Give workers freedom to choose retirement date, says Minister

Commenting, Ed Davey said: “With more and more people wanting to extend their working lives we should not stop them just because they have reached a particular age. We want to give individuals greater choice and are moving swiftly to end discrimination of this kind.

“Older workers bring with them a wealth of talent and experience as employees and entrepreneurs. They have a vital contribution to make to our economic recovery and long-term prosperity.”

ASBOs are a failed policy, says Brake

Commenting on today’s speech by the Home Secretary in which she said  it was ‘time to move beyond’ Anti Social Behaviour Orders (ASBOs), Co-Chair of the Liberal Democrat Parliamentary Committee for Home Affairs and Justice, Tom Brake said:

“The Home Secretary has listened to Liberal Democrat concerns. 

“With more than half of ASBOs breached in 2008, this was a policy more about posturing than effective policing.  Local communities know that other measures, such as Acceptable Behaviour Contracts can nip problems in the bud before they escalate. 

“Resorting to ASBOs was a sign of failure.”

Labour opposition to AV exposes staggering hypocrisy, says Hughes

Commenting on Labour's decision to oppose legislation for a referendum on the alternative vote, which was a commitment in their manifesto, Liberal Democrat Deputy Leader, Simon Hughes said:

“This is staggering hypocrisy from Labour.

“Labour's shadow cabinet decision is not about principle, it is about naked opportunism.

“With most of their leadership contenders claiming to back AV for a fairer voting system, it is astonishing they now wish to block the legislation to make that happen.

“Each and every Labour MP campaigned on a manifesto committing to a referendum. Now they have the opportunity to make this happen but have chosen to say no for opposition's sake.

“Labour can no longer claim to be the party of reform. It is now the party of vested interests and shameless self-interest.”

Evidence released shows Labour neglected Armed Forces, says Tim Farron

The documents show that Labour ministers were formally warned that the military needed an alternative to the Snatch Land Rover in Iraq and Afghanistan. In a reaction to the revelations, Tim Farron said:
 
“This is yet another damning sign that the Labour Government ignored advice from its top military officials on their equipment needs.

“As we long suspected, generals told ministers that they needed better equipment to protect their troops and to prevent more casualties. For years the Army had to make do with adding extra protection to their existing, unsuitable vehicles.

“This is unacceptable in any situation and led to unnecessary casualties. I look forward to working with my Coalition colleagues to put these kind of indefensible practices behind us by making sure our brave soldiers are properly equipped.”

To read the full document, please visit the Iraq Inquiry's website.

Coalition sets out ambitious climate change policies

Secretary of State for Energy and Climate Change, Chris Huhne today set out ambitious plans to tackle climate change and give the UK the secure, low carbon energy it needs.

In his first Annual Energy Statement to the House of Commons, Chris Huhne laid out "a clear strategy for creating the 21st century energy system that this country urgently needs for an affordable, secure, low-carbon future."

This included a series of measures to improve energy efficiency and boost renewables, protect vulnerable consumers, as well as pledging to push for ambitious action on climate change at home and abroad.

Commenting, Chris Huhne said:

“The coalition brings resolve and stability to energy and climate change policy.  Today’s Annual Energy Statement sets out 32 important actions, the beginnings of our efforts to introduce the transparency, certainty and long-termism needed by investors. 

“Our future energy system is too important to rely on crystal ball gazing.  The 2050 Calculator provides the most comprehensive, long term analysis ever undertaken by Government.  The decision to publish this material is a watershed in government’s honesty with the public about what’s needed in the long term.  It will guide the decisions we make during this Parliament about the energy system we want in 40 years’ time. 

“The challenge is ambitious but achievable.  We’re already on track to cut the UK’s emissions by 34% by 2020, and will do more if we can win the case for greater ambition across the whole EU.  But our line of sight needs to extend much further, through to the middle of the century.

“The era of cheap, abundant energy is over, we must find smart ways of making the energy we use go further, and value it for the costly resource it is, not taking it for granted.  And even as we reduce overall demand for energy, we may need to meet a near doubling in demand for electricity, as we shift industry, transport and heating onto the grid.

“There are big choices and big trade offs in how we do this.  The six pathways described today are only illustrative, but they highlight the scale and urgency of the task.

“Choosing the high carbon alternative would be high risk.  It would lock in exposure to volatile oil prices, declining global reserves and rapidly increasing global energy demand.  We’d risk having a dead end economy lagging behind those with the foresight to grab a share of growth in green industries.”

Co-Chair of the Liberal Democrat Parliamentary Committee for Energy and Climate Change, Andrew George added:

“Climate change is the greatest threat we face as a society and a planet. I am proud that Liberal Democrats in Government are taking this seriously and proposing radical steps to tackle it.

“The Coalition has today set out the most ambitious programme to create a secure, low carbon economy of any British Government in history.

“It is vital that as we tackle these issues we protect the most vulnerable consumers, which is why rolling out measures like home insulation and smart meters is so important.”

Coalition announces Pupil Premium to provide extra money for disadvantaged pupils.

The Coalition Government today announced a Pupil Premium to target extra money at schools taking disadvantaged pupils.

The proposed Pupil Premium would provide additional per pupil funding on top of the existing funding provided to schools. Schools will be free to spend the additional funding as they choose to raise the achievement of disadvantage pupils.

