Nick Clegg on the Lib Dem role in the Spending Review

Emphasises role of Lib Dem ministers in Spending Review, but denies that cuts aim to create a smalle

Nick Clegg has just sent out an email to Lib Dem members giving some of the rationale behind the Spending Review. It's very light on detail, but does provide a couple of interesting insights into how the Deputy Prime Minister is seeking to position his party politically going into this afternoon's announcement.

The core argument is, naturally, the same as the one offered by Cameron and Osborne – the outcome of the review is about fairness and, above all, cutting "Labour's deficit". But there are also certain phrases that demonstrate once again how tightly Clegg's fortunes are now tied to those of the coalition's leading Tory figures. The following paragraph is particularly interesting:

The spending review is a thoroughly Coalition product. Liberal Democrat ministers have been involved every step of the way. Our values and priorities are written through the review, like the message in a stick of rock.

As my colleagues Mehdi Hasan and James Macintyre pointed out in the run-up to the Lib Dem conference, the spending review is just the first in a series of tests for the Lib Dems as a party of government, perhaps the most significant being the local elections to come next May. But with the polling numbers long suggesting we can expect a big swell of unpopularity for this afternoon's announcement, the Spending Review isn't without its challenges for the Lib Dems. Members, and a fair number of Lib Dem MPs, will be feeling very uncomfortable this afternoon.

However, the key paragraph of the letter comes at the end, where Clegg lays out his version of the motivation behind the cuts:

We are not taking the decisions today because they are easy or because we want to see a smaller state, we are taking them because they are right.

He said something similar in his conference speech – it's clearly a line designed for the membership, many of whom will be feeling uneasy about the Tories' mantra of "smaller state, bigger society". Now that Clegg has positioned his party and his ministers so centrally to the Spending Review, it will be fascinating to see how his backbenchers choose to respond, come the inevitable fallout.

Caroline Crampton is assistant editor of the New Statesman.

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The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.