why wait that long.

And thus the sound of blades being sharpened on handy rocks from Brighton’s sand-less beach provided a useful indicator of the welcome being prepared for the Lib Dem leader as he prepared to tell his party that they would not be reaching the sunlit uplands any time soon.

Obviously aware of the threat to their leader the lights in the conference centre were switched off before the speech to allow loyal and ,one assumes, fully frisked members to gather on stage to provide a safe, if staring, background to his end of the conference speech.

With party support now in a place where the doldrums would be a plus and half the MPs in the hall heading for the dole the audience brought a whole new meaning to enthusiasm.

Thankfully for Nick his path had been smoothed yesterday by the decision of Danny Alexander’s mum to allow her youngest a day trip to Brighton to make his own speech.

Still masquerading as Chief Secretary to the Treasury, Danny had plundered the “Greatest Scottish jokes of all time” annual for 1908 to remind party members why they were as deep in the odure as the opinion polls suggest.

Whether this was a deliberate attempt to remind delegates just how worse the situation could be is unknown but Danny was certainly given a prominent position as his leader addressed the faithful.

Having spent much of the parliamentary season in mournful contemplation of the turn-ups in his trousers it was a slightly surreal scene as he strode onto the platform to be announced yet again as the Deputy Prime Minister.

As half the members in the hall joined the party confident in the belief that they would never be in power the reality is clearly a shock but Nick made it clear that having got a sniff of it—and what goes with it—for him at least not to mention Danny’s mam, there would be no going back.

And he turned the history of the Lib Dens on its head by declaring if people wanted protest not power they should vote Labour which, sadly for him , most are apparently already doing.

The past is gone and is not coming back he told the delegates as he announced the last leader but three, Paddy Ashdown, would be getting them ready for the next general election.

And talking of which there was no mention of the other one with Prime Minister in his title busy getting ready for tonight’s appearance on Letterman in New York.

One can only hope that if the” Pleb” story comes up Letterman will seek to confirm with the PM whether his Chief Whip Andrew Mitchell prefers to be called “Thrasher” after his time at Rugby school or by his other favourite title BSD , ‘Big Swinging Dick.”

But that is for conferences to come but meanwhile back in Brighton where

days past a chauffeur-driven was only a dream a party leader’s speech would go on and on as pledges never to be fulfilled were made.

But Nick needed just over the half hour in the new world to tell them they would need binoculars to see the good times coming.

“Imagine yourself standing on the doorstep in 2015”, he asked them.

They did and he left to slightly hysterical applause.

Nick Clegg and wife. Photograph: Getty Images.

Peter McHugh is the former Director of Programmes at GMTV and Chief Executive Officer of Quiddity Productions

Photo: Getty Images
Show Hide image

There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR