Why the rise of UKIP is good for the Lib Dems

The party's surge will make it harder for the Tories to take seats off the Lib Dems and could revive the debate around electoral reform.

While there’s no point trying to pretend last week’s by-election results were anything other than awful for the Lib Dems, the silver lining comes from a surprising direction – the success of UKIP. For while the Lib Dems and UKIP are poles apart philosophically, there are some huge in-built electoral advantages to the former in the rise of the latter

Nationally, a fall in the Lib Dem share of vote is ultimately more likely to benefit Labour in the 2015 election – a fact which is well understood in No. 10, and why Nick is allowed a fair amount of Tory bashing. But from the Lib Dem end of the telescope, there are a lot of Lib Dem seats where the Tories run us a close second. Hence the Conservative target seats now being published include a high percentage of Lib Dem-held marginals – half of them in fact.

But a rise in the UKIP share of the vote throws that plan into trouble. Few core Lib Dem voters are likely to switch to UKIP in those constituencies – but a rise in the UKIP vote is likely to hit the Tories hard. Maybe not enough for UKIP to win – but certainly enough to stop the Tories getting past the Lib Dem incumbent.

Secondly, the Tories need to respond to the UKIP surge – and will want to rush to the right. And any move to the right by the Tories to counter UKIP leaves more of the centre ground open to the Lib Dems, just as the differentiation strategy needs it.

But these are just tactical advantages to the Lib Dems. There’s a greater prize. As the excellent Lib Dem blogger Mark Thompson points out, the inherent unfairness of UKIP polling at 10 per cent but gaining zero Westminster seats in a general election (thanks to first-past-the-post) is likely to reignite the debate around electoral reform. The net effect of a UKIP surge removing votes from the Tories and at the same time handing Labour a landslide election victory is likely to energise the debate about proportional representation (PR) on the right.

And every Lib Dem wants the PR debate and electoral reform at the top of the political agenda. So, rather than resulting in our demise, the surge in UKIP support could actually be the saving grace for the Lib Dems. Funny old world, politics.

UK Independence Party leader and MEP Nigel Farage. Photograph: Getty Images.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

Photo: Getty
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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.