Nick Clegg is perilously short of friends – but his enemies seem determined to help him

Lib Dem strategists are brimming with gratitude to the two big parties for making single-party government seem an unattractive proposition.

It is a measure of how bad things once looked for the Liberal Democrats that progress for them consists of having a leader who is disliked only as much as every other politician.
 
Nick Clegg is no matinee idol but neither is he the object of mass derision. At the peak of his ignominy, immediately after reneging on a pledge not to raise university fees, the Lib Dem leader’s villain status transcended political animus. He entered the cultural lexicon as a byword for dishonour.
 
Most of Westminster deemed the wound fatal. Yet he will address his party’s annual conference as a man determined still to be in government after the next general election – and with reasons to think it possible. There is growing confidence in Clegg’s inner circle that parliament will stay hung after 2015. Their calculation is that Labour can mobilise enough anti-Tory energy to obstruct David Cameron but not enough enthusiasm for Ed Miliband to sweep to victory.
 
Every election campaign is a culture war between challengers pledging change and incumbents offering more of the same. Clegg is persuaded that, for the time being, grudging continuity has the edge. One lesson he has drawn from recent history is that risk-averse British electorates need exceptional reasons to evict serving governments – prolonged periods of abject failure (the Tories in the run-up to 1997), or colossal crises (the great economic bust that did for Labour in 2010). In the past 35 years, voters have handed power to the opposition only three times. As a senior Lib Dem adviser puts it: “More of the same usually wins in Britain.”
 
The Lib Dems cannot be seen to have preferences for post-election scenarios. Their line is to await the verdict of the electorate and follow the parliamentary arithmetic towards any future coalition. But in private conversations Clegg’s allies exude prejudice in favour of renewing the existing partnership with Cameron. The roseate glow of coalition’s early days has passed but so has the rancour stirred by battles over constitutional reform, leaving a workaday habit of doing business. By contrast, top Lib Dems discuss with foreboding the prospect of dealing with a Prime Minister Miliband.
 
Clegg is said by friends to have been unimpressed by the indecision he witnessed during his closest collaboration to date with the Labour leader – the negotiations over a royal charter for press regulation. Unflatteringly, comparisons are made with Cameron, with whom he can at least disagree quickly, cut a deal and move on.
 
That pro-Tory bias runs against the tide of opinion among ordinary Lib Dem members, many of whom anticipate a 2015 deal with Labour. There is deep concern that serving another term as adjuncts to the Tories would signal an irreversible centre-right alliance. It would be wrong to mistake resistance to that idea for ideological comradeship with Miliband. The Lib Dems gifted a parcel of their voters to the opposition the second they signed up to coalition. That leaves Clegg’s army numerically diminished but more resolute in its independent identity.
 
The boundary with Labour is less porous than believers in a “progressive coalition” think it ought to be. A handful of councillors have swapped sides but there have been no high-profile defections. The Lib Dems who squirm on the government benches say they feel no magnetic pull from the other side of the chamber, when Labour seems only to half-oppose benefit cuts or immigration crackdowns. “The things that make us angry with our own party are things that Labour are useless on,” says one disillusioned MP.
 
That doesn’t mean Clegg will have an easy conference.
 
There is deep unease in the grass-roots party. An army of councillors that it took decades to amass has been whittled away in local election routs. The opinion polls look permanently grim. The party’s finances are a disaster. In parliament there is impatience with the whips’ insistence on discipline for its own sake. The demand to act at all times like a serious party of government, not a flaky protest group, is losing currency – especially when Tory backbenchers treat the coalition agenda as an à la carte menu of things to back or not back, according to taste.
 
Few Lib Dems expect as savage a cull of MPs in 2015 as the opinion polls seem to forebode. The party will fight a defensive ground campaign, pooling activists in support of incumbent MPs.
 
Private polling by Clegg’s office shows that the main hurdle for voters who would consider backing the Lib Dems is a fear of accidentally lubricating either a Cameron or Miliband victory. That isn’t a great sign, because it shows how vulnerable Clegg is to being squeezed out of a campaign in which his rivals will both insist the nation faces a binary choice. The upside is that it creates fertile terrain for tactical voting.
 
The challenge for the Lib Dems is to turn that negative anxiety about who might end up in Downing Street into a positive – confidence that whoever it is can be moderated by coalition. It is what one Clegg aide calls “the leash on the dog question”.
 
Lib Dem strategists are brimming with gratitude to the two big parties for making single-party government seem an unattractive proposition. Between the vagueness of Miliband’s offer and the spectre of a Cameron administration taking dictation from rampant Tory backbenchers, the Lib Dems hope to present themselves as a hedge against either side winning outright. It is the opposite of the old “wasted vote” charge. Not the most ambitious pitch, but part of the Lib Dems’ graduation to being a grown-up party means abandoning the pretence that they campaign for anything grander than a hung parliament and junior membership of a coalition.
 
As a small party, the Lib Dems will go into the next election looking perilously short of friends. Their consolation is to have unintentionally helpful foes.
Nick Clegg arrives to speak at the Mace Montessori nursery on September 2, 2013 in London. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

This article first appeared in the 16 September 2013 issue of the New Statesman, Syria: The deadly stalemate

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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.