This was a key manifesto commitment and one that Nick Clegg made clear was one of his absolute priorities.

Liberal Democrats Children’s Minister Sarah Teather said:

“For too long social background has been a deciding factor in a child’s achievement and future prospects. In a fair society, it’s the Government’s responsibility to close the gulf in achievement, where the poorest children are almost three times less likely to leave school with five good GCSEs than their richer classmates.

“That’s why I’m delighted we are today announcing a new Pupil Premium, which will give extra funding to schools to help them tackle the inequalities that have been a part of our state system for far too long. Thousands of children will finally be getting the extra support they need to succeed.”

Co-Chair of the Liberal Democrat Parliamentary Committee for Education, Dan Rogerson added:

“Labour’s unequal education system left too many children falling behind.

“The Liberal Democrats made clear during the election campaign that a Pupil Premium to targeted at the most disadvantaged pupils was an absolute priority.

“This will allow schools to help all pupils in the way that they see fit, which could be reducing class sizes or providing more one-to-one tuition and catch-up classes.

“This is vital if we are to give all children the fair start in life that they deserve.”

Police commissioners must have tough checks and balances, says Brake

Commenting ahead of the Home Secretary’s statement on elected police commissioners, Co-Chair of the Liberal Democrat Parliamentary Committee for Home Affairs and Justice, Tom Brake said:

“These proposals should lead to both more accountable and more effective policing.
 
“But elected police commissioners will need to be subject to tough checks and balances. 

“These proposals should not be seen as a green light for the election of Judge Dredd characters more interested in populism than effective co-operative policing.”

Deputy Leader Simon Hughes on 10 weeks that have revitalised politics

Liberal Democrat Deputy Leader Simon Hughes has written of his pride at the huge achievements the Liberal Democrats have made in the 10 weeks since the formation of the Coalition Government.

Writing for the Guardian's Comment is Free website, Simon Hughes said the Lib Dems "have achieved greater political change than I could have ever imagined" and pointed to a host of the party's policies that are now going ahead.

These include the scrapping of ID cards and intrusive government databases, the ending of child detention for immigration purposes, the review of 28-day detention without charge, the referendum on voting reform, the right to sack MPs guilty of serious misconduct, a Pupil Premium to target money at poor children, a banking levy and the raising of the income tax threshold.

Simon Hughes said:

"In the last 10 weeks we have seen three refreshing changes in the politics of Britain.

"There has been change from a government which had lost direction and run out of steam, to a government clear about its direction and full of energy.

"There has been change from one party government to coalition government for the first time for 65 years – doing what many of the public often say they want and bringing political leaders to work together in the interests of the nation.

"And thirdly, we have seen Liberals enter government for the first time since the second world war. This is a huge opportunity for Liberals and Liberal Democrats.

"Our great party at last has the chance to make sure we build for the first time in decades a truly liberal Britain.

"As we tackle the three great challenges of the economic, environmental and political crises we inherited, we have all to play for. With confidence, but not with arrogance, we can help to deliver the fairer Britain our country desperately needs.

"We have only just begun to show what a real transformation for the better this can bring."

Click here for the full article.

10 weeks on the Lib Dems have had huge influence in Government

In just 10 weeks since the start of the Coalition Government, the Liberal Democrats have exerted a huge influence over its agenda.

Going into the election the Liberal Democrats made clear that they had four key priorities: fairer taxes; a fair start for children with extra funding for disadvantaged pupils; a comprehensive clean up of our politics, including a fairer voting system; and a green, sustainable economy.

Thanks to Lib Dem involvement, the Government will deliver on each of these.

There are also a large number of other Lib Dem policies and pledges that will now begin to make a real, positive difference to people’s lives because of our role in the Coalition Government.

These include everything from rolling back the surveillance state and giving people back their civil liberties, to prison and NHS reforms, fairer pensions, the ending of child detention and the scrapping of the third runway at Heathrow.

Delivering on our promises

Fairer taxes

The Liberal Democrats promised to make the tax system fairer by ensuring no one pays tax on the first £10,000 they earn and closing loopholes that allow the wealthy to pay a smaller proportion of their income in tax than people on low and middle incomes.

The Coalition Government has already taken a huge step towards achieving this by raising the income tax threshold by £1,000 in last month’s Budget, saving low and middle earners £200 a year, and reforming Capital Gains Tax. The income tax threshold will continue to be increased every year during this Parliament.

The Liberal Democrats also promised to restore the earnings link to pensions, which the Government will now do.

We also promised wide scale banking reform, including a banking levy to make sure that banks pay for the financial support they received from the taxpayer. The levy, which will raise £2.5bn, was announced in the Budget.

A fair start for children

The Liberal Democrats promised to introduce a Pupil Premium to target extra money at disadvantaged children. The Coalition Agreement makes clear that this will now happen.

We also promised greater freedoms for teachers over the curriculum, which will also be brought in as a key part of the Coalition’s education reforms.

Fair politics

The Liberal Democrats promised a comprehensive clean up of the rotten political system. This is now a key part of the Coalition’s agenda for which Nick Clegg has responsibility.

