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.

Grant Shapps on the campaign trail. Photo: Getty
Show Hide image

Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.