Clegg must give a straight answer

Hints are not enough -- the Liberal Democrats must clarify their position on a power-sharing agreeme

Quite the centre of attention yesterday, Nick Clegg moved today to make his voice heard amid the cacophony, writing an article in the Times, and declaring on Radio 4's Today programme that "I'm not a kingmaker . . . The people are the kingmakers."

Yesterday's speculation centred on what the party would do in the event of a hung parliament -- something our Leader this week calls on the Liberal Democrat leader to clarify.

But did he clarify anything at all?

Ostensibly, he remains committed to the position of "equidistance" from both parties, established before Christmas. His Times piece, along with the usual Lib Dem fodder that a vote for them is not wasted, shows a real -- and probably valid -- edgy feeling that the very public attempts by both Cameron and Brown to align themselves with the Lib Dems could remove a portion of their vote.

But what about the question on everyone's lips: Where would the Lib Dems' alliances lie if a power-sharing agreement became necessary? Despite the fighting talk that "the Liberal Democrats are not for sale", Clegg remains frustratingly reticent, writing:

We will respect the will of the public. The voters are in charge and the decision is theirs. If voters decide that no party deserves an overall majority, then self-evidently the party with the strongest mandate will have a moral right to be the first to seek to govern on its own or, if it chooses, to seek alliances with other parties.

Come on, Nick. This is spectacularly vague -- as I pointed out yesterday, it all depends on how you define the will of the public.

His second point is that, in the event of a hung parliament, the actions of the Lib Dems will be governed by their commitment to four central principles: fair taxes, a fair start for children (with smaller class sizes and a "pupil premium" favouring poorer children), a sustainable economy, and clean politics.

But hang on a minute -- aren't some of these goals completely incompatible with those of the Tories? The fair-tax proposal centres on raising the point at which people start paying income tax to £10,000, by increasing taxes on the rich. This doesn't sound like a great fit with cuts to inheritance tax that would enrich the country's wealthiest 3,000 estates.

And on cleaning up politics, Clegg says he wants to "stop tax avoiders from standing for parliament, sitting in the House of Lords or donating to political parties". I can't help but wonder whether this sounds a little pointed, given the dubious tax status of Lord Ashcroft, Conservative peer and donor extraordinaire.

As my colleague James Macintyre suggests in his fantasy politics piece in this week's magazine, Labour is the more natural ally for the Lib Dems. Clegg's comments today imply that he feels the same way -- on the Today programme, asked if this was a "centre-left agenda", he replied: "It's a fair agenda, yes." In yet another tantalising hint, he said of the Tories: "At the moment, of course, the differences are more striking than the synthetic similarities."

From a political perspective, perhaps it is astute -- necessary, even -- for Clegg to hedge his bets, refusing to publicly rule out a union with the Conservative Party now in case the Lib Dems come to regret it later. But, as he wrote today: "In the event of a hung parliament, the British people also deserve to know how the Liberal Democrats will respond."

Everything Clegg has said today implies that a Lib-Lab pact is more likely than a Conservative one. Now he must come out and say so.


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Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

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