Eastleigh is now even more of a must-win for the Tories

The Huhne and Rennard scandals mean defeat will be portrayed as a humiliating set-back for Cameron.

Last week the Tories were increasingly resigned to defeat in the Eastleigh by-election but the Rennard allegations, combined with a poll (conducted before the story broke) putting them four points ahead of the Lib Dems, have given the party renewed hope of winning the seat. The odds on a Lib Dem victory have lengthened, while those on a Conservative victory have narrowed. 

My sense, however, is that the Rennard story, like the Huhne scandal, will have little effect on the outcome. As one Lib Dem tells the Times today, "If Chris Huhne lying isn’t going to derail us then a peer that very few people have heard of is not going to harm us". Nick Clegg was almost certainly right when he suggested this morning that local issues such as planning would continue to dominate. 

But this doesn't alter the fact that Eastleigh is now even more of a must-win seat for the Tories. The Huhne and Rennard scandals, notwithstanding their limited influence on voters, give the press every excuse they need to portray any defeat as a humiliating set-back for Cameron. In such circumstances, the only consolation for the Tories will be that Labour, which is set to finish in fourth place behind UKIP, will face some tough questions of its own.

No one ever expected Labour, which polled just nine per cent in Eastleigh at the general election, to win the seat. The swing required would put the party on course for a majority of 362. But as the only large opposition party, not least one which claims to be a "one nation" force, it should be performing much better midway through the parliament. 

David Cameron sits alongside Conservative Eastleigh by-election candidate Maria Hutchings during a Q&A session with workers in the constituency. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Our new relationship with the EU may be a lot like the old one

For all the tough mood music, Theresa May has left room for concessions.

I'm sad and dismayed, but that's democracy for you.

The Mail is in a cheerier mood. "Freedom!" is their splash. "Dear EU, We're Leaving You" cheers the Express' while "Dear EU, it's time to go" is the Mirror's splash. "Dover & Out!" roars the Sun, who have projected those same words on the white cliffs of, you guessed it, Dover. "May Signs Us Out!" is the Metro's take.

"Brexit begins" is the i's more equivocal splash, "The eyes of history are watching" is the Times' take, while the Guardian opts for "Today Britain steps into the unknown".

The bigger story isn't the letter but its content, which leads the FT: "May signs historic Brexit letter and opens way for compromise". The government is finessing its red line on the competence of the European Court of Justice. (The word in Whitehall is that Theresa May hadn't grasped the importance of the ECJ as an arbitration mechanism after Brexit and for cross-border matters such as flights when she made her conference speech.)  And the PM has done a good job of not ruling out continuing payments to the European Union, her best path to the deal Britain needs.

A lot depends on what happens to the British economy between now and March 2019. The pound is down still further today but whether that's a minor eruption or the start of sustained losses will have significant consequences on how painful Britain's best path to the access we need to the single market - paying over the odds for the parts of membership that the British government wants to keep and swallowing that £50bn divorce bill - is doable or not.

For all the mood music emanating from May, she's quietly done a good job of clearing the obstacles to a deal where Britain controls its own immigration policy, continues to staff Europol and to participate in European-wide research, the bulk of our regulation is set by Brussels de facto if not de jure and we pay, say £250m a week into Brussels.

Our new relationship with the EU may be rather closer to our old one than we currently expect.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.