The plans include:

·    A referendum on the Alternative Vote to take place in May 2011
·    The right to sack MPs guilty of serious misconduct
·    Fixed term parliaments of five years
·    Reform of party funding
·    Moving towards an elected House of Lords, elected by proportional representation
·    A statutory register of lobbyists
·    A radical devolution of power and greater financial autonomy to local government and community groups
 
A green, sustainable economy

The Liberal Democrats promised a raft of policies to help the economy recover and make sure that we build a new green and sustainable economy fit for the 21st century.

A huge number of these policies will now become a reality, including:

·    Tough action to tackle the deficit
·    The creation of a green investment bank
·    Reform of the banking system to make sure that banks lend to viable British businesses
·    An independent commission on separating investment and retail banking
·    Measures to improve energy efficiency in homes and businesses
·    Support for low carbon energy production and an increase the target for energy from renewable sources
·    Enabling the creation of a national high speed rail network
·    The creation of a smart electricity grid and the roll-out of smart meters
·    The establishment of an emissions performance standard that will prevent coal-fired power stations being built unless they are equipped with Carbon Capture and Storage Technology
·    Replacing Air Passenger Duty with a per-plane duty
·    The provision of a floor price for carbon, as well as working to persuade the EU to move towards full auctioning of ETS permits

Other Lib Dem policies that will now become a reality

The Liberal Democrats have long campaigned for the restoration of freedoms and civil liberties eroded under Labour and the rolling back of the surveillance state. A huge number of Lib Dem policies will now happen, including:

·    The abolition of Identity Cards, the National Identity register, the next generation of biometric passports and the ContactPoint Database
·    The repeal of unnecessary laws
·    Further regulation of CCTV
·    The outlawing of finger-printing of children at school without permission
·    Extending the Freedom of Information Act
·    Ending child detention for immigration purposes
·    Removal of innocent people from the DNA database

There are also a host of other Lib Dem policies that will now happen under the Coalition Government. These include:

·    Fair compensation for Equitable Life victims
·    The modernisation of the Royal Mail
·    Flexible working and promotion of equal pay
·    Reform of the NHS to strengthen the voices of patients and the role of doctors
·    A commission on long-term reform of social care
·    Cutting Quangos and government bureaucracy
·    Implementing the recommendations of the Calman Commission on Scottish devolution
·    A referendum on further powers for the Welsh Assembly

Yarl’s Wood closure a sign of Lib Dem influence in Government, says Brake

Commenting on Deputy Prime Minister and Liberal Democrat Leader Nick Clegg’s statement that the child detention facility at Yarl’s Wood Immigration Removal Centre, where children are detained awaiting deportation, will be closed, Co-Chair of the Liberal Democrat Parliamentary Committee for Home Affairs and Justice, Tom Brake said:

“The ending of child detention at Yarl’s Wood is a victory for British decency.

“Locking up innocent children for months on end can lead to serious physical and psychological harm. It is a disgrace the Labour Government allowed this to take place in 21st century Britain.

“The Liberal Democrats have had a huge influence in Government and this announcement is a sign of that. I am proud to be in a party which will end the cruelty of child detention.”

Nick Clegg sets out the aims of a liberal Parliament

In his speech at the liberal think-tank Demos, Deputy Prime Minister and Liberal Democrat Leader Nick Clegg set out his aims for a liberal Parliament.

Full text below:

Last year, I wrote a pamphlet for Demos, arguing that the liberal moment had come. I argued that demands for a new approach to politics, for a radical redistribution of power, would soon have to be met by a liberal agenda.

That moment arrived on May 7.

Our challenge now is to seize this moment, the liberal moment, and to ensure that we help to deliver a liberal parliament - a great reforming parliament that carries out a fundamental redistribution of power to the people.

Liberal ideas have of course influenced politicians in other parties since the Liberal Party was last in office. Think of Roy Jenkins, as Labour Home Secretary, one of the great Liberal reformers. And today, James Purnell, since his escape from Westminster, has been pursuing his idea of ‘power egalitarianism’, which overlaps strongly with liberal thinking. The Prime Minister has described himself as a liberal Conservative.

Now that the Liberal Democrats are in government, liberal ideas are being deployed directly. What you are seeing is liberalism in action. And I can tell you that as Deputy Prime Minister, my liberal instincts are stronger than ever. Our goal is clear.

By the time of the next election, on 7 May 2015, Britain will be a more liberal nation.

This goal will be delivered in partnership with the Conservative Party. Our two parties are distinct and independent, but we are united in our zeal for reform.

David Cameron and I just this week wrote an article together arguing in favour of a radical redistribution of power. Sometimes the differences between us are on matters of substance; but very often they are merely questions of language. David Cameron’s eloquent description of what he calls the Big Society is what I would call the Liberal Society.

Today I want to show how we are setting about working towards the goal of a more liberal Britain, against an extremely difficult economic backdrop, in alliance with our Conservative coalition partners. I will address four themes:

Liberalism as a philosophy for government.
Liberal Economics: the liberal thinking animating our economic policy
Liberal State: the role of the state in a liberal society
Liberal Politics: the liberalisation of politics and our political system

Liberalism

In my Demos pamphlet, I wrote that ‘the job of a liberal government is to disperse power’. Liberalism is based on the simple, profound belief that power should rest in the hands of people. Power is too often hoarded by elites, beyond the reach of citizens. When liberals see power hoarded in centralised political institutions, corporate monopolies, or unaccountable bureaucracies, we instinctively reach for the sledgehammer.

