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Extracts of Nick Clegg's Speech on Governing Until 2015

Wed, 22 May 2013 15:00:00 GMT

One minute, a Coalition Government publishing its third Queen’s Speech: fundamentally reforming pensions; tackling longstanding problems with social care; getting to grips with immigration. Big, bold measures that will leave a lasting imprint on millions of Britons’ lives.

The next? Westminster consumed by game-playing over Europe and gay marriage; MPs disappearing into a parliamentary rabbit warren, obsessing over this new tactic or that new trick: paving legislation, enabling referendums, wrecking amendments...

Anyone watching would be forgiven for asking: what are these politicians doing?

So it’s time to get back to governing; providing the leadership and focus the people of Britain deserve in these difficult times.

This morning I want to give three simple and clear reassurances; the three things I will work flat out to deliver to keep the government and the country on track.

Reassurance number one: Coalition until 2015

First, I am absolutely committed to this Coalition lasting until 2015 – as is the Prime Minister.

At the weekend I saw some rather creative coverage of comments made by the Prime Minister about the future of the Government.

In fact, he echoed exactly what both of us have always believed:

This Coalition has been remarkably radical; it still has work to do; and the best way for us to serve and improve Britain is by finishing what we started.

To those voices who say that it will be in either, or both, parties’ interests to prematurely pull the plug: I couldn’t disagree more.

In 2010 the British people dealt us this hand. And they will not forgive either party if we call time ahead of the election that has been legislated for in 2015 – destabilising the nation in the vague hope of short-term political gain.

I know some commentators think it would be clever to duck out six months early. But that doesn’t make any sense either.

The idea that the Liberal Democrats could suddenly win back those people who have never liked us going into government with the Conservatives is nonsense. As if we could pull the wool over people’s eyes, using an early exit to somehow erase the previous four and a half years.

And, frankly, that isn’t what we want. The Liberal Democrats look forward to fighting the next election as a party of government, on our record in government, and with a distinct vision of our own for the next government – having seen this one through until the end.

Reassurance number two: our priority is the economy

Reassurance number two: from now until that election, the Coalition will remain focused on the biggest task at hand – fixing the economy.

Of course Europe and gay marriage are important. These are issues my party cares deeply about.

But Britain is facing the most profound economic challenge in living memory. And now, more than ever, we cannot allow Parliament to be clogged up by these matters simply because they cause the biggest political punch ups.

Our priorities must be people’s priorities: boosting business, creating jobs, helping with the cost of living.

On the big ticket items the Coalition parties must continue to find a way forward together. Just as we have done on cutting income tax; dealing with the deficit; creating a million new jobs; transforming the education and welfare systems; providing unprecedented guarantees – £50bn worth – for infrastructure and new homes; greening our economy; creating record numbers of apprenticeships...

And there must be no doubt that this Coalition remains united on the end we all seek:

A stronger, rebalanced economy, built on sound public finances, with opportunities spread to every corner of the UK.

Two staunch opponents, working together to find answers to the most critical questions facing Britain today, pioneering major reforms that will stand the test of time. That’s what this Coalition has always been about – and it’s what it must continue to be about.

Reassurance number three: we will remain anchored in the centre

Lastly, reassurance number three: this Government will not vacate the centre ground.

There’s a mistaken idea, shared by both the Labour leadership and some in the Conservative party, that they decide what people care about in Britain today. The idea you can take a big marker pen and draw the centre ground wherever it’s ideologically convenient for you.

Ed Miliband thinks he can nudge the country to the left, luring people over with unfunded spending promises: more borrowing, bigger budgets, a risk-free, pain-free end to austerity.

Some Conservatives insist the centre of gravity has swung the other way. They seize on people’s reasonable concerns over things like immigration and welfare as proof the nation has shifted to the right.

Yet in reality millions of people across Britain continue to shun the extremes of left and right.

They want a stronger economy – but they also want a fairer society; not one or the other, both.

They want us to maintain stability by taking responsibility for our debts – but with the burden spread fairly.

These are the people who get angry when they see abuse of the benefits system – but they are still proud that their country provides help to the vulnerable, the sick and the poor.

They don’t believe it’s right when illegal immigrants get a free ride – but they still value the benefits that immigration has bought to the UK.

They emphatically agree that we should cut red tape to help business – but not at the expense of workers' rights.

They want more choice in our public services – but could never support privatising the NHS or profit-making in schools.

They think gay people should be treated as equal with straight people, and so able to get married – but they wouldn’t condone forcing a church to conduct those ceremonies against its will.

In the 21st Century, Britain’s centre ground is modern; balanced; inclusive.

It doesn’t face left; it doesn’t face right; it faces forward.

And if you stand in the centre ground, rest assured: so long as I am Deputy Prime Minister this Coalition will not walk away from you.

Not plain-sailing

Coalition until 2015. Cleaning up the mess in the economy Labour left us. Anchored in the centre ground. Exactly as we set out in May 2010.

It won’t all be plain-sailing.

Some of the most divisive issues – like the UK’s role in Europe – are not going to go away.

We also have to be realistic about the other challenges that come with the later stages of Coalition. As we head towards the election there will be increasing pressure on David Cameron and myself to act as party leaders as much as PM and DPM: pressure to put party before nation. And I don’t pretend I won’t relish the moment I can hit the campaign trail on behalf of the Liberal Democrats in the run up to the General Election.

But here’s the bigger truth: whether you are the larger or smaller party, the fact is governing together in the public interest carries a cost. Making compromises; doing things you find uncomfortable; challenging some of your traditional support – these are the dilemmas the Conservatives are coming to terms with, just as my party has had to.

The next two years will not be without their hurdles and no doubt there will be disagreements between the Coalition parties along the way. Let’s be clear: sincere policy debates and ideological differences are, and will continue to be, a part of coalition.

But the parliamentary game playing we’ve seen over the last few weeks discredits the importance of these issues, and it’s an unwelcome distraction.

Our parties made a commitment to the people of Britain: we promised to govern responsibly and to stay focused on the issues that matter most.

That has not changed. It will not change. And I am more determined than ever that we finish what we started.

Nick Clegg’s Speech: The Rehabilitation Revolution

Mon, 20 May 2013 18:28:00 GMT

Almost ten years ago, I started my career on the Liberal Democrat Frontbench as Home Affairs’ Spokesman. Back then I argued that what was needed to reduce crime was simply a focus from Government on firm, practical solutions that addressed the root causes of crime and that were proven to work.

It’s a view I’ve retained. And an approach the Liberal Democrats have pursued in Coalition Government. Because ensuring people are free from crime and free from the fear of crime is essential to the foundation of any liberal society. And it’s why tackling crime effectively is central to our party’s vision of a Britain where everyone can get on in life.

Free From Crime, Free From The Fear of Crime:

Old or young, rich or poor, you are not free to live your life, realise your ambitions, or hope for the future, if you are scared of what lies just beyond your front door.

The populist rhetoric of the last Government played up public fears and promised to tackle the root causes of crime. But what actually happened, they implemented more often than not heavy-handed measures designed to chase headlines: policies that sought to restrict the freedom of criminals by taking away the civil liberties of innocent citizens.

Unprecedented expansion of state surveillance, a wasteful ID cards’ programme and the inclusion of innocent people on the DNA database - these policies reinforced the views of both commentators on the Right, who argue we’re a nation stuck in a spiral of moral decline, and those on the Left, who believe we’re in a state of irreversible social decline.

Liberalism Is The Solution, Not The Problem:

But, this pessimistic vision of Britain ignores just how far we’ve come as a country and how much things have changed for the better. Most importantly, they deny a brighter future for our children – a younger generation, which government data shows, is actually less likely to take drugs, drink or smoke.

In fact, I would argue that it is the more liberal, more tolerant and less violent society – in which we live now – which has provided us with the right conditions for a substantial and sustainable fall in crime

When I was growing up, images of communities torn apart by riots, football games destroyed by hooligans and violent clashes between police and striking unions routinely dominated the news. These images are largely consigned to the past.

Now...of course there are exceptions. The senseless riots in 2011 were a powerful reminder of just how vital our work together – the Government, the police and the public – is to make our communities safer.

But our country is far less accepting of such violence. We are more ready to challenge racism, sexism and homophobia.

And we remain fully committed to tackling crimes such as domestic violence, or other abuses that happen behind closed doors.

For example, last year I launched the government’s Teen Rape Prevention campaign. We have a long way to go, but action like this is hugely important in making sure that young people everywhere understand that sexual abuse isn’t something that happens in a dark alley, but can be something that happens in your own home, perpetrated by someone you thought you could trust.

This Government has been committed to tackling these hidden crimes. We have introduced legislation to criminalise forced marriage, introduced new laws against stalking and the Home Secretary is leading important work into the dreadful cases of sexual abuse against young people who are vulnerable and need protecting, including those in care.

But while this crucial work continues, it is important that we recognise that, given more freedom and given more choice, the vast majority of us are exercising it more responsibly. And we’re doing so at a time of tough economic conditions.

Greater liberty, in other words, has not frayed the fabric of society. It has brought us closer together as a society and has brought a long-term fall in crime.

Fall in Crime:

Under this Government, crime is at its lowest levels since independent records began. That’s fewer homes burgled and possessions stolen. Fewer communities blighted by vandalism. And fewer people hurt, or killed in violent attacks.

This continuing fall in crime is one of the biggest untold success stories of this Coalition.

Lots of people predicted that in tough economic conditions, crime would go up, as it has done in the past. But it hasn’t and we should be proud of that fact. It has been achieved without excessive bureaucracy or increasing intrusion.

We have done this by focusing, quite simply, on what works.

Freeing the Police to Cut Crime:

And much of that is down to the work of the police. In a time of economic austerity, where every public service is having to take its share of cuts, the police have stayed focused on cutting crime and they have succeeded.

Every police officer, every PCSO, should be extremely proud that, on their watch, crime has dropped.

Even as they have faced difficult decisions on police budgets and the pay and pensions provided to police officers. And they have done this with professionalism, with care and by developing relationships with their local communities that last.

By ending the target-driven culture of form filling and red-tape, the Coalition Government has ensured officers are free to do what works.

And it’s an approach that has delivered results: ensuring that England and Wales are now safer than at any time since independent records began.

Empowering Communities & Victims:

We are also empowering communities to take control of the problems in their own areas.

Take restorative justice. An approach championed by local Liberal Democrat Councils taking tough, but practical solutions that actually work in bringing down crime.

Now we’re in government, we’re introducing Neighbourhood Justice Panels in 15 places across the country. They help victims deal with crime in a way that benefits their community and makes the offender face up to the wrong they have done.
We’re also empowering the public to trigger action from the police and their local partners on persistent anti-social behaviour.

And we’ve ensured that sentences in the community are a genuine and tough alternative to custody, where locking someone up isn’t the best solution.
By making more offenders perform unpaid work in the community, we will make sure that they pay back to their community, while also being rehabilitated through meaningful activity that teaches discipline and hard work.

And through restorative justice, these offenders can make a real difference to a victim’s ability to cope and recover from the damage that they themselves have suffered.

Doing What Works:

Of course, community approaches are not suitable for every crime. And when your house is burgled, or your car stolen, it doesn’t feel like crime is falling. If you’re attacked, or abused, society doesn’t feel that safe.

So sometimes prison is the right option and those who commit serious offences should serve their sentence behind bars.

But the story shouldn’t end when the cell door slams shut. Prisoners’ time behind bars must be used to change behaviour for good, not just take someone off the streets for a while. A lesson must be learnt. Unfortunately, that’s not always the case.

Every year, reoffending costs our economy around £10 billion. Almost half of those leaving prison are reconvicted within a year.

Considering that the cost of sending a criminal to prison is more than it costs to go to Eton, we need a better return on our investment.

For years, the Liberal Democrats have argued that you only truly break the cycle of crime when you cut reoffending. That is why in Government, we’ve been determined to reduce both its economic and social costs.

And as their current Shadow Justice Secretary admitted himself, this is where Labour got it so wrong.

The last Government talked tough on crime, but appeared to believe that a ballooning prison population was a good thing.

So be tough on crime, sure. Be tough on the causes of crime, yes. But none of it matters unless you are also tough on breaking the cycle of crime. As a society, we want a justice system that punishes people where it must, but also seeks to change people where it can.

For me, criminal justice policy should not be ideological, but pragmatic. It should have a relentless focus on what works. So this Government is using our investment more wisely - to ensure our prison and probation services are equipped to produce better citizens, not better criminals.

We know that those on short sentences are most likely to reoffend and yet shockingly they are the ones who have, until now, received almost no rehabilitation, or support. That is why the Coalition Government is driving a rehabilitation revolution. It’s a programme of legislation and innovative public service delivery that will transform the way offenders are dealt with once they leave prison and address persistent reoffending.

It is a radical, but practical approach that has the potential – in my view - to leave a bigger, more lasting imprint on British society than almost anything else that the Coalition Government might achieve. And I’m proud of the changes we’re implementing now and our plans for the future.

A Never-Ending Cycle:

Imagine a young 21 year old offender released from a 6 month prison sentence for burglary today.

He’s been brought up in care. Since leaving there at 18, he’s not had a permanent place to live. In and out of trouble, he’s not found much in the way of work. He can’t read, or write well so he’s struggled to get a job. He also suffers from mental health issues and drug problems that are influencing his actions and have intensified in prison.

And just in case you think I’m relying on lazy stereotypes here, let me spell out what the statistics themselves say. Only around a third of prisoners are in work a month before custody. Fifteen percent of them are homeless. And it is estimated that around a quarter of offenders suffer from anxiety and depression. While 81% of them have used illegal drugs before entering prison.

Today, that young offender would leave prison with 46 pounds in his pocket and not much else. There would probably be no-one to meet him outside and nowhere for him to go.

If he’s lucky, he’ll find a temporary bed on a friend’s sofa. If not, he’ll end up homeless. And within days he could end up back in the Criminal Justice System after breaking into another house; stood in front of a custody sergeant, who probably already knows his name.

People tell him to get a job. But he doesn’t know how. And he has nowhere to live. Nobody will give him a chance. And the only people he can rely on, of course, are the ones that got him into this mess in the first place.

That has to change. Because it is the victims of crime and the wider public that reoffending impacts the most. Whether that’s because they are directly hurt by re-offenders’ crimes, or because they read about what’s happening and think it says everything they need to know about modern Britain.

A Rehabilitation Revolution:

This destructive cycle of crime is what we are working to break. If we are going to do all we can for the victims of crime and our communities, we can’t allow this problem to go unsolved. Our Offender Rehabilitation Bill receives its Second Reading in Parliament today.

It brings forward for the first time a mandatory requirement for the most prevalent re-offenders – those serving sentences of 12 months or less – to undergo a targeted programme of support on release to help them turn their lives around.

Because we know that the majority of those sentenced to prison are sent there for 12 months or less. And that of those almost 60% of them reoffend on release.

This will have a significant impact on women offenders also. Proportionally, more women than men are serving short-term prison sentences. Many of these women have complex needs. For example, they are more likely to have mental health problems than male prisoners, more likely to have reported experiencing some sort of childhood abuse. And they are more likely to be the primary carer for children. This Government is determined that these reforms will help women prisoners too.

Change will start in the police station and courts with experts on hand to identify whether a mental health or drug problem could be one of the main drivers behind this young offender’s behaviour. So he can be dealt with in a way that is appropriate for his illness and crime.

Following conviction, for example, he could be sent to a drug recovery wing in prison to help him get through withdrawal and the most intense, early stages of recovery.

Work in Prison:

The changes will continue in prison. We are putting more and more offenders like him to work in prison every year: making sure he doesn’t lie idle in his bed. That he is paying back to society and learning the pride and value that comes from a hard day’s work. What’s more, the money he earns from the work he does will go into a compensation fund for victims.

Alongside action to improve prisoners’ core skills, this will ensure that a young offender can get experience to help him find work outside the prison walls. And employers like Timpsons, Network Rail and the National Grid are already going into prisons and training prisoners in skills that can translate into real-life employment.

We’ve already increased the work hours of prisoners by over 800,000 hours last year.

And we want to get more businesses involved in these schemes as well as find more commercial work for prisoners to do, without undercutting local businesses.

Beyond the Prison Gates:

But the real change comes when our offender is released. A few weeks before he leaves, he will start working with a new provider organisation to organise and plan for his resettlement beyond the prison gates.

If possible, the young offender would have been sent to a prison close to his local community. So that any positive, personal ties that he did have - with family, or friends – could be maintained. If that can’t happen, we would then aim to relocate him closer to home towards the end of his sentence.

In prison, he’d work with the service provider to develop a programme of tailored support that fits his needs.

This could mean getting him a place on a basic skills course at the local college, or finding him somewhere to live.

They’ll ensure that from day one - if he is claiming JobSeekers allowance on release - he has a place on the Government’s work programme, with access to information and training that will help him get a job.

If required, they could also organise additional drugs treatment and testing to help him stay clean.

Most importantly, when he gets out there will be someone there to meet him. A mentor - someone experienced, potentially someone whose been an offender themselves and knows what it takes to build a life free of crime outside – who can help this young man through advice and support stay on the straight and narrow in that critical first year after release.

We are already seeing some positive results. For example, in Peterborough Prison where older, longer serving prisoners are actively mentoring those serving shorter-sentences. Given their experiences, these mentors are proving to be some of the most effective people to convince those who’ve made a mistake not to repeat it over and over again.

We’re not ideological about this approach.

What we want to see is something that takes and builds on the best from the public sector, the best from the private sector and the best from the voluntary sector to break the cycle of crime for good.

That is why we are reorganising the Probation Service, so that the public, voluntary and private sectors can work more flexibly and effectively side by side.

We want to extend the good work that is taking place all over the country, including right here. And we want to ensure that all of those with a strong track record in this area – including smaller regional rehabilitation charities, social enterprises or entrepreneurial staff from Probation Trusts interested in starting an employee mutual to bid for work – are able to get involved

That is why I’m pleased to announce today a package of tailored support to help fledgling mutuals and smaller rehabilitation organisations bid for contracts.
This includes access to around £7 million worth of funds to help these groups bid and support their work in communities. This is addition to the £10 million mutuals support programme, which is open to probation staff.

We are also making available to these groups valuable financial tools, legal advice, coaching and training and a network of peers and expert contacts to help take them through the bidding process.

We are serious about getting those who know what they are doing involved in our rehabilitation revolution.

Conclusion:

So in conclusion, let me be clear, I am wholly committed to that Rehabilitation Revolution. And we are putting in place the legislation, innovative policies and providers to deliver solutions that work. That will tackle, for the first time ever on a mandatory basis, the complex issues and drivers behind the persistent problem of reoffending.

And provide the support needed to fundamentally change the lives of those released from prison.

As a society, I believe, we’re more progressive and we’re more liberal. These are the best conditions in which to cut crime. A society, in which the Government and public can bring about the necessary changes that will ensure a future, where more people are free from crime and the fear of crime: in short - a stronger, a fairer Britain.

Thank you very much.

Nick Clegg speech at the Africa Jubilee Business Forum

Mon, 13 May 2013 16:49:00 GMT

Let me first thank the African Diplomatic Corps, African Heads of Mission and Commonwealth Business Council for inviting me to open this business forum and for organising this event.

Today is a chance for all of us to recognise the businesses and jobs being created by African and British entrepreneurs together. And to focus on securing the wealth of investment opportunities available to us in the future. So I’m also pleased to see so many business leaders here with us as well.

It’s a fitting tribute, I think, to mark the 50th Anniversary of the founding of the Organisation of African Unity, now the African Union. I want to welcome my old friend Dr Tedros Ghebreyesus – Chairman of the Executive Council of the African Union – as we recognise and celebrate some of the achievements of that partnership.

Five decades ago, the Organisation of African Unity was there to help countries across the region transition from colonial rule. And as the African Union, it is there again now to support the continent as it takes on an increasingly global role.

On a recent visit to Mozambique and Ethiopia, I saw for myself how successful businesses, both large and small, are transforming millions of people’s day-to-day lives.

In Ethiopia, for example, I met female entrepreneur Bethlehem Tilahun Alemu. What others saw as scrap, Bethlehem saw as a business opportunity.

Her company Sole Rebels, which turns old car tyres into shoes, now employs around 80 people. It’s an enterprise that’s transforming the lives not just of Bethlehem and her workers, but also their families and the people they do business with elsewhere.

As a quick aside, Bethlehem would never forgive me if I didn’t tell you that you can buy her shoes online, here in the UK. I still wear the fabulously comfortable and very brightly coloured shoes that I got from her myself earlier this year.

Also Vodafone’s innovative M-Pesa system. Recently launched in Mozambique, it’s a money transfer service enabling people to carry out financial transactions on their mobile phones.

Started first in Kenya, with investment from Vodafone and support from the UK Government, this extends access to vital banking services for millions of people, who would otherwise only be able to trade in cash.

In Kenya alone, there are now 17 million users, with around 10% of Kenya’s GDP being processed through the system per year.

What these stories show us is the positive change that success, however big or small, can bring. Seven of the world’s fastest growing economies are in Africa.

Recent research shows that almost a quarter of African countries’ GDP grew at 7% or higher in 2012. It’s estimated that that growth across the continent could rival China in years to come.

Now that’s a story worth telling, but one often lost in the customary narrative of conflict and instability in Africa. So it’s time to rewrite the script. Africa is being transformed: once perceived by the outside world as merely a continent in distress; now looked to as a great continent of opportunity.

And as Africa’s presence on the global stage increases, we need to secure economic success for every country in the region. For the good of Africa, for the good of the UK and for the good of the world.

Everybody, of course, wants growth – the key decision is how you achieve it. More and more African countries face a choice between the economic models of authoritarian capitalism, on the one hand, and liberal democracy, on the other.

In countries like China, authoritarian capitalism argues the case for economic growth ahead of political freedoms. And it’s a seductive argument in view of surging growth rates, which have occurred in the absence of political freedom.

But ultimately it is a false promise. My view, the liberal view, is that economic progress and political rights are inseparable. They are parallel tracks, each reinforcing the other.

Fairness, freedom, empowerment, education, the rule of law – these are not so-called Western values. They are the values that will underpin healthy economies across the globe, long into the future.

And in a world of younger populations, growing middle classes and technological innovations that allow relationships and communities to form across traditional state borders, the demand for both economic success and political freedom – will only increase. Lasting stability depends not just on opening up our economies, but creating open societies too.

As nations across Africa continue to grow and prosper, the UK will seek to be an effective partner. First, in terms of the UK’s own changing relationship with Africa. And second, how the UK through European and international channels, not least our current G8 presidency, is determined to address the fundamental barriers to further growth and investment in Africa and the rest of the world.

Our focus is more trade; fairer tax; and greater business transparency.

The UK remains a strong partner with Africa. I’m proud that we will honour our commitment to spend 0.7% of this nation’s wealth helping the world’s poorest countries.

As you may know, legislation to enshrine this commitment in law was not included in last week’s Queen’s Speech – it’s an issue that has proved highly controversial amongst some Conservative MPs – but I’m pleased that the Coalition Government in its deeds and actions will continue to meet our commitments abroad: and our actions show that we will not balance the books on the backs of the world’s poorest.

But we also understand that aid must be properly targeted and that longer-term success depends on supporting businesses and trade in new and emerging markets.

UK companies already export more to Africa than they do to Brazil, India and Russia combined. That’s good, but we can always do more.

Especially, if we’re to compete effectively with companies and governments in Europe and elsewhere, who are making a determined push to seek out their own opportunities in Africa.

In line with Africa’s vision for a Continental Free Trade Area and the African Mining Initiative, we also want to explore how the G8 can help to unblock trade corridors across Africa, building on the successful trade facilitation programmes run by the DFID-supported Trademark East Africa.

As well as what Britain can do bilaterally, there is also the question of what Europe can do collectively. We are two great neighbouring continents joined by the Mediterranean.

Yet somehow, I don’t feel the EU acts with the coherence and leadership, which Africa deserves.

Other world powers, notably China, have a clear and consistent strategy: China invests big. It invests fast in pursuit of clear economic objectives.

I believe the EU could and should offer an alternative approach – one that can contribute to lasting success in Africa built on economic, political and social reform. Prosperity and stability in Africa and Europe are mutually reinforcing: when Europe fails, Africa is affected; when Africa fails, Europe is affected. So we must work together, continent to continent, so we both succeed.

Through the UK’s presidency of the G8, we are also keen to focus the agenda on issues that are fundamental not only to your success, but also, in the long-term, our own and the rest of the world.

Eight years ago at Gleneagles, we secured an agreement to cancel debt for the world’s poorest countries and to double aid. That action contributed to strong economic performances across Africa over the last decade.

Working together again now, focused on the 3Ts of Trade, Transparency and Tax, we can achieve even more.

Over the next decade revenues from newly discovered extractive resources in Africa will increase massively, dwarfing aid volumes.

In 2010 exports of oil and minerals from Africa were worth £216 billion – nearly seven times the value of international aid in the same year - £31 billion.

Too often in the past such revenues have bypassed Africans - due to unfair tax systems and opaque business deals. Lining the pockets of the few. Denying investment and jobs for the many. That has to stop.

We want to make sure Africans receive their fair share from the resources they have and the business they do. That demands fairer tax rules and greater transparency around what is being paid for oil, gas and mining resources and where the profits then flow.

We are pushing for more companies to report on the revenues they pay to governments, and for more governments to report on the revenues they receive.

The EU has just agreed legislation that will require all oil, gas and mining companies listed in Europe to publish what they pay to governments, in line with the US. Through the G8, we are pushing for equivalent standards to be applied globally.

The Extractive Industries Transparency Initiative sets a global standard for this. The UK helped establish EITI in 2003 and has been one of its staunchest backers. We’re now actively considering whether and how the UK should implement this initiative.

We also want to support greater transparency around land transactions; and to publish more G8 government data, including about aid budgets, in an open and accessible format – so it’s of real use to citizens across the world. Information empowers citizens and allows them to take control of their own development. Governments across the world must be accountable to their citizens.

Equally important is ensuring that tax regimes are transparent and efficient. Already, the UK’s flagship governance programme in Ethiopia has helped their authorities increase tax revenue from £8.2bn per year in 2002 to £55bn in 2011.

Only in partnership together – developed and developing countries- can we ensure our systems work as they should. These tax revenues are integral to deliver the infrastructure and skills that will drive growth in the future.

The Prime Minister and I will be chairing a high-level G8 event on 15 June to drive forward progress on tax, trade and transparency. We want to discuss with businesses, NGOs and governments how to achieve real progress on the agenda.

So today is about celebrating the next 50 years of Africa’s unity. We can’t ignore the challenges we face, but we also need to focus on the major, growing commercial opportunities that do exist. Building on our work together through the African Union, EU and G8 and directly with African States, I can see opportunities that benefit both Africa and the UK.

Today’s forum is another important step in the right direction. I look forward to hearing the outcome of your discussions. Our relationship with Africa remains strong, but is changing.

We are partners focused on growth, jobs and security. So let’s look to the next fifty years of the African Union and the success of our work together in the future.

Thank you.

Nick Clegg launches the Liberal Democrat 2013 local election campaign

Mon, 8 Apr 2013 16:07:00 GMT

In three and a half weeks, people up and down the country will elect their local councillors. Each council seat will be fought on different terms. Each neighbourhood has its own, unique needs.

But I bet you that, when all those people are deciding which name to put a cross by on 2 May, ultimately they’ll be asking themselves the same question: ‘While cuts are being made to public spending, who can I rely on to spend the money that is available on the right things?’

‘Which party can I rely on to strike the right balance: taking the difficult decisions to make savings, but doing so the fairest possible way?’ These elections are about one thing: priorities.

Difficult decisions will need to be made in local government, just as in national Government, and people understand that. But they – rightly – expect that their representatives should make the fairest possible decisions.

Next month, in wards across the country, people will be confronted with the same choice. Despite all their stated differences, a vote for Labour or the Tories will be a vote for the same thing.

Their record in local government shows that, even when millions of families are feeling the pinch, they’ll both squander taxpayers’ money on waste, inefficiency and their own vanity projects.

A vote for the Liberal Democrats, on the other hand, is a vote for a party which – wherever we’re in power – does it’s best to spread the burden of austerity fairly, investing in jobs and help for hard-pressed families. Only the Liberal Democrats will build a stronger economy and a fairer society, enabling everyone to get on in life.

Only the Liberal Democrats have the right priorities in tough times. Just take our tax changes. Today is the first working day of the new tax year. Today, because of Liberal Democrat tax reforms, more of the money you earn will go into your own pocket, and less to the taxman.

That’s because we’ve raised the point at which you start paying income tax, and now over 20 million people will pay £600 less in income tax than they did under Labour.

In households where two people are working, that’s an extra £1200 a year. £1200 to cover energy bills, or car insurance, or mortgage repayments, or to go towards a family holiday.

And next April it’ll go up again. People won’t pay a penny of income tax on the first £10,000 they earn. Millions of the lowest earners won’t pay any at all. At the same time we’ve asked for a bit more from those who can afford it. We’ve increased capital gains tax; introduced a higher rate of stamp duty and a £12.5bn banking levy; we’ve closed loopholes and capped tax relief to stop the very rich from gaming the system. And the Liberal Democrats will continue to argue for our mansion tax. The right priorities in tough times.

I know that Labour are trying desperately to gloss over these changes. They want to pretend that the only tax change this week is the reduction of the top rate, from 50p to 45p. But it’s the same old selective amnesia we always get from the two Eds about Labour's time in office.

Out of the 13 years they were in power, Labour had the 50p rate in place for just 36 days. For most of the time, Labour’s top rate was 40p. Not 45p. Not 50p. 40p – 5p less than now. And under the previous government a cleaner paid a higher rate of tax on their wages than a hedge fund manager selling their shares - a gross unfairness that we have fixed.

The sudden, synthetic fury we’re seeing from the Labour party is nothing more than an attempt to distract people from the most important change coming into effect: the tax cut for ordinary working people delivered by the Liberal Democrats.

That policy was on the front page of our manifesto, it’s been my priority from the moment we entered the Coalition, and now millions of people will feel the benefits.

In every single year of this Parliament the rich will pay a greater share of our nation's tax revenues than in any one year of the last government. The IFS have confirmed that, as a result of our changes, the wealthiest 10% of people are making the greatest contribution. So I will take no lectures from the Labour party on tax – the Liberal Democrats are making the tax system fair.

And it’s not just in Whitehall that we’re making the right choices, but in Liberal Democrat Town Halls too. Our councillors, like all councillors, have had to take some controversial decisions – I don’t deny that.

But look at our record and it’s clear that, wherever we can, Liberal Democrats are spreading the burden fairly, investing in ways that enable everyone to get on in life, not just the well off. That’s why, for example, this year the Liberal Democrats haven’t closed a single library.

Who have we done that for? For the bright teenager who comes from a chaotic home, but who wants a place to study so they can do well in their exams and go on to something better.

For the ambitious young men and women whose parents can’t afford to buy them the books and technology they need, but who want to forge a different path. And, despite money being tight, we’re investing in jobs for these young people too.

In Eastbourne and Watford, the Liberal Democrat councils are giving their town centres a boost – supporting thousands of local jobs. In Eastleigh, the Liberal Democrats are revitalising the local cricket ground so that it can host international test matches – that alone will create 500 new jobs. In Bath we’re supporting high tech start-ups so that they can grow and take on more staff. In Northumberland we're building new council houses this year, providing homes as well as giving the local construction industry a shot in the arm. The right priorities in tough times.

You won’t get that from the Conservatives. In Leicestershire, the former Conservative Council Leader spent £210,000 on his own personal chauffeur. In Somerset, because the Tories have insisted on cutting opening hours for rubbish tips and introducing charges to use them – a “tip tax” – flytipping has rocketed, leaving local residents stuck with the bill for cleaning it up. In the Cotswolds, after announcing nearly one and a half million pounds worth of cuts, how did the Conservative council try to boost staff morale? They hired a motivational magician – costing £19,000.

Here in Cornwall we’ve even seen the Conservative’s waste money hiring taxis to ferry teas and coffees between council buildings – again, while trying to push through an increase in Council tax. A rise Cornish Liberal Democrats successfully stopped. When savings need to be made, you just cannot rely on the Tories to make the fairest decisions. Their instincts drag them in the wrong direction.

And what about Labour? What are their priorities? Today we’ll hear from Ed Miliband about why people should vote for his party. Here’s what he won’t say. He won’t say: Labour are sorry they crashed the economy. And he won’t present a serious and detailed plan to fix the mess they created. That much we know.

The Labour party continue to be a blank page in British politics: they won’t accept for responsibility for what went wrong; they haven’t learnt from their mistakes; they have no ideas for the future. Above all, they are incapable of delivering a stronger economy. And it’s the same from the leadership all the way down.

Do you know how the Labour council in Derby are choosing to spend residents’ money? On emotive street posters passing all the blame for their cuts on to the Coalition Government, costing thousands of pounds – while at the same time they’re looking to make drastic cuts to homelessness services.

The Liberal Democrats are different. Only we can deliver a stronger economy and a fairer society - both. Only we have the right priorities in tough times. And we now have a national and local record to prove it. Our party has a strong story to tell – a story not of promises, but of action.

But people won’t hear our message unless you tell it to them. I know how hard you’re all working. I am grateful for all of the hours you put in. But I need to ask you to work even harder.

If you are fighting an election in your area – deliver more leaflets, canvass more people, make more calls. If you’re not fighting a council election – go somewhere that is, or make calls from wherever you are. Every wing of this party now needs to pull together, reminding our opponents that we have a unity, a resolve and a sense of purpose they could never compete with.

When the Liberal Democrats organise, no one campaigns like we do. Labour know it. The Tories know it. And they are going to throw everything at us – they haven’t forgotten Eastleigh. But guess what? Nor have we. And when you feel that you’ve given all you can, I want you to think back to that great victory.

I want you to remember how good it felt to confound our critics; remember how good it felt to win. It’s time to do it again, Liberal Democrats. Get out there and win.

Nick Clegg speech on immigration

Fri, 22 Mar 2013 14:44:00 GMT

Today I want to talk about immigration. Not asylum; that’s an important distinction to make – immigration. The debate is opening up, and that’s a good thing.

We’ve now heard from the Labour party about some of their mistakes in office. And the Prime Minister and I are setting out how the Coalition is correcting those mistakes. Me today, David Cameron on Monday.

The political mainstream has a duty to wrestle this issue away from populists and extremists. A duty to shift what can be a highly polarised debate – particularly in difficult economic times – onto practical and sensible ground. And the Liberal Democrats take that responsibility very seriously.

This morning I will explain why, in order to remain an open and tolerant Britain, we need an immigration system that is zero-tolerant towards abuse. Tolerant Britain, zero-tolerant of abuse. That’s the vision the Coalition is working towards.

Before I do, I want to make one thing clear: the Liberal Democrats will never seek to outflank our opponents because we think that’s what people want to hear.

Yvette Cooper said, recently, that we must avoid an “arms race of rhetoric” on immigration. I agree. That kind of low populism patronizes the British people and it is an insult to the many migrants who have contributed to our country. British society has been shaped by migrant communities in ways more profound than any cliché about chicken tikka masala, or Notting Hill Carnival, or Polish builders can ever express.

I’m the son of a Dutch mother – she, herself, raised in Indonesia; a half-Russian father; husband to a Spanish wife. Like millions of Brits, if you trace our blood lines back through the generations, you end up travelling around the globe. And I’m a liberal. I’m immensely proud of this nation’s wonderful diversity and openness. Those are great British traditions too.

Of course, if you believed every headline, you’d think that when immigrants aren’t stealing British jobs. They’re all living the high life in 12-bedroom Kensington mansions, courtesy of the state. But that’s a complete caricature of the truth.

The majority of people who come here work hard and make a contribution. Many have served – and still serve – in our armed forces. And if every member of an immigrant community suddenly downed tools, countless businesses and services would suffer. The NHS would fall over. And in a globalised economy, where talent is as mobile as capital, no nation can succeed by pulling up the drawbridge.

British firms depend on outside skills and expertise in order to compete. British universities too. The reason this country has a world-beating research base is because we are a magnet for the brightest and the best. That’s why, when the Coalition put limits on the number of migrants coming here from outside Europe, it was important to Vince Cable and me that students – genuine students – were excluded from that.

It’s why, more recently, the Coalition has rejected proposals to impose a visa regime on visitors from Brazil. Where a minority are abusing the system, we need to deal with that – whatever nationality they are. But a new visa regime would deter Brazilian tourists, discourage Brazilian investors and Brazil would simply do the same to us, hampering the access British companies have to one of the world’s fastest growing markets.

So, yes we are bringing immigration under control, and I will explain how. But I want UK firms to be in no doubt. The Coalition’s priority continues to be growth and building a stronger economy. I’m clear that well-managed immigration is a key part of that.

The problem is that the system has not been well-managed. It has been grossly mismanaged. I welcome Labour’s recent admission that they got it wrong. But the fact that this mea culpa is immediately followed by mud-slinging, by an attempt to blame the Coalition for the problems that remain, suggests to me Labour still don’t understand just how wrong they got it.

The previous government left us an immigration system in disarray. I cannot stress enough just how chaotic it was. The first thing they did, after coming into office, was stop checking if people were leaving the country. They got rid of exit checks. They weren’t counting people in and they weren’t counting people out either.

Seven different immigration Bills; six different Home Secretaries and yet, in the course of a decade, just 114 prosecutions for employing illegal immigrants.

And Labour were completely caught off guard by the impact of their decision to lift transitional controls on new EU member states when other EU countries did not. By the time they finally woke up to the mess they’d created, to the real strain immigration was placing on some communities, it was already too late.

Is it any wonder that there has been a crisis of public confidence in our immigration system? People’s anxieties are not, generally-speaking, driven by prejudice or racism. We are, by nature, a tolerant people. But, for too long, British people’s legitimate concerns have been downplayed. For too long their worries were met with words but not action.

There’s a common allegation that, among the political elite there’s been a conspiracy of silence on immigration. But over the years there’s been lots of talk, lots of posturing, lots of promises. Plenty’s been said. The problem is: not enough’s been done.

Where there is resentment towards the immigration system, we must now confront it. For a diverse society like ours to function successfully, for different groups to integrate and co-exist, British citizens must believe that the rules by which migrants come and settle here are reasonable, just, and properly enforced. The immigration system must command public confidence.

Since we came into government, net migration has fallen by a third. We’ve limited immigration from outside Europe. And within the EU, we have kept the transitional limits on Romania and Bulgaria, until the point where every member state has to remove them.

But it’s not just about the overall numbers. People need three basic assurances:

One: that we are getting a grip on who’s coming in and who’s going out.
Two: that we can deal with people staying here illegally.
Three: that the system as a whole benefits the UK and doesn’t put too much pressure on our state – particularly in these straitened times.

Give British citizens those assurances, and you will see this nation’s most welcoming side.

The Coalition is creating a system people can be confident in. A system that contributes to both a stronger economy and a fairer society – we need to deliver both. Tolerant Britain, zero-tolerant of abuse.

Assurance number one: that we’re getting on top of who’s here. The Coalition is building a much clearer picture of who’s coming in and going out. We’re building up Britain’s entry checks, increasing the information we get in advance of people travelling. And we are reintroducing exit checks.

Exit checks tell us whether the people who should have left actually have. Britain used to have them, but they were dismantled by previous governments. The process began under the Major government and was carried on by the Blair administration and the Liberal Democrats have been campaigning to bring them back since 2004.

To us it always seemed obvious that exit checks are an essential feature of an efficient and competent immigration system. And so we ensured that this Liberal Democrat manifesto commitment was written into the Coalition agreement. Bit by bit we are filling in the gaping holes Labour left.

Assurance number two: that we can prevent people from staying here illegally. Before I come onto what we are doing in Government, let me say a word on Liberal Democrat party policy.

My party will always advocate immigration policies that respect the rights and dignity of individuals – particularly the vulnerable. It’s because of us that children are no longer detained for immigration purposes. It’s because of us that the UK no longer deports people to countries where we know they’ll be persecuted for their sexuality. Both straight from our manifesto and two of my proudest achievements in government.

But, at the last election we suggested that any illegal immigrant who had been here for 10 years should be able to earn their citizenship. We called it an earned route to citizenship. Our opponents dubbed it an ‘amnesty’.

We felt it was an honest and pragmatic solution given the chaos in the Home Office and the obvious failure by Labour to identify where thousands of illegal immigrants were. Better surely, we asked, to get them to pay their taxes and make a proper contribution to our society, than to continue to live in the shadows?

But, despite the policy’s aims, it was seen by many people as a reward for those who have broken the law. And so it risked undermining public confidence in the immigration system.
The very public confidence that is essential to a tolerant and open Britain. That is why I am no longer convinced this specific policy should be retained in our manifesto for the next General Election.

So I have asked Andrew Stunell, the former Integration Minister, to lead a review of this and our other immigration policies in the run up to 2015.

In Coalition, the Liberal Democrats are seeking to restore people’s faith in the system, confronting illegal activity with a vigour never seen from Labour, and in 2015 people will know that a vote for the Liberal Democrats is a vote for an immigration system they can believe in. A vote for a tolerant Britain that is zero-tolerant towards abuse.

We’re clamping down on the most exploited routes into the country: tightening up what’s known as the ‘tier one route’, for example. It was supposedly for highly skilled visa applicants, but was routinely exploited by people who did not have those skills.

The student route was riddled with holes. So we’re cracking down on bogus colleges. UKBA officers visited a college which had requested permission to bring in over 200 students. How many did they find studying that day? Two. Since 2010, almost 600 colleges have been removed from the list of registered visa sponsors.

While we have to be realistic about UKBA’s enforcement budget in the current climate, we’re making sure money is better spent. For instance, reducing the opportunity for long, vexatious and costly appeals by those who have been refused the right to remain in Britain, while still safeguarding the right to a fair hearing.

We’re cracking down on the profiteers. I can confirm today that the Coalition will increase the cash penalties for unscrupulous employers who hire illegal immigrants because they’re cheaper. Currently, the maximum fine is £10,000 per illegal worker. I’ve asked the Home Secretary to look into the right amount but personally I’d like to see it double.

Employers need to get the message: they have an inescapable duty to employ people who are working here legally, not to turn a blind eye to those working illegally.

And I’m determined that our police can come down on the criminal gangs who smuggle and traffic people into the country. We’re currently reviewing policing cooperation with our European partners. But I’m clear that we must not jeopardise any arrangements that help us tackle this kind of cross-border crime. Criminals go across borders; so must we.

In addition to these crackdowns, I can also confirm we’re looking at a powerful new tool to help deal with the problem of people overstaying on their visas.

Visa overstayers make up a major part of UKBA’s enforcement caseload – clogging up the system. As early as 2006 we had reports from Select Committees, arguing that visa overstaying would be one of the biggest challenges for our immigration system in the 21st century. As people travel more – for work, for holidays – you have more people coming into the country for temporary periods and so you need to find ways to make sure they leave.

The challenge isn’t just stopping people coming into Britain illegally, it’s about dealing with individuals who come over legitimately but then become illegal once they’re already here.

One idea, which appeals to me, is a system of security bonds. And so I’ve asked the Home Office to do some work on it with a view to running a pilot before the end of the year.

The basic premise is simple: in certain cases, when a visa applicant is coming from a high risk country, in addition to satisfying the normal criteria, UKBA would be able to request a deposit – a kind of cash guarantee. Once the visitor leaves Britain, the bond will be repaid. Clearly, we need to look into the detail and seek a wide range of views, including from the Home Affairs Select Committee.

The bonds would need to be well-targeted – so that they don’t unfairly discriminate against particular groups. The amounts would need to be proportionate – we mustn’t penalise legitimate visa applicants who will struggle to get hold of the money. Visiting Britain to celebrate a family birth, or a relative’s graduation, or wedding should not become entirely dependant on your ability to pay the security bond.

And I would want a system that is welcomed by legitimate visitors rather than place a great burden on them. Done right, this would speed up the application process, giving UKBA greater confidence about people’s intentions, allowing them to make better, faster decisions.

In today’s world, illegal immigration happens in different ways – and we need to think innovatively to keep up.

Finally, assurance number three: that immigration as a whole benefits Britain and British citizens.

Migration contributes to the public purse – we mustn’t forget that. But it is important, with budgets under strain that as many people as possible contribute to the economy and support themselves. We’re asking that of British citizens – it is right that we ask the same of visitors to Britain.

So the Coalition has reformed work visas so that every worker coming here has a proper job offer and a minimum salary. And we’ve changed family visas to introduce a minimum income for anyone bringing over a partner or spouse.

While it’s right that, if businesses can’t find the skills they need they can bring people in from outside the UK.

As we tackle unemployment and rebuild our economy, we also need to be asking why that’s the case at all. Why aren’t our young men and women equipped to do these jobs? So the Coalition is creating record numbers of apprenticeships – over one million since the election. And I want to make sure we have the right plans in place for so-called ‘shortage occupations’ – the specific professions where we lack skills.

There are 34 currently on the list. Paediatricians, maths teachers, chemical and mechanical engineers, to name a few. And we are now asking employers and their representative bodies, including Sector Skills Councils, to work with the Government on our plans to build up Britain’s homegrown skills for each profession: making sure we’re on track.

I believe people will have more faith in our immigration system if they see that we are doing everything we can to help young British men and women into work. To that end, the Coalition has also capped unskilled migration from outside the EU. The Government is also looking at the access migrants have to services and benefits. Fairness isn’t just about what people put into the system: it’s what also about what they take out.

This work is extremely complex. Labour left us a huge, unwieldy welfare state, full of contradiction. In some place the arrangements are already quite strict, in others they are much more loose and opaque. So now we are systematically working through to see where reform is necessary.

No decisions have been taken yet and the PM will be saying more about his views on Monday. But I want to make clear that this is very much a Coalition agenda, with both sides working together. For the Liberal Democrats, it is entirely right that we close loopholes and ensure that the welfare system is not open to abuse.

For social cohesion, as much as anything else. One area where I’ve asked for further work, for instance is on the translation services available to individuals accessing public services. The Government currently spends tens of millions of pounds on translation services and materials. And, of course, people should get help, if they need it to understand what their doctor is saying, or how to sign their children up for school, or what's going on at a court hearing.

But there's a missed opportunity here to improve people's English so that, in the long term, they don't need those translators and the taxpayer spends less.

We've already raised the level of English required from a number of different groups: skilled workers, the husbands and wives of migrants coming to the UK. But we need to do more to help people who are already here.

In 2011 we introduced powers for Jobcentre advisers to mandate people on job-related benefits to learn English if their level of language skills is stopping them from finding work.
I've asked Iain Duncan Smith to report back to me on how this is being implemented. I want to make sure it's being rolled out effectively across the country.

And where people need a translator to interact with services, I've asked Mark Harper, the Immigration Minister, to look at whether we could refer them onto an English language course. And, if people refuse to stick with those courses, we should consider making them pay for their translation services instead. To a lot of people, that’s just common sense.

We’ll be saying more about this, and the other areas under review, over the coming weeks and months.

So in conclusion, we are grappling with the difficult challenges in our immigration system.
Brick by brick, we are rebuilding it. Day by day we are making sure, quite simply, that it works. All the British people ask is for a system they can have confidence in. We hear that, and we are delivering it.

I’m determined we lay the foundations for an immigration system that embodies this nation’s instincts and its values: our openness and tolerance on one hand; our sense of fair play, on the other.

