Clegg's narrow victory on the 50p tax rate shows how divided the Lib Dems are

Lib Dem delegates voted by a majority of just four (224-220) not to pledge to reintroduce the 50p rate as Clegg and Farron divided.

After his victories on nuclear power, tuition fees and 'Osbornomics', Nick Clegg's winning streak has continued. In line with the leadership's position, Lib Dem delegates have just voted not to reintroduce the 50p tax rate and to maintain the 45p rate, albeit by a margin of just four (224-220).

While party president Tim Farron had called in my interview with him for the party to back the higher rate both to raise additional revenue and to demonstrate that "we are all in it together", Clegg said this morning: "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." The key intervention in the debate came from Vince Cable, who reminded delegates that the party's previous policy was to support a 40p rate alongside a mansion tax and argued that excessively high taxes on income could have negative economic effects.

Had the party voted to back the 50p rate it would have been an unambiguous assertion of its centre-left character, but the result will be seen as an acceptance of the more economically liberal path pursued by Clegg. (Although it is worth remembering that the party previously voted to abandon support for the 50p rate under Ming Campbell's leadership in 2006.) But the narrowness of the victory shows how divided the Lib Dems remain about their ideological direction. While Orange Bookers such as David Laws and Jeremy Browne would probably like to see the top rate reduced to 40p, Farron and the party's left have demonstrated the support that exists for a more social democratic approach.

Should the Lib Dems be presented with a choice of coalition partner after the next election, with both Labour and the Tories winning enough seats to form majority governments with their support, it is these two groups that will be pitted against each other in a battle for the party's soul.

Liberal Democrat president Tim Farron, who called for the party to support the reintroduction of the 50p tax rate. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Theresa May is paying the price for mismanaging Boris Johnson

The Foreign Secretary's bruised ego may end up destroying Theresa May. 

And to think that Theresa May scheduled her big speech for this Friday to make sure that Conservative party conference wouldn’t be dominated by the matter of Brexit. Now, thanks to Boris Johnson, it won’t just be her conference, but Labour’s, which is overshadowed by Brexit in general and Tory in-fighting in particular. (One imagines that the Labour leadership will find a way to cope somehow.)

May is paying the price for mismanaging Johnson during her period of political hegemony after she became leader. After he was betrayed by Michael Gove and lacking any particular faction in the parliamentary party, she brought him back from the brink of political death by making him Foreign Secretary, but also used her strength and his weakness to shrink his empire.

The Foreign Office had its responsibility for negotiating Brexit hived off to the newly-created Department for Exiting the European Union (Dexeu) and for navigating post-Brexit trade deals to the Department of International Trade. Johnson was given control of one of the great offices of state, but with no responsibility at all for the greatest foreign policy challenge since the Second World War.

Adding to his discomfort, the new Foreign Secretary was regularly the subject of jokes from the Prime Minister and cabinet colleagues. May likened him to a dog that had to be put down. Philip Hammond quipped about him during his joke-fuelled 2017 Budget. All of which gave Johnson’s allies the impression that Johnson-hunting was a licensed sport as far as Downing Street was concerned. He was then shut out of the election campaign and has continued to be a marginalised figure even as the disappointing election result forced May to involve the wider cabinet in policymaking.

His sense of exclusion from the discussions around May’s Florence speech only added to his sense of isolation. May forgot that if you aren’t going to kill, don’t wound: now, thanks to her lost majority, she can’t afford to put any of the Brexiteers out in the cold, and Johnson is once again where he wants to be: centre-stage. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.