Who are the Lib Dem welfare rebels?

Four Lib Dems, including Sarah Teather and Julian Huppert, voted against the bill and two abstained.

As expected, the coalition's Welfare Uprating Bill, which introduces a 1 per cent cap on benefit increases for each of the next three years, passed comfortably in the Commons last night, with MPs voting in favour of the bill by 324 to 268, a majority of 56. There was, however, a small but notable Lib Dem rebellion.

Four of the party's 57 MPs - Julian Huppert, John Leech, Sarah Teather, David Ward - voted not to give the bill a second reading, while Andrew George and Charles Kennedy formally abstained by voting in both lobbies. Of these six, three - George, Huppert and Kennedy - voted against Labour's amendment to introduce a jobs guarantee for the long-term unemployed, while the others abstained.

Three senior Lib Dems - Norman Baker, Lynne Featherstone and Chris Huhne - did not take part in the vote.

Below is a full guide to how the rebels voted and their reasons for doing so. Four of the MPs in question - Huppert, Leech, Teather and Ward - appear on Labour's new target list of 106 seats. The Conservatives intend to target 20 Lib Dem seats at the general election but haven't yet released a full list.

Andrew George (St Ives)

Abstained

Majority: 1,719

In his speech in the Commons, he said: "We do not know…what food price inflation will be in, for example, 2016. We are being asked to predict what the circumstances will be in the context of the rather arbitrary figure of 1%. I simply urge my right hon. Friend to keep an open mind, and to have a means by which we will uprate that is fair to both benefit recipients and those in work"

Julian Huppert (Cambridge)

Voted against

Majority: 6,792

Labour target 103

He tweeted last night: "I just voted against the Welfare Benefits Up-rating Bill 2nd Reading. Vulnerable people need support."

Charles Kennedy (Ross, Skye and Lochaber)

Abstained

Majority: 13,070

He tweeted last night: "I formally abstained frm voting for a 2nd reading and am looking now to work with like-minded Lib Dems to amend the bill in its later stages."

John Leech (Manchester Withington)

Voted against

Majority: 1,894

Labour target 31

In a blog entitled "Why  I will be a rebel tonight", Leech wrote:

"I find it objectionable that the Tories are ramping up the  “Skivers Vs Strives” rhetoric to justify a benefit cut to 7 million working families.

If you are one of those 7 million, you have made your choice to work. You should be encouraged by the system, whether that be through benefits or tax breaks.  That is why I strongly support rises in the tax threshold.

I accept the system should be simple, transparent and easy to understand. And it certainly isn’t now. But a cut to these working families will wipe out most of the gains these families will see through increases to their tax allowances.

And that is why I will be rebelling tonight."

Sarah Teather (Brent East)

Voted against

Majority: 1,345

Labour target 23

In her speech in the Commons, she said: "Percentages do not buy milk, bread or school uniforms—pounds and pennies buy those things, and it is in pounds and pennies that people will experience a cut.

"I do not enjoy voting against my own party, and I cannot vote for the Labour amendment, but with a very heavy heart I shall be voting against the Second Reading of the Bill. I hope that I, and any others who choose that course of action, will give the Government some cause for thought and reflection."

David Ward (Bradford East)

Voted against

Majority: 365

Labour target 10

In his speech in the Commons, he said: "I suspect, deep down, that far too many people on this side of the House believe that unemployed people are the undeserving poor, that they need to sort themselves out, and that we cannot possibly reward them with an increase. Let us remember, too, that this is not an increase. When inflation is taken into account, the measure will simply freeze the level of benefits that we have already decided will provide people with a minimum standard of living. The measure is not fair, and I will not support it."

Former Liberal Democrat leader Charles Kennedy abstained from voting on the Welfare Uprating Bill. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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George Osborne's surplus target is under threat without greater austerity

The IFS exposes the Chancellor's lack of breathing space.

At the end of the last year, I noted how George Osborne's stock, which rose dramatically after the general election, had begun to plummet. His ratings among Tory members and the electorate fell after the tax credits imbroglio and he was booed at the Star Wars premiere (a moment which recalled his past humbling at the Paralympics opening ceremony). 

Matters have improved little since. The Chancellor was isolated by No.10 and cabinet colleagues after describing the Google tax deal, under which the company paid £130m, as a "major success". Today, he is returning from the Super Bowl to a grim prognosis from the IFS. In its Green Budget, the economic oracle warns that Osborne's defining ambition of a budget surplus by 2019-20 may be unachievable without further spending cuts and tax rises. 

Though the OBR's most recent forecast gave him a £10.1bn cushion, reduced earnings growth and lower equity prices could eat up most of that. In addition, the government has pledged to make £8bn of currently unfunded tax cuts by raising the personal allowance and the 40p rate threshold. The problem for Osborne, as his tax credits defeat demonstrated, is that there are few easy cuts left to make. 

Having committed to achieving a surplus by the fixed date of 2019-20, the Chancellor's new fiscal mandate gives him less flexibility than in the past. Indeed, it has been enshrined in law. Osborne's hope is that the UK will achieve its first surplus since 2000-01 just at the moment that he is set to succeed (or has succeeded) David Cameron as prime minister: his political fortunes are aligned with those of the economy. 

There is just one get-out clause. Should GDP growth fall below 1 per cent, the target is suspended. An anaemic economy would hardly be welcome for the Chancellor but it would at least provide him with an alibi for continued borrowing. Osborne may be forced to once more recite his own version of Keynes's maxim: "When the facts change, I change my mind. What do you do, sir?" 

George Eaton is political editor of the New Statesman.