The Liberal Democrats are at the forefront of that. We want to stay a tolerant Britain, and to that end we will be zero-tolerant of abuse.

Nick Clegg Speech to Spring Conference 2013

Sun, 10 Mar 2013 17:00:00 GMT

Check against delivery

Eastleigh. Conference, I have never seen anything like it. Thousands and thousands of activists flooding in from every part of the UK. Young people arriving in their droves. Hitting the pavements, the phones, Facebook, Twitter, email – finding any and every way to drive our message home. I want to thank you all – you were just brilliant.

They said we’d never win it. The same critics who try to write us off time and time again. But, you know what? The naysayers can tear up those political obituaries. Liberal Democrats: you proved them wrong. And you proved what we have always known to be true: where we work, we win. There’s no great mystery to it. Mike Thornton, Keith House and their team didn’t just stop campaigning after the last General Election. They didn’t hang up their boots and say: ‘We got the seat, that’s it for five years’. They kept at it. Recruiting activists. Taking council seats. Building up their support. And when the time came, they were ready. Mike, Keith, everyone who helped: You ran an exemplary campaign; you have electrified this party – thank you very, very much.

The challenge now, Conference, is building on this momentum. As we approach the upcoming council elections in May. As we prepare for the General Election. We need to be clear on the lesson from Eastleigh: The odds were stacked against us. A fierce campaign, under a national spotlight, dogged by difficult headlines from day one. Extraordinary circumstances. Yet we still won. We beat the Tories. We squeezed Labour – don’t forget that bit. We won.

Why? Because, for the first time in a generation we could campaign on our record of local delivery and our record of national delivery too. Every leaflet dropped in the Eastleigh campaign combined both. And, when people took a long, hard look they liked what they saw. We didn’t win in Eastleigh in spite of being in power. We won in Eastleigh because we’re in power – locally and nationally. It’s important that everyone in this room knows that.

It’s three years since we took the decision to go into Government. I know some of you have had a quiet fear, ticking away at the back of your minds. The worry that the risk we took was too big. No, Liberal Democrats. It may have been a risk, but we took it for the right reasons: to steer Britain through a time of economic crisis; to govern in the national interest; to govern from the centre ground; to build a stronger economy, in a fairer society, enabling everyone in Britain to get on in life.

And that decision will pay off – for the country, and for us too. There is a myth that governing together, in coalition, diminishes the ability of the smaller party to beat the bigger party. The idea that, in Tory facing seats the Liberal Democrats will find it impossible to distinguish our record, our values, from theirs. But that myth has been utterly confounded. The opposite is true. The longer you stand side-by-side with your opponents, the easier your differences are to see. We don’t lose our identity by governing with the Conservatives. The comparison helps the British people understand who we are.

And we are the party that shares the country’s priorities: Fair taxes; better schools; jobs. The only party that will deliver a stronger economy and a fairer society, enabling every one to get on in life.

In the days after the by-election, even though we won, I was asked how I feel about our party no longer being a magnet for the protest vote. No longer the automatic ‘none-of-the-above’ choice. And my reply was this: the Liberal Democrats are not a party of protest, we are a party of change. A party that is for things, not simply against things. A successful political party cannot thrive just by picking up the votes that have been lost by its opponents. Our ambition is to reach out to the millions of people in this country who want a party that strikes the right balance between economic credibility and social fairness. We are not some kind of receptacle for people who don’t like the world – and don’t want to do anything about it. We grapple with the world. We strive to make it better. And the more people who see that, all the better too.

Conference, I don’t pretend it’s all sunny uplands from here. This journey we are on is not an easy one. As a party: from opposition to government. As a country: from austerity to prosperity. We will be tested more times along the way. And, throughout this journey, our focus will be the country’s focus. The economy. Britain’s economic recovery has proved more challenging than anyone imagined. The crash in 2008, deeper and more profound than we knew. Just two weeks ago, the uncertain outcome of the Italian election threatened to plunge Europe back into crisis. Suddenly we were reminded of the danger that looms when markets question the ability of governments to live within their means. Countries around the world face the same, hard truth: We must all pay the piper in the end. I want to make one thing clear: We will not flinch on the deficit. But to be unflinching is not to be unthinking. And the idea that the choice is between a cruel and unbending Plan A and a mythical plan B is simply not the case.

Balancing the books is a judgement, not a science. And our plan has always allowed room for manoeuvre. One of the most important things I have learnt in Government is this: in a fluid, fast-moving global economic environment, sticking to a plan requires government to be flexible, as well as resolute. Nimble, as well as determined. When economic circumstances around us deteriorated and UK growth forecasts suffered, voices on the right called for us to respond by cutting further and faster. But instead we took the pragmatic choice to extend the deficit reduction timetable. As tax receipts went down we let the automatic ebb and flow of government borrowing fill the gap. And it is simply not true – as our critics on the left pretend – that we are slashing and burning the state. By the end of this Parliament, public spending will still be 42% of GDP. That’s higher than at any time between 1995 and when the banks crashed, in 2008. And most importantly, reducing the deficit is essential, but as a means to an end. And that end is lasting, sustainable growth. Sound public finances are one piece of the jigsaw. But so are better skills, more apprenticeships, smarter regulation, a more competitive tax regime for business. All of which we are delivering.

And, yes, productive investment in our infrastructure too: energy, housing, transport. Creating jobs today and boosting the long-term strength of our economy: the extension of High Speed Rail; the new network of technology centres; the Green Investment Bank; Cross Rail – the biggest construction project in Europe. And, in an unprecedented break from the straitjacket of Treasury orthodoxy, an offer of £50bn worth of guarantees from central government to those people willing to invest in UK’s infrastructure and get construction going. No government has offered these kinds of guarantees, on this scale, ever before. And this year, Conference, we are spending more on capital than Labour spent, on average, between 1997 and 2010.

So let no one tell you that this Government isn’t straining every sinew to invest every available pound into UK infrastructure. We will and must do more to mobilise investment into our long-term infrastructure needs. I agree with that. Vince agrees with that. Danny agrees with that. But, as we all equally acknowledge, there are no cost-free, risk-free ways of finding such huge sums of money. Not at a time when Labour left the cupboard bare and we still have the second highest deficit in Europe, behind only Greece. Ours is a growth strategy guided by liberal pragmatism from a Coalition government anchored firmly in the centre ground. The deficit down by a quarter. Fixing our banks. A million jobs created in the private sector. Money back in people’s pockets. A stronger economy, a fairer society, enabling everyone to get on in life.

In the middle of the 20 Century, as Britain emerged from the ravages of war, its leaders were forced to think anew – just as we are now. The great liberal, Sir William Beveridge, established the modern welfare state, transforming this country forever. He said ‘Liberalism is a faith, not a formula’. And what he meant is that liberalism is a set of timeless principles, married to an unshakeable belief in human progress. That is why liberals never run from change. Our role remains the same today. In this Coalition Government, so much of the radical thinking on economic reform is liberal-led. Not just rebuilding the old economy. Not just repeating the same mistakes of the past. But building an economy that is resilient, sustainable, open, green. Ideas deliberated in this conference hall, now being administered by thousands of civil servants, in order to benefit millions of British citizens. The world’s first ever Green Investment Bank. The Business Bank; the bank levy; the Green Deal. Better schools and proper vocational learning. Greater shareholder democracy. Flexible working and shared parental leave. Tax cuts for working families, paid for by higher taxes on unearned wealth. We may be the smaller party, Conference, but we have all the biggest ideas.

And, remember: no one will know what we stand for unless we stand together. As our opponents argue among themselves and turn inwards it is even more important that we build on – rather than squander – the magnificent resolve and unity we have shown over the last three years. That unity is what our enemies most fear. That unity should make us proud.

Most importantly, liberals understand that economic renewal must be accompanied by social renewal. A stronger economy needs a fairer society. That is what this is about. Strong growth creates jobs and opportunities. If citizens are empowered and educated they are better able to grasp those opportunities. Their achievements, in turn, drive prosperity. Yet the Conservative and Labour governments of the past have, together, built a Britain characterised by intense concentrations of power. They allowed opportunity to be hoarded among elites. The untold story of the boom years is a story of lost potential. Previous governments placed unquestioning faith in London’s financial sector. And it led them to squander the talents and prospects of dozens of places, and millions of people. GDP may have been rising, but in some of our biggest cities, former industrial powerhouses like Nottingham and Birmingham, the private sector workforces were actually shrinking. One square mile may have been raking in astronomical profits. But we are a country of 100,000 square miles. And across the nation, communities suffered serious neglect.

And just as Labour and the Conservatives allowed our economy to become grossly unbalanced, they ignored deep social divides too. Despite the steps we have taken in Government, Britain remains a place where, for the vast majority of people, the life you are born into still determines the life you lead. It doesn't have to be like that. Yesterday I spoke to someone I've gotten to know over the last few years. A man called Kevin McLoughlin who owns a painting and decorating company in London. Kevin left school at 15. His dad was disabled. His mum was out of work. But he managed to get an apprenticeship. 40 years later and his business is thriving. He now gives the same opportunity to hundreds of youngsters. He told me his main motivation is simply to build a successful, profitable business. These young men and women are an asset to his company. But he also said, the reason he keeps doing it is he doesn't believe for one moment that British youngsters don't want to work - someone just needs to give them a chance. To be a liberal is to know that every man, woman and child is capable of remarkable things. That there is something extraordinary in every person. To be a liberal is to know that when we, as individuals, flourish, we, as a society, become greater than the sum of our parts.

And to be a liberal in government is to help every individual be the best they can be. A fairer society. That’s what the Pupil Premium is for. Billions of pounds to stop poor children falling behind. More free childcare. City Deals transferring economic powers from Whitehall to every corner of the UK. The biggest ever cash rise in the state pension; a generous new flat rate pension. And of course, raising the point at which people start paying income tax. So that millions of low earners pay none at all. And, as of April, millions of working people will be £600 better off. Liberal Democrat policies, delivered by Liberal Democrat ministers. Creating a stronger economy and a fairer society, enabling everyone to get on in life.

The Conservatives, on their own, will never deliver the fairer society – it’s just not who they are. Take the Mansion tax. Even now, when millions of families are feeling the pinch, they still refuse to ask people who live in multi-million pound homes to chip in a bit more. The Conservative party knows it needs to stay on the centre ground to have any chance of speaking to ordinary people’s concerns. At least the leadership seem to. But they just can’t manage it, no matter how hard they try. They’re like a kind of broken shopping trolley. Every time you try and push them straight ahead they veer off to the right hand side.

Did you notice the bizarre mixed messages from the Conservative party after Eastleigh? An article in one Sunday newspaper, promising: no lurch to the right. Others splashed with the promise to pull the UK out of the European Convention on Human Rights. Something only one other European country has done: Belarus. The Conservatives would actively take away rights enjoyed by British citizens just to appease their backbenchers. Yesterday Theresa May made a speech arguing the option of leaving the Convention should remain ‘on the table’. Well, I tell you, it won’t be on the Cabinet Table so long as I’m sitting round it. Conference, make no mistake, no matter what the issue: Safeguarding the NHS, creating green jobs, stopping profit-making in schools, preventing a return to two tier O Levels, the Liberal Democrats will keep the Coalition firmly anchored in the centre ground.

What’s the only thing as unlikely as the Tories delivering a fairer society? Labour delivering a stronger economy. Let’s recap. First they destroy the economy. They spend all the money. They leave us with nothing. Then they oppose every single saving the Coalition has been forced to make with not a single suggestion for how to raise money instead. Then they finally do come up with an idea. And it’s brilliant. But it’s the Mansion Tax – and we came up with it first. Labour are embracing opposition in the worst possible way. All they are interested in is striking poses and playing parliamentary games. They try to lecture us about taxing the rich. Even though taxes on the richest are now higher than they were every year under thirteen years of Labour. They conspired with Tory rebels to scupper Lords Reform, even though it was in their manifesto. By now I expected a re-energised Labour party, re-focused. The whole point of opposition parties is that they come up with ideas. But they haven’t. Under Ed Miliband and Ed Balls, Labour remain a blank page in British politics. These people were in the government that crashed the economy before. They’ve given us no apology. No solutions. No plans. No sign that they even understand what they did. The truth is, left to their own devices, they’d do it again. And, I’m sorry, but you do not stand tall for one nation when you still bow to the union barons.

You can’t trust Labour to build a strong economy. You can’t trust the Tories to build a fair society. Only the Liberal Democrats can deliver a stronger economy and a fairer society, enabling everyone to get on in life. Get used to those words, Conference. Get used to saying them. That’s the message I need you to deliver across the country. I need you to explain it to people each and every day, from now, for the next two years and beyond. Tell them that only the Liberal Democrats have the values and ideas to build a better future. Tell them that only we can deliver the stronger economy and fairer society Britain needs.

Conference, we are on the eve of an important anniversary: It is ten years since the invasion of Iraq. Ten years since we opposed that war. Standing on our own within Parliament but with the people, outside of it. As I look back I am reminded of all of the times that the Liberal Democrats have led, rather than followed. Whether under Paddy Ashdown, as early converts in the fight against climate change. Whether as a lone voice warning against corporate recklessness and greed. Whether as a pioneer for equal rights, irrespective of colour, gender and creed. Regardless of whether you are old or young; rich or poor; gay or straight. Those memories are proud memories. But there’s a big difference between now and then. In the past we may have been right – but we couldn’t do anything about it. Now we can. Think of equal marriage. Not just an idea in this hall, but the law of the land because of us.

We know that change is not always possible overnight. We know that reform is always met with anger by those who cling to the status quo. But we also know that, if you have the argument on your side. If you have the courage of your convictions, change is only a matter of time. Liberal Democrats, I have spent nearly three years asking you to hold firm. Three years urging you to remain steady under fire. And you have.

But today, Liberal Democrats, I have a different message for you: Win. Get back out there. Tell our side of the story. And we will win again. On the door step, in town halls, in government. Keep fighting for what we believe in. Keep winning. Building a stronger economy, a fairer society, enabling everyone to get on in life.

Nick Clegg speech at the Spring Conference Rally

Fri, 8 Mar 2013 23:30:00 GMT

I know it is unusual for me to speak at the start of the rally but there’s an issue I want to address head on.

Today is International Women’s Day. It is right that we come together as a party to celebrate the life changing advances in women’s rights both at home and around the world. Advances that Liberal Democrats championed in opposition and are delivering in Government.

But it is also right that – following the events of recent weeks – we take a long, hard look in the mirror. No doubt you will be aware of the recent allegations that have been made about sexual harassment in our party. I won’t talk about the specific allegations. They will be investigated thoroughly and independently and we must respect due process. And we must remember that due process is for the accused as well as the accusers.

But I do want to talk about the other side of this. The fact that the women involved feel let down. They deserved to have their concerns and allegations examined thoroughly and properly dealt with. But clearly, that has not always been the case.

When concerns were brought to the attention of members of my team we acted to address them. But this should not have just been the responsibility of a few individuals acting with the best of intentions. It must be the responsibility of the party as a whole to make sure we have the processes and support structures in place now and in the future.

We didn’t, and as a result we let people down. Liberal Democrats, that is not acceptable to me.

For a party that cherishes equality and women’s rights, we have no excuse for failing to live up to the highest standards in the treatment of women. The standards we – rightly – expect of others.

I joined this party because I believe in empowerment; freedom; dignity. I believe that, where an individual feels that they have been badly treated, or that power has been abused, they must have confidence that those concerns will be properly addressed.

That’s why we have set up two inquiries. The first to look at the allegations that have been made, led by Alistair Webster QC. And the second, independent inquiry, to look at our party’s procedures, organisational culture and how allegations made in the past have been handled.

We announced earlier today that this will be led by Helena Morrissey – who is known for her unmatched expertise in pushing equality and diversity at the top of the corporate world. And I will personally put in place whatever additional safeguards are needed.

In the meantime, we have set up a whistle-blower hotline, run by Public Concern at Work, for those who have information to come forward and to receive confidential advice. We have made counselling services available for those in need of support. And we will of course co-operate with the police if and when appropriate.

