Maria Hutchings, the Tories' Sarah Palin, is a sign of things to come

The new generation of Conservative MPs and candidates are more socially conservative than their predecessors.

David Cameron finds himself supporting a candidate in the Eastleigh by-election who disagrees with him on Equal Marriage, on membership of the EU and who has some pretty extreme views on immigration and abortion. Meanwhile, right-wing commentators call on the party to wake up and get behind their 'modernising' leader.

But in fact, the evidence is that the latest brand of Tory MPs have more in common with Maria Hutchings, "the Sarah Palin of the south coast" as one person referred to her the other day, than they do with the leader of the Tory party.

Blogger Mark Thompson did an excellent analysis of how Tory MPs voted in the Equal Marriage debate and discovered that the 2010 intake were more likely to have voted against the proposal than the 2001/2005 intake. There has, I think, been a tendency to imagine that the Conservative vote was split on age grounds and it is true that Tory MPs elected in the 1980s or 90s were the most likely to vote against. But the fact that the 2010 intake are more socially conservative than their immediate predecessors rather suggests Hutchings is increasingly the rule, rather than the exception.

Under the microscope of a by-election, Tory high command can control their candidate's media appearances and her expression of ‘unfortunate’ views – witness the unsuccessful attempts of the BBC's Norman Smith to interview Hutchings last Sunday - but as Conservative constituency associations select more and more candidates in the same mould (especially where they fear the effect of UKIP on their vote), it's going to be harder and harder to hide their opinions from scrutiny.

It’s easy to forget where the Tory party is heading, as the moderating influence of the Lib Dems prevents them doing all they would want. But as the Tea Party tendency takes over in the Tories, so the centre-ground opens up. Eastleigh will be a great test for both the Liberal Democrats and Labour of whether they can take advantage of this political vacuum.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Liberal Democrat Conference.

Maria Hutchings, the Conservative candidate for the Eastleigh by-election, and David Cameron at the headquarters for B&Q in the constituency. 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 Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR