It’s easy to see why George Osborne included the changes in disability benefits
in his budget last week. By adding it to a ‘money bill’, he removed the
possibility of the House of Lords, should it have got that far, of repeating its
treatment of proposed tax credit cuts. It’s also easy to see why, following the
resignation of Iain Duncan Smith, why they have been abandoned. This and the
debate over Brexit probably now means that George will not succeed David in
Number 10…for a significant number of MPs and an even greater number of
Conservative Party members and for the broader public, George has now become a
toxic brand. With his reputation as a master political tactician—something I
must admit I’ve always believed has been over-stated--now in ruins, he appears
to have forgotten one of the most important rules in politics…you can push
colleagues so far but eventually they’ll say right I’ve had enough. For IDS,
the change to Personal Independence Payments was that tipping point...the ‘quiet
man’ bites back.
At the heart of the resignation is a growing tension within the
Conservative Party between those who espouse a liberal Conservative position
grounded in market enterprise—what might be called the ‘powerhouse
Conservatives’—and compassionate One Nation Conservatives, many of whom were
elected in 2010 or 2015, for whom a fair society is at the heart of their
thinking. You might say that George represents the first while David ‘hug a
hoodie’ Cameron is more inclined towards the latter. You could also argue that
the reason why the Conservatives have done so well since 2010 is because of the
creative tension between the two, unlike the tendentious Brown-Blair
relationship. Cameron had urged the Chancellor to avoid any major controversy
in the Budget so as to avoid fuelling discontent among Tory MPs ahead of the EU
referendum. George listened over changing when pensions were taxed but then
went for disability benefits presumably without recognising that it was equally
controversial. And it could all have been avoided. I don’t see why there
couldn’t have been an uncontroversial mini-budget to keep thinks ticking over
until November or until after the referendum. Could this be a further example
of political hubris…a belief in their invincibility? Well, yes it is. If you
see a potential obstacle in front of you, you don’t march straight into it in
the misguided belief that it will simply evaporate. Once the referendum is over
George needs to be moved…Foreign Office I think…so that a new pair of eyes can
look at the treasury brief if only because he’s been in the job for six years
and, as he’s said on several occasions, there’s no Plan B.
Do we spend too much on welfare and should this be reduced?
Across the political divide there is general agreement that welfare is
disproportionately high compared to other areas of government spending and that
reductions can be made. The question is how should this be done and IDS’s
resignation has again highlighted the view that the government’s approach is
often deeply unfair as it juxtaposes cuts for the majority with tax cuts for the
wealthy and that, in IDS’s words, the government is in ‘danger of drifting in a
direction that divides society rather than unites it, and that, I think, is
unfair’'.’ IDS also criticised the ‘arbitrary’ decision to lower the welfare
cap after the general election and expressed his ‘deep concern’ at a ‘very
narrow attack on working-age benefits’ while also protecting pensioner
benefits.