Briefing from Lib Dem Party HQ
1. Fuel supply and threatened strike
No date for a strike has been set. There is no need to queue for petrol but motorists should take prudent steps to prepare and top up their tanks when the opportunity arises.
There is currently no shortage of fuel and forecourts are being replenished as normal. People should follow normal purchasing patterns but motorists should consider filling up their tanks fully when they do visit the pump.
Talking is better than striking.
Ed Davey has asked ACAS to contact both parties to open talks, which they have done. And he wrote to Unite urging them to get round the table with the haulage companies to address their concerns and avert a strike. Unite and the employers need to work together to reach an agreement that will avert industrial action.
Although we are pushing for an agreement, we have learnt the lessons of the past and stand ready to act to minimise disruption in particular, to our emergency services, in the event of a strike.
2. Budget
The Liberal Democrats have ensured this is a budget for the millions not for the millionaires.
Budget Top Five
- 21 million working people getting an extra £220 tax cut – That’s £550 in total so far.
- Tycoon Tax hitting the super-rich
- 2 million low paid workers no longer burdened with income tax
- New 15% mansion-purchase tax on companies buying property over £2m
- A working couple gain £90 a month thanks to Lib Dem tax cuts
The biggest move in this Budget is a tax cut for ordinary workers, going further and faster towards the Liberal Democrat goal of making the first ten thousand pounds you earn tax-free.
As a result of Liberal Democrat policy in action, people working full time on the minimum wage, will have seen their income tax bill cut in half.
We have cut the 50p rate to 45p, but Liberal Democrats have ensured that the richest will be hit with tax rises FIVE times as large in exchange. Liberal Democrats in government have made sure this budget does what the Labour Party never did – getting the richest people in the country to pay their fair share.
This budget shows the Liberal Democrats delivering in government. Tax cuts for people who need them most and a Tycoon Tax to make sure the richest pay their fair share. All, while we continue to rescue the country from the economic mess that Labour left behind.
3. VAT on take-away food
Many retailers and take away shops have to charge VAT on hot chicken products, hot pies and toasted sandwiches, but supermarkets and bakery chains sell very similar products without VAT.
VAT rules have become unclear and increasingly prone to legal dispute, leading to similar products receiving different treatment. Fish and Chips, Chinese take-aways and Kebabs all have VAT on their items. Goods such as pasties, currently do not. This change will clarify the rules and ensure that all food sold hot is taxed consistently at the standard rate. It removes the anomaly between hot chickens which are currently taxable when sold in takeaways but are zero rated by many supermarkets.
4. Pensions
All pensioners on the state pension will see their pension rise next month by more than £5 a week – the highest ever increase. Since we came to power it means pensioners on the state pension are getting £500 a year more than they were under Labour. As well as increasing the state pension the Coalition is protecting key pensioner benefits such as Winter Fuel Payments, free prescriptions and eye tests, free bus travel and free TV licences for older pensioners.
And this Budget confirms we are going ahead with Steve Webb’s plan for a single tier, or Citizen’s Pension – guaranteeing all future pensioners around £140 on current levels. Low paid people, the self-employed and women would be the main winners. These proposals would especially benefit mothers who currently lose out on their pensions for having taken a career break to raise children.
5. Age-related allowances
Pensioners are currently entitled to a larger personal allowance than those of working age. From 2013/14 those in receipt of Age Related Allowances will see them frozen until the personal allowance catches them up, and everyone else will simply continue to receive the personal allowance.
No pensioners will be cash losers as a result of this measure and Blind Person’s Allowance will continue to exist.
The move to freeze the pensioner personal allowance, and restrict it only to those pensioners who now have it, was a tough decision, but our objective is to have one single generous personal allowance for everyone, a much simpler tax system (taking 150k pensioners out of self assessment) that everyone can understand.
6. Party funding
Money currently plays far too big a role in politics – and unregulated gaps in financing between different parties distorts electoral competition in favour of the wealthier interest groups and the parties they support, with potential to distort the political debate. We must remain committed to reform and must work together with all parties to remove big money from politics.
All three parties had a commitment to reform party funding in their manifestos. In our manifesto we set out plans to get big money out of politics by capping donations and limiting spending throughout the electoral cycle. There has been much talk of political reform over the years, but nothing has happened. Parties dependent on money from the unions and big businesses have always have worked to block reform, determined to protect their paymasters.
No party has clean hands, but it is important that we all work together to make sure reform needs to be delivered by political consensus.
- Liberal Democrat Manifesto: “We will get big money out of politics by capping donations at £10,000 and limiting spending throughout the electoral cycle.”
- Coalition Agreement: “We will also pursue a detailed agreement on limiting donations and reforming party funding in order to remove big money from politics.”