I will drive whatever changes are necessary to stop this ever happening again.

From now on, if you feel you have been a victim of harassment, it will be easy and straightforward to report it. And if you report it, it will be investigated fully and acted on effectively.

But the lessons we must learn are not just about the rules and processes we must put in place. This is about something bigger than that. It is about the way we conduct ourselves. It’s about treating one another with respect.

Sexism must have no place in the Liberal Democrats. Harassment must have no place in the Liberal Democrats. Abuse of power and position must have no place in the Liberal Democrats.

I won’t tolerate it. Our party should be better than that.

It is often said that Westminster is an old boy’s club. It is. Parliament is stuffed full, in both the Commons and Lords, of hundreds and hundreds of men and precious few women. Men outnumber women by nearly four to one.

Too often, barriers are put in front of talented and committed women to stop them progressing. It’s a male world, made by men for men, occupied for centuries by men and designed to work to the advantage of men. And Westminster is far from the only boy’s club in our country.

In business, in the legal profession, in journalism and in countless workplaces up and down the country, men dominate and men make the rules. Where the man at the next desk does the same job as you but gets paid more. Where you’re in a meeting full of men and you’re treated like your voice doesn’t count. Where you want to progress in your career but know that starting a family will make it impossible to get ahead.

In 21st century Britain there are glass ceilings for women everywhere you look. The loss of talent is immense. Our economy, and more importantly our entire society, misses out.

We need a culture change, in Westminster and beyond. If we want to lead that change then we have to set an example.

I am proud of what the Liberal Democrats are doing to make our country and our world a place where all women can have the same opportunities as men. The Liberal Democrats are building a stronger economy. To do that we need to harness the talents of women across the country.

And we are building a fairer society – where women are free to realise their potential.

Modern empowerment is about creating choices and spreading opportunity. This April, we will have cut taxes for millions of working people by £600, by raising the point at which you start paying Income Tax.

And because women are disproportionately in part-time work and low-paid jobs, it is women who benefit the most: as of this April, 1.3m women on low pay will no longer pay Income Tax at all.

We are levelling the playing field by introducing shared parental leave and flexible working – policies Liberal Democrats have campaigned on for years.

And they can be transformative. Right now, if a young couple are expecting a baby and they sit down to discuss how they will balance work and home. A life changing experience boils down to basic sums: How will we manage our income? How much will bills cost? How many hours do we need to work and where does childcare fit in?

And it’s an equation where the answer is so often rigged because, whichever way you look at it, the solution ends up being the mother doing more of the caring, and the father doing more of the earning – even if that isn’t what the young couple wants.

She gets the year-long maternity leave; after that, the expectation is she’ll continue to be the primary carer – so she’s the one who goes part-time. Lower pay, fewer shots at promotion. Work less, earn less.

It’s heartbreaking to watch women who feel forced to lower their ambitions for themselves. And it’s heartbreaking to see fathers missing out on being with their children.
As a father, I find the outdated assumption that men should go out and work and women should stay at home and look after the children frankly absurd.

So we are giving mothers and fathers more choice to decide for themselves how to balance their families and their careers. And we’re helping parents with childcare, with more free early years education for all three and four-year-olds and for two-year-olds from lower income families.

That’s not all we’re doing.

At the top of our biggest companies, Vince Cable is pushing for greater and greater female representation in the boardroom. And he’s getting results – there are now only seven FTSE 100 companies with all-male boards, down from 21 in 2010.

That’s important progress, but we have to keep up momentum. There was some worrying evidence reported today, which warns this may have stalled. And Lord Davies is right to say that, if we don’t make sufficient progress in the future, we may need to move to a more direct approach, like quotas.

For those whose working life is over we are levelling the playing field too. A generous new flat rate pension – designed and delivered by Steve Webb – means that women will no longer be punished in retirement for taking time out of their working lives to raise children or care for relatives.

We are creating a safer society for women, with measures to tackle domestic violence, forced marriage and stalking. And tonight, you’ll hear from Lynne Featherstone how we have put lifting women and girls out of poverty at the heart of our international aid policy.

Lynne and I recently visited a dusty, old school in Addis Ababa in Ethiopia, to see how an aid scheme to fund girls’ education that I announced in 2011 – the biggest of its kind ever – was being put into practice. The children travelled from miles and miles around to get to the school.

And despite the poverty, despite the conditions, the young girls we met there dreamed big. Every single one of them wanted to be an engineer, or a doctor, or a lawyer. One even said she wanted to be Prime Minister. I said I had no doubt she could achieve it.

To think that girls like those Lynne and I met in Ethiopia might have their ambitions crushed just because they are girls – that they might die younger and live their lives in poverty and servitude – is devastating.

In Ethiopia, fewer than one in six girls go to secondary school. And we know the difference education can make to their lives. Girls who are educated will earn more. They are more likely to marry later. They are more likely to get themselves and their babies immunised against fatal diseases and those who have a secondary education are three times less likely to be HIV positive.

To meet them, to hear their stories and their ambitions, brings home the difference we – the Liberal Democrats – can make to their lives. At home and abroad, the Liberal Democrats are helping women take more control over their careers, their money and their lives.

But there is one area where we have not provided enough opportunity for women – in our own ranks. We need more female councillors, assembly members, MSPs and MEPs. And we need more women Liberal Democrats MPs.

I’m proud that we’ve already selected Julia Cambridge in Chesterfield, Claire Thomas in Hull, and Judith Bunting in Newbury. I’m proud that Layla Moran, who spoke so passionately and eloquently at our last conference rally in Brighton, was the first of our Leadership Programme candidates to be selected in Oxford West and Abingdon.

And you’ll hear from another of our fantastic female Leadership Programme candidates, Sarah Yong, this evening. I know she’ll be hugely impressive on stage tonight. But she’ll be even more impressive when she’s in Parliament.

Our job now is to get these women, and those we select in the coming months, elected. And my challenge to you – in every selection committee you sit on, with every candidate you support and every vote you cast – is to consider how you can help us change for the better.

When I speak to our leadership programme candidates I know that the future of our party is bright. When I saw the huge numbers of young people pile through the doors of our HQ in Eastleigh, I could see that the future of our party is bright.

We must be a more diverse party. And we will be a better party for it.

It now gives me great pleasure to introduce someone who has smashed more glass ceilings and done more for women in our politics and our party than just about anyone – Shirley Williams.

Last weekend we passed a milestone for our party – our 25th anniversary. A quarter of a century since the Liberal Party and the SDP merged and the Liberal Democrats were created. We have come a very long way.

So many times in those two and a half decades we have been written off. But every time we confounded our critics. The history of the Liberal Democrats is marked with elections we were not supposed to win: Eastbourne; Ribble Valley; Kincardine and Deeside; Newbury; Christchurch; Eastleigh (the first time); Littleborough and Saddleworth; Winchester; Romsey; Brent East; Leicester South; Dunfermline and West Fife.

So how better to mark that milestone – to celebrate our birthday – than by doing what we have done over and over when the chips were down: win a crucial by-election.

What we did eight days ago was remarkable. People said that by joining the Coalition we would lose our identity, our soul. That it would make it impossible to win elections in our own right. Some said that we were finished.

We proved, once again, you should never write off the Liberal Democrats. But it wasn’t just about last Thursday.

For the three weeks beforehand, hundreds and hundreds of you turned out day after day, rain or shine, to make sure we won. We smashed our own by-election records left, right and centre:

-          More volunteers through the door every day than ever before;
-          More phone calls, from all over the country, than ever before;
-          More donations from individuals than ever before.

What was especially exciting was how many young people took part in the campaign – many of whom were not even born 25 years ago. Everyone who came to Eastleigh saw the enthusiasm, the energy and the vibrancy of our campaign.

I want to thank every single one of you for all your effort and commitment. I want to thank Keith House and his formidable Eastleigh team. Victoria Marsom, our superb campaign manager, and Hilary Stephenson, our deputy chief executive. Two brilliant women who masterminded our by-election campaign. And, of course, our new MP for Eastleigh – Mike Thornton.

The unspoken story of the last year has been that Liberal Democrats are winning again. In council by-elections in every corner of the country, Conservative-facing and Labour-facing, we have been making gain after gain after gain.

Last year, contrary to the impression you’d get from the media, we actually made an overall gain at council by-elections. And then came Eastleigh.

It was not a campaign we wanted to have to fight. The circumstances that caused it were not ones we would ever have wished for. But we dusted ourselves off and we said bring it on. Our opponents threw everything they had at us. Controversy dominated the headlines. And yet, despite all that, we won.

Now no one can be in any doubt: the Liberal Democrats are winning again. And we won’t stop here.

This May, we have county council elections across England. Many, once again, in areas where our principle rivals are the Conservatives. We showed in Eastleigh what we have always known – where we work we win.

So take nothing for granted. Work, work and work some more. If you do, we can and will win. In Eastleigh we showed something else too. We have a fantastic record locally – cutting council tax, creating jobs and protecting green spaces.

And we have a fantastic record nationally – cutting people’s taxes, boosting the state pension, more money for schools, and creating more apprenticeships than ever before.

In Eastleigh, we didn’t shy away from being in government, we embraced it and we campaigned on it with confidence. Every leaflet had a local message and a national message.

We won not in spite of being in power, we won because we are in power – locally and nationally.

I heard, shortly after the result, the Conservative Party Chairman Grant Shapps explaining that the Conservatives lost Eastleigh because governing parties don’t win mid-term by-elections. I know denial can be a powerful thing, but he seemed to have missed entirely what happened.

Well, Grant Shapps I’ve got news for you. The Conservatives might not be able to win by-elections when they’re in government. But the Liberal Democrats can. So when you speak to people ahead of May’s elections, tell them what you are doing for them and their community locally.

And tell them what we are doing nationally. Tell them how we are building a stronger economy and a fairer society, enabling everyone to get on in life. Tell them what we are doing and they will respond.

And when our opponents tell us we are finished, remember Eastleigh. Remember what we did, together, for three weeks in February. Remember the buzz, and the enthusiasm. Remember how it felt when the result was announced.

When people tell you we don’t have a chance, tell them: The Liberal Democrats are winning again.

Nick Clegg's New Year Message 2013

Fri, 28 Dec 2012 12:35:00 GMT

When Mo Farah approached the final stretch of the 10,000m final, who wasn't up on their feet, screaming at the TV?

When Nicola Adams beamed at the crowd after winning the first ever women's Olympic boxing, who didn't smile back? I was lucky enough to be there, and that's one I'll never forget.

Was there anything more British than that drenched choir in the Jubilee River Pageant, singing Rule Britannia! in the pouring rain?

Incredible images. Spectacular shows. Jaw-dropping personal triumphs.
And, above all, a year defined by shared experiences and national spirit too.

As for 2013, there will be more great moments, I'm sure.
And some big challenges as well.
Many families are still feeling the squeeze.
Look at the world around us and you see continuing economic uncertainty - particularly in our European backyard.
We are living through fluid, difficult times.

What I can tell you is that, whatever 2013 throws at us...
The Liberal Democrats will continue to anchor this Coalition in the centre ground...
And we will hold firm to our key purpose in this government:
The Liberal Democrats are building a stronger economy, in a fairer society, enabling every person to get on in life.

Over the holidays people want a break from politics as much as from work - I know that.
But as you look to the year ahead, you also deserve the reassurance that your government has a plan to steer the country onto better times - and that we're going to stick to it.

So I want you to hear it from me, on behalf of the Liberal Democrats, that this Coalition Government is not going to lurch one way or the next.
We will stay the course on the deficit.
We will cut income tax bills and help with childcare bills.
We will invest in boosting jobs and we'll reform welfare to get people into work.
A stronger economy.
A fairer society.
Where everyone can get on.
That's what we're about.
That's what I want 2013 to be about.
And, however you usher it in, I hope you have a fantastic time...
Happy New Year.

Nick Clegg speech to CentreForum at Royal Commonwealth Society

Mon, 17 Dec 2012 15:00:00 GMT

Tomorrow it will have been five years since I became leader of the Liberal Democrats. Roughly half of that time has been spent in opposition, and half in government.

I don’t suppose it’s exactly controversial to suggest that I and my party have changed over that period. Today I will argue that we’ve changed for the better.

Because my purpose here today is to explain, clearly and simply, what the Liberal Democrats offer the people of Britain, and why it’s an offer which speaks to modern Britain.

Our offer is different from that of the Conservatives.

It’s also different from Labour’s offer. That won’t surprise you.

What will surprise you, perhaps, is that it’s different too from the offer of the Liberal Democrats in opposition.

What I want to set out is a case for why Britain should be governed from the centre ground. A case for both a stronger economy and a fairer society, because we can have both – they are not mutually exclusive.

Serious parties know that that the centre ground is the only place from which Britain can be governed. And serious leaders try to keep their parties in the centre ground.

But in times of economic distress, when people and parties are under pressure, when there are no easy answers, no silver bullets, only tough choices – at times like these, politics quickly becomes polarised as the homing instincts of ideologues to the right and the left kick in.

The Tory right dreams of a fantasy world...

where we can walk away from the EU, but magically keep our economy strong...

where we can pretend the world hasn’t moved on, and stand opposed to equal marriage...

where we can refuse to accept the verdict of the British people and pretend the Conservatives won a majority of their own.

The Labour left lives in a different, but no less destructive, fantasy world...

where their irresponsible borrowing in government can be remedied by borrowing more...

where every budget reduction can be opposed without explaining where the money should come from...

where games can be played with political reform and EU budget policy without long-term damage to their credibility.

It is at times like these that Britain needs a party rooted in the centre ground, which anchors the country there.

The Liberal Democrats are that party. We’re not centre ground tourists. The centre ground is our home.

While the tribalists in other parties desert the centre ground under pressure, the Liberal Democrats have done the reverse. Under pressure, we’ve moved towards the centre.

Governing from the centre ground means applying pragmatic liberalism to the policy challenges of our time.

But pragmatic liberalism is not the same as dogmatic liberalism. And that is what distinguishes Liberal Democrats in opposition from Liberal Democrats in government.

The greatest strength of our party is our idealism. But in our strength lies our weakness – because sometimes idealism can turn into dogma, or at least an unwillingness to engage fully with the day-to-day experiences and perspectives of the British people we seek to serve.

A party of government knows that workable solutions need to be grounded in values – but also that they must respond to the hopes and fears of reasonable people.

This is the lesson we’ve learnt in government. The challenges of governing at a difficult time have given us a harder edge and a more practical outlook.

It’s worth pausing here for a moment and making a point about the immediate future of my party. There are two alternatives.

If we are to become a more permanent fixture of government, then it will be, at least at first, as a partner in coalitions.

That means embracing the realities of coalition government, and becoming better and better at negotiating successfully on behalf of those in Britain who expect us to stand up for them.

It means accepting compromise.

It means putting up with people who object that we haven’t got everything they wanted, and who can’t see the value in getting much, much more than we ever could in opposition.

Because that is the alternative – a retreat to the comfort and relative irrelevance of opposition.

But – and let me make this very clear – choosing opposition over government is not a values-free choice.

It is a dereliction of duty. Because if our values and principles matter to us, we should want to see them deployed for the good of the British people. It’s not about us, after all. It’s about the people we serve.

Let me offer an example of how, in government, the Liberal Democrats have tacked towards the centre, not away from it.

In opposition, it would have been easy to decry the less pleasant consequences of austerity. No matter how rational opposition parties try to be, it’s just too easy, too tempting, to go for the quick win. That’s why opposition parties are so good at spending ‘savings’ two, three or four times over. Play budgeting with play money.

But in government, we’ve not been able to do that.

We know from experience now: if you protect the health and education budgets, as we correctly did, you can’t oppose every reduction in the welfare budget.

If you want to protect welfare as well, you’ve got to accept that you’ll end up gutting the crime budget, or the BIS budget, or local government. We get that now. We’ve learnt to live with a host of invidious choices.

