Cameron pulled in all directions on Europe

Ed Miliband accuses Cameron of leading the UK to the EU "exit" as David Davis demands two referendums.

Ken Clarke is one of the few prominent Conservative politicians still prepared to make the case for EU integration and he did it with gusto on the Today programme this morning. It was "complete folly" to put our membership at risk, he said, lamenting that the country had gone into "a nervous breakdown" over the subject. He dismissed the 53 Tory MPs who voted for a real-terms cut in the EU budget as "extreme Eurosceptics" and revealed that David Cameron had assured him that he was committed to continued British membership of the union.

"David Cameron assures the public, he’s always assured me, that he believes, as I do, that Britain’s place in the modern world has got to be in the EU.

It would be a disaster for our influence in global political events; it would be a disaster for the British economy, if we were to leave the EU. It damages our influence in these great critical events of the moment if we keep casting doubt on our continued membership."

Cameron, meanwhile, is being pulled in all directions on Europe today. In a speech at the CBI's annual conference, (which will also hear addresses from Cameron, Vince Cable and Boris Johnson), Ed Miliband will accuse him of allowing Britain to "sleepwalk towards exit" in a "betrayal of our national interest."

The Labour leader will say:

For more than three decades, our membership of the EU has seemed to be a settled question. Not any more.

Public scepticism about the EU has been on the rise for some time. Some cabinet ministers in this government now openly say we would be better off outside the EU.

And many of our traditional allies in Europe clearly think Britain is heading to the exit door. Those of us, like me, who passionately believe that Britain is stronger in the EU cannot be silent in a situation like this. I will not allow our country to sleepwalk towards exit because it would be a betrayal of our national interest.

He will add that were the UK to leave the EU, it would be "the United States, China, the EU in the negotiating room - and Britain in the overflow room. We would end up competing on low wages and low skills: an offshore low-value economy, a race to the bottom".

At the same time, Cameron's former leadership rival David Davis will use a speech at St Stephen's Club to call for the PM to offer not one but two referendums on Europe. The first would be a vote on what powers the government should seek to repatriate from Brussels, the second, to be held following the conclusion of negotiations, would be a vote on whether to remain in the EU.

Cameron is still expected to use a speech before Christmas to outline plans to hold a referendum after the next election on a "new EU settlement" for Britain, but Davis and other Tory MPs are growing increasingly impatient. As Davis said on the Andrew Marr Show yesterday: "Nobody believes it and why should they? The British public have been promised a referendum by the three major parties, and every single one has not delivered. Now, they may have their reasons, but they haven’t delivered and so the public feel they’ve been lied to – they won’t believe any more promises on referenda actually."

Elsewhere, the ever-helpful Boris Johnson uses his Telegraph column to warn Cameron that nothing less than a veto of the EU budget will do. He writes:

It is time for David Cameron to put on that pineapple-coloured wig and powder blue suit, whirl his handbag round his head and bring it crashing to the table with the words no, non, nein, neen, nee, ne, ei and ochi, until they get the message.

Yet a veto, by compelling the EU to set annual budgets through qualified majority voting, would almost certainly lead to a large increase in the UK contribution. If Cameron wants to make a eurosceptic gesture, it could prove a costly one.

David Cameron is expected to announce details of an EU referendum in a speech before the end of the year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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The future of policing is still at risk even after George Osborne's U-Turn

The police have avoided the worst, but crime is changing and they cannot stand still. 

We will have to wait for the unofficial briefings and the ministerial memoirs to understand what role the tragic events in Paris had on the Chancellor’s decision to sustain the police budget in cash terms and increase it overall by the end of the parliament.  Higher projected tax revenues gave the Chancellor a surprising degree of fiscal flexibility, but the atrocities in Paris certainly pushed questions of policing and security to the top of the political agenda. For a police service expecting anything from a 20 to a 30 per cent cut in funding, fears reinforced by the apparent hard line the Chancellor took over the weekend, this reprieve is an almighty relief.  

So, what was announced?  The overall police budget will be protected in real terms (£900 million more in cash terms) up to 2019/20 with the following important caveats.  First, central government grant to forces will be reduced in cash terms by 2019/20, but forces will be able to bid into a new transformation fund designed to finance moves such as greater collaboration between forces.  In other words there is a cash frozen budget (given important assumptions about council tax) eaten away by inflation and therefore requiring further efficiencies and service redesign.

Second, the flat cash budget for forces assumes increases in the police element of the council tax. Here, there is an interesting new flexibility for Police and Crime Commissioners.  One interpretation is that instead of precept increases being capped at 2%, they will be capped at £12 million, although we need further detail to be certain.  This may mean that forces which currently raise relatively small cash amounts from their precept will be able to raise considerably more if Police and Crime Commissioners have the courage to put up taxes.  

With those caveats, however, this is clearly a much better deal for policing than most commentators (myself included) predicted.  There will be less pressure to reduce officer numbers. Neighbourhood policing, previously under real threat, is likely to remain an important component of the policing model in England and Wales.  This is good news.

However, the police service should not use this financial reprieve as an excuse to duck important reforms.  The reforms that the police have already planned should continue, with any savings reinvested in an improved and more effective service.

It would be a retrograde step for candidates in the 2016 PCC elections to start pledging (as I am certain many will) to ‘protect officer numbers’.  We still need to rebalance the police workforce.   We need more staff with the kind of digital skills required to tackle cybercrime.  We need more crime analysts to help deploy police resources more effectively.  Blanket commitments to maintain officer numbers will get in the way of important reforms.

The argument for inter-force collaboration and, indeed, force mergers does not go away. The new top sliced transformation fund is designed in part to facilitate collaboration, but the fact remains that a 43 force structure no longer makes sense in operational or financial terms.

The police still have to adapt to a changing world. Falling levels of traditional crime and the explosion in online crime, particularly fraud and hacking, means we need an entirely different kind of police service.  Many of the pressures the police experience from non-crime demand will not go away. Big cuts to local government funding and the wider criminal justice system mean we need to reorganise the public service frontline to deal with problems such as high reoffending rates, child safeguarding and rising levels of mental illness.

Before yesterday I thought policing faced an existential moment and I stand by that. While the service has now secured significant financial breathing space, it still needs to adapt to an increasingly complex world. 

Rick Muir is director of the Police Foundation