I recognise that recent political history is littered with examples of politicians who were strong decentralisers in opposition but centralisers once they were settled in their Whitehall departments. It is not enough to declare a decentralising agenda: we have to deliver on it.

Now that we are in government, I hope you will see that we meant it, and that this is an aspiration we share with our Conservative coalition partners. This Government is deeply committed to the decentralisation of power - in politics, economics and in public services. To take just a few examples:

More powers for Local Authorities
Greater autonomy in our schools
A radical dispersal of power in the NHS
Locally-based partnerships to promote enterprise

This desire to put power in the hands of people is based on an optimistic assessment of human nature, and human capability. It is an article of faith for liberals that people with power and capability will make better choices about how to lead their lives than government, or other institutions.

A free society is a better society, so long as people have the resources and opportunities to make the best of their lives.

Indeed, I believe illiberal politics is usually based on pessimism. When politicians or political parties fall prey to the idea that people are not capable of creating good lives and good communities for themselves, they resort to central government fiat and regulation.

I think the last government sometimes fell into this trap. One of the problems we face today is that the people do not trust politicians; but it is perhaps an even greater problem that politicians very often do not trust the people.

I said a moment ago that individual liberty requires not only freedom from interference but also resources. Independence requires knowledge, health, money, skills – these are described by the Nobel prize winner Amartya Sen as capabilities.

These capabilities do not emerge out of thin air. So liberal societies, populated by powerful citizens, must attend to the production and distribution not only of cash, but more importantly to the production and distribution of capabilities.

As Sen puts it:

“Responsible adults must be in charge of their own well-being; it is for them to decide how to use their capabilities. But the capabilities that a person does actually have depends on the nature of social arrangements, which can be crucial for individual freedoms. And there the state and the society cannot escape responsibility.”

I agree.  This is a vital element of the liberal approach, as opposed to libertarians, or neo-liberals if you prefer. Libertarians believe that simply clearing away obstacles will set people free. Liberals understand that for a person to have power over their life, they need capabilities too.

There is one further point to make on liberalism as a governing philosophy, which relates to responsibility. The Government’s programme will be based on the core values of freedom, fairness and responsibility. These values strongly reinforce each other.

It should be clear, for example, that responsibility goes hand in hand with freedom. Liberal societies only function when people take responsibility for themselves, and for others. An irresponsible society necessarily becomes either an anarchic or authoritarian one.

Jo Grimond, one of my predecessors, wrote that: ‘a corollary of freedom, just as important as order, is responsibility. Freedom entails the acceptance of responsibility. Responsibility is meaningless without freedom’.

This, then, is the liberal political vision: a society made up of powerful, responsible citizens.

Liberal Economics

This vision animates the legislative agenda of the government in a wide range of areas, from civil liberties and criminal justice, to the environment and public service reform.

But I want to look first at the economy, and in particular the colossal challenge of repairing the public finances. We are facing the biggest budget deficit since the Second World War. Britain will in 2010, carry the biggest deficit in Europe. For the financial year 2010/11, the structural deficit will be around 8 per cent of GDP. If we do not take action to tackle the deficit, by the end of this parliament we will be paying £70bn just to service our debts.

Everybody accepts that decisive action was required. The Labour government had set out plans for spending reductions representing two-thirds of the cuts proposed by the Coalition government – without specifying what those cuts would be.

David Cameron and I, along with our colleagues in both parties, decided that Labour’s plans did not go far enough. In our view, there was a clear and present danger to the economic sovereignty of the nation. It was called an emergency budget for a reason. It was a budget aimed squarely at retaining democratic control over the public finances. As a nation, we faced a real risk of losing control of the management of our economy to unaccountable financial markets.

I understand that these economic judgements are contested ones. Reasonable people can disagree about our assessment, our judgement, of the relative risks involved here.

But let me be crystal clear about where the Liberal Democrats stand. This was a Coalition budget, not a Conservative budget. The Liberal Democrats stand full-square behind the Budget judgement.

There would be, to my mind, absolutely nothing liberal about handing over £70 billion to the bond markets to service the debt we inherited from the previous government. That is money that should go on public services – on schools and on hospitals – not bond dealers’ bonuses.

The action we have taken on fiscal policy is also intended to keep down the cost of borrowing. The deficit outlook we inherited as a government was likely to force up interest rates, which would deal a devastating blow to families and businesses. Affordable borrowing – for the government, but also for businesses and families – is vital to the economic recovery.

There is some concern that the budget measures risk creating a ‘double dip’ recession. The opposite is the case. If we had not taken action in the budget, and interest rates had risen, that would have been the quickest route to an early double dip recession.

We are also committed as a Government to unlocking bank lending. Capital is the lifeblood of the economy, as we were reminded so brutally two years ago. We will be taking the necessary measures to get capital flowing again to British businesses. 

Of course, getting there will be a painful process. Nobody could possibly have wanted to enter government to find a huge budget deficit waiting. The temptation, especially for politicians, is to delay the pain, to put off decisions that will be unpopular. That is a temptation to which the previous government succumbed, and the mess we are now clearing up is their legacy. But by acting now, we are very much more likely to see strong economic growth in the medium-term. It is pain for gain.

