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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The Brexit slowdown is real

As Europe surges ahead, the UK is enduring its worst economic growth for five years. 

The recession that the Treasury and others forecast would follow the EU referendum never came. But there is now unmistakable evidence of an economic slowdown. 

Growth in the second quarter of this year was 0.3 per cent, which, following quarter one's 0.2 per cent, makes this the worst opening half since 2012. For individuals, growth is now almost non-existent. GDP per capita rose by just 0.1 per cent, continuing the worst living standards recovery on record. 

That Brexit helped cause the slowdown, rather than merely coincided with it, is evidenced by several facts. One is that, as George Osborne's former chief of staff Rupert Harrison observes, "the rest of Europe is booming and we're not". In the year since the EU referendum, Britain has gone from being one of the west's strongest performers to one of its weakest. 

The long-promised economic rebalancing, meanwhile, is further away than ever. Industrial production and manufacturing declined by 0.4 per cent and 0.5 per cent respectively, with only services (up 0.5 per cent) making up for the shortfall. But with real wage growth negative (falling by 0.7 per cent in the three months to May 2017), and household saving at a record low, there is limited potential for consumers to continue to power growth. The pound's sharp depreciation since the Brexit vote has cut wages (by increasing inflation) without producing a corresponding rise in exports. 

To the UK's existing defects – low productivity, low investment and low pay – new ones have been added: political uncertainty and economic instability. As the clock runs down on its departure date, Britain is drifting towards Brexit in ever-worse shape. 

George Eaton is political editor of the New Statesman.