How can the Lib Dems reverse the slide in their support?

Latest poll puts the Lib Dems down 5 points to 18 per cent.

In the end, just two Lib Dems voted against the coalition's VAT rise -- Bob Russell and Mike Hancock. Nick Clegg will be relieved that so few chose to rebel against a tax increse that, after all, his own party campaigned against during the election.

But there's little comfort for the Lib Dems in today's Independent/ComRes poll, the third in quick succession to show a slide in their support since the Budget. The poll puts Clegg's party down 5 points at 18 per cent, with the Tories up 4 to 40 per cent and Labour up 1 to 31 per cent.

Contrary to expectations of some on the left, it is so far the Tories who are gaining at the Lib Dems' expense. So long as the elixir of electoral reform remains within their reach, the Lib Dems will want this coalition to work. But fears that they are the convenient fall guys for George Osborne's cuts are growing by the day. And the old excuse that the Lib Dems receive less airtime than the Tories and Labour no longer applies.

New Statesman Poll of Polls

Poll of Polls

Conservative majority of 12.

The challenge for Clegg is, as Philip Stephens writes in today's Financial Times, to find a story that "goes beyond the claim that his party is a civilising influence on the government".

The introduction of the Alternative Vote for Westminster elections, against the wishes of the Tories, would provide Clegg with just this -- one reason why the timing of the referendum is such a pressure point in the coalition.

In addition, as my colleague James Macintyre argued yesterday, when there is a resuffle, Clegg should push for more influential positions in the cabinet.

But above all, one feels that the Lib Dems need to find an issue, aside from electoral reform, on which they can clearly and publicly distinguish themselves from the Tories. It could be Afghanistan, it could be Trident, it could be inequality. Whatever it is, Clegg needs to find it -- and soon.

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George Eaton is political editor of the New Statesman.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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