This wasn't the speech Clegg needed

The Lib Dem leader offered little to reassure his anxious party.

Addressing a party that has lost more than half of its support since the election, a quarter of its membership and hundreds of its councillors, perhaps it's not surprising that Nick Clegg felt the need to reassure the Lib Dems that they would, at least, still exist by the time of the next election. "If we secure our country's future, we will secure our own," he cried, suggesting that extinction was not an unthinkable outcome.

The big policy announcement was that he would block any reduction in the 45p tax rate. While he "conceded" the cut from 50p to 45p, Clegg declared that all future tax cuts must pass "one clear test": "do they help people on low and middle incomes get by and get on?" The problem with this argument is that it applies equally well to the original cut. Why is it only now, after the government has handed 14,000 millionaires a £40,000 tax cut, that Clegg discovers his progressive soul and insists any measures must benefit lower earners? With the exception of one token reference to taxing "unearned wealth", we also heard nothing about the new "wealth tax" he had previously spoken of.

For much of the speech, which was short by recent standards, it was what Clegg didn't say that was most notable. There was no mention of the NHS (perhaps understandably), nothing on constitutional reform (the Alternative Vote and House of Lords reform having been defeated) and nothing on welfare. It is some indication of Clegg's standing in the party that the biggest cheer came when he announced that a former leader, Paddy Ashdown, would chair the party's 2015 election campaign.

Today, Clegg needed to reassure anxious activists that he has a plan to avoid a disastrous defeat at that election. In that task, he singularly failed. His voice rising with anger, the Deputy PM declared that "it was Labour who plunged us into austerity and it is we, the Liberal Democrats, who will get us out." But the failure of the coalition's strategy to deliver growth (indeed, its success in delivering recession) means there is no end in sight for austerity. "Let's go for it!," he rather limply ended. But few, one sensed, were prepared to follow him.

Nick Clegg gives his keynote speech to the Liberal Democrat conference in Brighton. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Labour tensions boil over at fractious MPs' meeting

Corbyn supporters and critics clash over fiscal charter U-turn and new group Momentum. 

"A total fucking shambles". That was the verdict of the usually emollient Ben Bradshaw as he left tonight's Parliamentary Labour Party meeting. His words were echoed by MPs from all wings of the party. "I've never seen anything like it," one shadow minister told me. In commitee room 14 of the House of Commons, tensions within the party - over the U-turn on George Osborne's fiscal charter and new Corbynite group Momentum - erupted. 

After a short speech by Jeremy Corbyn, shadow chancellor John McDonnell sought to explain his decision to oppose Osborne's fiscal charter (having supported it just two weeks ago). He cited the change in global economic conditions and the refusal to allow Labour to table an amendment. McDonnell also vowed to assist colleagues in Scotland in challenging the SNP anti-austerity claims. But MPs were left unimpressed. "I don't think I've ever heard a weaker round of applause at the PLP than the one John McDonnell just got," one told me. MPs believe that McDonnell's U-turn was due to his failure to realise that the fiscal charter mandated an absolute budget surplus (leaving no room to borrow to invest), rather than merely a current budget surplus. "A huge joke" was how a furious John Mann described it. He and others were outraged by the lack of consultation over the move. "At 1:45pm he [McDonnell] said he was considering our position and would consult with the PLP and the shadow cabinet," one MP told me. "Then he announces it before 6pm PLP and tomorow's shadow cabinet." 

When former shadow cabinet minister Mary Creagh asked Corbyn about the new group Momentum, which some fear could be used as a vehicle to deselect critical MPs (receiving what was described as a weak response), Richard Burgon, one of the body's directors, offered a lengthy defence and was, one MP said, "just humiliated". He added: "It looked at one point like they weren't even going to let him finish. As the fractious exchanges were overheard by journalists outside, Emily Thornberry appealed to colleagues to stop texting hacks and keep their voices down (within earshot of all). 

After a calmer conference than most expected, tonight's meeting was evidence of how great the tensions within Labour remain. Veteran MPs described it as the worst PLP gathering for 30 years. The fear for all MPs is that they have the potential to get even worse. 

George Eaton is political editor of the New Statesman.