Thursday, May 13, 2010

The No10 love-in: Laughing and joking at Downing St press call, best buddies Dave and Nick present the Liberal Conservatives

By James Chapman

Er, I was hoping you wouldn't bring that up: The moment a red-faced David Cameron was reminded he once described new best friend Nick Clegg as his 'favourite joke'


David Cameron and Nick Clegg are today holding their first ever Cabinet meeting as they try to put the high drama of the past week behind them to focus on rebuilding the economy.

Just seven days ago, millions were going to the polls to cast their votes but since then Britain's political map has been redrawn - putting Conservatives and Liberal Democrats round the same table.

Battling Britain's huge debts will dominate the first session of the new administration in Downing Street as it seek to flesh out plans already drawn up during negotiations for a power-sharing deal.

The coalition said yesterday that it is committed to 'significantly accelerated reduction' in the budget deficit with £6billion in cuts this year, but it now needs to decide where the axe will fall.

Economists believe a rise in VAT from the current 17.5 per cent to 20 per cent by the end of the year - a move that would add £11.5billion a year to Treasury coffers - is inevitable.


Down to business: David Cameron leaving his West London home this morning before his first Cabinet meeting


Time for work: Leader of the Commons Sir George Young, Nick Clegg and Baroness Warsi arriving today


Both parties refused to rule out tax rises during the election and their agreement shows capital gains tax will rise and Tory plans to curb the National Insurance hike have been watered down.

More junior roles in the administration will also be unveiled today, with yet more places for Liberal Democrats - which could anger senior Conservatives being left out in the cold.

Another 15 Lib Dems are expected to be appointed to the lower ranks, taking the total in Government to 20. This means more than a third of the party's 57 MPs will have positions.

Yesterday, Mr Cameron and Mr Clegg had stood side-by-side in the sun-dappled Downing Street garden for their first public appearance as the couple in charge of the first British coalition Government since the war.

Sharing jokes, exchanging meaningful glances and referring to each other chummily as Nick and David, they couldn't have looked happier.

This was Day One of what Prime Minister David Cameron now describes as 'the Liberal-Conservative Government’.


Hmmm, so that's what you said about me, is it? As Mr Clegg tries on his best hurt lover expression, a sheepish Mr Cameron comes clean, admitting: 'I did, I'm afraid.'


That's it, I'm off: As Mr Clegg pretends to storm out in a huff, the new Prime Minister finds himself begging for another chance, imploring his No 2 to: 'Come back!'


Mr Cameron last night completed appointing his Cabinet, with Lib Dem Vince Cable as Business Secretary, George Osborne Chancellor, William Hague Foreign Secretary and Theresa May Britain's second ever female Home Secretary.

Other key appointments included Kenneth Clarke as Lord Chancellor and Justice Secretary, former Tory leader Iain Duncan Smith as Work and Pensions Secretary, Liam Fox as Defence Secretary and Andrew Lansley as Health Secretary.

Despite unease on the Right of the Tory party, Mr Cameron's inner circle believe that it may turn out to be the luckiest break of his career that he fell just short of an overall majority last week.

Though his allies were initially bitterly disappointed at the result, it has allowed him to create a coalition and tie one half of his political opposition to his own fate.


Oh Dave, you are awful... but I like you! Won over by the Cameron charm, Mr Clegg inches his way back to their matching lecterns to hear the PM's explanation


I could listen to this all day! A grinning Mr Clegg basks in Mr Cameron's declaration that he will happily eat his words. Along with a big piece of humble pie for dessert


Laughing together is so important for a relationship: As Mr Cameron guffaws his way out of their awkward moment, Mr Clegg may need a little more practice


As well as being the clearest possible demonstration of 'new politics', the alliance means the Lib Dems will now share the inevitable backlash from voters over the most savage public spending cuts for a generation, necessary to pay back the unprecedented levels of debt left behind by Labour.

Mr Osborne, who at just 38 is Britain's youngest Chancellor since 1886, is understood to have insisted on a Lib Dem deputy - apparently so the two parties will both get the blame from the electorate.

Mr Cable is understood to have balked at the prospect, and was appointed Business Secretary instead, leaving his Lib Dem colleague David Laws to take the poisoned chalice of deciding the cuts as Chief Secretary to the Treasury.

The new coalition Government yesterday unveiled the outline of a shared five-year programme, which papered over the cracks of potential disagreement.

Mr Cameron promised 'very early legislation' to establish fixed-term Parliaments, effectively enshrining in law the Conservatives' five-year coalition deal with the Lib Dems.

He and Mr Clegg have agreed that the next election will be held on May 7, 2015. But last night senior figures in both parties privately expressed doubts over the practicality and legitimacy of the move to fixed-term Parliaments, which would require a vote of 55 per cent of MPs to overturn.

There was also alarm as it emerged that second homeowners, buy-to-let investors and people who own shares are likely to be the first victims of a big tax hike by the new Government.


Prime Minister David Cameron (middle left) chairs the first meeting of the National Security Council in the Cabinet Room at No10 yesterday


Deputy Prime Minister Nick Clegg (fourth right), Foreign Secretary William Hague (fifth right) and Chancellor George Osborne (sixth right) get to know each other in the Security Council meeting


The Conservatives are ready to bow to Lib Dem demands for a rise in capital gains tax that will hit millions of middle-class families, particularly those who have invested in property instead of a pension.

It also emerged that the Tory pledge to rein in Labour's rise in National Insurance will now apply only to employers, not employees.

Treasury sources insisted people would not lose out, since the money saved is being used to fund an increase in the income tax threshold.

An emergency Budget in July will announce an initial increase in the threshold, expected to be from around £6,475 to £7,475.


source: dailymail