Cameron announces another squeeze on welfare

PM says he will look again at abolishing housing benefit for the under-25s.

David Cameron's appearance on The Andrew Marr Show this morning was proof that his political woes have not dented his supreme confidence. The PM boasted that he was on his "fourth leader of the Labour Party" (only if one includes Harriet Harman) and revealed that he had told Boris Johnson: "once you've done your job as London Mayor, don't think your job in politics is over." Boris, one suspects, rather agrees.

Cameron offered a preview of the message that will dominate the Conservative conference: we are facing up to the deficit, which Labour has "nothing to say about". He boasted that the government had reduced the deficit by a quarter since entering office and had created a million new private sector jobs. The reality isn't so positive. The deficit has fallen but, owing to the recession, borrowing so far this year is 22% higher than in the same period last year and the government is expected to miss its deficit target for 2012 by as much as £30bn. Private sector employment has risen by a million but 196,000 of these jobs were reclassified from the public sector and, after falling in recent months, unemployment is expected to rise next year.

Elsewhere, after already announcing £18bn of welfare cuts, Cameron signalled that the government was coming back for more. He suggested that he would look again at abolishing housing benefit for the under-25s and at reducing working age welfare more generally (universal benefits for the elderly are, for now, safe). But he vowed that these measures would be combined with plans to raise more from the rich. George Osborne has ruled out the introduction of a "mansion tax" and higher council tax bands, but Cameron insisted he would find other ways of ensuring the rich pay their "fair share". "We will always be fair and be seen to be fair," he declared, a test that the decision to abolish the 50p tax rate clearly failed. If he is to secure Liberal Democrat agreement for further welfare cuts, he will need to offer something more than another "crackdown" on tax avoidance (making the rich pay taxes they're meant to be paying anyway, is not the same as raising taxes on the rich).

Economic recovery remains the precondition for Cameron's political recovery and, asked if he saw "green shoots", the PM replied that he was not "a forecaster". But even if the economy returns to growth this quarter, the problem for Cameron remains that most people will still be getting poorer. A freeze in council tax and a cap on train fare rises of 1% above inflation will do little to ease the pain.

David Cameron arrives in Birmingham with his wife Samantha Cameron for the Conservative conference. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images/Christopher Furlong
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A dozen defeated parliamentary candidates back Caroline Flint for deputy

Supporters of all the leadership candidates have rallied around Caroline Flint's bid to be deputy leader.

Twelve former parliamentary candidates have backed Caroline Flint's bid to become deputy leader in an open letter to the New Statesman. Dubbing the Don Valley MP a "fantastic campaigner", they explain that why despite backing different candidates for the leadership, they "are united in supporting Caroline Flint to be Labour's next deputy leader", who they describe as a "brilliant communicator and creative policy maker". 

Flint welcomed the endorsement, saying: "our candidates know better than most what it takes to win the sort of seats Labour must gain in order to win a general election, so I'm delighted to have their support.". She urged Labour to rebuild "not by lookin to the past, but by learning from the past", saying that "we must rediscover Labour's voice, especially in communities wher we do not have a Labour MP:".

The Flint campaign will hope that the endorsement provides a boost as the campaign enters its final days.

The full letter is below:

There is no route to Downing Street that does not run through the seats we fought for Labour at the General Election.

"We need a new leadership team that can win back Labour's lost voters.

Although we are backing different candidates to be Leader, we are united in supporting Caroline Flint to be Labour's next deputy leader.

Not only is Caroline a fantastic campaigner, who toured the country supporting Labour's candidates, she's also a brilliant communicator and creative policy maker, which is exactly what we need in our next deputy leader.

If Labour is to win the next election, it is vital that we pick a leadership team that doesn't just appeal to Labour Party members, but is capable of winning the General Election. Caroline Flint is our best hope of beating the Tories.

We urge Labour Party members and supporters to unite behind Caroline Flint and begin the process of rebuilding to win in 2020.

Jessica Asato (Norwich North), Will Straw (Rossendale and Darween), Nick Bent (Warrington South), Mike Le Surf (South Basildon and East Thurrock), Tris Osborne (Chatham and Aylesford), Victoria Groulef (Reading West), Jamie Hanley (Pudsey), Kevin McKeever (Northampton South), Joy Squires (Worcester), Paul Clark (Gillingham and Rainham), Patrick Hall (Bedford) and Mary Wimbury (Aberconwy)

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.