Clegg at odds with Farron as he rejects calls to restore 50p tax rate

The Lib Dem leader could face defeat this afternoon after he argues against changing "one very specific symbolic tax rate" in opposition to the party president.

Alongside this morning's debate on whether to support "Osbornomics", the Lib Dem conference will vote later today on whether to back the reintroduction of the 50p tax rate. While the main motion favours maintaining the current 45p rate, an amendment argues that the party should support the 50p rate, subject to a review concluding that the measure would raise more than it costs. Since the 50p rate, contrary to what some claim, raised £1bn in its first year (and would have raised more had George Osborne allowed it to operate for longer), the case for a Yes vote is a strong one. It would enable the Lib Dems to reclaim ownership of a policy they proposed long before Labour (abandoning it under Ming Campbell's leadership in 2006) and provide a powerful dividing line with the Conservatives.

When I interviewed Tim Farron, the Lib Dem president, for the New Statesman last week, he told me: "My view is that we should have that [the 50p rate] in our manifesto and while it raises an amount of money, it’s also a really important statement that we are all in it together." Polling by Liberal Democrat Voice has shown that 90% of party members support the principle of a 50p rate.

But asked on the Today programme this morning whether he favoured the move, Clegg said: "To drive home the message of tax reform I think changing one very specific symbolic tax rate is not really the key part of the matter." He suggested, however, that he was relaxed about the prospect of defeat: "Of course if the party votes to take a decision, that’s one of the joys of the Liberal Democrats...we still retain this thing called democracy and I’m very proud of the fact that I’m, in a sense, just one voice among many and that this is decided democratically."

In arguing for the retention of the 45p rate, Clegg will be aided by Vince Cable, who is due to speak in the debate, which begins at 3:30pm. With the party's pre-eminent economic voice publicly supporting the motion, many will be less inclined to vote for the 50p rate. But the weight of opinion in favour of it means that this could still be the moment that the grassroots choose to deliver a bloody nose to the leadership.

Nick Clegg speaks during a rally at the Liberal Democrat conference at the SECC in Glasgow. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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The buck doesn't stop with Grant Shapps - and probably shouldn't stop with Lord Feldman, either

The question of "who knew what, and when?" shouldn't stop with the Conservative peer.

If Grant Shapps’ enforced resignation as a minister was intended to draw a line under the Mark Clarke affair, it has had the reverse effect. Attention is now shifting to Lord Feldman, who was joint chair during Shapps’  tenure at the top of CCHQ.  It is not just the allegations of sexual harrassment, bullying, and extortion against Mark Clarke, but the question of who knew what, and when.

Although Shapps’ resignation letter says that “the buck” stops with him, his allies are privately furious at his de facto sacking, and they are pointing the finger at Feldman. They point out that not only was Feldman the senior partner on paper, but when the rewards for the unexpected election victory were handed out, it was Feldman who was held up as the key man, while Shapps was given what they see as a relatively lowly position in the Department for International Development.  Yet Feldman is still in post while Shapps was effectively forced out by David Cameron. Once again, says one, “the PM’s mates are protected, the rest of us shafted”.

As Simon Walters reports in this morning’s Mail on Sunday, the focus is turning onto Feldman, while Paul Goodman, the editor of the influential grassroots website ConservativeHome has piled further pressure on the peer by calling for him to go.

But even Feldman’s resignation is unlikely to be the end of the matter. Although the scope of the allegations against Clarke were unknown to many, questions about his behaviour were widespread, and fears about the conduct of elections in the party’s youth wing are also longstanding. Shortly after the 2010 election, Conservative student activists told me they’d cheered when Sadiq Khan defeated Clarke in Tooting, while a group of Conservative staffers were said to be part of the “Six per cent club” – they wanted a swing big enough for a Tory majority, but too small for Clarke to win his seat. The viciousness of Conservative Future’s internal elections is sufficiently well-known, meanwhile, to be a repeated refrain among defenders of the notoriously opaque democratic process in Labour Students, with supporters of a one member one vote system asked if they would risk elections as vicious as those in their Tory equivalent.

Just as it seems unlikely that Feldman remained ignorant of allegations against Clarke if Shapps knew, it feels untenable to argue that Clarke’s defeat could be cheered by both student Conservatives and Tory staffers and the unpleasantness of the party’s internal election sufficiently well-known by its opponents, without coming across the desk of Conservative politicians above even the chair of CCHQ’s paygrade.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.