7. Post Offices and the Royal Mail
The Coalition is protecting the 11,000+ post offices, after a more than a decade of Labour closure. Under Labour more than 7,000 post offices were closed – 38% of the network.
Earlier this year Ed Davey announced a new long-term deal between the Post Office and the Royal Mail, signing of a ten-year deal.
8. Local Pay
There are currently no proposals to implement – either for the civil service or the rest of the public sector. The Pay Review Bodies have been asked to consider how to make Public Sector Pay more responsive to local labour markets. They are not due to report back until July 2012.
- Nothing will happen without proper engagement with staff and Trade Unions
- Parts of the public sector already have some version of local pay, such as the court service, where pay is split into 4 zones. It is also being considered for Prison Officers
- Pay bargaining will continue to take place at a national level.
- No pay will be cut – which is why departments will only be able to take forward proposals once they have exited the pay freeze. What is more likely is that future pay rises could be distributed with local factors taken into consideration.
Because the Pay Review Bodies do not cover the civil service, HMT pay guidance for 2012 was published at the weekend. It confirmed the Cabinet Office’s role in coordinating departments’ exploration of how local market-facing pay can be introduced. It will be for individual Secretaries of State to decide how and whether to implement any local pay.
Liberal Democrat News 7th October 2011
Showcasing our young people's skills

This week, Nick Clegg officially opened WorldSkills, the biggest skills competition in the world.
More than 1,000 competitors from around the world attended the opening ceremony at the O2 arena, kick starting the greatest skills competition, jobs and careers event in the UK’s history with featured performances from young people across the country.
Speaking at the event, Nick Clegg said:
“This is an opportunity for the UK to showcase to the rest of the world the excellence that exists in vocational training here.
This is a hugely important event, celebrating disciplines that don’t always get the attention they deserve, but that are hugely important in modern life.
“Your talents touch millions of people, in every country, every single day – these are the skills that really make the world go round. You are all instrumental in building a better future.”
Increasing the number of apprenticeships and vocational training is a key part of Liberal Democrat plans to rebalance the economy – 250,000 more apprenticeships will be created by this government.
WorldSkills 2011 will feature over 1000 competitors from 53 nations and will attract around 150,000 visitors. There will be 46 skills competition zones covering everything from hairdressing, mobile robotics, virtual welding, patisserie and brick-laying.
The WorldSkills competition is at the ExCeL in London until tomorrow and features young people competing to be the best of the best in 46 skills. Team UK is entering its largest ever team, with 43 competitors competing
in 38 skills.
Aidan Jones, chief executive of WorldSkills London 2011 said: “It’s an honour to welcome the Deputy Prime Minister to the opening ceremony. There has never been a more important time to show the UK that skills shape our world and that the future success of Britain’s businesses depend on a highly skilled workforce. We hope that WorldSkills London will demonstrate to the world how talented young British people are.”
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Don Foster: BBC will preserve high quality programming
“Every job lost is a personal tragedy and everything must be done to limit their impact.
“Keeping the licence fee flat, and giving the public some relief in difficult financial times, inevitably means making savings.
“I’m confident the BBC can save money while still preserving the high quality programming the public loves.
“It’s unfortunate that this has to happen and it is imperative that cuts should not lead to a lower quality BBC.”
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Don Foster: Active choice on internet access is the right way forward
“Anyone signing up for internet access will be asked to make an active choice about what they want to see online. This is far better than passing laws to force ISPs to filter everyone’s internet connections by default.
“Web blocking should not lull parents into a false sense of security. The problem will only really be solved when parents take an active interest in what their children are doing online.
“Now that ISPs are acting voluntarily, the Government must step away from introducing web censorship laws”
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Jenny Willott: Pension change good news for women
“I welcome today’s announcement that shows the Government has listened to the concerns of thousands of women and capped the maximum increase that women will see. This will protect half a million people, including hundreds of thousands of women who would have been worst affected by the change.
“Liberal Democrats had made clear to the Government that the proposal to raise the age of the state pension was unfair on many women and we were joined by campaigners in urging a rethink.
“With life expectancy set to increase, the Government’s aim is a simple, decent state pension which is easy to understand, efficient to deliver and affordable.”
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Liberal Democrat News 14th October 2011

Now that the recess is over there are reports from both the Commons and the Lords on what Liberal Democrats have been saying.
Childcare boost announced by Clegg
The Deputy Prime Minister has announced more help for working parents who are trying to cope with the cost of childcare.
Around 80,000 more households, who currently do not receive help because they work too few hours in the week, will benefit from the changes.
Reaffirming the Coalition’s commitment to helping parents, the government will invest an additional £300m into childcare support under Universal Credit, on top of the £2bn already spent under the current system.
Currently, childcare support is only available if you work 16 hours or more, but the government is removing the minimum hours rule so that all families receiving Universal Credit will be eligible for financial help. This means that families on low incomes will receive more support to keep them in work.
As now, families will be able to recover childcare costs at 70 per cent – up to £175 for one child or £300 for two or more children per week. The money will be paid through Universal Credit from 2013 and will mean that around 80,000 more families with children will be able to work the hours they choose.
“Childcare support is vitally important,” said Nick. “It’s a lifeline for families up and down the country, particularly for mums who want to get back into work, maybe for just a few hours a week after they’ve had children.
“This will help an extra 80,000 families who have previously had no help at all with childcare costs. We all know how difficult it is sometimes to juggle family and work, but this is really good news, especially for lone parents and mums up and down the country.
“I want to ensure that this Coalition Government is there for families of all shapes and sizes and help them with the difficult daily juggling act between family and work.”
The additional support, combined with State funded free early years education for younger children, will enable parents of children of any age to bring together full-time paid employment with parenting, and will ensure that those with school age children can meet their job search obligations.
For those paying average childcare costs, this would enable parents to buy up to around 40 hours of childcare a week.
The limits will also be applied monthly, giving parents more flexibility to manage fluctuating costs at peak times, such as school holiday periods when they may face higher costs some weeks and lower costs on other weeks.
The Co-Chair of the Lib Dem Parliamentary Committee on Work and Pensions, Jenny Willott, has welcomed the announcement.
“This is excellent news for thousands of parents working in part-time jobs who up until now have not been able to receive any help with their childcare costs,” she said. “I believe that this shows very clearly that Liberal Democrats are committed
to supporting all working families and to making childcare affordable and are making this a reality
in government.”
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Tim Farron: We are the only party to consistently call for lobbying reform
“Ed Miliband’s sudden interest in getting to grips with lobbying is mere opportunism, not least as he and his shadow cabinet voted against Liberal Democrat proposals for greater transparency on this very issue when they were in government.
“Liberal Democrats are the only party to have consistently called for reform of the rules around lobbying, that’s why there is a commitment to introduce a statutory register of lobbyists in the Coalition Agreement.
“Ed Miliband need not worry. On this issue, like many others, Liberal Democrats will deliver where the last government failed.”
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Liberal Democrat News 21st October 2011
Cameron and Huhne’s Energy Summit
Escalating energy prices are the biggest contributors to the latest rise in inflation. This week, in a move to ease the pressure on consumers, Prime Minister David Cameron and Secretary of State for Energy and Climate Change Chris Huhne convened a summit meeting with leaders of the six largest energy producing companies.
Policy developments aimed at keeping household energy bills down were discussed and agreement, involving consumer groups and the industry regulator Ofgem as well as the Government and the energy suppliers, was reached on a wide range of measures to help consumers save money on their gas and electricity bills.
There would be clear and transparent communications to the consumer on their energy issues, including shared website and campaign material giving consumer advice on energy saving and the cheapest tariffs. Suppliers would also write urgently to eight million quarterly credit customers telling them how they can save money by changing their payment method. Energy bills will also make it much clearer how cheaper tariffs may be applied to their bills`and suppliers will look at improving ways in which customers can compare their gas and electricity consumption.
From December four million of the most vulnerable energy customers in Great Britain will receive letters telling them they are eligible for free or heavily discounted insulation in their lofts or cavity walls.
There is no immediate prospect of overall price reductions but there is an agreed aim to encourage more consumers to switch suppliers on the basis of better deals. At present Ofgem reports that last year only 15 per cent of gas customers and 17 per cent of electricy customers made a switch.
After the meeting the Prime Minister, David Cameron, commented “We are making energy companies be competitive. They’re permanently being watched by Ofgem to make sure it is a competitive market, and we are making them make their energy available so that others can come in and provide customers with a good service. So this is about the Government, about the Citizens Advice Bureau, about other organisations, all working together to help people to keep their energy bills down.”
Chris Huhne was pleased with the meeting but is not optimistic about future energy price levels. “If you were to ask me what is going to happen to world fossil fuel prices then the Government’s prediction – and virtually everyone else’s – is that in the medium run those prices are going to go up.”
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Brian Paddick and Nick Clegg visit crime reduction charity
Brian discussed Payback Sentencing with Nick Clegg on a visit to a project run by Nacro, the crime reduction charity. Brian also attended with the Leader of the Liberal Democrat London Assembly Group and candidate for Deputy Mayor, Caroline Pidgeon.
Amongst many other roles, Nacro works directly with people on community sentences challenging them to stop offending, creating chances for them to move on from crime and to give something positive back to their communities.
Commenting after the visit, Brian Paddick said:
“Reoffending rates are far too high and people think community punishment is a soft option.
“We need a radical change in the way we deal with offenders to ensure punishment fits the offender as well as the crime.
“Londoners want payback from the riots. They need assurances that criminals will pay for their crime and instil work ethic and responsibility so that offenders are working for a stake in their community.”
Commenting further, Nick Clegg said:
“Tough community sentences are far more effective at cutting repeat crime than short–term prison sentences.
“They make those who have wronged their local community work hard to pay something back.
“Brian’s campaign for more robust community sentences will restore the public’s faith in them and cut crime in London.
“This will make people safer in their homes and will ensure that criminals, like those who took part in the recent riots, give something back to their communities as part of their punishment.”
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Nick Clegg announces plans to cut red tape for small businesses
Below are extracts from his speech:
“The debate over regulation has been polarised around two extremes – on the one hand is the idea that it fixes every problem. Rules, targets, monitoring, endless government diktats to chivvy business in the right direction; mountains of form-filling so we can keep an eye on you.
“Previously, the approach has been ‘when in doubt, legislate’. We saw it in public services, in the criminal justice system and, on average, British businesses were lumbered with six new regulations every working day. Thousands of different rules were left on the statute books – because new rules are free; they’re easy; they make Ministers feel in control.
“On the other hand, you have the deregulation diehards who say we should scrap it all. They oppose regulation vehemently; on principle. The state has no business restricting business, and all we need to do to get the economy growing again is tear up the rule book; scrap environmental protections, workers’ rights, consumer rights and, hey presto, we’ll get business booming.
“Of course deregulation plays a role, but supply side liberalisation is not the be-all-and-end-all for growth. There is simply no evidence that – on its own – it is enough.
“So both extremes are ridiculous. And I’m not interested in a false debate about ‘how much’ regulation; I’m interested in what works.
“When I was working in Europe as an MEP, I campaigned for less red tape, I helped craft laws cutting it. Because liberals don’t believe in rules for rules sake. We believe in intelligent, effective regulation that gets the balance right. And I’ve been working hard over the last 18 months, and will continue to do so, to restore the balance.
“So the Coalition is on a mission to liberate small business. We have set ourselves the challenge of being the first British Government to leave office having reduced the overall burden rather than increased it.
“First, we’re halting the tide of new regulation. To that end, Vince Cable has introduced a radical one-in-one-out policy. It is the first of its kind in the world, and the Business Secretary has made new regulation a last resort in Whitehall.
“On top of limiting new rules, we’re also hacking away at the ones that already exist. Our Red Tape Challenge invites ordinary people to identify overlaps, complexity and to highlight where the benefits are out of synch with the costs. That project has already looked at 400 regulations just in retail and hospitality. Over half – 220 – will be simplified or scrapped.
“Where people have expressed support for regulation, we’re keeping it. Like with the hallmarking system for gold and silver. But, if it’s tedious and pointless, its going. So no more insisting that a shop selling kitchen descaler has a poisons licence. No more having to pay for a piece of paper just to put on a little live music in a pub. Where there were twelve pieces of legislation on consumer rights, we’re collapsing them into one.
“The end result will be a system designed for busy, working people rather than a job creation scheme for accountants and lawyers. And a system that saves you money. The Coalition’s attack on red tape has already saved British businesses £3 billion. A further £600 million worth of savings could come just from the decision to exempt more companies from being audited.
“And there is another, specific, area of work I can unveil this morning. Changing the mindset within central government is one thing. But we make the rules – we don’t enforce them. There are a range of bodies responsible for inspection: HMRC, the Environment Agency, the Health and Safety Executive, to name a few. And they need to undergo this culture change too. They need to understand that their job is to make your life easier, not harder.
“So there will be a major shake up of business inspection – going through the regulators, asking ‘are they still necessary?’; ‘Should they still exist?’; making sure that, yes, they intervene when necessary, they offer advice and support, but otherwise they let you get on with it.
“They will need to respect the Regulators’ Compliance Code, which says regulators must think about and encourage economic growth. And they will have to make sure they aren’t breathing down your necks. Why, for example, should regulators be able to turn up at your door whenever they want and as often as they want? Why can’t we limit the number of inspections to, say, two a year, ensuring these bodies coordinate amongst themselves to stick within that limit?
“We also know that which-body-does-what can be extremely unclear. So we’re minimising the number of authorities you will have to deal with in the future, introducing sunset clauses for new regulators, placing them under rolling review; if they become irrelevant, or their functions are replicated elsewhere, they’ll go.”
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