Where does Clegg now stand on an EU referendum?

The Lib Dems supported a referendum on EU withdrawal in their 2010 manifesto.

With an ever-greater number of Tory MPs demanding a referendum on EU withdrawal, it's worth recalling that one of the three main parties has already promised one - the Lib Dems. The party's 2010 election manifesto stated:

The European Union has evolved significantly since the last public vote on membership over thirty years ago. Liberal Democrats therefore remain committed to an in / out referendum the next time a British government signs up for fundamental change in the relationship between the UK and the EU.

As the leaflet below shows, the Lib Dems also campaigned on the issue.

In his speech on Europe yesterday, Clegg denounced the belief that Britain could repatriate powers from the EU as "wishful thinking", adding that "as soon as we start talking about repatriation, we descend into the in-versus-out debate". It is precisely for this reason that the Lib Dems argued for a referendum on withdrawal at the last election. More recently, however, the party has made no mention of the pledge, taking the view that, with the eurozone in crisis, now would be "the wrong time" for a vote.

With Cameron shortly expected to outline plans to hold a referendum after the next election on a "new EU settlement" for Britain, it remains to be seen how Clegg responds. Tory MPs, if not his own party, are unlikely to let him forget his recent support for a vote on membership.

Nick Clegg gives a press conference in Brussels in 2011. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.