The Lib Dems' identity crisis just got a lot more critical

Coalition was meant to be a journey to political maturity and professionalism. But it's amateur hour yet again.

Let’s start, as justice demands we must, with the assumption that Chris Rennard, the Liberal Democrat peer and former party chief executive, is not guilty of allegations of sexual harassment levelled against him. They are not proven and he denies them. Still, since we know that Nick Clegg’s office was informed of complaints of that nature back in 2008, there can only be two possible reasons why the matter was not thoroughly investigated.

The first is that no-one really took the allegations seriously. The second is that the allegations were deemed grave and credible but the importance of Rennard to the Lib Dem political operation and the fear of besmirching his and the party’s good name made thorough investigation feel politically too risky. Both interpretations imply contempt for people who say they have been sexually harassed. Either way the party leadership comes out of the whole business looking negligent and disorderly.

That impression has been amplified by Clegg’s handling of the affair – specifically, his tantalising statement on Sunday, dragging Danny Alexander into an opaque narrative of "non-specific" allegations and vaguely sought reassurances. The Lib Dem leader admitted to having known something all along but couldn’t say exactly what it was. It is hard to imagine a response more finely calibrated to send the press pack into a feeding frenzy.

Most of the British press doesn’t need much incitement to sink claw and fang into the Lib Dems. The timing of the scandal – breaking in the middle of a crucial by-election campaign – has lead to some reasonable suppositions of ulterior anti-Clegg agendas at work. The Eastleigh campaign certainly adds electoral piquancy to the story but the Lib Dems can hardly complain about that. Wishing it had not come out now implies that there might have been some better time for it to come out, which is really a way of wishing it had never come out at all and that instinct is what makes the whole thing scandalous in the first place.

This is bad for Clegg. But how bad exactly? Most of the people in Westminster I’ve spoken too in the last couple of days think the Lib Dems will still hold Eastleigh. It is almost impossible to tell whether any of the Rennard-related news cuts through on the Hampshire front line. If it does, I’d imagine a likely consequence will be mildly affiliated Lib Dem voters staying at home on polling day. Since the party’s strategy on the ground relies on a ferocious Get-Out-The-Vote operation, a surge in abstentions would be problematic.

But I suspect the Lib Dems' pain in this saga will go further and deeper than seeing their by-election campaign blown off course. A central problem for the party since joining coalition government has been clarity of identity. They surrendered the vague pieties of perpetual opposition in the hope of graduating into the status of grown-up party of government.

Clegg’s office has a clear enough sense of where they think he and the party can stand on the political spectrum. They are supposed to be more compassionate than the dinosaur Tories and more fiscally rigorous than profligate Labour. Opinion polls don’t yield much evidence that the Lib Dems are actually perceived that way but the aspiration is plausible enough. There is, in theory, a gap in the political market – a Blair-shaped hole – for third-way candidates who combine economic rigour with a social conscience.

But to fill that gap the Lib Dems must above all look like a serious political outfit. The pitch is non-ideological and pragmatic. They are supposed to be the go-to guys for coalition when the voters don’t fancy handing unalloyed power to either of the bigger parties. They are offering themselves as the moderate technocrats who aren’t afraid of compromise and keep Westminster grounded and centred. You aren’t necessarily expected to like the Lib Dems anymore, but, according to Clegg’s strategy, you are supposed to think it worthwhile having them around in government.

The defining feature of this offer is professionalism and it is the absence of that very quality that stands out from the mess they are in over Lord Rennard. The charges themselves (unproven and denied, it must be said), the original handling of complaints five years ago and the sprawling case study in crisis mismanagement over the past week all conjure up the impression of an organisation staffed with chancers and over-promoted amateurs.

It is already pretty hard to overstate the problems with the Lib Dem brand. Not enough people know what they stand for. (Do they even know anymore?) Clegg himself is still seen as a slippery character, a betrayer of promises and a trader of principle for the baubles of office. The electoral life raft that strategists were crafting was fashioned from claims to be delivering stable, effective government. Lib Dem plans for 2015 are based on the hope that eventually some voters will come to look at their record in office and judge them to have been decent and useful. Yet here they are in a colourful parade of shabby and useless.

Nick Clegg renewing his coalition vows earlier this year. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

Photo: Getty Images
Show Hide image

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.