Saturday 26 June 2010

Liberal Democrat MPs back Nick Clegg despite benefit freeze and VAT rise

Support for Nick Clegg is holding up among Lib Dem MPs at the end of the most difficult week for the coalition after the budget heralded a freeze in child benefit and a VAT increase from next year.  A Guardian survey of Lib Dem MPs found unease about some of the harsh measures, but also consensus that tough action needs to be taken to tackle the record fiscal deficit and agreement that Labour is in no position to offer lectures.


Simon Hughes, the deputy leader, highlighted concerns yesterday when he floated the possibility of tabling rebel amendments to the finance bill.  He also warned the Tories that they cannot unpick any element of the coalition agreement as Iain Duncan Smith, the work and pensions secretary, indicated that some pensioner benefits may have to be reviewed.

John Leech, the MP for Manchester Withington, said the coalition was having to stabilise the public finances and the Lib Dems could not secure a budget which completely reflected their thinking.  "I would have preferred to have seen taxes raised in other areas but as part of a coalition government we don't always get our way.  But we don't have a Lib Dem government, we have a Liberal-Conservative coalition.  The idea of raising personal [tax] allowances by £1,000 is progressive."

Annette Brooke, the MP for Mid Dorset and North Poole, reflected the thinking of many when she voiced concerns about the VAT rise to 20% and the freezing of child benefit which was offset by an extra £2bn for child tax credits. "I don't like the budget but I dislike the economic situation we find ourselves in even more. The Lib Dems have done their utmost to address the fairness issue.

Ian Swales, the newly elected MP for Redcar, was highly critical of the size of the deficit. His remarks will be significant in the party because he won the usually safe Labour seat amid local anger at the government's failure to support the local Corus plant, which has been mothballed.

John Thurso, MP for Caithness, Sutherland and Easter Ross, showed support for the coalition in Scotland where the Lib Dems will face pressure in next May's elections to the Scottish parliament. Labour is planning to blame the Lib Dems, who have nine MPs in Scotland including the treasury chief secretary Danny Alexander, for implementing cuts on behalf of the Tories, who are still unpopular north of the border.