It is absurd to claim that there is a chasm between the Government and the Opposition on the budget measures. We learn, courtesy of Lord Mandelson’s memoirs – produced, it has to be said, with a speed and efficiency sadly lacking by Labour in government – of Alistair Darling’s plans for last November’s Pre Budget Report.

Mr Darling wanted to cut income tax at the bottom and reduce corporation tax - while raising VAT over successive years to 19 per cent. He also opposed a rise in National Insurance on the grounds that it would be a ‘tax on jobs’. If this sounds familiar, it might be because Mr Darling’s preferred options are uncannily similar to those in last month’s emergency budget.

It is a shame Mr Darling could not persuade Gordon Brown. It is also shameful for Labour to attack the Coalition for measures their own chancellor wished to implement.

Let me now set out some of the thinking behind some of the tax changes, which are a good example of liberalism in action. The Government increased the income tax threshold by £1,000 to £7,475 and raised Capital Gains Tax by a full ten percentage points to 28 per cent. As you know, the coalition government has pledged to prioritise cuts to taxes on income, particularly low income, rather than cuts in inheritance tax.

In the budget we also announced that we would examine the case for switching aviation tax from per-passenger to a per-plane duty, as well as a review of the climate change levy to give more certainty and support to the price of carbon.

These reforms and reviews are in line with long-standing liberal views about taxation, and two preferences in particular:

for taxing ‘unearned’ income rather than ‘earned’ income; and
for taxing pollution rather than people

I don’t want to overstate the case on the basis on one emergency budget. But I do think it is reasonable to claim that the contours of a distinctly liberal approach to tax – of a fiscal liberalism – are now visible.

Liberal State
 
There have been some fears expressed that the Budget represents an ideological exercise, designed to shrink the state. But the Coalition deficit reduction plans are driven by economic necessity, not by ideology.

Too often, political philosophy is boiled down into these kind of binary questions: are you pro-state or anti-state? Do you want a small state or big state? The answer to these questions is then used a proxy for a political position.

To be on the left, in this analysis, is to be in favour of a big state, high public spending and high taxation to pay the bills. To be on the right is to believe the opposite to all of these.

For liberals, the questions are essentially meaningless. A liberal state cannot be equated to a particular level of government spending as a proportion of GDP. It is perfectly possible to have a state that spends small amounts on a highly authoritarian state apparatus. It is perfectly possible to have a state that spends large amounts in a manner that is liberating.

Take education. A centralized, dictat-driven school system with no diversity, no choice, and no flexibility would be illiberal no matter how much it cost. A system that allows for choice, freedom, and diversity is a liberal one – with the price tag a separate question.

Michael Gove’s plans to allow for greater autonomy in schools, along with more localized diversity of provision and more choice for parents is a quintessentially liberal approach. This is an area where the state needs to back off.

But the education system is also failing to promote social mobility. Too often, poor children end up with a poor education, compared to their more affluent peers. Here is an area where the state does need to intervene more aggressively, by providing a targeted pupil premium, giving more power to the most disadvantaged children in the system.

So: less state intervention in the running of schools, more state intervention in promoting social mobility. Is the state getting smaller or bigger in this scenario? To my mind, it’s a ludicrous way of framing the question. The liberal test for any form of state intervention is whether it liberates and empowers people.

So it makes no sense whatsoever to use a phrase like ‘small state liberal’. Someone with a fixed view about the size of the state is not a liberal. It is not the size of the state - it is what the state does that matters. Does it hoard and exercise its own power, or disperse power and build capability in our citizens?

Similarly, a liberal cannot hold a simple ‘for’ or ‘against’ view of regulation. It is clear that in many areas, we have not had enough regulation in the last decade – the banks and the housing market being the most obvious examples. On the other hand, we have seen far too much regulation for small businesses, and too much micro-management in the day-to-day lives of ordinary people. A liberal cannot say that a state is too big - but we can certainly say the state has become too big for its boots. Labour over-regulated in some areas, but under-regulated in others.

Liberal Politics

Last – but most definitely not least – I want to turn my attention to the urgent question of political reform. It is clear that a rotten political system has lost the confidence of the public, and rightly so. Power is hoarded in Downing Street, Westminster and Whitehall; the First Past the Post voting system is past its sell-by date; and the House of Lords is running behind the rest of society’s progress by approximately one hundred years.

As I have said, the driving liberal mission is to place more power in the hands of people. In politics this means:

More power to select, and deselect, their representatives
More power to choose local priorities, rather than being dictated to from the centre
More power for people to express their political preferences

In all of these areas, this parliament will see great progress. The referendum on the voting system next May will give people the chance to choose a new voting system. The proposal to equalize the size of parliamentary constituencies will give each vote a more equal weight.

The decentralization drive will put more power in the hands of local authorities, but also in the hands of community groups, neighbourhood associations and local public services.

House of Lords reform has been on the liberal agenda for well over a century. I am not going to hide my impatience on this issue. In some ways, I feel like we are back to help finish the job we as liberals started in 1911. We need a House of Lords that is fit for purpose, and fit for the 21st century. I am acutely aware that this is an area of reform that has defeated countless previous administrations over the last few decades. But those administrations did not have Liberal Democrats in them.

