The Lib Dems are now in danger of excessive optimism

Even on a generous reading, the party is still on course to lose nearly half of its 57 seats.

They're trailing UKIP in the polls and rarely score above 10 points. They've lost a third of their members since 2010 (down from 65,038 to 42,501) and more than a thousand of their hard-won councillors. They ran a deficit of £410,951 last year and are struggling to raise the funds required to fight an adequate general election campaign. So why, ahead of the opening of their conference in Glasgow tomorrow, are the Lib Dems so cheerful?

The first reason is that the next election appears increasingly likely to result in another hung parliament. While the party could yet face a wounding left-right split if forced to choose between the Tories and Labour (both of whom could conceivably win enough seats to form a majority government with Lib Dem support), the thought of again holding the balance of power and negotiating concessions (proportional representation for local government!) is an intoxicating one.

The second is that the party believes both that a significant number of its 2010 supporters will return to the fold before 2015 and that it is performing better than the headline figures suggest. Were the results of the latest YouGov poll (which has them on 8 per cent) replicated on a uniform swing, the Lib Dems would retain just 17 of their 57 seats. But as the party's activists rejoice in pointing out, their vote is holding up, and even improving, in their heartlands. The Eastleigh by-election, which the party won comfortably in the most adverse circumstances (recall the misdemeanours of the two Chris's: Huhne and Rennard), is offered as ultimate proof that they are not heading for electoral apocalypse. Where the party is well organised and where it can appeal for tactical votes from Labour supporters (the Tories are in second place in 37 of the 57 Lib Dem seats), it can still win. It is this faith that explains why those calling for Nick Clegg's head are still limited to maverick non-MPs such as Lembit Opik and Lord Oakeshott. 

But if they were once suffering from an excess of pessimism, many Lib Dems now appear overly optimistic. Even if their vote share rises to 15% before 2015, the laws of arithmetic mean they cannot expect to win many more than 30 seats. The party's intention to fight the next election as "57 Eastleighs" ignores the fact that this simply isn't possible. While the Lib Dems were able to pour thousands of activists and cabinet ministers into the constituency, they won't be able to do so when fighting on 56 other fronts at the same time. After decades of advancement, the party is still on course for its worst performance since 1992, losing around half of its seats. If it isn't dreading the evening of 7 May 2015, it really should be. 

Nick Clegg leaves Number 10 Downing Street to attend Prime Minister's Questions. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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