Wednesday 19 October 2011

Fox Faces Flat Expenses Enquiry Despite Resignation

http://www.bbc.co.uk/news/uk-politics-15376480

Liam Fox may have resigned as Defence Secretary last week but questions about his conduct remain and he still faces an enquiry into his expenses.

Following a complaint by Labour MP John Mann, an investigation will be carried out by Parliamentary Standards Commissioner John Lyon into claims that Dr Fox allowed Adam Werritty to stay at his tax payer-funded flat in London rent free.

Dr Fox has promised to cooperate fully with any investigation into the matter.  But listening to a debate on the BBC's Newsnight, it is clear how bad things are beginning to look for the Prime Minister and the Coalition.

The consensus amongst many commentators is that a general malaise is beginning to develop within the government as a result of the recent revelations over Dr Fox.

Add this to the state of the economy, it is widely believed that should another scandal break over the behaviour of another MP, it could spell disaster for the coalition.

A poll carried out by ComRes for ITV News revealed that 67% of British people now feel very pessimistic about the economy compared to 49% a year ago. http://www.businessweek.com/news/2011-10-19/britons-pessimism-on-economy-reaches-record-level-in-itv-poll.html

Tuesday 18 October 2011

Bad News For Coalition As Inflation Rises To Over 5%

http://www.bbc.co.uk/news/business-15344297

Despite predications from Bank of England Governor Mervyn King that inflation has probably peaked, this is not good news for George Osborne or David Cameron.

The rise in both CPI and RPI have frustrated the Coalition's plans to cut the budget deficit especially with the rise in pensions and benefits of 5.2%.

With the direction of inflation remaining very much dependent on what happens to the price of oil, the financial situation in the UK remains very volatile.

This is despite the most optimistic forecasts from economic experts.




No Surprises In Cabinet Secretary's Report On Liam Fox

http://www.bbc.co.uk/news/uk-politics-15352311

It is clear that Liam Fox did the right thing in resigning on Friday over his association with Adam Werritty.

The findings of the report into the affair by Cabinet Secretary Gus O'Donnell which have now been published, reveal that Dr Fox clearly broke the Ministerial Code in allowing Werritty to accompany him on trips abroad.http://www.bbc.co.uk/news/uk-politics-15358660

And it has now been revealed that the former minister was warned several times about dealing too closely with Mr Werritty.

Had he still now been in post,  Dr Fox would have almost certainly been sacked by the Prime Minister.

The fact that the report states that he did not breach National Security or gain financially might be of small comfort to Dr Fox.

But still many questions remain and it is unlikely they will be answered when the former Defence Secretary is expected to make a formal statement to MPs in the House of Commons on Wednesday.http://www.bbc.co.uk/news/uk-politics-15360827

Despite the repeated warnings Fox was given about Mr Werritty, former Cabinet minister Lord Reid hit the nail on the head in an interview last night, when he said that on his first day in government, civil servants should have made it much clearer to Dr Fox that activities he may have engaged in  in opposition might not be viewed as acceptable now he was in power. This is now a key recommendation in Gus O'Donnell's report.

In my view, the spotlight should be on the madarins of Whitehall as much as they are on any future investigation into Dr Fox's affairs.

Sunday 16 October 2011

Fox Resignation Inevitable In Unravelling Scandle

http://www.bbc.co.uk/news/uk-politics-15300751

David Cameron has now lost one of his most senior Cabinet ministers following the resignation of Liam Fox as Defence Secretary.

It is an extremely heavy personal blow for Dr Fox, after over a decade on the Conservative frontbench, a year and a half of which saw him occupy a very high-profile position in the Cabinet, in charge of  military operations in both Afghanistan and Libya.

But it was clear almost as soon as this story broke that Fox would not survive in his job.

The spectre of his best-man at his wedding, Adam Werritty, accompanying Dr Fox on foreign trips to Dubai amongst others, when he was neither a paid advisor or a civil servant, brought the latter's judgement into severe question and raised speculation that this was a breach of the Ministerial Code.

Fox had, however unintentionally,  allowed his personal and political activities to become blurred and the revelations that have come out so far certainly have given the impression of wrong-doing.  I find it unbelievable that Mr Werritty was allowed to carry business cards carrying the Portcullis symbol and stating that he was an advisor to Dr Fox when he was nothing of the kind.

It is clear that more details of Dr Fox's activities have yet to be publicised.  The Cabinet Secretary has yet to release his report on the affair.  The Electoral Commission is poised to investigate Fox's affairs too, amidst new claims that he failed to declare sources of funding. http://www.google.com/hostednews/ukpress/article/ALeqM5iwlm0FR5dCTGqzunJTlMNARayw9w?docId=N0095721318721984977A And with the announcement that the Government is to look into changing the rules on political lobbying, this is really starting to look like an episode David Cameron might want to forget.

Add to this, the announcement that Mr Werritty could now be questioned by police on suspicion of fraud, this affair could run on for the foreseeable future.http://www.bbc.co.uk/news/uk-politics-15324686

Dr Fox was a very competent minister with a strong handle on the workings of an extremely complex department.

In his time on the frontbenches,  Fox, although considered to be a standard-bearer for the Tory right,  had earned respect from all sides of the House of Commons and as well as his constituents. His resignation as Defence Secretary has brought a very distinguished frontline career to an untimely halt.

It is very hard to see, certainly in the short- or medium-term, Liam Fox making a return to the political limelight.

PM Forced To Alter Speech In Conference Speech Conference Address Embarrassment

http://www.bbc.co.uk/news/uk-politics-15189614

It was a very complacent display from the Prime Minister in his speech to the Conservative Party Conference in Manchester.

