This was the week that George Osborne showed that he was fallible. Riding high on the wave of election success, Osborne has been unstoppable and was becoming the undisputed front-runner to become the next leader of the Conservative Party. However, a defeat in the House of Lords over his plans for tax credits has left him looking wounded and the vultures are circling. Any sign of weakness will be used mercilessly against him especially with the process of replacing Cameron seriously kicking into gear.
So what can we learn from the political news this week?
- Our friends in the Norse. David Cameron tried to grab the initiative over the European referendum debate by suggesting that the so-called ‘Norway option’, having the trading relationship but without all the hassle of full EU membership, is not really an option at all. He pointed to the financial costs of the relationship alongside the lack of actual influence. However, according to some media reports, EU members are waiting to hear what Mr Cameron wishes to negotiate on.
- The Lords find their mojo. In defeating the Government’s plans for tax credits, the House of Lords has found itself on a potential collision course with irate Ministers. The Government is now considering reviewing the powers of the Lords despite the House authorities themselves seeing nothing wrong in the actions of the Upper House. John Bercow said there had been ‘no procedural impropriety’, ie they had done nothing wrong, whilst George Osborne claimed they had voted down the Government’s ‘financial measures’ which they are not, in effect, allowed to do. The role and powers of the House of Lords has been considered in some detail before…..
- The National Infrastructure Commission is go! The commissioners supporting Lord Adonis have been announced and feature Lord Heseltine and the man whose report largely inspired the new body, Sir John Armitt. Speaking on the Today programme about the launch of the Commission, Secretary of State for Transport, Patrick McLoughlin stressed the importance of its work on links across the Northern Powerhouse. He also touched on the promised decision on airport capacity stressing that the Davies Commission had outlined three options all of which are being considered. Whilst he conceded that Heathrow was that commission’s preferred option, the Government is looking at what aspects of the report are ‘do-able’. This is either a change in tone, approach or merely a clarification…
- Kids Company and money. The National Audit Office report showed that Ministers, both Labour and Conservative, ignored civil service warnings before giving the charity even more taxpayer money. With a number of other inquiries also taking place the political fallout is bound to continue. The issue also shows that when political decisions need to be made that politicians are still prepared to take them.
- In or out? No, not of the EU but whether Labour Members of Parliament face the prospect of deselection if they are insufficiently Corbynite. Despite Jeremy Corbyn and John McDonnell both offering reassuring words, those around them, not least former Mayor of London Ken Livingstone, appear less willing to offer comfort. The issue will not go away and may ultimately be determined by how many members Labour retains or recruits and what their positions are.