Welcome to politics.co.uk's As-It-Happens page. Here you can keep up to date with major parliamentary debates, press conferences or news events in real time. Just hit refresh on your browser to see the latest development.This event is now over, but you can see how it happened below. The prime minister is riding high in the polls after an impressive performance dealing with the global financial crisis. We can expect a decent session, perhaps even topping last week's confident performance. The Conservatives were fundamentally unsure how to behave last Wednesday - trying to appear supportive, but desperate to land some blows on a prime minister in the middle of a serious crisis. David Cameron will be looking to improve on that performance today. Ah yes, slight mistake there. The prime minister is, of course, in Brussels, resculpting the face of the international financial system. Harriet Harman is standing in for him. She does this rather well, in my opinion, although there are several tabloid editors who seriously disagree with me. She launches into a defence of government attempts to help small and medium sized businesses, selling the stabilisation of the banking sector as a means of assisting them. William Hague is standing in for David Cameron. I just can't say this enough: why isn't it Theresa May, Ms Harman's opposite number? The answer is that Mr Hague is better at this. Hague wants her to acknowledge that unemployment will rise to three million by the end of 2010. Behind him, George Osborne looks like a child who just had his toys taken away. Harman stresses that Labour isn't complacent about the economy. "But nether should he write the economy off," she adds. Hague quotes from her blog - that might be a parliamentary first - although it's a fairly trivial section about how hard the economy downfall would hit us from earlier in the year. Very few people had any idea how hard we would get hit, I doubt Harman is the only one. Alistair Darling, right behind Harman, looks like he's going to burst out of his skin, watching someone who evidently knows far less than him answer questions on the economy. Occasionally he looks over at George Osborne with a rigid, superior glance. He looks, frankly, like he'd eat Osborne for breakfast. "There is a serious situation across the board, and we're determined to take the action that's necessary," Harman says. "Well, we'll look forward to action, instead of concern and talking which is all we've had at question time so far," Mr Hague responds. He asks a question on the level of lending banks will be allowed, or encouraged, to engage in. He quotes the chancellor, who shakes his head in a theatrical sort of way. Harman says banks should "at reasonable rates, re-establish credit lines". She then launches into Labour's meat-and-potatoes: a 'we invested in hospitals and schools and we don't regret it' section, delivered in response to insinuations about government spending. She mentions the Tories backed all these measures. Mr Hague is being forced into a corner. He responds with this: Does Harman admit that to claim to have defeat boom-and-bust was the "most foolish, most hubristic, most irresponsible claim ever made by a British prime minister?" Harman, it goes without saying, doesn't answer that question, but focuses on how active Brown is being now, trying to sort out the mess. She even tries to put a patriotic slant on it, with guttural calls for the strength of the British economy - a political sleight of hand that seems a little cheap and more than a little unfair. The insinuation, silent but definitely there, is that Mr Hague is being unpatriotic by asking questions. Vince Cable stands for the Lib Dems. Basically, when Brown goes on holiday, both the other parties just throw up their best performer. Cable is the new prophet of finance for the Lib Dems, although a fat lot of good that's done them in the polls. "The minister doesn't realise there is a very real emergency," Cable says. He argues the government is blinded to interest rates. "I don't accept his assertion about government unpreparedness," Harman replies. It's a fascinating question time, in a similar manner to last week. Hague is a far better parliamentary speaker than Harman, but today he couldn't find the angle to attack from. With Brown swanning around the world to a chorus of heroic folk songs about the magnitude of his genius, Tory attempts to pin blame on Labour look petty, even when many people believe them to be true. And yet the Conservatives clearly feel unable to just sit there and keep on saying the government is doing well. As things stand, and Hague has used up his questions, this is the second PMQs in a row which Labour has won hands-down. Conservative Phillip Davies, - who, by the way, looks like he acted in Wind in the Willows in school and never quite got over it - tries to argue that Brown is responsible for the current crisis. Harman shoots him down with the same response she gives to anyone using this line of attack. She looks like she can barely be bothered. I got in so much trouble for mentioning her wardrobe last time she conducted PMQs that I'm not going to say a word about her delightful pin strip suit. Not a word. She's asked for an assurance the bank bailout won't come at the expense of ordinary Britons. "I can give that assurance," she says, and promises that government investment into public services will continue. Out of left wing, a Plaid Cymru MP says Harman was brave to say the Iraq war was a mistake, and tries to use it as a metaphor for government failure to not impose more market regulation before the current crisis hit. Harman doesn't seem to get it, and gives an Iraq war answer, much to the laughter of Plaid MPs The session comes to an end, with Labour giving every indication of being able to coast through these things with the political/economic (is there even a difference anymore?) situation as it stands. When recession bites and the real economy starts hurting, it will be a different matter. See you next week.