I found it quite galling to hear someone with a fortune of £30m telling the most vulnerable in our country that they should 'stand up and fight' in these difficult economic times.

It was no surprise that David Cameron was forced to change the wording of a paragraph in his speech which initially lectured the public on how they should tighten their belts.  A clear embarrassment to the Party illustrating just how out of touch Cameron, Clegg and all the other millionaires in the Cabinet are with the difficulties of ordinary people struggling to make ends meet.

But telling people to fight and that 'we are all in this together' is one thing.

This was a speech which Cameron insisted that their economic strategy of enormous reductions in public spending was right, even though these cuts are hitting the poorest people - the sick, the old, the unemployed and the disabled - the hardest.  And now that they are are really starting to bite, it is clear from all the opinion polls that the coalition's austerity measures are proving extremely unpopular with the public.

And of course much of the speech was devoted to how the Coalition was clearing up the mess that Labour had left behind.  All very predictable stuff designed to please the party-faithful but not at all directed at the public at large.

On a positive note, Cameron did re-affirm his support for gay marriage, which will have pleased those who have been attracted to a more tolerant, inclusive Conservative Party.

And he was right, in my view to point out how counter-productive it was of those who chose to boo Ed Miliband's praise of Tony Blair in his Conference speech. No matter how controversial Margaret Thatcher may have been or how unpopular she became towards the end of her Premiership, she was never booed by Party members at Conference. And neither was John Major in the dying years of the last Tory government, or Iain Duncan-Smith just before he was dumped by the Party.

However, this was a vacuous speech which, despite its 'can-do' message, gave the majority of British people not the slightest glimmer of hope that things will improve for them any time soon.






Miliband Gives Party Vision In Brave Conference Speech

http://www.bbc.co.uk/news/uk-politics-15082652
http://www.politics.co.uk/comment-analysis/2011/09/27/miliband-conference-speech-2011-reactions

I attended Ed Miliband's speech at this year's Labour Party Conference in Liverpool, neither expecting too much or too little from it.

Miliband has spoken out well on a number of issues, most notably the hacking scandal.

But he has not stamped his mark on the Party in his first year as leader sufficiently in my view and Cameron almost always has had the upper hand at PMQs.

However, I was pleasantly surprised.

Miliband's second Conference speech as Labour Party leader was, in the main, very well received by  delegates and Party members.

It was his best yet, and an address in which Miliband spelt out very clearly where he stands. It was obvious straight away that he can no longer be justifiably described as 'Red Ed', as he praised some of the Thatcherite policies of the 80s, like the sale of council houses and measures to curb the unions.

These were very bold words from a man who, up until this year's conference had still to explain to the electorate what he stands for, after more than a year as Labour leader.

Despite later criticism from the media and Business leaders, Miliband delivered his vision of a new kind of capitalism, distinguishing between the Producers and Predators, companies that put something back into society and those that abused their financial power and ripped people off.  I thought this was an extremely clever way of taking the Party forward, pledging that a future Labour government would promote more responsible practices when re-elected and was a clear admission that the previous admistration had failed to curb the excesses of the banks which had contributed to the recession of 2008.

Miliband declared that he was his own man, but at the same time, was eager to praise the achievements of  his predecessors Gordon Brown and Tony Blair. It was extremely disheartening to hear boos in the audience at the mention of Blair's name. Clearly these were people who never liked Blair anyway and felt he took the Party too far to the right. But how perverse to heckle someone who to date has been Labour's most successful Prime Minister, leading the party to three successive general election victories. Blair did make very notable mistakes, such as with Iraq, but his many achievements in government should be applauded. The consensus amongst those in the hall was that Labour should embrace their leaders, not disparage them, as this sends a message to the country at large that the Party is disunited. http://www.labourlist.org/lets-talk-about-blair. And of course it allowed Cameron in his conference speech to really take a swipe at Labour for doing so.

Whilst this speech lacked concrete policy announcements, which is not unexpected four years away from a general election, it was about Ed Miliband the man, his beliefs and where he wants to take the Party.

Labour have a very hard task ahead in restoring the Party's credibility on the economy, especially with Gordon Brown's protegee, Ed Balls,  in charge of that brief.

But Miliband certainly has now convinced me that he has what it takes be Prime Minister. He excelled too, in the Q&A session, the following day, in which non-Labour members were invited to participate. It was further evidence of his ability to connect with ordinary voters. http://www.youtube.com/watch?v=c2SAkFYgbok

I am sure that he will continue to make a positive impact over the next twelve months. Miliband will no doubt be helped by the worsening state of the economy and the coalition's increasing unpopularity.

What Ed Miliband has to do now is take advantage of  these economic events in carrying his message round the country so that he convinces the electorate as well.

Friday 14 October 2011

Balls' 5-Point Growth Plan No Quick Fix

http://www.bbc.co.uk/news/uk-politics-15054705

Ed Balls' answer to the debt crisis was largely welcomed by Labour Party members in Liverpool.

Predictably, the Shadow Chancellor urged George Osborne to change course and alter the speed and extent of  cuts in public spending.

However, despite admissions during his speech that Labour had made mistakes with economic policy, Ed Balls
has come up with a road map that could possibly make things worse before they get better, with more spending of money we don't have and increasing the already-enormous budget deficit even further.

With his strong links to Gordon Brown, Balls is associated with all the economic mistakes of the last Labour government.

I'm firmly of the view that Ed Miliband should have looked elsewhere to fill Alan Johnson's shoes as Shadow Chancellor.

I am not at all sure that Labour can win back the electorate's trust on the economy with Ed Balls in charge of the Treasury.