CommentPlus: pick of the papers

The ten must-read pieces from this morning's papers.

1. Cameron's Tories point to isolation (Financial Times)

If the Tories win the election, they will find themselves oddly isolated from mainstream conservatism in both the US and Europe, writes Gideon Rachman. David Cameron's decision to distance his party from the US has left it without any coherent focus for its foreign policy.

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2. Gordon Brown must now tell the voters why they deserve more of him (Daily Telegraph)

It is not enough for Brown to offer a demolition of the opposition's economic policies, writes Mary Riddell; he needs to create a sense of optimism. He should begin by promising not to raise VAT.

3. Thirteen years on, New Labour has come full circle (Times)

Like the Conservatives in 1997, Labour has decided to pursue a strategy of fear, not hope, writes Rachel Sylvester. It is the Tories whose theme will be "Things can only get better".

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4. Hacks and the Yard? We're still asking (Guardian)

Scotland Yard has gone to extraordinary lengths to suppress evidence of the phone-hacking scandal at the News of the World, says Nick Davies. But despite the Yard's attempt to mislead the public and the press, the questions will not go away.

5. Obama's 21st-century world order (Independent)

Barack Obama's instinct in devising foreign policy reflects an unusual ability to see the other side's point of view, writes Mary Dejevsky. By abolishing talk of the "axis of evil" and appealing directly to Iranians, he has made it harder to demonise the US.

6. South Africa will survive the killing of a neofascist -- like in 1994 (Guardian)

The murder of Eugene Terre'Blanche will not be the spark for a race war, writes Gillian Slovo. His Afrikaner Resistance Movement suffered an irreparable defeat at the time of the 1994 election.

7. An amazing Afrikaner -- wrong about everything (Times)

Elsewhere, Hugo Rifkind says that Terre'Blanche may have exploited the language of a segregationist, but he was actually something far worse -- a racial supremacist.

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8. Israel knows apartheid has no future (Financial Times)

After decades of illegally occupying Palestinian land, Israeli leaders are finally acknowledging reality, writes Mustafa Barghouthi.

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9. I wish I'd had the NI policy to call on as a Tory candidate (Independent)

The former Tory MP Michael Brown says that although the party's pledge to reverse Labour's planned National Insurance increase may be dodgy economics, it is also smart politics. The Tories have armed their candidates with the ammunition they will need on the doorstep.

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10. The election for change (Times)

In a special full-length editorial, the Times sets out the changes it wants to see in Britain over the next five years.

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.