Thursday, October 16, 2008
PMQs as-it-happened
Welcome to politics.co.uk's As-It-Happens page. Here you can keep up to date with major parliamentary debates, press conferences or news events in real time. Just hit refresh on your browser to see the latest development.This event is now over, but you can see how it happened below. The prime minister is riding high in the polls after an impressive performance dealing with the global financial crisis. We can expect a decent session, perhaps even topping last week's confident performance. The Conservatives were fundamentally unsure how to behave last Wednesday - trying to appear supportive, but desperate to land some blows on a prime minister in the middle of a serious crisis. David Cameron will be looking to improve on that performance today. Ah yes, slight mistake there. The prime minister is, of course, in Brussels, resculpting the face of the international financial system. Harriet Harman is standing in for him. She does this rather well, in my opinion, although there are several tabloid editors who seriously disagree with me. She launches into a defence of government attempts to help small and medium sized businesses, selling the stabilisation of the banking sector as a means of assisting them. William Hague is standing in for David Cameron. I just can't say this enough: why isn't it Theresa May, Ms Harman's opposite number? The answer is that Mr Hague is better at this. Hague wants her to acknowledge that unemployment will rise to three million by the end of 2010. Behind him, George Osborne looks like a child who just had his toys taken away. Harman stresses that Labour isn't complacent about the economy. "But nether should he write the economy off," she adds. Hague quotes from her blog - that might be a parliamentary first - although it's a fairly trivial section about how hard the economy downfall would hit us from earlier in the year. Very few people had any idea how hard we would get hit, I doubt Harman is the only one. Alistair Darling, right behind Harman, looks like he's going to burst out of his skin, watching someone who evidently knows far less than him answer questions on the economy. Occasionally he looks over at George Osborne with a rigid, superior glance. He looks, frankly, like he'd eat Osborne for breakfast. "There is a serious situation across the board, and we're determined to take the action that's necessary," Harman says. "Well, we'll look forward to action, instead of concern and talking which is all we've had at question time so far," Mr Hague responds. He asks a question on the level of lending banks will be allowed, or encouraged, to engage in. He quotes the chancellor, who shakes his head in a theatrical sort of way. Harman says banks should "at reasonable rates, re-establish credit lines". She then launches into Labour's meat-and-potatoes: a 'we invested in hospitals and schools and we don't regret it' section, delivered in response to insinuations about government spending. She mentions the Tories backed all these measures. Mr Hague is being forced into a corner. He responds with this: Does Harman admit that to claim to have defeat boom-and-bust was the "most foolish, most hubristic, most irresponsible claim ever made by a British prime minister?" Harman, it goes without saying, doesn't answer that question, but focuses on how active Brown is being now, trying to sort out the mess. She even tries to put a patriotic slant on it, with guttural calls for the strength of the British economy - a political sleight of hand that seems a little cheap and more than a little unfair. The insinuation, silent but definitely there, is that Mr Hague is being unpatriotic by asking questions. Vince Cable stands for the Lib Dems. Basically, when Brown goes on holiday, both the other parties just throw up their best performer. Cable is the new prophet of finance for the Lib Dems, although a fat lot of good that's done them in the polls. "The minister doesn't realise there is a very real emergency," Cable says. He argues the government is blinded to interest rates. "I don't accept his assertion about government unpreparedness," Harman replies. It's a fascinating question time, in a similar manner to last week. Hague is a far better parliamentary speaker than Harman, but today he couldn't find the angle to attack from. With Brown swanning around the world to a chorus of heroic folk songs about the magnitude of his genius, Tory attempts to pin blame on Labour look petty, even when many people believe them to be true. And yet the Conservatives clearly feel unable to just sit there and keep on saying the government is doing well. As things stand, and Hague has used up his questions, this is the second PMQs in a row which Labour has won hands-down. Conservative Phillip Davies, - who, by the way, looks like he acted in Wind in the Willows in school and never quite got over it - tries to argue that Brown is responsible for the current crisis. Harman shoots him down with the same response she gives to anyone using this line of attack. She looks like she can barely be bothered. I got in so much trouble for mentioning her wardrobe last time she conducted PMQs that I'm not going to say a word about her delightful pin strip suit. Not a word. She's asked for an assurance the bank bailout won't come at the expense of ordinary Britons. "I can give that assurance," she says, and promises that government investment into public services will continue. Out of left wing, a Plaid Cymru MP says Harman was brave to say the Iraq war was a mistake, and tries to use it as a metaphor for government failure to not impose more market regulation before the current crisis hit. Harman doesn't seem to get it, and gives an Iraq war answer, much to the laughter of Plaid MPs The session comes to an end, with Labour giving every indication of being able to coast through these things with the political/economic (is there even a difference anymore?) situation as it stands. When recession bites and the real economy starts hurting, it will be a different matter. See you next week.
Govt drops more counter-terror plans
The government has dropped plans for sensitive coroner's inquests to be held in private.The plans formed a part of the counter-terrorism bill before the Lords. They would have barred juries, family members and the public from certain hearings. Peers already threw out the section of the bill establishing 42-day pre-charge detention for terrorist suspects, but civil libertarians are equally concerned about the section concerning private coroner's inquests. Minister said the powers would only be used selectively. The reform was intended to stop sensitive matter of national security being revealed to the public, including phone–tap details. But there are strong signs the government will attempt to reintroduce the reform in a future bill, probably the coroner and death investigation bill. The Liberal Democrats welcomed the news. "The powers that the government wanted would have allowed ministers to remove a case from an independent coroner and put it in hands of a 'special coroner', remove juries from establishing matters of fact in coroners' courts and hold inquests in secret," said Lib Dem home affairs spokesman Chris Huhne. "It would have been far too convenient for the government to be able to hide a proper and independent inquiry into cases like the death of Jean Charles de Menezes or Dr David Kelly." Shadow home secretary Dominic Grieve, said: "We welcome this decision. The counter-terrorism bill was no place for debating this extremely controversial measure, which should be in the coroners bill. "It is vital that the independence and transparency of the coroners system is maintained – not undermined." The move comes just after the government ditched plans for 42-day detention.
David Davis expects Lord to defeat 42 days plans
The government's plans to extend the terror detention plans to 42 days will be defeated by the House of Lords, according to David Davis.The former shadow home secretary said he expected peers - including Labour lords - to oppose the proposals by a "huge majority". Despite significant opposition from the Conservatives, Liberal Democrats and many Labour MPs, the controversial measure passed through the House of Commons by nine votes in June. The extension of the pre-charge custody time limit for terror suspects from 28 to 42 days, included in the Counter-Terrorism Bill, was the precursor to Mr Davis' resignation as a member of parliament. Peers are to vote on the plans on Monday and speaking on BBC1's Andrew Marr Show, Mr Davis said he expects the bill to "be thrown out by a huge majority". "It was something that was profitable for the government - they thought by having 42 days and us opposing it they would make us look weak and them look strong," he explained. "That was when 70 per cent supported it; now it's about 30 per cent supporting the government." He added: "Their own party probably won't support them in the Parliament Act, so I think it's probably over." Mr Davis announced he would resign in June and stand in the resulting by-election to create an effective referendum on plans to detain terror suspects without charge for six weeks. He said the attempt to block the 42-day terror detention proposals was a "noble endeavour". The MP for Haltemprice and Howden was re-elected in July and vowed to continue his campaign against the "erosion" of civil liberties under Labour.