I am delighted, however, that today there is cross-party support for many of the measures I have mentioned. I look forward to working with people from all parties on the urgent task of political reform.

We should not imagine, however, that political reform is only concerned with the systems and structures of politics – urgent though that reform is. We also need to reform the conduct of political life.

For too long, British politics has been stuck in a stale, artificial duopoly. Differences of opinion within parties have been denied or hidden, disagreements between parties have been artificially inflated by what Grimond called ‘the distorting pressures of parliament’.

Politicians have seen little contradiction between lecturing the nation on the need for civility and responsibility while operating in a House of Commons that has too often resembled a cross between a bear-pit and a football terrace.

The fact of emergence of coalition government is changing the way politics is conducted, in a hugely positive direction. Of course it is challenging for all of us in government. It is challenging for the civil service. And it poses a challenge to the opposition parties too. But I am hugely excited not only by the measures being undertaken by the coalition government, but the way in which we are undertaking them.

The biggest change is in the way political decisions are made. Open discussion is encouraged, not thwarted. We want robust dialogue and dissent in politics: indeed, from a liberal perspective, argument is a critical tool of progress. But we do not need poisonous tribalism.

Sometimes we can agree to disagree. A compromise might sometimes be the best way forward, rather than representing a defeat for politician X and a victory for politician Y. Sometimes – and here I am going to court great controversy – we might even change our minds.

It is too easy for politicians to fall into the trap of knee-jerk opposition, to spend all their time in a combat stance, to stop listening to those with whom they disagree. But the time for this kind of politics has passed. There is a thirst for a new and different way of doing politics, and I think we are responding. Politics is changing before our eyes, and I am genuinely afraid that the Labour party is blind to the transformation.

This parliament will be a challenging one. But it is also set to be a truly reforming parliament – a liberal parliament. By 2015:

power will have been radically redistributed towards people
our civil liberties will have been restored
our broken political system will be repaired
our economy will be balanced, green and growing

If the coalition Government succeeds, by 2015 Britain will be a more liberal nation, a nation of stronger citizens living in a fairer society. I am under no illusions about the scale of this ambition. But I am also in no doubt that we can achieve it.

Vince Cable makes speech on higher education funding

Vince Cable today gave his first speech on higher education since becoming Business Secretary, in which he suggested that a graduate tax might be a fairer system for funding universities than tuition fees.

An independent review, led by Lord Browne, is currently looking at how universities will be funded in the future and will report in the Autumn. Once it is published, the Coalition Government will judge its proposals against the need to: increase social mobility; take into account the impact on student debt; ensure a properly funded university sector; improve the quality of teaching; advance scholarship; and encourage a higher proportion of students from disadvantaged backgrounds.

Speaking at London South Bank University this morning, Vince Cable said:

“My generation had the remarkable privilege of being educated free.  There was an implicit assumption that we paid for the graduate premiums in our income through higher income tax. 

“But there was also a sense of unfairness articulated by Alan Johnson when he was Minister: why should a young postman contribute through his tax to pay for an already privileged group to avoid earning a living for three years and then emerge with higher earnings potential?

“In any event, a model designed for 10% of the population could not be applied to 40%: hence the move to a graduate contribution. 

“We currently have what is misleadingly called a system of ‘tuition fees’.  Many people believe, wrongly that when students arrive at university they or their parents are required to get out their chequebooks, or wallets, and pay more than £3000 for a year’s tuition. 

“The idea that students are repelled from higher education by fees owes much to this erroneous belief.
 
“In reality of course most students meet these costs by taking a student loan, payable direct from income after graduation when earning a reasonable salary.  In this sense, we already have a form of graduate tax. The problem is that it is a fixed sum – a poll tax – regardless of the income of the graduate. It surely can’t be right that a teacher or care worker or research scientist is expected to pay the same graduate contribution as a top commercial lawyer or surgeon or City analyst whose graduate premium is so much bigger. 

“The current system has the further disadvantage that it reinforces the idea that students carry an additional fixed burden of debt into their working lives.  Yet, most of us don’t think of our future tax obligations as ‘debt’.

“I am interested in looking at the feasibility of changing the system of financing student tuition so that the repayment mechanism is variable graduate contributions tied to earnings. I have spoken to Lord Browne about this and he has assured me that he is looking at this issue as part of his review.

“By looking at the periods of time over which contributions are made, the level of thresholds that trigger the contribution, the rate at which contributions are paid, and the other key variables, it may be possible to levy graduate contributions so that low graduate earners pay no more (or less) and high earners pay more. 

...

“I do not want to see a complicated new system or one that creates uncertainty over the future funding of universities. Or one which deters anyone from university with the ambition to go, irrespective of background. There is a long way still to go in this debate and no decisions have yet been taken. But I would urge universities to help us think creatively about fairer mechanisms than the current one, recognising that for students and their families a central issue is securing an equitable system of graduate contributions.”

Lord Ashdown to lead review of emergency aid

Lord Ashdown will lead a taskforce of humanitarian experts from inside and outside Government to review all aspects of how the UK Government responds to disasters and work with the international community to speed up the delivery of aid.

The review will also look at how the UK can best work with international bodies and UN agencies in emergency situations and to ensure that the global response to disasters improves.

