Who does David Cameron fear more, the Lib Dems or Ukip?

The PM is using coalition as an excuse not to be more bellicose in Brussels. It could backfire

Nick Clegg has sprinkled adose of salt into the prime minister's European wounds this morning. The deputy prime minister has written an article in the Observer insisting that the coalition will be "measured" in its approach to any proposed changes to Brussels institutions and warns that "retreating to the margins" of Europe would be "economic suicide".

David Cameron, meanwhile, has told the BBC's Andrew Marr that he would like to see further "rebalancing" of powers with regard to Brussels, but recognises that the Conservatives must act as a coalition - an unveiled hint that it is only the Lib Dems that stop him from giving full rein to his own more Eurosceptic impulses. It is obvious why he would want to present that argument - persuading Tory back benchers that his hands are tied with yellow Lib Dem cord. I'm not sure it will do him much good. The Conservative hard core anti-EU faction know perfectly well that the Lib Dems are an impediment to their ambitions and see Cameron's deference tothem as weakness. Hearing the prime minister advertise that problem will hardly placate them.

Part of Cameron's problem here is that he is trapped in an inherently dishonest position. He probably would like the UK one day to have a different relationship with Brussels, but recognises it is impractical - politically and diplomatically - to demand one now. He would almost certainly have come to the same conclusion if he had a majority in parliament. There are, in government, simply better things to be getting on with, especially in an economic crisis. So Cameron will not march into the European Council swinging a Thatcheresque man-bag demanding more control of employment rights legislation or anything else - and not because the LibDems won't allow it, but because it is not a priority for him. The back benchers know it, so there is very little the PM can say that will satisfy them.

One factor that could really change the dynamic is the performance of Ukip - or rather, Nigel Farage's party's anticipated performance in 2014 European elections. Ukip has already beaten the Lib Dems in a couple of by-elections and is a natural repository for disgruntled Tory protest votes. One poll out today puts Ukip within easy striking distance of the Lib Dems nationally. Conservative strategists are, apparently, very worried about what that might mean for a poll that is due just a year before the next general election. It is feasible to imagine that, come 2014, Cameron will be more afraid of Farage's populist, nationalist agitation beyond the gates of his coalition than Clegg's cosmopolitan Europhile hand-wringing within.

 

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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