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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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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