Commenting, Lord Ashdown said:

“The emergency response taskforce will ask searching questions of the UK and international response to ensure we are fully prepared and equipped, as well as providing value for money.

“As the number of natural disasters is set to increase dramatically, the emergency response taskforce will make sure the Government is well prepared for future catastrophes.”

Terror law review a big step towards making Britain fairer says Brake

Commenting on the Home Secretary’s announcement of a review of counter-terrorism laws, Co-Chair of the Liberal Democrat Parliamentary Committee for Home Affairs, Tom Brake said:

“Under the Labour Government, hard won rights and liberties that have been a fundamental part of British life for centuries were eroded or simply cast aside.

“The Liberal Democrats have campaigned for years to give citizens back their freedoms, including scrapping control orders and reducing detention without charge. This review will be a big step towards realising these aims and making Britain a fairer country.

“The Government’s first duty is to protect its citizens. I have no doubt this review will ensure public safety is balanced with the rights of the British people.”

Court ruling secures freedom from persecution for gay asylum seekers

Commenting on today’s Supreme Court ruling that it is not acceptable to refuse asylum to an individual on the basis that they can hide their sexuality to avoid persecution,  Simon Hughes, said:

“I am delighted this ruling recognises the rights of gay asylum seekers, ensuring their freedom from persecution around the world.

“This plight is one that my Liberal Democrat colleagues and I have campaigned on for years. It is an issue that the Coalition Government is committed to addressing as we seek to restore Britain’s reputation around the world as a leader in the protection of human rights. I believe that today’s ruling will go some way to restoring that reputation.

“Other countries around the world must now follow the UK’s lead and recognise freedom of expression and freedom of sexuality for all people.”

Torture inquiry to restore Britain’s reputation says Brake

Commenting on the Government’s announcement that there will be an inquiry into the treatment of terror suspects, Tom Brake MP said:

“At long last we can hope to see an end to Labour’s shameful legacy on human rights.

“This Inquiry will be the coalition Government’s opportunity to get to the bottom of what are very serious allegations levelled at our security services.

“From Iraq to accusations of Government complicity in torture, Labour has left Britain’s international reputation in tatters.

“Hopefully, the implementation of this key Liberal Democrat manifesto pledge, with access to all relevant material and people, will start the process of restoring Britain’s standing in the world.”

Clegg announces welcome political reforms says Simon Hughes

Commenting on today’s announcement of a referendum on AV, Simon Hughes said:

“After 13 years of Labour inaction, Nick Clegg today announced a welcome and major series of progressive political reforms.

“The coalition Government has decided in one move to give all voters a much greater say in who is chosen to represent them and to give Parliament a much greater say in the business of Government.

“With an easier and more up to date electoral register in the future, the whole of Britain will have a much more representative democracy.  We will also end the scandal where votes have been of unequal value and in many places of no value at all – and where many people have scandalously not even been allowed to vote.”

Nick Clegg's statement on Political and Constitutional Reform

With permission, Mr Speaker, I would like to make a statement on the Government’s proposals for parliamentary reform.

Mr Speaker, every member of this House was elected knowing that this parliament must be unlike any other; that we have a unique duty to restore the trust in our political system that has been tested to its limits in recent times.  

And, if anything was clear at the General Election, it was that more and more people realised that our political system is broken and needs to be fixed. They want us to clean up politics. They want to be able to hold us properly to account. 

So the government has set out an ambitious programme for political renewal, transferring power away from the executive to empower parliament, and away from parliament to empower people.

That programme includes:

Introducing a power of recall for MPs guilty of serious wrongdoing.

Tackling the influence of big money as we look again at party funding.

Taking forward long overdue reform of the other place.

Implementing the Wright Committee recommendations, and taking steps to give people more power to shape parliamentary business.

Speeding up the implementation of individual voter registration.

And increasing transparency in lobbying, including through a statutory register.

Today I am announcing the details of a number of major elements of the Government’s proposals for political reform. 

First, we are introducing legislation to fix parliamentary terms. The date of the next General Election will be 7 May 2015.

This is a hugely significant constitutional innovation. It is simply not right that General Elections can be called according to a Prime Minister’s whims. So, this Prime Minister will be the first Prime Minister to give up that right.

I know that when the coalition agreement was published there was some concern at these proposals. We have listened carefully to those, and I can announce today how we will proceed, in a Bill that will be introduced before the summer recess:

First – traditional powers of no confidence will be put into law, and a vote of no confidence will still require only a simple majority. 

Second – if, after a vote of no confidence, a Government cannot be formed for 14 days, Parliament will be dissolved and a General Election will be held.

Let me be clear: these steps will strengthen parliament’s power over the executive.

Third – there will be an additional power for parliament to vote for an early and immediate dissolution. We have decided that a majority of two thirds will be needed to carry the vote, as opposed to the 55% first suggested, as is the case in the Scottish Parliament. These changes will make it impossible for any government to force a dissolution for its own purposes.

These proposals should make it absolutely clear to the House that votes of no confidence and votes for early dissolution are entirely separate. And that we are putting in place safeguards against a lame duck government being left in limbo if the House passes a vote of no confidence but does not vote for early dissolution.

