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.
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.
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