Tories expect lead to drop to single figures
Tory party strategists are expecting their poll lead to drop to single figures in the face of a successful week for Gordon Brown.Private briefings within the party stress that central office is braced for good headlines for the prime minister, following his decisive action to strengthen the UK economy. The decision of many world leaders to follow his lead is also expected to consolidate his bounce in the polls. The party will concentrate on a 'Brown rescued the banks but not the real economy' message, with David Cameron hanging tight until the ramifications on people's day-to-day lives are felt. He will then launch an 'empathy offensive', playing on his political strengths and Mr Brown's weakness. Focussing relentlessly on 'real economic issues', the party hope to rebuild their double digit lead. But every indication is that Mr Cameron remains calm despite the sea-change in British politics going on beneath his feet. Strategists point to his composure during Mr Brown's 2007 honeymoon as evidence he is perfectly capable of playing the long game. The party have also noted the slip in Lib Dem support over the course of the crisis, with neither the party's prescience in spotting problems with the housing market nor Vince Cable's frenetic media activity shoring up their support.
Monday, October 13, 2008
Tories break ranks to attack Brown
Shadow chancellor George Osborne has broken free of the bipartisan approach to the financial crisis which marked the last few days to launch a strongly worded attack on the prime minister, accusing him of being responsible for the current chaos.Mr Osborne said Gordon Brown has presided over "the biggest economic disaster of our lifetime". In an article in the Evening Standard today, he described the bailout package as "a necessary but desperate last ditch attempt to prevent catastrophe". He continued: "This is no triumph. It is a necessary and desperate last ditch attempt to prevent catastrophe." The shadow chancellor pointed to the status of HSBC, which he said took few risks and seems to have emerged from the crisis "relatively unscathed". He said this signified the government had to take some responsibility for the crisis because it failed to ensure other banks were more effectively regulated. He also complained that Mr Brown had allowed public and private borrowing to spiral, leaving the UK in a precarious position when it comes to dealing with the current crisis. While reiterating his willingness to "work constructively with other political parties on solving the immediate crisis", Mr Osborne said the prime minister had to be held to account for his actions. The Tories have been struggling to gain political leverage from the current crisis while being careful not to repeat the partisan bickering that befell American politicians last month. But Conservative MPs were visibly disgruntled during last week's prime minister's questions. Mr Brown was free to attack David Cameron, but the Tory leader had to blunt his arguments in order to appear cooperative at a time of national crisis.
Tory hate candidate faces sentencing
A Tory parliamentary candidate who orchestrated a hate campaign against his Liberal Democrat rivals will face sentencing at St Albans magistrates court today.Ian Oakley, 31, of Ryeland Close, West Drayton, north-west London, pleaded guilty to five charges of criminal damage and two counts of harassment. While candidate for Watford, Mr Oakley sent gay and lesbian pornography to Lib Dem rival Sal Brinton and sent letters to supporters of fellow Lib Dem Russell Willson saying he was a "child abuser". Mr Oakley quit as Watford candidate during the start of the trial.
Mandelson becomes peer amid controversy
Peter Mandelson has been made a peer this afternoon, as controversy swirls around him concerning his payoff from the roll of European trade commissioner.Mr Mandelson will continue to receive £234,000 over the next three years in taxpayers' money, in addition to a ministerial income of £104,386. This comes in addition to a generous EU pension scheme which pays him £31,000 a year – rising in line with inflation – from the age of 65. The extent of Mr Mandelson's payments caused outrage among opposition parties. Mark Francois, Conservative Europe spokesman, said: "Not only did Gordon Brown recall Peter Mandelson to shore up his own position, but it adds insult to injury to know taxpayers will have to pay extra for the privilege." Mr Mandelson became Lord Mandelson of Foy and Hartlepool today in order for him to assume his role as business secretary. Hartlepool used to be his Commons constituency while Foy is a village where he holidayed as a child.
Government readies £50bn bank bail-out plan
A ВЈ50 billion bail-out of British retail banks could be unveiled by the government on Monday morning, it has emerged.The banks and the Treasury are working on a rescue plan, which will be announced before the markets open to avoid another stock market slump. It would mean the government would become biggest shareholder in at least two banks, HBOS and Royal Bank of Scotland. The government is not expected to appoint its own people on the banks ' boards but their ownership could mean slicing 'fat cat' bonuses and resuming normal lending to customers and small businesses. Yvette Cooper, chief secretary to the Treasury, said the government will negotiate terms individually with each bank that wants to join the unprecedented scheme. "What we're doing now is talking with all of the banks about how we implement the programme," Mrs Cooper told the BBC. "We'll set out the sort of strings that will be attached on a case-by-case basis." Banks may approach their shareholders again instead of taking part of the government's ВЈ50 billion to raise new capital. If they go to existing shareholders for funding, the government will underwrite the issues, which means if all of the shares on offer are not sold then it will buy them. Royal Bank of Scotland will ask ministers to underwrite a ВЈ15 billion cash call, according to newspaper reports today. The report claimed HBOS, Britain's biggest provider of mortgages, was seeking up to ВЈ10 billion. Lloyds TSB wanted ВЈ7 billion while Barclays reprotedly needed ВЈ3 billion.
Campbell coming in off the sidelines
There are strong signs this morning that former Labour spin-guru Alistair Campbell could be making a return to front line politics for the European and County elections in June.Mr Campbell has previously made it clear he does not want a full-time job but is willing to help out in Labour efforts to get re-elected. A Labour source told the Mail: "We are expecting Alistair to return for next June's elections and to work on the general election. "With Peter Mandelson on board we are putting the band back together." Should he become engaged with the 2010 general election campaign, he would work beside Peter Mandelson and Douglas Alexander, the party's campaign coordinator. The rumours come as one of Gordon Brown's most outspoken Labour critics proclaimed an end to his efforts to oust the prime minister. George Howarth, who had offered his support for a leadership contest, said: "Hostilities are over." Mr Campbell quit as communications director during the Hutton inquiry into the death of weapon inspector David Kelly, saying he has "become the story". He recently agreed to address students at the University of London on his experiences as director of communications. Cabinet met for the first time since the summer break this morning, although chancellor Alistair Darling was unable to attend, due to a meeting of European finance ministers in Luxemburg.