Another example: in these distressed economic times, the ideologues to left and right find comfort in the shibboleths of their preferred economic doctrines and turn their backs on evidence and reason.

So the prescription of the right is all supply-side – deregulate, cut, get out of the way.

The prescription of the left is all demand-driven – tax, borrow, spend, intervene.

In government, we’ve rejected these Manichean alternatives and stuck with a more flexible approach.

Yes, we have to cut expenditure to bring down the deficit. Otherwise we put ourselves in hock to the bond markets, drive up interest rates and impoverish future generations.

And yes, we have deregulated:

We’ve stripped back accountancy rules for the smallest businesses.

We’ve simplified the rules around maternity leave and flexible working.

We’ve extended the qualifying period for unfair dismissal so businesses can be confident about hiring new staff.

But we have also taken steps to drive demand:

We’ve put money back in the pockets of the low and middle income families we know are most likely to spend it with our income tax cut.

We’ve taken every opportunity to increase investment in capital – infrastructure, roads, rail, schools

We’ve established the Regional Growth Fund, the Growing Places Fund and multi-billion pound Treasury guarantees for investment to unlock private sector growth.

We have resisted the false choice between a state that steps in and assumes control, and a state that backs off and washes its hands.

We have embraced the challenge of building an enabling state that acts where necessary and backs off where not…

Promoting, inspiring and facilitating growth and opportunity.

But recognising that the strong economy we want can only be built on the back of hard work and responsibility by citizens themselves.

So we’ve been on a journey. But our journey has been towards the centre ground, not away from it. Because the centre ground is where liberals are best able to fulfil our purpose in politics.

For Liberal Democrats, our purpose is to enable every person to be who they want to be and to get on in life. Freedom and opportunity combined. Or what the philosophers might call ‘substantive freedom’.

To deliver on our purpose, we need to build a stronger economy in a fairer society.

We need a stronger economy because without resilience and sustainable growth, our economy will never be able to deliver the jobs and the opportunity people need.

We need a fairer society because unless we ensure everyone has the means to get on, some will be left behind while others race ahead, and our society will become increasingly unfair and unequal.

And so every policy we promote has to make our economy stronger and our society fairer.

What underpins our ‘stronger economy, fairer society’ agenda, and gives it a distinctly liberal flavour, is a very clear conception of the appropriate balance between the role of the state and the role of the citizen.

For us, that relationship is clear: it is the government's responsibility to ensure every person has the opportunity to get on, but every person must take personal responsibility for using those opportunities by working hard.

We cannot absolve people of their responsibility for improving their own lives, because to do so would be to turn them into dependants – and so deny their agency and compromise their dignity. You can’t build a stronger economy with people lost to dependency.

At the same time, we cannot wash our hands of those without the means and advantages to get on in life alone. To do so would compromise their potential and diminish their dignity – a tragedy for them and a waste for society. You can’t build a fair society when you deny some the chance to fulfil their potential.

Our commitment to opportunity has deep roots. Liberals have an unshakeable belief in human potential. We know that children born in the most difficult circumstances can rise above them and live the fullest of lives – but only if they’re given the help to do so.

Parents know what I mean. You look at your children and yearn with hope for their future. You do whatever you can to give them every advantage. You worry about the obstacles they will face, and you plan to help them overcome them all.

But equally, parents know that kids need to learn to look after themselves. Slowly but surely, we guide them into independence and adulthood. Because we know that to be happy, they will need the means and capacity to run their own lives – and pass their love and skills on to the grandchildren they might give you one day.

Parents know instinctively that a balance of opportunity and responsibility are what human beings need to thrive. Why would the state treat people otherwise?

And so we need both – a stronger economy and a fairer society; more opportunity and more responsibility.

Every one of our policies needs to meet this test.

Nick Clegg statement on the Draft Communications Data bill

Tue, 11 Dec 2012 05:01:00 GMT

“There were significant concerns about the draft bill, which is why I insisted that it be put before the Joint Committee.
“This is a very difficult issue and I welcome the Committee's thoroughness.

“Their report makes a number of serious criticisms – not least on scope; proportionality; cost; checks and balances; and the need for much wider consultation.

“It is for those reasons that I believe the Coalition Government needs to have a fundamental rethink about this legislation.

“We cannot proceed with this bill and we have to go back to the drawing board.

“We need to reflect properly on the criticisms that the Committee have made, while also consulting much more widely with business and other interested groups.

“The Committee did not, however, suggest that nothing needs to be done. They were very clear that there is a problem that must be addressed to give law enforcement agencies the powers they need to fight crime. I agree.

“But that must be done in a proportionate way that gets the balance between security and liberty right. Any modernisation of the powers, including possible new legislation, must meet the concerns of the Joint Committee by having the best possible safeguards and keeping costs under control.”

Nick Clegg backs plans to allow same sex marriage in churches

Fri, 7 Dec 2012 22:43:00 GMT

“I’m a supporter and always have been of same sex marriage, because I think marriage is a wonderful thing, a wonderful institution.

“It’s a demonstration of a couple’s commitment to each other, of their loving relationship.

“Every couple, gay or straight, who wants to celebrate that in the eyes of society should be able to.

“It’s very important to remember that under our plans we’re not going to force any church or any religious denomination to hold same sex marriage ceremonies if they don’t want to.

“But I do think it’s time that we allow any couple that want to, no matter who they are, to enjoy civil marriage.”

Commenting further, long standing campaigner for equal marriage and Liberal Democrat MP for St Austell and Newquay, Stephen Gilbert said:

“It’s very welcome news that churches which would like to conduct ceremonies for same-sex couples will be allowed to under the Coalition’s proposals.
“The important point is that it will be for churches to decide and no church will have to do anything they don’t want to.
“Liberal Democrats have long fought for equal marriage and now we’re in government we’re committed to making it happen.
“Love is the same, straight or gay, so the civil institution should be the same too. Widening equal marriage to allow churches to opt-in is a very positive step forward.”

Nick Clegg: Royal succession rules will be changed

Tue, 4 Dec 2012 21:06:00 GMT

This confirmation means that the Government will seek to introduce the Succession to the Crown Bill in the House of Commons at the earliest opportunity allowed by the parliamentary timetable.

Nick Clegg said:

“This is a historic moment for our country and our Monarchy. People across the realms of the Commonwealth will be celebrating the news that the Duke and Duchess of Cambridge are expecting their first child.

“We can also all celebrate that whether the baby is a boy or a girl, they will have an equal claim to the throne. It’s a wonderful coincidence that the final confirmation from the other realms arrived on the very day that the Duke and Duchess of Cambridge made their announcement.

“The Government will soon introduce the Succession to the Crown Bill which will make our old fashioned rules fit for the 21st Century. It will write down in law what we agreed back in 2011 – that if the Duke and Duchess Cambridge have a baby girl, she can one day be our Queen.”

Nick Clegg's Leveson statement to the House of Commons

Thu, 29 Nov 2012 21:13:00 GMT

With permission Mr Speaker, I would like to make a statement on the Leveson Inquiry.

Mr Speaker, I’m grateful for the opportunity to address the House. I know it’s unusual – but this is an unusual debate. The terms of reference for Lord Justice Leveson’s Inquiry were agreed on a cross-party basis. As the House has heard, we intend to proceed on a cross-party basis. And so I think it is right that Parliament is clear on the initial views of the Government across the Coalition.

First, let me say that I agree with a huge amount that has already been said by the Prime Minister and the Leader of the Opposition, which bodes well for the cross-party talks taking place later this afternoon.

I would like to thank Lord Justice Leveson for his extremely thorough report. In my view there are two big, liberal principles at play in this debate: on the one hand, the belief that a raucous and vigorous press is the lifeblood of a healthy democracy; on the other, the belief that the vulnerable, the innocent and the weak should be protected from powerful vested interests.

A free press does not mean a press that is free to bully innocent people or free to abuse grieving families. What I want now is for us to strike a better balance between these two liberal principles so that our media can scrutinise the powers that be, but cannot destroy innocent lives. So that the journalists up in the press gallery can hold us – the politicians – to account, but we can look up to the individuals and families in the public gallery knowing they have the right protections in place.

I have always said that I would support Lord Justice Leveson’s reforms, providing they are proportionate and workable. I will come onto why – at first glance – I believe that to be the case for the report’s core proposal: for a tougher system of self-regulation, supported by new, independent checks, recognised in law.

But I don’t want to disguise the fact that I do have some specific concerns about some specific recommendations. For example on data protection rules, and any changes to the way in which journalists can use personal information when reporting in the public interest. And on the suggestion that it should be Ofcom who independently verifies the new press watchdog. Ofcom has a key role in regulating the content of broadcast media and I’m yet to be convinced that it is best placed to take on this new, light touch function with the print media too. Lord Justice Leveson has said this function could be fulfilled by a new body.

However, on the basic model of a new self-regulatory body, established with a change to the law in principle, I believe this can be done in a proportionate and workable way.

I understand the entirely legitimate reasons why some members of this House are wary of using legislation. I have thought long and hard about this. I’m a liberal, I don’t make laws for the sake of it - and certainly not when it comes to the press. Indeed, when I gave my own evidence to the Inquiry, I made the point that, if we could create a rigorous, independent system of regulation which covers all of the major players, without any changes to the law, of course we should.

But no one has yet come up with a way of doing that. Lord Justice Leveson has considered these issues at length. He has found that changing the law is the only way to guarantee a system of self-regulation which seeks to cover all of the press. And he explains why the system of sticks and carrots he proposes has to be recognised in statute in order to be properly implemented by the courts.

What is more, changing the law is the only way to give us all the assurance that the new regulator isn’t just independent for a few months or years, but is independent for good. Someone will need to check, periodically, that the independence of the regulator hasn’t been weakened over time. The report explains why that needs to be set out in law.

And, as Lord Justice Leveson himself says: ‘this is not and cannot be characterised as statutory regulation of the press’. This is a voluntary system, based on incentives, with a guarantee of proper standards. It is not illiberal state regulation.

It’s worth dwelling on that point for a moment. Because while there has – rightly – been a lot of discussion about the risks of legislating, there have so far been some key arguments missing from this debate.

First, the press does not operate in some kind of lawless vacuum. It has to abide by the law. In many instances it is already protected by the law and I agree with the report that we should actually go further in enshrining the freedom of the press in statute.

Second, it’s been suggested that using law will blur the line between politicians and the media. But we mustn’t ignore the extent to which that line has already been blurred under the current system of self-regulation. It’s the status quo which has allowed such cosy relationships between political and media elites to arise in the first place. And let’s not forget, of the five PCC Chairs, three were serving parliamentarians who took a party whip. Far from allowing greater overlap, the laws that have been proposed give us a chance to create a hard wall between politics and the press.

Third, as the report notes, there is already an example of statutory underpinning in the Irish Press Council, which has been accepted by a number of UK newspapers. The Daily Mail, the Daily Mirror, the Daily Star, The Sun, the Sunday Times, the Mail on Sunday and the Sunday Mirror are all members - they all publish Irish editions. I haven’t yet heard these papers complain of a deeply illiberal press environment across the Irish Sea.

Of course, neither I nor anyone can be certain of exactly how these proposals will look until we have worked up the detail. The two tests I have set – that any reforms must be workable and proportionate – will need to be met in practice as much as principle. And, if they are not, I will be the first to sound the alarm. In that event, we would need to consider alternatives. The absolute worst outcome in all of this would be for nothing to happen at all.

But we mustn’t now prevaricate. I – like many people – am impatient for reform. And, bluntly, nothing I have seen so far in this debate suggests to me we will find a better solution than the one which has been proposed. Nor do I draw any hope from the repeated failure of pure self-regulation that we’ve seen over the last 60 years.

We need to get on with this without delay. We owe it to the victims of these scandals, who have already waited too long for us to do the right thing. Too long for an independent press watchdog in which they can put their trust. I am determined we do not make them wait any more.

I commend this statement to the House.

Nick Clegg’s speech to ELDR Congress

Fri, 9 Nov 2012 22:02:00 GMT

ELDR is an alliance of Liberal sister-parties across Europe. The annual Congress is being hosted this year by Fianna Fáil.

Please find a transcript below:

It is a pleasure to be here in Dublin. I want to begin by paying tribute to the tireless work of Graham Watson as ELDR President and to the whole ELDR team for making this Congress possible. And I hope to be able to welcome to you to the 2013 ELDR Congress in London. I also want to say a big thank you to Micheál Martin and Fianna Fail for their excellent hospitality and for making sure that that this Congress will, I have no doubt, be a real success. And I would like to congratulate Mark Rutte and the VVD on their recent election results. I know Mark couldn’t make it today but he and I have been good friends for some time and it’s great to see him and his VVD colleagues back where they deserve to be – in government.

Congress, I am particularly pleased to be here today, because it is my strong conviction that it is at times of great turmoil that Europe needs liberals the most. In the middle of the 20th Century those who came before us took a continent scarred by war, a place of great uncertainty, fear and hardship, and set about building a continent whose citizens would live together in peace, work together in mutual respect, and grow together in shared prosperity. Whatever the challenges that face the European Union, our nation states and our shared institutions, it is liberals who will make sure we always rise to those challenges.

Europe needs liberals now more than ever. The shared challenges we face are ones that can only be tackled when like-minded people across Europe work together: how to create jobs, particularly for our young people, and bring back prosperity; how to tackle climate change and build the new, green economies we need for our future; and how to keep our citizens safe in an uncertain and fast changing world. Those at home and abroad who want us to pull up our drawbridges and remove ourselves from the outside world, to cut us off and go it alone, cannot rise to those challenges. We must remain open, outward-looking and optimistic. Pulling together, not falling apart.

I haven’t come here to rehash the arguments we all know too well about the future of the Eurozone, about the budget or the bailouts. At a time of great division in Europe I want to talk about the things that unite us: as people; as nations; and as liberals. Europe needs liberals now more than ever because it is only with agreement, co-operation and shared priorities that we will rise to these challenges.

YOUTH UNEMPLOYMENT

Liberals have always played a key role in challenging consensus, pushing for change and coming up with new, radical thinking. One of the gravest threats to the long-term future of our economies and societies is youth unemployment. Millions of young people across Europe are leaving education and finding either that there are no jobs, or that employers who are hiring are not prepared to take a chance on them. True, the rates of youth unemployment vary across Europe, but the underlying problem is one that is facing every single country in the Western world. Here in Ireland, almost one in three young people is unemployed. In the UK, we have a million young people not in work, education or training.

Youth unemployment is not only an economic tragedy, it is a slow burning social disaster. Research shows that the more time you spend unemployed when you are young the worse you will do over your working life. It crushes the hope of young people who send out application after application but rarely ever receive a reply let alone an interview. And it means businesses miss out on the enthusiasm, innovation and productivity of a generation.

Liberals believe fundamentally in spreading freedom and opportunity. But there is no quick fix or silver bullet. And no one country can claim to have all the answers. So we need to learn from each other. That’s why next week I am travelling to France to discuss youth unemployment with the Prime Minister, Jean-Marc Ayrault. And it’s why much of what we are doing in the United Kingdom is influenced by colleagues overseas.

In the UK, Liberal Democrats are leading the way in tackling youth unemployment. Because we understand the importance of equipping our young people with the skills they need to thrive we are overseeing a massive expansion of apprenticeships. But it would be wrong for us to pretend that we are taking on these problems without benefiting from the experiences and ideas of our fellow liberals and neighbours.

For example, in the UK, and despite the pressures on budgets, we have developed a £1bn Youth Contract, which will provide nearly half-a-million new opportunities for 18-24 year olds. Targeted job subsidies for employers who will give young people a chance, much like those that operate in Belgium and Netherlands. New work experience placements to break the cycle of joblessness, like those we see across Sweden, Finland and Denmark. And a new programme to help the most disengaged 16 and 17 year olds - getting them back to school or college, onto an apprenticeship or into a job with training. In fact, our apprenticeship scheme unashamedly seeks to emulate the phenomenal success of Germany’s long-standing apprenticeship schemes. The pool of radical ideas and new thinking is vast when we choose to look beyond our national borders. And I am delighted to see much of this radical thinking being done here in Ireland by our hosts Fianna Fail. Encouraging entrepreneurship. Expanding the national internship service. And giving new support to train young Irish people in the skills they need to succeed.

Europe needs liberals because we believe fundamentally in spreading freedom and opportunity, and too many of our young people have too little of both. As we rebuild our economies we must make sure the skills and livelihoods of our young people are put at the top of our priorities.

GROWTH

Europe needs liberals because we understand the way the world is changing. Globalisation and the information revolution have transformed the way we communicate and do business. They have spread democracy and empowered parts of the world to grow at remarkable rates. And they have helped fuel the great rise of the emerging powers whose economic and political might grows daily. Liberals know that we in Europe must adapt to this modern world with openness as our watchword. We are open minded internationalists.

Where other politicians see risk, we liberals see potential. Where other parties see threats, we liberals see opportunity. The opportunity to spread prosperity by completing the single market in services and digital, unlocking over €4,000 in extra income for every European household; the huge growth potential for Europe to lead the world in research and development and high tech industries, by unlocking investment and venture capital for our innovators and through agreeing a new EU-wide patent; and the chance for us to use our collective weight to drive forward free trade agreements for the benefit of European businesses and consumers. Deals like the recent EU-South Korea Free Trade Agreement that, in just one year, has increased European exports by €1.7bn; or game-changing deals with some of the biggest markets in the world, such as Japan and the United States.

In fact, if the EU can complete all of its current free trade agreements with third countries, it would permanently add more than 2% to the EU's GDP or some €275 billion annually, and create more than 2m new jobs. I would like to pay particular tribute to our friends in the European Commission for keeping the single market and free trade agenda moving forward, and urge them to keep it up, to go further and to go faster.

GREEN AGENDA

When it comes to understanding how the world is changing, there can be no clearer example than climate change. Some people say that at times of hardship and economic uncertainty we cannot afford to care about the environment. It is a foolish and dangerous argument. Climate change is no less a threat to us when times are tough. If we shrink from the task of cutting our emissions then our legacy to our children and grandchildren will be disaster. If we want our children and grandchildren to live in peace and prosperity then we must act now and act decisively before it is too late. So we must tackle climate change now with the same urgency, if not more, than we have in the past.

Europe needs liberals because we understand that the only way we can tackle a problem of this scale is by working together, leading by example and pooling our resources. But Europe needs liberals not just because we understand the urgency of the challenge but because we see the opportunity it presents. We are all looking for ways to get our economies growing and ways to create jobs that last. The green goods and services market is a key part of the answer. It is one of the fastest growing sectors in the world, worth over €4trillion today, and all the projections are that it will grow and grow at an increasing rate.

I’m proud that companies in Britain, including in South Yorkshire where I am an MP, are at the cutting edge of green innovation. In the UK, the Liberal Democrats in Government are expanding our renewables sector. Rolling out a massive programme of energy efficiency in our homes and businesses. And creating a revolutionary Green Investment Bank. An idea developed by Liberal Democrats, put in our manifesto, argued for in our coalition negotiations and being delivered by a Liberal Democrat Secretary of State.

At the European level, we liberals must come together to ensure that Europe taps into the huge potential of green jobs in this area. Through driving forward new ambitious emissions targets. Through implementing in full the Commission’s Low Carbon Roadmap. And through investing in low carbon energy infrastructure to develop a European supergrid, linking up our countries to enjoy efficient, clean and secure energy, just like the exciting ideas for interconnecting Britain and Ireland, so that excess wind energy in Ireland can be transported and used in the UK.

There is so much to do to deliver a full low carbon energy transformation, to unlock millions of green jobs and to establish thousands of world leading clean tech businesses, and it is Europe’s liberals who must be bold, ambitious and radical to make sure this become a reality.

SECURITY AND JUSTICE

As liberals we also understand the importance of working together to keep our citizens safe in a dangerous and uncertain world. The UK and Ireland, two nations with a shared land border, are painfully aware of the value of cross-border co-operation on policing and security. We all know that cross border crime and terrorism is a major threat to us as individuals, as nations and as a European community. And we know that when crime crosses borders, justice should too.

So together we have built the world’s most advanced system for cross-border police and justice co-operation. Co-operation that in 2010 cracked open a pan-European human trafficking network, rescuing over 180 children; that last year broke up the world’s largest online paedophile ring, freeing over 200 children who were being systematically abused; that, as we speak, is investigating hundreds of serious and organised international crimes, like the recent and tragic murder of a British family in Annecy, in France.

There is a live debate in the UK on the level of UK involvement in European police and justice measures. The Government has said our current thinking is to opt out of these measures en masse, before seeking to rejoin those measures which are important to our safety and security. It’s true that some of the measures may be old, out of date or defunct. And yes, some need improvement. But I want to be absolutely clear: a final decision has not been taken, and the Liberal Democrats will only agree to doing that if I am satisfied we can opt back in to the measures needed to protect British citizens. Liberal Democrats in the UK’s Coalition Government, like liberals across Europe, understand that we are all safer when we work together.

CONCLUSION

So as we face this array of economic, environmental and security challenges, it is fitting that the ELDR Congress should be held here in Dublin. As Ireland prepares to take on the presidency of the European Union, there can be no doubt its economy is coming back. All the indications point to this: growth in exports and in agriculture; a well-educated young population; continued investment from the technological industry; a country gaining increasing confidence from the financial markets due to its strong implementation of EU and IMF-supported programmes.

But there is a long way to go for all of us. European countries can’t deal with these major challenges – growth, jobs and youth unemployment, climate change and security – by themselves. Europe needs liberals because we understand that the challenges that face us all right now require a collective, liberal response. Europe needs liberals because we understand that it is only by spreading freedom and opportunity that we will thrive as individuals, as nations and as a continent. Europe needs liberals because we understand that all of us are richer, greener and safer when we stand together, and that we are all weaker when we stand apart.

Nick Clegg speech on his vision for the UK in Europe

Thu, 1 Nov 2012 15:42:00 GMT

This autumn, the great debate on Britain's role in Europe has, as ever, generated a lot of heat yet little light.

We want to be in, we want to be out;
We want to repatriate powers, use our veto, keep our pint, save our pound, protect our strongest export market...
Be critical of Germany, not end up like Greece, feel proud of our role in creating peace in Europe, yet cynical about an acronym winning the Nobel Prize.
And just last night, in a House of Commons debate on the European Budget, we saw Europe turned into a political football as political opportunists sought to score a political point.

But when it comes down to it, there is a serious debate to be had...
And we do have some serious decisions to make.

In Europe today, there are effectively three places you can be.
They fit together like rings around a circle.

There’s the core:
Where the Eurozone countries are now pulling together more closely;
Integrating further to shore up the single currency.

Then there is the ring around that – the inner circle:
The states who aren’t in the euro, but are members of the EU.

And the outer circle:
Where you find the accession countries, EEA countries, Norway, Switzerland, and so on.

The UK is in the inner circle – but the terrain is shifting.
The core is tightening – to what degree we don’t yet know.
Some states on the outside are seeking, over time, to head further in.
And, as a different Europe emerges, over the coming years...
We have to decide where the UK fits within it.
What role will we play in our new neighbourhood?

Very few people are now suggesting we move into the centre.
Joining the Euro will not be in our interests anytime soon – certainly not in my political lifetime.

But there are forces who want to pull us towards the edge;
Towards the outer circle.
Reducing the extent to which we cooperate on the continent;
Happy for the Channel to widen.
Hoping, even, that it becomes a gulf.

Today I want to explain why that is a very dangerous position...
Leaving the UK isolated and marginalised.
And I want to offer a more compelling alternative:
A strong UK, influential in Europe and so more influential in the world;
Working with our allies on the issues that matter to our prosperity and security;
Driven by pragmatism, as opposed to dogma, in these debates.
Unambiguously in the inner circle.

That will require an approach that is engaged and balanced.
So not accepting every request or regulation sent from Brussels.
But, equally, cooperating constructively where it is in our national interest to do so.

Iin our immediate future, that means three things:
One: a tough EU Budget settlement.
Two: defending and deepening the Single Market – and our place in it – for the sake of growth and jobs.
Three: taking the decisions on law and order cooperation that will keep British citizens safe.

The Europe debate will continue to run and run, as the Eurozone integrates further – that is certain.
And in the UK we will find ourselves talking about it, thinking about it, arguing about it frequently over the coming years.
But right here, right now the UK’s priorities can be easily summed up:
Tough on the money; more jobs; more criminals behind bars.

Before I turn to those, I want to focus on the proposal doing the rounds that...
The best way to improve the UK’s position in Europe...
Is to renegotiate the terms of our relationship with the rest of the EU.
We should opt out of the bad bits;
Stay opted in to the good bits;
And the way to do that is a repatriation of British powers.

That seems very reasonable; in fact, it’s a pretty seductive offer – who would disagree with that?

But, look a little closer:
Because a grand, unilateral repatriation of powers might sound appealing...
But, in reality, it is a false promise, wrapped in a Union Jack.

Let me explain why.

I am all for reducing frivolous and expensive European rules.
At the weekend we heard stories about proposals to regulate the shoes and jewellery British hairdressers wear.
That kind of thing is clearly too much.
Having worked at the heart of the EU, I can certainly give you some more examples.

And, more profoundly, we need to refocus the EU...
So it does more where it adds value, and less where it doesn’t.
I’m very proud of this Government’s track record in working with our European partners to do that.
Whether that’s reducing EU red tape for small business;
Or securing agreement on a European Patent after 23 years of negotiation;
Or getting long overdue agreement to devolve powers over fisheries policies.
But there is a lot more we need to do to get the Europe focused on the policies that create economic growth and make it more competitive.
And I want the UK leading that.

So I do not think the EU is perfect by any stretch and I’m a big advocate of EU reform.
But this idea that we should – or could – extract ourselves from the bulk of EU obligations is nonsensical.
It is wishful thinking to suggest we could - effectively - give ourselves a free pass to undercut the Single Market...
Only to then renegotiate our way back in to the laws that suit us.
The rest of Europe simply wouldn’t have it.

What kind of club gives you a full pass, with all the perks...
But doesn’t expect you to pay the full membership fee or abide by all the rules?
If anyone else tried to do it...
If the French tried to duck out of the rules on the environment or consumer protection...
If the Germans tried to opt out of their obligations on competition and the single market...
We would stop them – and rightly so.

And let’s be honest:
Many of the people who advocate repatriation are the same people who want us out of Europe – full stop.
For them, no rebalancing of powers will ever be enough.
And so there is no hard border between repatriation and exit...
Because, for these people, repatriation is pulling at a thread – and they want to unravel the whole thing.
Just look at the last few weeks:
As soon as we start talking about repatriation, we descend into the in-versus-out debate.

And heading to the exit would be the surest way to diminish the UK.
Because what then?
Become the next Norway or Switzerland?
Advocates of repatriation point to these nations and say they have the best of both worlds:
Access to Europe’s markets...
Without an assault on their sovereignty.

But these countries sit and wait for bills and directives from Brussels...
Duly paying their bit, changing their laws...
But with absolutely no say over Europe’s rules:
No political representation; no national voting rights; no voice at all.
They work by fax democracy:
You find your instructions on the machine in the morning, and you follow them.
They have no meaningful sovereignty in the EU.

Norway has had to implement three quarters of all EU legislation...
Including the Working Time Directive.
They pay into the EU Budget: for the specific programmes they participate in and for development grants to new member states.

Switzerland has no guaranteed access to the Single Market.
They have to negotiate on a case-by-case basis.
And right now they are having to match – even surpass – rigorous EU banking regulations...
Just to protect business between Swiss and European banks.

To go down that route would be a catastrophic loss of sovereignty for this nation.
I want better for the UK.

And our other allies want better for us too.

It’s long been the case that the UK stands tall in Washington...
Because we stand tall in Brussels, Paris and Berlin.
There is a great deal to our enduring special relationship.
But, for the Americans, the UK’s leverage on the continent has always been part of our appeal.
That will remain the case - no matter who’s in the White House after next week.

And while it is, of course, important that we form new alliances in the world...
In Asia, India, Latin America...
The idea that we can float off into the mid-Atlantic...
Bobbing around in a new network of relationships...
Without a strong anchor in Europe...
While countries around the world – incidentally – are working more and more in regional blocks...
Is clearly not a sound strategy in a fast-moving, fluid and insecure world.

Those who advocate turning our back on our neighbours…
Seem to think we have a ready-made web of alternative alliances…
A set of international agreements with other countries that could readily sustain us.
But that isn’t how it works.

The Commission has just confirmed, for example, that if the UK suddenly left the EU…
We would instantly lose access to every EU trade agreement with a third party.
Agreements with 46 countries are in place, and agreements with a further 78 are under negotiation.
Our membership of the EU gives us access to all of them.
And that includes almost every Commonwealth country.
The EU is looking at opening negotiations with nine more countries, two of which, Japan and the USA, would be very significant.
Do we really want to leave the EU, lose these free trade arrangements for UK exporters, which go above and beyond WTO rules...
And potentially have to negotiate that all from scratch?
The UK government would spend a decade doing that and nothing else.
And can anyone seriously suggest that Japan, or South Korea, or Brazil would cut us a better deal as an island of 60m people than as a continent of 500 million?

Ironically, the people who do understand this strength-in-numbers argument are the Scottish Nationalists.
They may be trying to pull away from the UK...
But they’re going around saying an independent Scotland would have automatic entry into the EU – an assertion that has no basis in fact...
Precisely because they see how important it is to Scottish prosperity.
And they know a separate Scotland, seeking re-entry into the EU, would lose the extra benefits it gains from being part of a big member state.
They don’t want to face what might happen to Scotland’s influence on fishing quotas, or agricultural policy, or the regulation of the banks.
They don’t want reality to bite.
So they’ve gone into denial, preferring political assertion to legal advice.

The best - and most realistic - choice for the United Kingdom is to stand tall in our European hinterland;
For the sake of our security, our prosperity and our place in the world.

Standing tall means asserting ourselves when we need to protect the nation’s interests.
But also cooperating with our neighbours when it is for the good of the British people.
In the coming weeks and months, that will mean three things.

First, taking a tough line on the EU Budget...
Ahead of a special European Council meeting at the end of the month.

The Coalition Government’s position remains the same:
We will not accept an increase, above inflation, to the EU Budget.
That is a real terms freeze.
And we will protect the British rebate in full.
That is the toughest position of any European country.
At a time of deep fiscal tightening in the UK...
With British taxpayers seriously feeling the pinch...
We cannot support a real increase in EU spend.

Labour has now taken a different position – as we saw last night – having had a change of heart.
Ed Balls knows only too well, from bitter experience...
That there is absolutely no prospect of securing a real terms cut to the EU budget.
But at the eleventh hour, and having stayed silent on this issue for months...
Labour now proclaims that, actually, this is what they’ve wanted all along...
And they can wave a magic wand over the Council negotiations and convince 26 other countries to agree.

Yet it was Labour who agreed to the last long-term EU budget settlement...
Which saw a major jump in EU spending and lost part of the UK’s rebate...
In exchange for virtually no real EU spending reforms.
And British taxpayers have suffered the consequences ever since...
With our net contributions going from less than €3bn in 2008 to more than €7bn in 2011.

Who were two of the Labour MPs to vote for it?
Ed Balls and Ed Miliband.
Who was the Europe Minister?
Douglas Alexander.

Their change of heart is dishonest, it’s hypocritical...
And worst of all, Labour’s plan would cost the taxpayer more, not less.
Because in pushing a completely unrealistic position on the EU budget...
One that is miles away from any other country’s position...
Labour would have absolutely no hope of getting a budget deal agreed – driving the annual EU bill up instead, over which we would have no veto power at all.

We’ve been waiting for years for the Labour party to announce how they would cut spending.
Now they have finally come out in favour of cuts...
But in a way they know is undeliverable; and in a way that would hurt British taxpayers.
And it turns out even their cuts cost money.
I’ve heard people describe it as clever opposition politics – and I suppose it is.
But it’s not the behaviour of a party serious about government.

