Why the Lib Dems are confident they can win the Eastleigh by-election

Lib Dem activists point out that the party has gained seats in recent local elections.

Conservative MPs are already talking up their party's chances in the Eastleigh by-election triggered by Chris Huhne's resignation, with one, Alec Shelbrooke, describing it as "an early opportunity to exact revenge on the Lib Dems over boundaries". The Tories have no intention of going easy on their coalition partner; this is a must-win seat for them. 

Given how poorly the Lib Dems are polling nationally and the slimness of their majority (3,864), it's unsurprising that many expect a Tory victory. But Lib Dem activists are confident that they can hang on. They point out that the party has actually gained seats in recent local elections, increasing its majority on Eastleigh Borough Council from 34 seats to 36 in May 2012 (the Lib Dems hold 40 to the Tories' four). The Lib Dems, who plan to treat the next general election as 57 by-elections, have long argued that they will lose fewer seats than expected in 2015 because their vote is holding up in key local strongholds. The by-election will be an early test of this claim. 

It is no less of a test for the Tories, whose hopes of winning a majority in 2015 depend on them taking a  large number of seats off the Lib Dems. The party has included 20 Lib Dem MPs on its 2015 target list of 40 in the belief that they will prove easier to dislodge than their Labour counterparts. Were the list purely based on the swing required, only nine would appear. But if the Tories fail to win Eastleigh, even after the sitting MP has been forced to resign in disgrace, a Conservative majority in 2015 will begin to look impossible. 

The Liberal Democrats increased their majority on Eastleigh Borough Council from 36 seats to 38 in May 2012. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.