Danny Alexander on coalition tensions, the economy, and ginger-hair

I've interviewed Danny Alexander, Chief Secretary to the Treasury, for this week's magazine. It's a long, wide-ranging conversation, covering coalition relations, the economy, Liberal Democrat election strategy and ginger-hairedness.

In terms of today's news agenda, there are a couple of lines to pick out. Alexander stays firmly against the idea of cutting the 50p top rate of tax any time soon.

At a time when the whole country faces serious financial challenges, the priority needs to be people on low and middle incomes.

Alexander also suggests that the Lib Dems will fight the next election calling for further tax cuts at the bottom of the earnings scale. The party is already implementing its policy of raising the personal allowance to £10,000 over the course of this parliament. Alexander thinks it should be even higher.

I don't see why, in the next parliament, we shouldn't be trying to get to a situation where people in a full-time job on the minimum wage are paying no income tax at all.

That amounts to a personal allowance of around £12,500.

On another issue making headlines at the moment, Alexander fires a warning shot across the bows of Tory eurosceptics. When asked whether he thinks the crisis in the eurozone is an opportunity to renegotiate Britain's relationship with Brussels, he was adamant:

We should be redoubling our effort, not looking at this as an excuse to further an agenda of weakening our ties.

He also insisted his Tory colleagues in government would not acquiesce to their backbenchers' anti-EU demands:

I haven't heard anyone within government express that view and I think it's completely wrong.

I went on to ask him if he thought David Cameron, George Osborne and William Hague had been on "a journey" towards greater pragmatism in terms of Britain's relations with the EU. He thought a long time before answering with a cautious affirmative.

In the history of Britain's role in Europe, if you go back to aftermath of the Second World War, Conservatives in government recognise that their job is to advance Britain's national interest and Europe -- the European Union -- provides an important forum for doing that. I don't think this government is any different in that respect.

True, perhaps. But not what a lot of people in the Tory party want to hear.


Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage