09/09/2011 Daily Politics

Hello and welcome to The Daily Politics. As predictions by the

global economy go from a punitive being near, the Chancellor's sense

a defiant message on his plans to reduce the deficit. We will stick

to the death as the plan we have set out. It is the rock of

stability upon which our recovery is built. As UKIP's leader Nigel

Farage prepares to address his party conference, we will ask him

if he will make common cause with Tory Euro-sceptic backbenchers.

As the Greens gather for their own conference, how are their polities

going down in Brighton and Hove? Banning bacon sandwiches was not

universally popular. It is a traditional, manual work for us and

they like their eggs and bacon and all the trimmings that go with that.

Hopefully after a full breakfast are Mehdi Hasan from the New

Statesman, and Sarah Sands from the Evening Standard.

Later today finance ministers will meet in my say to discuss how to

deal with an economic crisis that seems to be deepening by the date.

They have got their work cut out. Yesterday, the OECD released

figures predicting the group of the seven largest economies will grow

by just 0.2%, with Britain growing by 0.3% over the same time. The

Shadow Chancellor Ed Balls used the figures to criticise the

Government's approach to fixing the economy and said it had a reckless

policy that is hurting, but clearly not working. However, this morning,

George Osborne insisted his deficit reduction plans were right. We will

stick to the plan we have set out. It is the rock of stability on

which our recovery is built and it has delivered record low interest

rates. Abandoning that it would put those interest rates at risk.

Nothing would be more damaging for Britain at this fragile moment for

the world's economy that an increase in mortgage rates for

families and an increase in the cost of borrowing for businesses.

On the other side of the Atlantic, President Obama has announced a

$450 billion package which he hopes will create jobs and boost the

economy. It includes tax cuts to help small businesses, funding for

infrastructure businesses, and cash worth emergency services workers.

Last night, he claimed the plans would give a much needed boost to

the American economy. The purpose of the American jobs act is simple,

to put more people back to work, and more money in the pockets of

those who are working. It will create more jobs for construction

workers, teachers, veterans, and the long-term unemployed. It will

provide a jolt to the economy that has dolls and give people

confidence if they invest and higher, there will be customers for

their products and services. From the most powerful man in the world

to one of the biggest brains in the BBC, let's get some analysis from

the BBC's economics editor, Stephanie Flanders. President

Obama's approach is totally different to George Osborne's. He

says he is sticking to his austerity plan. Are there any signs

that other countries and the IMF are beginning to turn away from the

Chancellor's approach? Certainly Christine Lagarde in the last few

weeks has had a much more nervous tone about the global economy and

she said explicitly that policy makers everywhere have to worry

about letting their long-term need to cut the budget get in the way of

short-term growth. She made a big point at the meeting this morning

and she said, if you do not get Rose, nothing else will get fixed.

A lot of people have wondered if this applies to the UK. She was

pretty clear this morning and she said she thought there was room in

the Chancellor's plan to respond to what is going on without needing to

do anything different. There is one big difference with the US.

Basically, George Osborne is going to borrow a lot more if we have

slow-growth, whether he likes it or not. That is not the case in the US.

A lot of states are having to balance their budgets and may end

up cutting spending when the economy goes down. The President

has had to offset that with all these stimulus packages. There is a

difference between Britain and America. In terms of the language

being used, Ed Balls has already picked up and interpreted Christine

Lagarde's comments as saying George Osborne has to change direction.

You are right, she said the policy is currently appropriate, but what

you think she is really thinking? There is an interesting dynamic. A

year ago, there was quite a debate when the new Government announced

its austerity programme. There were a few people inside the IMF has

said it was a little too tight and they were overruled and the IMF has

consistently had the position that it was right, but you had to be

aware and ready to respond to risks. That rhetoric has ratcheted up.

Today she talked about having heightened readiness and an ability

to be super ajar if things started to go wrong. Still she is speaking

to the script, but the tone is changing will stop some people

would say it is a bit strange to be constantly talking about being

ready for the risks to materialise, when she is also saying they have

already happened. If George Osborne and decides to do things

differently, what leaders are at his disposal in terms of kick-

starting the economy? Part of the problem and part of the gloom is

that there are not a lot of leaders that any of these governments can

pall. I think what he would emphasise, and the IMF, is that

there is some flexibility inside his scheme. The borrowing will go

up naturally. There is also the fact they are meeting their budget

target earlier on the current plans. There is room for quite a lot of

borrowing to happen without him being able to officially say he is

going for a plan B. What is odd about the Chancellor is he is now

public about the flexibility of his plan. He could have talked about

that all along and he chose to give the impression it is more rigid

than it is. My ad Hassan, nobody is really advocating that George

Osborne abandons his policy of fiscal austerity, in broad terms.

There are a lot of top economists who are saying that. Bring in a

short term, fiscal stimulus. One of the economists who predicted the

crash, said he has switched his position. In the F T, the bond

market message is clear, borrow and spend. We have also heard that the

markets are still very real Sjoerd by sticking to an austerity package.

It is not true although parties want them to abandon it. The

austerity plan is right. I think Stephanie is right to say we have

to look at Christine Lagarde's remarks and the new ones in her

comments. She does not denounce a Government's central policy, but

she does a nimble, super a jar, height and readiness. She said,

there are countries in the world under pressure from the bond

markets and they have to consolidate now and fast. There are

others who have got more scope for growth. President Obama has

recognised that belatedly. But it did not work for him either? That

is not true. Some people say the stimulus was not big enough. Should

George Osborne changed direction? am tentative about saying we need

one or the other. I think to abandon it at this stage would be

not only politically unwise, but everyone would panic. To say, we

will carry on, but we have a bit of flexibility. Since he raised

interest rates, that is the branch we are hanging on to. There are

some things that can be quite calming. But economists are divided.

I agree economists are divided. What is interesting in recent weeks

it is George Osborne's own supporters who are having their

doubts. A couple of years ago they were attacking George Brown and

Alistair Darling. But perhaps he can change things without

announcing he is changing things. They have committed so hard and so

firmly to this, they are saying it is the glue that keeps the

coalition together. Why didn't Ed Miliband talk about the economy in

Prime Minister's Questions? I don't know. Someone like me would say

that Alistair Darling's position is not credible. I think trying to ape

the Tories on cuts did not help Labour at all. Raising VAT, but VAT

is one of the tax cuts they should make as Ed Balls is asking for now.

Let's see if Ed Miliband chooses to go on it next week. Delegates to

their UKIP's conference might be experiencing a sense of deja vu as

they gather in is born today. Nigel Farage has called on Tory voters to

abandon the Conservatives for his true party of Euro-scepticism and

it has a familiar ring to it. It was UKIP that made the argument

we should no longer be part of the European Union and we desperately

need a referendum. We made it respectable and made it easier for

people in the Tory party and the Labour Party to say the same thing.

Presumably in the interests of Euro-sceptics, you would not run a

UKIP candidate against any Conservative MP who holes those

opinions. Let's wait and see how genuine those people are. Whilst

there are good people standing up in the Conservative Party, the

leadership of the Conservative Party are more committed to

membership of the European Union and more committed to deny it as a

referendum that ever before. That is the leadership. We are talking

about 80 newly elected Conservative MP is forming a blog, music to your

ears. You are not gonna stand UKIP candidates against them, are you?

My job as leader of this party is for us to fight as many elections

as we can at local, regional, national and international level.

We are going in, getting ready for those elections with the intention

of winning them and we will have up by that time 600 candidates

selected to fight the next general election. The important thing is

not what happens in individual constituencies, the important thing

is we get this country a referendum. If Mr Cameron wants to damage the

party Matt Burke, he can give us a referendum. But you are open to

assessing how a serious these Conservative candidates are. We'd

talked to some of them? Look, my commitment is to make UKIP a bigger

political party than it is today given that everything we stand for

it is in the mainstream. You are not answering the question. I think,

one or two of these people in the Conservative Party ought to

consider whether they are in the right party or not. They are doing

their best to put pressure on their leader to change their policy. The

best thing they can do is to come and join us. Have you talked to any

of them? I am happy to meet people from the Conservative Party or the

Labour Party who want the same things we want. You would not

really, if you are thinking about the Botha, and the voters who wants

to see Britain's relationship with Europe changed, they are hardly

going to change UKIP the struggle to win elections, instead of a

Euro-sceptic Conservatives. there is a sitting member of

parliament for the Tory or Labour Party that openly says they want

Britain to lead the European Union and renegotiate a genuine free

trade agreement, of course I am open to talking to them. But when

it comes to it, that 80 or so Euro- sceptics, I suspect the number that

are committed to as leading is rather small. Let's look at UKIP.

We have talked before about the party and its performance at local

level. It does not have a great standing at local level and perhaps

that is why it does not do so well nationally. It is interesting to

look at the local elections that took place earlier this year. We

stood in an 8th of the seats and got about a third of a million

votes, the same pro-rata as we got in the European elections in 2009.

More people who vote for us in Euro elections under PR are going out

and voted for us under first past the post. It does not get us over

the hurdle of first-past-the-post. In Cambridgeshire we have taken

control of the council. There are one or two areas where we have put

down good roots and we have built on it. We have yet under first past

the post to make a breakthrough. When I first became leader in 2006,

when people were asked how would they vote in a general election, it

was below 1%. A poll two days ago put us at 7%. We are making good,

Your message is that the party has disappeared. Are you trying to

bring it back by its seeming the political career of Neil Hamilton?

For most of the history of UK up we had the Conservative Party in

opposition. Just wait until David gets in. He will be a patriotic,

Euro-sceptic Prime Minister. He is in. He has proved to be the most

pro EU Prime Minister since Edward Heath. People who have put their

faith in the Conservative Party and believe the promises of David

Cameron, they are now feeling they have been let down like a cheap

pair of braces. My argument is, if they believe those things we are a

credible alternative for their vote. Bringing Neil Hamilton into the

hierarchy of the party, will that really attract more members? Neil

Hamilton joined the party in 2004 and has been a supporter ever since.

He has decided to throw his hat into the ring and be a candidate

for our national executive. If the membership of the party wanted to

be part of the management team, he will be, if they do not, he will

not. Let's go to the beginning of that interview in terms of

relationship with Euro-sceptic Tory MPs. Is there a danger of them

standing against Euro-sceptic MPs or not? UKIP is a nutty Party. Way

used to talk about little England in a derogatory term, now that

feels as if we are away from the contagion of Europe. Europe is not

a great place to be at the moment. Most Tories like power - all people

like power. They are in government. They are not going to be suicidal

about it. There is a taming effect of being in government. Does the

party faced a big improvement in political fortunes? Bearing in mind

that the issues of Europe are being raised now much more regularly by

Tory MPs. The British public have never bought the idea of single

issue parties. They might be singing with the tide of Euro-

scepticism. It does not always benefit them. It helps them at

European elections. Local and national are not the same break

through. I think the person now lack credibility. David Cameron

said they were a bunch of balloons and fruitcakes. They have a real

issue with that. Nigel Farage has been a more successful leader. Now,

UKIP are not the only political party, whose faithful are gathering.

The Greens assemble in Sheffield this weekend as a party of power

after their victory in last May's council elections in Brighton and

Hove. Adam Fleming has been back to the south coast to see how the

Green Revolution is progressing. Join me on a pedal-powered tour of

the first British city that is run by the Green Party. It does not

feel very different but the Greens They have saved this stretch of

cycle path from being axed. They have plans to put solar panels on

to the roots of schools and council houses. They have set up a

commission to give low-paid council workers a living wage of at least

�7.20 an hour. One policy has been dumped. Meat-free Mondays were

piloted in a canteen and they decided it was a load of rubbish.

Workers turned up first thing in the morning and found it was a meat

free mandate in the canteen. Management gave no indication that

was going to happen. There was no notice it was going to happen. It

did not go down too well. There could be more back-pedalling. The

party does not have a majority. It will have to compromise with Labour

and the Tories. As I discovered, the opposition leaders do not find

their Greens very appetising. Greens have said they want or

developers of new buildings to incorporate rooftop allotments.

There are very many people in Brighton and Hove that would like

to own at a rave, never mind an allotment. You are going to be a

crime that type of thing, wouldn't to be better to squeeze a couple

more units of housing out of a developer instead of asking them to

provide this type of gimmick? we saw quite early on was one

Cabinet member welcoming demonstrations and welcoming a camp

right on the main central gardens and saying this was the sort of

protest that they welcomed. This protest was about unemployment in

Spain. Brighton's business people are much more supportive of the new

administration. Some warned may have got their work cut out.

big challenges for them are to provide 6000 jobs just to stand

still. Our population is growing. It is a young population. I think

they will have to provide more affordable homes. They have their

own priorities which are really bold. Making this the greenest city

in the UK. The a six in the rankings so far. To go to the top

will be a challenge. This comes with a price tag. Next it council

tax is being put up by 3.5%. Joining us now is Green councillor

Jason Kit Kat. On the front of the website it says there is a new

party in town. You could end finishing that phrase by saying,

they're going to put up taxes up by 3.5% as they are doing in Brighton.

We are getting very harsh government imposed cuts. The

feedback we got was they understood that choice and they wanted to

protect frontline services. We can do our best to meet the challenge

and we will do that in an open and inclusive way. When people are

struggling in terms of meeting bills and spending, it will not

help them, or will it? It is a difficult choice. It is a below

inflation rate increase. We are a minority administration. We will

need to discuss this with all parties. The advice is do not put

up council taxes. The other a green agenda has been resisting all the

cuts going. How is that going? wanted to resist cuts in a legally

acceptable way. I have been to see local government ministers. I have

a meeting Scheduled with Eric Pickles later. We are saying that

Brighton and Hove is worse than the national average. We do not think

that is fair. Is it fair to have that slogan? I think it is. The

other parties do not seem willing to challenge the mainstream

perspective that where these cuts are necessary, we do not think they

are. One thing that was picked up, and there was little joke about it,

meat-free Mondays, was that the really good use of your time?

Exploring alternative opportunities in the canteens was part of our

manifesto but it is not something we seek to impose. It was done in a

small part of the council and it was not successful and we will

focus on other policies like introducing a living wage for

lower-paid council staff. We have positive things to spend our time

on. To go back to your original plea, trying to attract Liberal

Democrats. However sac going? The proof is in the pudding. It does

not seem to have happened. We have had a surge in membership. As you

know, our support is geographically not very smooth. We have hot spots

in certain areas was dog and London we have had a high profile. We are

getting defections. It will be a slow process in a first-past-the-

post world. Are you expecting had to be improved numbers? We hope so.

We believe that Brighton and Hove is the first green run council and

it is a sign of greater things to come. Time now to see what else has

been going on in our round-up of the political week. After a sum up

where nothing very much happened at all, MPs returned to Westminster

this week to see a man in a bow-tie saying that plan A is not going

entirely to plan. The leader of the opposition did not want to ask the

Prime Minister about it. If isn't it interesting that he does not

dare mention the economy? Did have something to do the memoirs of a

former Chancellor? Former News International employees were doing

their best to dish the dirt on James Murdoch. Conservative

backbenchers have returned with a backbone, giving David Cameron a

kicking over Europe. Will he listen to Conservative colleagues and take

that opportunity to hold a referendum on Europe? Tory MPs

wanted to know that he was showing Nick Clegg who was boss.

honourable lady is frustrated about... Maybe I should start all

over again. Sarah Sands, was that sensible question but did it sound

patronising? A little bit and chivalrous. Both he and George

Osborne have to watch that a bit. They can be smirking schoolboys.

She can be a difficult woman. It was a serious point she was making.

I would have thought better not. It was a mistake of tone. It got him

out of quite an awkward corner at the time. It was quite funny.

has been coming after him. She had a go at him for bottling it and

switching his position. She claimed that Evan Harris was holding the

Prime Minister and Deputy Prime Minister hostage. No longer the

Liberal Democrat MP he seems to have more power and influence as a

back bench Liberal Democrat. They are not quite as powerful, or are

they? They do seem to be bringing out, particularly some Conservative

backbenchers, using this, as they see it, they are not sticking to

the Government line, is it an opportunity to put pressure on?

see this in offices as well. The troublemakers are ones that get

more attention and more concessions. It is quite tempting. You used to

be beaten up metaphorically by the whips. Let's not forget, the start

of this parliament, has been a backbencher. That is Tom Watson. He

will get a hero's welcome in Liverpool later this month. It is

interesting to see, if we are seeing a revival of awkward

backbenchers and awkward Select committees, that can only be a good

thing. Has David Cameron got something to fear? If he handles it

well, you never know how much he is giving people rope. He has a good

sort of balance. He is very riskless. I would always back him

on that. He does not seem to be frightening off the backbenchers.

There are 80 in the Euro-sceptic group. Are we really going to go

full circle and find ourselves again the Tory Party torn over

Europe? Let see what happens at the party conferences. All that

excitement to look forward to. That is all for this week. Andrew will