The Lib Dems' pledge to protect the NHS from cuts is another snub to Cable

The Business Secretary has long warned that ring-fencing some departments from cuts is not "a very sensible" approach.

By far the most significant policy announcement made by the Lib Dems at their conference is that the party will pledge to protect the NHS and schools from cuts after 2015. Nick Clegg suggested yesterday that both budgets should be ring-fenced until 2020 and Danny Alexander told the Today programme this morning:

We’ve said that we want to, as a party, maintain the commitments to the NHS in terms of keeping its budget protected in real terms, and also to the schools system.

Among other things, this is another snub to Vince Cable, a long-standing critic of ring-fencing. Before the recent Spending Review, he warned that shielding some departments from cuts and forcing others to endure even greater austerity was not "a very sensible" long-term approach. He said:

The problem about ring-fencing as an overall approach to policy, is that when you have 80 per cent of all government spending that’s ring-fenced, it means all future pressures then come on things like the army, the police, local government, skills and universities, the rest that I’m responsible for. So you get a very unbalanced approach to public spending.

But as in the case of Help To Buy and the future of the coalition, Clegg and Alexander have chosen to disregard Cable's advice.

It's also worth noting that the Lib Dems' pledge means that all three of the main parties are now likely to go into the next election promising to ring-fence the NHS. David Cameron and George Osborne havee long made it clear that they want to continue to protect the health budget ater 2015 and Ed Miliband told the BBC earlier this year: "We're not going to be cutting the health service, I'm very clear about that. We will always be protecting the health service and will always make it a priority."

Promising to shield the NHS from cuts is both good politics and good policy. Polls show that it is the most popular spending area with voters and the above-average rate of inflation in the health service means it frequently requires real-terms rises just to stand still. But it does mean all parties will be under greater pressure to say how they would continue deficit reduction without significant tax rises. Should the ring-fences around health, international development and schools spending remain, some departments will have had their budgets more than halved by the end of the programme, with a 64% cut to the Foreign Office, a 46% cut to the Home Office and a 36% cut to defence.

Protesters from the National Health Action Party lead a mock funeral procession for the NHS along Whitehall on July 5, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Grant Shapps on the campaign trail. Photo: Getty
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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.