Brown defends 'bold' bailout
Gordon Brown and Alistair Darling have defended their plans for a massive bailout of Britain's banking system.The plans will see the taxpayer become a shareholder of major banks in exchange for a £50 billion rescue package. It effectively constitutes a partial nationalisation of the British banking system. Banks do not have to accept the offer – indeed, some have signalled they plan to have no part in it – and the government does not take executive control of the bank. But those which do sign up, like the Royal Bank of Scotland, will now be part-publicly owned. The reaction from opposition parties and industry figures has been generally positive but there are several concerns about the deal. Some critics are worried about the limited power government holds over banks given the amount of taxpayer money being offered. The government will have no controlling interest and no impact on deciding who sits on the board. There are also concerns that the conditions Mr Brown and Mr Darling want to impose on banks – on executive pay and dividends among other things – are unenforceable. The sheers size of the bailout indicates a future need for cuts in public expenditure or higher taxes. The pair spoke at a press conference following a day of massive share price falls for the banks after speculation about the plan. The government is offering to take share of banks – providing them with capital – as well guaranteeing inter-bank loans up to £250 billion and offering £200 billion in liquidity through the bank of England. As of 11:44 BST there was a slight improvement in the FTSE Index. "Families are worried and I know and understand this," Mr Brown said. "Good strong banks are essential. These times require bold action." He added the global financial market had ceased to function and the plans "break new ground". The prime minister said the plans would bring about a "comprehensive restructuring" of banking and went further than the US bailout. He also pledged the taxpayer will not lose out from the deal. "All investments will earn a proper return for taxpayer," he said. "On commercial terms we expected to be rewarded." He added strings would be attached for the banks, with caps on executive remuneration schemes, control on dividend payments, and credit lines to small business will be maintained. He described them as "tough conditions". Mr Darling said: "Restructuring of banking is necessary. We are not looking to take control of the banks." Liberal Democrat leader Nick Clegg commented: "There can be no doubt that today marks a fundamental shift in the way we view banks and, in turn, the obligations banks have to the public must change for good."
Saturday, October 11, 2008
New Cabinet in full
The new Cabinet has now been fully revealed, after a weekend of gradual releases. Here it is, in full.Law officersAttorney general - Baroness Scotland of Asthal Solicitor general - Vera Baird Advocate general for Scotland - Lord Davidson of Glen Clova HM treasuryFinancial secretary - Stephen Timms Minister of state - Phil Woolas (jointly with the Home Office) Economic secretary - Ian Pearson (jointly with the Department for Business, Enterprise and Regulatory Reform) Exchequer secretary - Angela Eagle Financial services secretary - Paul Myners Foreign and Commonwealth OfficeMinister of state (Europe) - Caroline Flint Minister of state (Middle East and Africa) - Lord Malloch-Brown Minister of state - Bill Rammell Parliamentary under secretary of state - Gillian Merron Ministry of justiceMinister of state - David Hanson Minister of state - Michael Wills Parliamentary under secretary of state - Bridget Prentice Parliamentary under secretary of state - Shahid Malik Parliamentary under secretary of state - Lord Bach Parliamentary under secretary of state - Maria Eagle (jointly with the government Equalities Office) Home OfficeMinister of state - Phil Woolas (jointly with HM Treasury) Minister of state - Vernon Coaker Parliamentary under secretary of state - Meg Hillier Parliamentary under secretary of state - Alan Campbell Parliamentary under secretary of state - Admiral Lord West of Spithead Department Of HealthMinister of state - Dawn Primarolo Minister of state - Ben Bradshaw (and minister for the south west) Minister of state - Phil Hope (and minister for the east Midlands) Parliamentary under secretary of state - Lord Darzi of Denham Parliamentary under secretary of state - Ann Keen Department for Business, Enterprise and Regulatory ReformMinister of state - Pat McFadden Minister of state - Gareth Thomas (jointly with Department for International Development) Parliamentary under secretary of state - Ian Pearson (jointly with HM Treasury) Parliamentary under secretary of state - Stephen Carter (jointly with Department for Culture, Media and Sport) Parliamentary under secretary of state - Baroness Shriti Vadera (jointly with Cabinet Office) Department For Environment, Food And Rural AffairsMinister of state - Jane Kennedy Minister of state - Lord Hunt of Kings Heath (jointly with Department of Energy and Climate Change); and deputy leader of the House of Lords Parliamentary under secretary of state - Huw Irranca-Davies Department for International DevelopmentMinister of state - Gareth Thomas (jointly with the Department for Business, Enterprise and Regulatory Reform) Parliamentary under secretary of state - Ivan Lewis Parliamentary under secretary of state - Michael Foster Ministry Of DefenceMinister of state - Bob Ainsworth Parliamentary under secretary of state - Baroness Taylor of Bolton Parliamentary under secretary of state - Quentin Davies Parliamentary under secretary of state - Kevan Jones Office of the Leader Of The House Of CommonsParliamentary secretary - Chris Bryant Equalities Office Parliamentary secretary - Maria Eagle (jointly with the Ministry of Justice) Department for Communities and Local GovernmentMinister of state - Margaret Beckett Minister of state - John Healey Parliamentary under secretary of state - lain Wright Parliamentary under secretary of state - Baroness Andrews Parliamentary under secretary of state - Sadiq Khan Department for TransportMinister of state - Lord Adonis Parliamentary under secretary of state - Jim Fitzpatrick Parliamentary under secretary of state - Paul Clark Department for Children, Schools and Families• Minister of state - Beverley Hughes (and minister for the north west) Minister of state - Jim Knight Parliamentary under secretary of state - Baroness Morgan of Drefelin Parliamentary under secretary of state - Sarah McCarthy-Fry Department of Energy and Climate ChangeMinister of state - Mike O'Brien Minister of state - Lord Hunt of Kings Heath (jointly with Department for Environment, Food and Rural Affairs); and Deputy leader of the House of Lords Parliamentary under secretary of state - Joan Ruddock Department for Work and PensionsMinister of state - Tony McNulty (and minister for London) Minister of state - Rosie Winterton (and minister for Yorkshire and the Humber) Parliamentary under secretary of state - Jonathan Shaw (and minister for the south east) Parliamentary under secretary of state - Kitty Ussher Parliamentary under secretary of state - Lord MacKenzie of Luton Northern Ireland OfficeMinister of state - Paul Goggins Department for Culture, Media and SportParliamentary under secretary of state - Barbara Follett (and minister for the east of England) Parliamentary under secretary of state - Gerry Sutcliffe Parliamentary under secretary of state - Stephen Carter (jointly with Department for Business, Enterprise and Regulatory Reform) Department for Innovation, Universities and SkillsMinister of state - David Lammy Minister of state - Lord Drayson Parliamentary under secretary of state - Sion Simon Parliamentary under secretary of state - Lord Young of Norwood Green (and Lord in Waiting) Wales OfficeParliamentary under secretary of state - Wayne David Scotland OfficeParliamentary under secretary of state - Ann McKechin Cabinet OfficeMinister for the Cabinet Office and chancellor of the Duchy of Lancaster - Liam Byrne Parliamentary secretary - Tom Watson Parliamentary secretary - Kevin Brennan Parliamentary secretary - Baroness Shriti Vadera (jointly with the Department for Business, Enterprise and Regulatory Reform) Minister for the Olympics and paymaster general - Tessa Jowell Whips - House of CommonsChief whip (Parliamentary secretary to the Treasury) - Nick Brown (and minister for the north east) Deputy chief whip (treasurer of HM household) - Thomas McAvoy Government whip (comptroller of HM household) - John Spellar Government whip (vice-chamberlain of HM household) - Claire Ward Junior Lords Of The TreasuryGovernment whip (Lord Commissioner of HM Treasury) - Steve McCabe Government whip (Lord Commissioner of HM Treasury) - Frank Roy Government whip (Lord Commissioner of HM Treasury) - David Watts Government whip (Lord Commissioner of HM Treasury) - Tony Cunningham Government whip (Lord Commissioner of HM Treasury) - Bob Blizzard Assistant WhipsAssistant government whip - Diana Johnson Assistant government whip - Mark Tami Assistant government whip - Dawn Butler Assistant government whip - Helen Goodman Assistant government whip - Helen Jones Assistant government whip - Ian Lucas Assistant government whip - Ian Austin (and minister for the west Midlands) Assistant government whip - Barbara Keeley Assistant government whip - Chris Mole Whips - House Of LordsLords chief whip (captain of the Honourable Corps of Gentlemen at Arms) - Lord Bassam of Brighton Deputy chief whip (captain of The Queen's Bodyguard of the Yeomen of the Guard) - Lord Davies of Oldman Baronesses and Lords in waitingBaroness in waiting - Baroness Thornton Lord in waiting - Lord Bach (and parliamentary under secretary of state Ministry of Justice) Baroness in waiting - Baroness Farrington of Ribbleton Lord in waiting - Lord Tunnicliffe Lord in waiting - Lord Young of Norwood Green (and parliamentary under secretary of state, Department for Innovation, Universities and Skills) Lord in waiting - Lord Patel of Bradford Lord in waiting - Lord Brett Parliamentary private secretaries to the prime MinisterAngela E Smith Jon Trickett Governmental representativesMalcolm Wicks - special representative of the prime minister on international energy issues working with the secretary of state for energy and climate change Mark Lazarowicz - special representative of the prime minister on carbon trading working with the secretary of state for energy and climate change Jack McConnell - special representative for conflict resolution mechanisms working with the foreign secretary and the secretaries of state for international development and defence The Queen has accepted the following departures from government.At minister of state level• The Rt Hon Margaret Hodge MBE MP (temporarily leaving government on compassionate grounds of family illness and will return to government in the spring) • Dr Kim Howells MP • Lord Jones of Birmingham • The Rt Hon Lord Rooker • Malcolm Wicks MP At parliamentary secretary level• Parmjit Dhanda MP • Tom Harris MP • Anne McGuire MP • Meg Munn MP • James Plaskitt MP • Derek Twigg MP Government whips• Baroness Crawley • Liz Blackman MP • Alison Seabeck MP Liam Byrne MP, John Healey MP, Jim Knight MP, David Lammy MP, Pat McFadden MP, Anne McGuire MP, Malcolm Wicks MP and Michael Wills MP be sworn of her majesty's most honourable Privy Council. The Queen has been pleased to signify Her intention of conferring peerages of the United Kingdom for life on Stephen Carter CBE and Paul Myners CBE.
Labour's Glenrothes prospects 'improving'
Hopes are rising in Labour ranks that the party may be able to cling on to Glenrothes during next month's by-election.An improved performance since the financial crisis hit home in September and the announcement of the date of the by-election yesterday have served to raise spirits in the Labour camp. Bookmakers William Hill have cut Labour from 3/1 to 5/2 to win, and lengthened the favourites, the Scottish National party (SNP), from 2/9 to 2/7. "After months during which we could barely persuade anyone to back Labour to win anything, we are suddenly starting to take money for them to win the Glenrothes by-election after most political pundits written them off, and assumed it was a certainty that the SNP would be taking it," said William Hill's spokesman Graham Sharpe. A Scottish Labour spokesman told politics.co.uk: "Odds come and go, but we'll leave the gambling to Mr Salmond." "Lindsay Roy [the Labour candidate] is a very well-respected local headteacher who has decided to stand for parliament." SNP candidate Peter Grant said: "The SNP campaign has been gathering momentum, but we will never take the support of local residents for granted. "I am working hard for every single vote, and have been really encouraged by the positive response on the doorsteps."
Brown: Days of bonuses are over
"The days of big bonuses are over," Gordon Brown has said.Speaking during a GMTV interview before launching a nationwide trip to explain yesterday's bank bailout, Mr Brown continued to emphasis the role of America in the financial crisis, but he accepted there had been irresponsible behaviour in the City of London as well. "Most of this has come out of America and then affected the British banking system, but there have been abuses in our system as well and these have got to be dealt with too," he said. "Where these guys have taken irresponsible risks, that is completely unacceptable. The problem is they didn't know what they were buying from America." The prime minister expressed anger at some of the risks that were taken, in a sign Downing Street is trying to reflect the national mood of resentment against the City. "I'm angry too. I am angry at irresponsible behaviour," Mr Brown said. "Our economy is built around people who work hard, who show effort, who take responsible decisions, and whether there is excessive and irresponsible risk-taking, that has got to be punished." Mr Brown responded to questions about bonuses in the same way he did during prime minister's question time yesterday. There, calls for a pledge on bonuses were met with assurances that banks' exact obligations would be hammered out during individual negotiations. He did, however, adopt a stronger tone about bonus culture. "The days of big bonuses are over. One of the conditions of us helping the banks is that we will have to reach an agreement about their executive remuneration," he said.
Attempt to ban smacking collapses
A move by over 100 MPs to ban smacking fell at the first hurdle yesterday, when a government time limit on debate expired.The group of mainly Labour MPs had planned to amend the children and young persons bill to prevent parents from smacking their children. They had previously sent an open letter to Gordon Brown calling for a free vote on the issue as a matter of conscience. But minister believe there is public support on the issue, for the law's current status, whereby parents can chastise their child as long as they never inflict a mark or injury. The issue of smacking last passed through parliament in 2004 when the government saw off a modest rebellion with Conservative support.
Cameron and Clegg rearrange front bench
David Cameron and Nick Clegg have rearranged their shadow front benches following the government reshuffle.Greg Clark has been made shadow energy and climate change secretary for the Tories. He will face up to Ed Miliband, who is running the new department. Greg Barker has been made shadow minister for climate change while Charles Hendry becomes shadow minister for energy. Mr Clark's promotion from shadow minister for charities marks a highlight in a meteoric rise through the party ranks. He entered parliament only three years ago in the 2005 general election. Firmly on the more liberal end of the Conservative spectrum, he caused consternation in Tory ranks and considerable bemusement in the media when he called on the party to pay less attention to Winston Churchill and more to left-wing Guardian columnist Polly Toynbee. As a student in Cambridge, he was a member of David Owen's Social Democrat party. Nick Clegg also changed the faces on his front bench team. Steve Webb, former environment spokesman, moves to head the Lib Dems' climate change and energy department. Mr Webb is one of the authors of the infamous Orange Book, which moved the party to the right. Tim Farron takes over his environment brief. John Thurso, the first hereditary peer of the United Kingdom allowed to sit in the Commons without first disclaiming his title, has become business spokesman. Interestingly, Mr Clegg's mini reshuffle does not limit itself to merely reflecting the changes in the government. David Heath has been asked to lead a Commission on Privacy to examine the state of privacy in the UK. "The team I am announcing today is a reflection of the vast talent in the Liberal Democrat party which will be able to hold the new cabinet to account," Mr Clegg said. Three of the men to return to frontline politics - Mr Farron, Mr Heath and new Scotland and Northern Ireland spokesman Alistair Carmichael - previously resigned from the front bench over the party's stance on the EU referendum.
Darling and Brown: World will never be the same
Chancellor Alistair Darling and prime minister Gordon Brown both pointed to fundamental change in the international economic system this morning.Mr Darling called for fresh ideas to solve the global banking crisis, while Mr Brown has called on every bank in the world to increase its capital ratio. Writing in the Financial Times, the chancellor of the exchequer – currently in Washington DC to meet with G7 finance ministers and the International Monetary Fund (IMF) – said: "The world economy is changing. Sticking with the solutions of the past is not an option. Now, more than ever, we need new ideas." He explained the financial crisis and surge in commodity prices had hit every country in the world. "These twin shocks demonstrate the need for new, comprehensive approaches to maintain stability, both in economies and financial markets," Mr Darling wrote. "All forecasters, including the IMF, have been surprised by the profound impact of this shock. Beyond that, it is clear that the global financial system will never be the same, so we must discuss how to strengthen the system for the future." The chancellor wrote in the FT the first challenge was to take action to stop financial collapse and put banks on a firm footing. "Markets cannot do this alone," he said. "Governments have to take the necessary action." Meanwhile, Gordon Brown, writing in the Times, called on other governments to follow the lead of the UK's £50 billion recapitalisation offer to banks. "Every bank in every country must meet capital requirements that ensure confidence," the prime minister wrote. "Just as in the UK we have made at least £50 billion of new capital available, so other countries where banks have insufficient capital will need to take measures to address this. "Only strong and solid banks will be able to serve the global economy." Mr Brown warned: "The potential economic consequences cannot be understated. The role of banks is to circulate the savings from deposits, our pensions and from companies to those that need to spend or invest them. "This paralysis of lending from loss of confidence jeopardises the flow of money to every family and every business in the country." The prime minister also called for greater transparency in the financial markets and promised reformed to encourage "responsible risk-taking". "When risk-taking crosses the line between the responsible entrepreneurship, which we want to celebrate, and irresponsible risk-taking, then we have to take action to see that markets work in the public interest to reflect our shared values," he wrote. The European stock market opened with plunging falls this morning, in a sign global efforts to stabilise the situation have so-far proved unproductive.
