The Lib Dems cave in to Osborne over £10bn welfare cuts

Chancellor secures agreement of Clegg's party for £10bn of further welfare cuts in 2015-16.

Ahead of George Osborne's speech to the Conservative conference, the big announcement is that the Chancellor has secured the agreement of Iain Duncan Smith and the Lib Dems to a further £10bn of welfare cuts in 2015-16 on top of the £18bn of cuts already announced. In a joint article for the Daily Mail, Osborne and Duncan Smith write:

[A]s the Treasury illustrated at the time of the last Budget, if the rate of reductions in departmental budgets in the next spending review period is to be kept the same as the current rate, then the welfare budget would have to be reduced by more than £10billion by 2016-17.

We are both satisfied that this is possible and we will work together to find savings of this scale. All of this will require some tough choices, but those choices will be guided by clear principles and a vision of what the welfare system should be.

The cuts are likely to include:

-The abolition of housing benefit for the under-25s.

-A two-year freeze in most benefits.

-A limit on benefits paid to families with more than two or three children.

Nick Clegg previously insisted that the Lib Dems would not sign up to further welfare cuts without the introduction of some form of wealth or property tax. But with the Chancellor having already ruled out a "mansion tax" or higher council tax bands, it remains unclear what Clegg's party will receive in return for consenting to another attack on the poorest. One possibility is that the coalition will again increase the top rate of capital gains tax and raise stamp duty on multi-million properties.

The move will also put further pressure on Labour to say whether, if elected, it would stick to Osborne's spending plans for 2015-16 or adopt its own alternative proposals.

Chancellor George Osborne at the Conservative Party conference in Birmingham. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Show Hide image

It's Gary Lineker 1, the Sun 0

The football hero has found himself at the heart of a Twitter storm over the refugee children debate.

The Mole wonders what sort of topsy-turvy universe we now live in where Gary Lineker is suddenly being called a “political activist” by a Conservative MP? Our favourite big-eared football pundit has found himself in a war of words with the Sun newspaper after wading into the controversy over the age of the refugee children granted entry into Britain from Calais.

Pictures published earlier this week in the right-wing press prompted speculation over the migrants' “true age”, and a Tory MP even went as far as suggesting that these children should have their age verified by dental X-rays. All of which leaves your poor Mole with a deeply furrowed brow. But luckily the British Dental Association was on hand to condemn the idea as unethical, inaccurate and inappropriate. Phew. Thank God for dentists.

Back to old Big Ears, sorry, Saint Gary, who on Wednesday tweeted his outrage over the Murdoch-owned newspaper’s scaremongering coverage of the story. He smacked down the ex-English Defence League leader, Tommy Robinson, in a single tweet, calling him a “racist idiot”, and went on to defend his right to express his opinions freely on his feed.

The Sun hit back in traditional form, calling for Lineker to be ousted from his job as host of the BBC’s Match of the Day. The headline they chose? “Out on his ears”, of course, referring to the sporting hero’s most notable assets. In the article, the tabloid lays into Lineker, branding him a “leftie luvvie” and “jug-eared”. The article attacked him for describing those querying the age of the young migrants as “hideously racist” and suggested he had breached BBC guidelines on impartiality.

All of which has prompted calls for a boycott of the Sun and an outpouring of support for Lineker on Twitter. His fellow football hero Stan Collymore waded in, tweeting that he was on “Team Lineker”. Leading the charge against the Murdoch-owned title was the close ally of Labour leader Jeremy Corbyn and former Channel 4 News economics editor, Paul Mason, who tweeted:

Lineker, who is not accustomed to finding himself at the centre of such highly politicised arguments on social media, responded with typical good humour, saying he had received a bit of a “spanking”.

All of which leaves the Mole with renewed respect for Lineker and an uncharacteristic desire to watch this weekend’s Match of the Day to see if any trace of his new activist persona might surface.


I'm a mole, innit.