Gove claims Clegg is blocking Tory policy due to Lib Dem leadership plot

Clegg's opposition to new childcare ratios is due to "a campaign" by Vince Cable's ally Lord Oakeshott to oust him, says Gove.

As he demonstrated on The Andrew Marr Show this morning, Michael Gove, a former Times journalist, has lost none of his talent for generating headlines. In the course of 10 minutes, he suggested that a Lib Dem leadership plot was the reason Nick Clegg was blocking plans to relax childcare ratios, confirmed that he would vote "no" if an EU referendum was held today and said that he would abstain when the Commons votes on a Tory amendment criticising the absence of a referendum bill from the Queen's Speech.

First, then, on Clegg and childcare. Gove suggested that his opposition to Liz Truss's plan was almost entirely due to the attempt by Vince Cable's ally Lord Oakeshott to oust him as leader. He said:

I don't think we can understand Nick Clegg's position without also appreciating the position that he's in because of internal Lib Dem politics...there's a campaign at the moment being led by Matthew Oakeshott, the Liberal Democrat in the Lords, to try to destabilise Nick Clegg because Matthew Oakeshott wants Vince Cable to succeed him

It's hardly a secret that Oakeshott wants Cable installed as Lib Dem leader but no Conservative cabinet minister has ever referred explicitly to this fact. Clegg, who outlined in detail his concerns over the childcare plans on his LBC show earlier this week, is likely to be furious at the suggestion that his position is motivated by politics, not principle.

But the mischievous Gove, artfully seeking to turn the conversation on to Lib Dem divisions, went on:

Nick, understandably, needs to show Lib Dems that he's fighting hard...you only need to look at the newspapers today to see that Lord Oakeshott is on maneouvres, he's trying to promote Vince. It's understandable that within the Lib Dems these things go on. Nick has to show a bit of leg, as it were, on these issues.

On Europe, asked if he would vote to leave the EU if a referendum was held today (as the Mail on Sunday reported last year), Gove confirmed for the first time that he would. He told James Lansdale:

Yes [I would vote to leave the EU], I'm not happy with our position in the European Union

After Nigel Lawson's intervention earlier this week, Gove's words represent another significant escalation of tensions over this issue. Tim Montgomerie lists Iain Duncan Smith, Theresa Villiers, Chris Grayling, Justine Greening, Philip Hammond, Oliver Letwin and Francis Maude as other "definite or probable EU Outers". All of these ministers (and others) will now come under pressure to say whether they, like Gove, would also vote "no" in a referendum today.

Gove added that while there would be "certain advantages" to being outside the EU (another significant admission), "the best deal" would be for Britain to successfully renegotiate its membership. David Cameron's hope is that the plausible threat of withdrawal will make it easier to achieve that.

Update: Here's how Oakeshott has responded to Gove.

Education Secretary Michael Gove speaks at last year's Conservative conference in Birmingham. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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