Why, despite everything, the Lib Dems are still set to win Eastleigh

A new poll from Lord Ashcroft putting the Lib Dems five points ahead in the by-election shows that local issues continue to take precedence over national ones.

After one of the worst weekends of press coverage for the Lib Dems in recent history, the party will be relieved that it is still on course to win in Eastleigh on Thursday. The final poll of the campaign, conducted by Lord Ashcroft (profiled by Andrew Gimson in this week's NS), puts the Lib Dems on 33 per cent (+2), five points ahead of the Tories, who are down to six points to 28 per cent, with UKIP in third place on 21 per cent (+8) and Labour a distant fourth on 12 per cent (-7). The fieldwork took place between Friday and Sunday, so after the Rennard story broke, although it is worth noting that the most damaging front pages for the party didn't appear until Monday following Clegg's admission that he was aware of "indirect and non-specific concerns" about the Lib Dem peer. 

But even with this proviso, it appears unlikely that the scandal will swing the contest in the Tories' favour. The reason, as I suggested yesterday, is that local issues continue to take precedence over national ones. Ashcroft's poll shows that the most important factor in determining how people will vote is "getting the best local MP". Nearly half of all voters (45 per cent) and 65 per cent of Lib Dems cite this as the main influence on their decision. Significantly, then, the Lib Dems enjoy a 19-point lead on "understanding the Eastleigh constituency and representing local people in parliament", with 40 per cent of all voters and 90 per cent of Lib Dems awarding them this accolade. 

Also in the Lib Dems' favour is that a majority of voters (55 per cent), including 47 per cent of Conservative supporters, say that they expect the party to win, a factor that, as Ashcroft suggests, may heighten the attraction of "a nothing-to-lose vote for UKIP". But few ever got rich betting on by-elections, and the poll shows that the potential for an upset remains; a total of 27 per cent of voters remain undecided. The Tories, for whom defeat would be written up as a humiliating failure (even if, as the poll suggests, voters are unmoved by the Huhne and Rennard scandals), have every incentive to fight to the death. 

Nick Clegg and Liberal Democrat Eastleigh by-election candidate Mike Thornton visit the Ageas Bowl - home of Hampshire Cricket Club. Photograph: Getty Images.

George Eaton is 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.