Wednesday, October 8, 2008
Clegg: The relationship between banks and government has changed forever
The relationship between banks and government will never be the same following the current financial crisis, Liberal Democrat leader Nick Clegg has said.Speaking exclusively to politics.co.uk just before Alistair Darling's Commons statement yesterday, Mr Clegg said wholesale reform of the banking sector had become inevitable. "We will no longer regard banks as just another business, just another commercial sector," he said. "It's clearly an area now where you need far more intelligent regulation to ensure that banks don't gamble with our money." Mr Clegg argued government had to protect the normal banking activities of consumers from the high-risk strategies employed in investment banking. "The freewheeling, risk-taking culture of investment banking polluted the more conventional functions of retail banking, which is basically to look after our money, look after our saving and make sure they're always available to us," he said. "I think we need to go right back to fundamentals and ask ourselves whether eliminating that distinction was right and, if it wasn't, what new firewalls we put in place. "We need to revisit that," he continued. "We need to do so without any prejudice, but we need to be radical." The comments come as the global markets went into freefall following an uncertain weekend for European leaders. In London, the key UK share index lost 7.85 per cent, its largest drop since 1987, while in New York, the Dow Jones fell below 10,000 points for the first time since 2004. Mr Clegg said the Liberal Democrats early warnings about the state of the economy had gone unheeded by government. "It matters enormously that the Liberal Democrats were the only party to say the housing credit boom was unsustainable," he said. "It matters enormously that we said there were measures which could have been taken four or five years ago to dampen the bubble in bank loaning and the bubble in over-borrowed customers taking on loans to go into the housing market." Yesterday, the party's economic spokesman, Vince Cable, warned the government to be clear with the public about bank deposits, following confusion across the continent about whether Germany was protecting all of its deposits. "People are anxious and the government needs to make it clearer than it is doing, what depositor protection actually means," he said. You can read the full Nick Clegg interview here.
Electors 'denied vote' in Glasgow East
Electors in recent by-elections, such as the one in Glasgow East, may have lost out on their chance to vote because of prohibitively short timetables, the Electoral Commission has found."Short timescales mean that electors have little time – in some instances only two working days – to register to vote or apply for a postal vote if they have not already done so," said Andrew Scallan, director of electoral administration and boundaries at the commission. The commission's statement carries an implicit criticism of the government, which implemented the by-election with frantic speed for largely political reasons. Commission spokesmen said recent by-elections in Crewe and Nantwich, Haltemprice and Howden, Henley and Glasgow East gave returning officers very little time to prepare for the polls. They are calling for a 25-working day timetable, as opposed to the current 15, which would bring by-elections in line with local government elections. "The current timetable also places an unnecessary burden on electoral administrators, who have very little time to undertake extensive planning and training," Mr Scallan continued. Yesterday the date for the Glenrothes by-election was set for November 6th. The commission's report on the elections is available here.
MPs call for smacking ban
Over 100 Labour MPs are calling for an amendment to the upcoming children and young persons bill which would ban parents from smacking their children.The MPs have written to Gordon Brown calling for a free vote on the bill, although government sources indicate that is unlikely to happen. Minister believe they have public support for the law's current status, whereby parents can chastise their child as long as they never inflict a mark or injury. There is a chance some of the 111 MPs could rebel against the government and vote against the bill although parliamentary observers doubt it will come to that. The letter reads: "This is clearly a conscience issue, equal to any others that have been granted such status. It should be debated and voted on freely, fairly and openly, in the parliamentary tradition. "We are all Labour supporters and do not relish an unnecessary public battle with the government over a reform which we believe to be vital and long-overdue." The issue of smacking last passed through parliament in 2004 when the government saw off a modest rebellion with Conservative support.
PMQs and Darling statement As-It-Happened
Welcome to politics.co.uk's As-It-Happens page. Here you can keep up to date with major parliamentary debates, press conferences or news events in real time. Just hit refresh on your browser to see the latest development.This event is now over, but you can see how it happened below. Well, here we are again after the summer recess. No prizes for guessing what the main topic of conversation will be at today's prime minister's questions, with the part-nationalisation of Britain's banking industry likely to figure pretty heavily. But don't expect too many stand-offs. Politicians – especially party leaders – feel a little tetchy at laying into the government during times of national crisis, and the last few weeks certainly constitute a national crisis. Instead, there should be some fairly in-depth discussion of this morning's bailout package, with David Cameron and Nick Clegg asking formal, constructive questions rather that piercing, hostile ones. That's the plan anyway. It's five minutes until the prime minister enters the Commons. The session today will be followed by Alistair Darling explaining to MPs what has been happening over the last two days. Reception to the part-nationalisation package has been generally positive so far. Backbench Labour MPs are relieved to no longer face calls of 'dithering'. Most other politicians are closing ranks around the government, fighting desperately to present a united front. The scenes in Congress last month - where partisan conflict held up a US bailout package - clearly had an effect on British MPs. Mr Brown pays his tribute to the British soldiers who died in operations over the summer. The list is depressingly long. He adds a section about a recent visit to Afghanistan and the pride of the House in "the efforts of our soldiers". Shock announcement: Interest rates will be cut by half a per cent. Mr Brown says the governor of the Bank of England is making a statement on the move as he speaks. US rates have also been cut by the same amount as have European rates. It goes without saying the PM is presenting himself as the statesman of Britain, introducing the macro-strategy of interest rate cuts along with the micro-strategy contained in the rescue package. He is asked by one MP about the extent of the limits on fat cats. Instead, Mr Brown says he will try his hardest to maintain public spending on schools and hospitals etc. He also mentions that excessive risk taking will be punished and rewards pegged to achievement. David Cameron stands up. He reminds everyone about his calls last month for support for the economy. Labour MPs laugh. Things have not started in the cooperative manner many of us had predicted. Cameron basically tries to get an assurance about Brown's commitment to British capitalism, by asking a searching question about the importance of (private) banks in the economy on a day when the government is sort of part-nationalising the industry. Labour MPs meet this with irritation and even some minor shouting. Brown concentrates on how he will maintain stability. "Restructuring of the banks is designed to ensure credit lines remain open to small and medium sized businesses of this country," Mr Brown says. Cameron stresses the huge investment taxpayers are making, but when he starts criticising the City's irresponsible behaviour Labour MPs are back to guffaws and barely concealed irritation. Mr Brown insists executive remuneration, especially bonuses, will form the cornerstone of bank commitments when they accept the deal. "The FSA will publish a consultation document if excessive risk taking put the company at risk," he continues. The FSA will propose a new way to deal with remuneration. "Those banks that are most reliant on this scheme are those which took the most risks," Cameron replies. So can the PM guarantee those banks won't get any bonuses? Brown isn't really answering. He says the government will insist on remuneration being based on hard work and enterprise etc, but nothing as concrete as Cameron was angling for. But everything Cameron says which sounds remotely left-wing is greeted by angry jeers from the Labour benches who can barely control their nausea at the old Etonian making noises about irresponsible behaviour. In the front of their minds is the fact that much of the Conservative's funds come from short-sellers and other very rich white men with a tenuous grasp of responsible financial behaviour. "I hear what he says" about irresponsible City behaviour, Mr Brown says, but he then reminds Cameron of his comments on the Andrew Marr show, when he promised not to take "easy shots" at bankers and the like. This is met with mad happiness from Labour backbenchers and even Mr Brown breaks a grin as he sits down. The laughter doesn't die down for a full minute. Labour know the Tories can't get a handle on this issue yet. Nick Clegg stands up to speak. "This is indeed a day of reckoning for the British economy," he says. But it's also a day of reckoning for the Commons, he says, and stresses the need for unity. "When the ship is sinking you send for the lifeboats, you don't argue about who sailed it into an iceberg," he adds. What's Brown doing to make sure the EU works together? Brown says the coordinated cut in interest rates shows the world will come together to deal with the situation. On Friday the G7 will agree coordinated action on accounting standards etc. The IMF meets on Saturday. An international leaders meeting will follow. "Whilst this package is hugely important, it is only one part of the jigsaw," Clegg replies. Struggling families need more money in their pockets now, he argues. Tax loopholes for the super-wealthy need to be shut down and the money redirected to struggling families. Mr Brown says he always closes tax loopholes anyway. Not strictly true, but anyway. He then does his list thing, where he reels of a set of policies to help "the hardworking families of this country". PMQs comes to an end, but stay online for Alistair Darling's statement on the bailout package. Labour MPs are weirdly ecstatic. Lib Dems and Conservatives don't know how to behave when they have to appear united but you can almost see their stomach churning with inner resentment. Labour MPs should not be as pleased as they appear. They are handing over copious amounts of taxpayer money with no guarantee of a return and some pretty lukewarm controls over the banks sucking up the funds. Darling says the interest rate decision will help bring stability back to the global financial system. There are three strands to today's announcement. Sufficient liquidity, new capital and providing the funds for banks to maintain lending. Today's move will safeguard taxpayers and play an important role on the international situation, he continues. Darling has a strangely useful quality to him fon days like today. His ability to make anything and everything utterly boring is profoundly reassuring. Instead of the breathless whispers of global financial meltdown, we have the slow, monotone persistence of his droning voice. It's the nicest sound most of us have heard for a while. Even today, MPs are visible struggling to maintain their concentration. Wonderful. Darling, rather predictably, says the government reassurance will mean banks have the confidence to lend to one another. He will work towards strengthening international supervision. We've heard all this before. Through some liquidity structure I don't understand all the risk will be taken by the banks, not the taxpayers. This is hard to believe, but I don't have the economic skills to dismantle it. IMG has received the funds of British savers who banked with Icesave. Darling accomplished this using his special powers, whatever they are. He promises no depositor will lose money from the Icesave debacle and expresses irritation at Icelandic actions. He ends with a general description of his plans. "Failure to act would mean far greater risk to the economy," he says. He earns loud cheers from behind him on the Labour benches. George Osborne, shadow chancellor, stands up to reply. He says the Tories will maintain their position of constructive cooperation with the government. He wants the commitment to maintaining lending to small businesses explained in detail. Basically he's searching for out-and-out commitments. Will there be a commitment that those banks which have really messed things up will be barred from giving bonuses? It's the same question Cameron asked Brown, but Osborne rightly reminds Labour MPs that the PM didn't really answer it. On Iceland, Osborne wants clarification on exactly which deposits will be protected and where the money will come from given the various strains on the government purse. Will longer term changes to the system be implemented through today's announcement? Will the chancellor make clear to the public just how bad our future economy might look? Darling says it is important to learn from what's happened. That seems true to the point of triviality. If he said the opposite I'd be seriously worried. The culture of regulation needs to change, he accepts, but he doesn't want to go back to the "old days" of having nine or so different regulators "tripping over themselves". The individual agreements with the banks will be where the rules on bonuses etc are hammered out - that was Darling avoiding the question by the way. "It is important, when we deal with damaging effects of bonus system, that we deal with that," he offers. Vince Cable stands up to hearty cheers from his party. He makes it clear the Lib Dems support the package. His key question: how will the conditions imposed on banks be secured? "How is chancellor to ensure the taxpayers' money going into the banks comes out the other end?" he asks. "I've been stunned as he has been by the sudden conversion of the Conservatives" to being opposed to the bonus culture, he adds mischievously. Cable welcomes the coordinated effort towards interest rates. He says we're progressing from problems in the financial system to the real economy. He wants the justice secretary to ensure repossession is the very last option when people face difficulty. Loud cheers for that one. "We all acknowledge this is the first and not the last step in what will be a very difficult process of recovery," he says before sitting down. Cable lives up to his hype on days like this. He is easy to understand, authoritative and asks excellent questions. Darling tries to assure him about the rules banks have to stick to on bonuses etc. He says the FSA can impose regulation, and banks would simply have to accept it. With that the debate moves onto statements from other MPs, meaning politics.co.uk can move on as well. It's been a longer PMQ As-It-Happens than usual, but then this is no ordinary day. Come back next week when maybe - maybe - things will be a little less historical.
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