The Lib Dem rebels: who they are and what they want

Your guide to the four Lib Dem MPs planning to rebel against the increase in VAT.

Vince Cable may now claim that the Lib Dems only warned of the dangers of a VAT rise during the election in order to "score points" over the Conservatives, but there are others in his party who have always opposed this regressive move on principle.

One of them, Andrew George, has now tabled an amendment demanding an assessment of the impact the new 20 per cent rate will have on low-income groups. It has been signed by three others -- Bob Russell, Mark Williams and Roger Williams.

There is no evidence that Simon Hughes and Charles Kennedy have joined the rebellion, though it wouldn't be surprising if the Gang of Four (as they will undoubtedly soon be known) had their tacit support.

Meanwhile, Russell, who has previously threatened to vote against the Budget in its entirety, has dismissed an Independent on Sunday report that the rebels have secretly agreed to co-operate with Labour MPs as "poppycock" and "Labour mischief-making".

He said: "There is not a conspiracy involving Simon Hughes or Charles Kennedy, this is about backbencher unease from members. If Labour think there is some yawning chasm they are going to be sorely disillusioned."

It remains to be seen whether the amendment will be put to a vote on Tuesday, but the rebellion is an important reflection of the wider unease felt by Lib Dem activists over the Budget.

The MPs have no obvious ideological agenda, but Russell has a record as a Lib Dem maverick. He previously rebelled against the party whip to vote against equalising the age of consent and the sexual equality act.

Russell's name and those of his fellow conspirators are certainly worth noting for the future.

Andrew George

Age: 51

Constituency: St Ives (elected 1997)

Majority: 1,719 (3.7 per cent)

Significant moments: One of the first Lib Dem frontbenchers to threaten to resign if Charles Kennedy did not stand down as leader. Later sacked by Kennedy's successor, Menzies Campbell.

Bob Russell

Age: 64

Constituency: Colchester (elected 1997)

Majority: 6,982 (15.1 per cent)

Significant moments: Rebelled against the party whip to vote against equalising the age of consent and against the sexual equality act.

Mark Williams

Age: 44

Constituency: Ceredigion (elected 2005)

Majority: 8,324 (21.8 per cent)

Significant moments: Dramatically increased his majority at the last election from 219 to 8,324.

Roger Williams

Age: 62

Constituency: Brecon and Radnorshire (elected 2001)

Majority: 3,905 (10.2 per cent)

Significant moments: Served as shadow Welsh secretary for the Lib Dems from 2007-2008.

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George Eaton is political editor of the New Statesman.

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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.