Leaks on cuts will be punished

Ministers could be hit with further budget cuts if they release early details of their department's

Ministers could be punished for leaking early details of spending cuts with last-minute changes to their budgets, the Financial Times has reported.

With the party conference season about to get underway in earnest, Cameron clearly doesn't want speculation about cuts to distract from the Tories' first conference in government for 13 years, and is planning to use the threat of imposed spending cuts to keep his ministers on message during this period. Control will even extend to the conference itself, the FT reports:

"One senior government official said the Treasury would be vetting all ministerial conference speeches to avoid any hint of new spending commitments."

Provisional deals are already in place for some departments ahead of the announcement of the comprehensive spending review on October 20, but David Cameron is said to be anxious to reveal the spending cuts as a complete package, rather than have different elements leak out at different times, dominating the news cycle and distorting the image he wants to present.

The news that the information will be quite so tightly controlled seems to confirm that Cameron is more than a little concerned about the potential ramifications if the cuts are presented the "wrong" way. Ahead of the AV referendum and the local elections next year, the spending review will be the first major test for the unity of the coalition. David Cameron and George Osborne need to prove to the electorate that their cuts are necessary for recovery, not merely ideological, while Nick Clegg has to keep the left of his party convinced that their interests are served by lending their support. And as my colleague George Eaton pointed out yesterday, opposition to the cuts is gathering momentum on several fronts already, and any leaks of the "outline settlements" currently being negotiated would only fuel this movement further.

Leaking details of departmental proposals to the press used to be a tried and tested way for ministers to try and circumvent the Treasury in securing funding (as immortalised in the first ever episode of The Thick of It). But the FT's "senior government official" warns that this trick won't work this time because Cameron and Osborne are "completely united" on this. So, if any leaks are made over the next few weeks, we'll know it has nothing to do with trying to preserve departmental budgets, and everything to do with personal rebellion against the coalition's leaders.

Caroline Crampton is assistant editor of the New Statesman. She writes a weekly podcast column.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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