I am also announcing today the details of the Government’s proposals to introduce a Bill before the summer to provide for a referendum on the Alternative Vote system and for a review of constituency boundaries in order to create fewer and more equally sized constituencies, cutting the cost of politics and reducing the number of MPs from the 650 we have today to a House of 600 MPs.

Together these proposals help correct the deep unfairness in the way we hold elections in this country. Under the current set up, votes count more in some parts of the country than others, and millions feel that their votes don’t count at all. Elections are won and lost in a small minority of seats. We have a fractured democracy: where some people’s votes count and other people’s votes don’t count; where some people are listened to, and others are ignored.

By equalising the size of constituencies we ensure that people’s votes carry the same weight, no matter where they live. Only months ago the electorate of Islington North stood at 66,472, while ten miles away, in East Ham, the figure was 87,809. In effect that means a person voting in East Ham has a vote that is worth much less than a vote in Islington North. That cannot be right. These imbalances are found right across the United Kingdom.

Reducing the number of MPs allows us to bring our oversized House of Commons into line with legislatures across the world. The House of Commons is the largest directly elected chamber in the European Union, and it’s half as big again as the US House of Representatives.

It was never intended that the overall size of the House should keep rising, yet that is precisely the effect of the current legislation – the Parliamentary Constituencies Act 1986. Capping the number of MPs corrects that, and it saves money too. 50 fewer MPs saves £12m a year on pay, pensions and allowances alone.

On the referendum, by giving people a choice over their electoral system, we give that system a new legitimacy. Surely when dissatisfaction with politics is so great, one of our first acts must be to give people their own say over something as fundamental as how they elect their MPs?    

The question will be simple – asking people whether they want to adopt the Alternative Vote, yes or no. And the precise wording will be tested by the Electoral Commission.

As for the date of the referendum, in making that decision we have been driven by three key considerations:
That all parties fought the General Election on an absolute pledge to move fast to fix our political system, so we must get on and do that without delay.
That it is important to avoid asking people to keep traipsing to the ballot box.
And, finally, that in these straitened times we must keep costs as low as possible.

That is why the Prime Minister and I have decided that the date for the referendum in the Bill will be 5 May 2011, the same day as the elections to the devolved legislatures in Scotland, Wales and Northern Ireland and local elections in England. That will save an estimated £17m. I know that some Honourable Members have concerns over that date, but I believe that people will be able to distinguish between the different issues on which they will be asked to vote on on the same day. 

Our Bill will make explicit provision for the Boundary Commissions to report on more equally sized constituencies for the process to be completed by the end of 2013, allowing enough time for candidates to be selected ahead of the 2015 election, and we will ensure the Boundary Commissions have what they need to do that. That means that, in the event of a vote in favour of AV, the 2015 General Election will be held on the new system, and according to new boundaries. Let me be clear: these are complementary changes - the outcome of the referendum is put in place as the new boundaries are put in place.

The Bill will require the Boundary Commissions to set new constituencies within 5% of a target quota of registered electors, with just two exceptions: Orkney and Shetland, and the Western Isles, uniquely placed given their locations. We have listened, also, to those who have very large constituencies – so the Bill will provide that no constituency will be larger than the size of the largest one now. And we intend that, in the future, boundary reviews will be more frequent to ensure that constituencies continue to meet the requirements we will set out in our Bill.

I understand that this announcement will raise questions on all sides of this House – these are profound changes. But let me just say this: yes there are technical issues that will need to be scrutinized and approached with care as these Bills pass through Parliament. But ensuring that elections are as fair and democratic as possible is a matter of principle above all else. These are big, fundamental reforms we are proposing, but we are all duty bound to respond to public demand for political reform. That is how we restore people’s faith in their politics once again. I commend this statement to the House.

For more information on the Liberal Democrat position on AV, please visit: www.fairervotes.org.uk.

Norman Baker announces £15m Government funding for green buses

The funding is intended to put low carbon buses within the reach of as many operators and local authorities as possible throughout England.

Bus operators and councils can bid for the money which they can then use towards the additional up front cost of buying low carbon buses.

Transport Minister Norman Baker said:

"We want to support new transport technologies to help make our transport system greener and more sustainable.

"This investment will stimulate the market for low carbon buses by reducing some of the initial costs for operators and councils. It will deliver significant benefits, in particular reducing the impact of road transport on climate change and improving air quality."

Low carbon buses use at least 30 per cent less fuel and emit nearly a third less carbon than a conventional bus, yet they currently make up just 0.2% of buses on the road.

The funding will support investment in more low carbon buses as well as addressing the information gap about their performance by requiring the winning bidders to share information with others in the industry.

Nick Clegg's message ahead of London Pride 2010

Pride London is a special event with a proud tradition of 40 years - fighting, working and protesting for change, for recognition, for equality.

The Liberal Democrats are passionate supporters of equality for the LGBT community and strong supporters of Pride London. That's why we have been clear on opposing Section 28, supporting equal adoption rights, promoting civil partnerships, pushing for gay marriage, working against homophobic bullying and banning discrimination in the workplace.

I'm especially proud that the in the new Government it is Liberal Democrat MP Lynne Featherstone who is the new Minister for Equalities. In Lynne you have an effective champion who will work for equality for all.

Each year Pride seems to get even better and so it's genuinely a happy ruby anniversary on Pride's 40th Year.