Yes, the British Government’s position is tough.
Yes, it is going to be difficult to negotiate.
But we are working for a deal because that is the best way to protect British interests.
The Prime Minister and I may have our differences on Europe...
But, on this, we are absolutely united.
To one side we have opponents of the Government pretending we can give less...
On the other side, there are some in Europe demanding we give more.
But it’s our job to make realistic, responsible and hard-headed decisions on behalf of the British people.

This is a deal that can be done – that’s the message I’m pushing with my European counterparts.
With governments across Europe having to get the most out of every pound, Euro or zloty they spend...
A real terms freeze is a good offer.
It’s in the EU’s own interests to be seen to be showing real restraint.

Second, we need to be actively protecting and advancing the single market – and our place in it – for the sake of British jobs.

Around one in every ten jobs in Britain relies on British trade within the Single Market.
Around half of all our trade goes to other European states – exports from around 100,000 firms.

But as Europe evolves, we cannot take the integrity of the Single Market for granted.
That’s already been made clear during negotiations on the new Eurozone banking union...
Which we’re having to ensure doesn’t undermine the single market in financial services – prejudicing the City.
And we can expect more of this kind of thing, as the Eurozone integrates further.

And not only will we need to defend the Single Market – we also need to deepen it.
Removing trade barriers in services and digital industries would be worth around £3,400 a year to the average household.
Money we need as we return our economy to health.
But it won’t happen without leadership from the UK.
We were among the Single Market’s architects:
Lord Cockfield – a British Commissioner – helped design it;
Margaret Thatcher played a critical role in pushing it through
And today – as the most open, liberal economy in the EU – we will need to help finish what was started twenty years ago.

And that’s how we send the right signal to foreign investors too.
One of the reasons big multinationals come here is because we offer a launching pad to the world’s largest borderless marketplace.
Think of the big employers who’ve set up operations here: Samsung, Tata, Siemens.
The automotive giants helping drive the renaissance in the UK’s car industry:
Nissan, Honda, BMW, Toyota.
Firms who currently pay no import tariffs on the vehicles they send from here to the continent.
But who would be faced with levies of up to 22% if the UK suddenly left the EU.

These companies need to be reassured that we will continue to be the best bridgehead into the European market.
We cannot afford to give the impression that we are going to disengage.
We need to stay focused on driving trade between us and our neighbours.
That is the only way to protect British jobs.
It’s a position that is pro-business and pro-Britain too.

Third, cooperation on law and order.

Before signing up to the Lisbon Treaty in 2009…
The previous Government negotiated an opt out on a package of 130 crime and policing measures, which pre-dated the Treaty.
The Coalition now has to decide whether to stay opted in to all of those measures...
Or else pull out of the lot, before seeking to opt back in to individual instruments – depending on negotiations with the Commission and the Council.
A decision needs to be taken by 2014 and we will give Parliament a say.
But, clearly, we need to agree our starting position now.

So we’re looking across the 130 measures.
The Government has said our current thinking is to opt out of them en masse, before seeking to rejoin some.
But I want to be absolutely clear:
A final decision has not been taken.
And I will only agree to doing that if I am 100% satisfied we can opt back in to the measures needed to protect British citizens.
And if I am convinced we are not creating waste and duplication, incurring unnecessary costs.
We will be led by the evidence and the experts at all times.
What matters is preventing crime and terrorism – this must not turn into an ideological scrap.

We are likely to find that some of the measures are defunct.
Like old measures to improve data collection in drug trafficking, or things like outdated skills directories for crime fighting professionals – old instruments that have now been superseded.

But there are others which have transformed the way our police operate...
Delivered justice for victims of crime where once there was none...
And put thousands of criminals behind bars.

It is my strong personal view, that there is a great deal of value in Europol, for example, which pools intelligence to combat serious organized crime.
Joint Investigation Teams and Eurojust, which enable cross-border operations...
Like the ongoing investigation into the recent murder of a British family in Annecy in France.
Today, if a rapist, or paedophile or violent offender living in Britain has a foreign criminal record – we can receive it at virtually the click of a button.
When a forged British passport or driving licence turns up in Europe – we can find out about it straight away.
When a fugitive runs from the UK, we can use the European Arrest Warrant to bring them back – as we saw again recently in the case of teacher Jeremy Forrester.
Yes, the Arrest Warrant needs reform so that it is used proportionately, but it is an important crime fighting tool.
We’ve managed to set high standards for combatting children pornography across the whole of Europe – something the UK pushed for.
Our police can call on the resources and intelligence of the entire European crime-fighting community....
To hunt down and arrest murderers, escaped convicts;
To stop billions from being laundered out of the UK every year.

In the words of Hugh Orde, the President of the Association of Chief Police Officers:
‘In the 21st Century, policing is international.’
And to anyone who says we don’t need these EU measures to fight crime and terrorism effectively, I say prove it.
Prove it to the police, the intelligence agencies, the lawyers, the victims of crime charities.
Prove it to the people who deal day in day out with the worst criminals imaginable.
Because my position is clear: I will not ask them to protect the British people with one hand tied behind their back.

The UK is part of the most advanced system for combating cross-border crime on the planet.
And we have been at the forefront of building it.
Over the last fifteen years we’ve led the way on crime and policing cooperation in Europe.
The Head of Europol is British.
The last head of Eurojust was British.
The EU’s police training centre is at Bramshill in Hampshire.
This package of 130 law and order measures has British fingerprints all over it.
And I want UK citizens continue to benefit – fully – from the system we built.

So, tough on the money; more jobs; more criminals behind bars.
That’s the deal we are going to deliver for the British people.

You cannot do any of those things from the edge.
You cannot deliver for British citizens when you’re halfway out the door.
Europe is changing – yes.
But rather than go into retreat, now is the time to confront those changes head on.
We need to make a decision about who we will be in the new Europe.
And I say we need to be strong, loud, present…
That’s the strategy that will leave the UK more prosperous, safer, strong.
Standing up for the people of Britain by standing tall in our own backyard.

Thank you.

Nick Clegg's speech to TheCityUK annual dinner

Thu, 25 Oct 2012 02:30:00 GMT

Many in the corporate world do not - automatically - see the Liberal Democrats as natural allies. Perhaps that’s because, most recently, we’ve rightly earned ourselves a reputation as loud critics of corporate irresponsibility.

Not least in financial services following the crash in 2008. Yet, historically, the Liberal Democrats are a party of industrialists and small business; staunch advocates of free trade between open economies; long believers in the power of enterprise to help individuals fulfill their own potential, while serving society at large. And, since coming into government, we’ve been taking decisions, day in, day out, to promote British business.

Whether that’s ensuring a sensible approach to Europe: where we’re determined to defend and deepen the Single Market – protecting our place in it – while the Eurozone members integrate more tightly.

Whether it’s a sensible approach to immigration: where we’re tightening the system, but must do so without turning away the talented individuals who want to come here and make a contribution to your firms.

Whether it’s pushing for more investment in green industry: where there’s such high potential for growth.

But perhaps I haven’t said enough about these things. From now on, I intend to be much more open about our efforts to support British business. I want you to be confident that my party is on business’ side. That we are determined to put the private sector at the heart of a strong, rebalanced economy. That we will be sensible and centrist; pragmatic – not dogmatic – at all times.

Bluntly, with the economy still fragile, this is not the time for dogma. There’s a lot of speculation about what tomorrow’s GDP figures will bring. Whatever they look like, we know that, overall, we’ve set the economy on the right path. But recovery is slow and fitful. Repairing the damage following the shock in 2008 is a gradual healing process. And the Government must remain absolutely focused on the reforms that will drive growth.

Indeed, it’s dogma – at least in part – that got the economy into this mess. It was blind faith in the unrestrained operation of financial markets that helped take the banking system to the edge of a precipice. Political, regulatory and financial elites were so intoxicated with an unfettered and over-leveraged banking system that they refused to hear the alarm bells as the financial crisis loomed; they refused to see the deep, structural weaknesses that had emerged in our economy.

So we’re turning a page on the economic ideology of our recent past. And, as we navigate these extreme times and uncharted waters, we should be vigilant against kneejerk or dogmatic responses to our economic challenges. And tonight I’d like to single out three areas where pragmatism is especially needed from both Government and business, as we work together.

First, we need a balanced, engaged approach to Europe - essential to the interests of the City. Second, we must prioritise lending to sound business – critical for our economic recovery. Third, we need to lead the shift to a more responsible, more sustainable corporate culture – crucial to our long term success.

First, defending the City in Europe.

The Coalition’s starting point is simple: we support difficult regulatory surgery – at home and abroad – where that is needed to stabilise the financial sector. But we will not accept steps that are anticompetitive or protectionist. The playing field must be level.

That’s why, for example, I don’t support a Europe-wide Financial Transaction Tax. Though I would support a global one. Limiting the FTT in this way would skew the playing field. It would be bad for Europe in the world, and bad for the UK in Europe. And, what’s more, at a time of high unemployment in Europe. The Commission has itself said that it would cost more jobs than it creates.

On the other hand, I welcome the Liikanen Report: a set of reforms for Europe’s banking system. It’s largely consistent with our domestic intentions, as set out in the Vickers Report. And I’m keen that we support implementation of the Liikanen proposals across Europe. Alongside implementing Vickers here in the UK.

Where our situation is less straightforward is the Eurozone banking union – at the top of the agenda at last week’s European Council. And it’s here that we need a sophisticated approach.

Clearly it’s not a good idea for the UK to be part of a full Eurozone banking union designed to break the vicious circle between sovereign debt and bank debt in the single currency area. But let’s not forget that we’re already part of a banking union-lite: the single market in financial services. And so, while we have an obvious interest in the full, Eurozone banking union succeeding. At the same time, we need to make sure it doesn’t prejudice the UK. The worst outcome would be the creation of an over-powerful banking bloc. Able to undermine the single market. Able to undermine what remains – by far – Europe’s largest financial centre: the City of London.

So the question is: how do we get the best outcome? As someone who worked in Europe for years, my view is the best approach is to engage fully and properly in the debate. Making our case and winning the argument over and over again, while decisions are being made.

That’s why the Coalition Government will now do two things: One: after last week’s summit, we’ll work flat out to make sure that the rules governing the relationship between the European Central Bank, in it’s new supervisory role, and the Bank of England – and the role of the European Banking Authority - are settled in a sensible manner.

Two: we want to work with you to show that the City is not just a British asset, but a European asset too. It’s responsible for over a third of the European wholesale market. 80% of the EU hedge fund industry is based here.
Our financial and professional services employ more people than Paris and Frankfurt put together. We’ve got more foreign banks than any other city. The largest insurance industry in Europe. AIM - Europe’s biggest equity market for small business. The City is the biggest exporter of financial services in the world. And you know better than anyone that if London-based firms decided to leave they wouldn’t all head straight to Frankfurt or Paris. Many would go to New York, Hong Kong, Dubai.

That’s the reality I’m pressing with my European counterparts. And I implore the industry to do more to push this message yourselves – not least City UK. The rest of Europe needs to be crystal clear: If they integrate in a way that hurts the City, they potentially hurt Europe as a whole.

Second: lending. The thing our economy needs most, right now, is money flowing through it. Especially for SMEs. That is urgent. And it’s essential if we’re going to build a private sector that is vibrant, entrepreneurial, diverse.

So Government is doing everything we can to help finance business: working with the Bank of England to deliver the £80bn funding for lending scheme; creating a new Business Bank to support up to £10bn worth of loans; setting up a Green Investment Bank for low carbon companies specifically; investing directly – and leveraging private money – through schemes like the Regional Growth Fund; as well as seeking to boost non-bank forms of financing like peer-to-peer-lending, supply-chain finance; and so on. But with such tight constraints on the public finances, we can only do so much; the bulk of the money has to come from you.

I know that there are issues with demand – I don’t discount those. But perception is as big a problem as any: many small firms simply don’t think they’ll get the loans. I know that the banks feel restricted by their capital and liquidity requirements. But the FSA has recently announced more flexibility in those requirements – a move I very much welcome. Precisely because it increases the banks’ capacity to lend.

Third: responsible enterprise – the theme of my last speech here, in January. It’s an issue David Cameron and Ed Miliband have also spoken about. And, while it is encouraging to see the parties converge for once. This must not be mistaken for a political bandwagon that will, eventually, roll on.

It won’t. Responsible capitalism is not a fad, it’s hard-headed economics. It’s about empowering shareholders, investors and ordinary workers to create a check on reckless decisions. It’s about rewarding people who drive short-term profit but who think about long-term stability too. It’s about fair and healthy competition so the best companies flourish and the most talented individuals rise.

That’s a corporate world more sustainable, ultimately more profitable, and which commands public support. Business doesn’t operate in a social vacuum. Especially at a time when banks have come to rely – for their very survival – on an explicit or implicit taxpayer guarantee. The public backlash against the banks hasn’t just been uncomfortable for the sector, it has threatened the basic consent in society. Without which the modern commercial banking sector would be unable to operate. So it’s in businesses’ own interests to be sensitive towards their social context.

In government, we’re delivering a range of reforms that will strengthen our corporate culture, many led by Vince Cable:

New powers for shareholders, for example, to hold directors to account.
Greater corporate transparency for investors;
I’m pushing employee ownership to give more ordinary workers a stake;
We’re intervening to curb excessive supermarket dominance, providing extra protections for smaller retailers.
Taking action to open up more boardrooms to more women.

The list goes on. But there is no silver bullet, and government can’t do this alone. So, where companies are moving in this direction themselves, that is extremely encouraging. Because this has to be the direction of travel. If we want a prosperous future, enlightened enterprise is the only way. And I ask this audience – the powerful commercial enterprises represented here tonight – to lead the way. I want us to work together as we rescue, repair and reform the British economy after the damage sustained in 2008. A partnership based on hard-headed pragmatism, not dogma, and an unshakeable belief in the dynamism and innovation of British business and the British people.

Nick Clegg’s speech to Liberal Democrat Autumn Conference

Wed, 26 Sep 2012 19:48:00 GMT

Check against delivery

This summer, as we cheered our athletes to gold after gold after gold, Britain remembered how it feels to win again. But more importantly, we remembered what it takes to win again. Whether from Jess Ennis or Mo Farah, Sarah Storey or David Weir, the message was the same: we may be the ones on the podium, but behind each of us stands a coach. And behind the coach, a team. And behind the team, the organisers, the volunteers, the supporters. And behind them, a whole city, an entire country, the UK nations united behind one goal.

What a contrast from a year ago when England’s cities burned in a week of riots. When the images beamed to the world were not of athletes running for the finishing line, but the mob, running at police lines. When the flames climbed, not from the Olympic torch in east London, but a furniture shop in south London. A 140 year-old family-run business, which had survived two world wars and countless recessions, razed to the ground. Of course, even then, amid the smoke and embers, we saw our country’s true character when residents came out onto the streets to clear up the mess.

And we saw it again this summer when the Reeves furniture shop in Croydon re-opened in new premises, the walls decked with photos of young people holding up messages of hope. And who put those pictures up? Young volunteers from Croydon and an 81 year-old man called Maurice Reeves, who, like three generations before him, ran the shop before handing it over to his son. Maurice, your example should inspire a generation.

You see, what Maurice has shown – what our Olympians and Paralympians have reminded us of – is that, for most people, success doesn’t come easy or quick. That’s what our culture of instant celebrity obscures: that real achievement in the real world takes time, effort, perseverance, resilience. The war veteran: a victim of a roadside bomb in Afghanistan, competing at the Paralympics. The businessman: a victim of an arson attack in south London, serving his customers again. The millions of people up and down the country, who, no matter how heroic or mundane their battles, keep going, keep trying, keep working, whatever life throws at them.

These are the qualities that will see our country through these tough times. And these are the qualities that will guide our party through tough times too. So let us take our example from the British people as together we embark on the journey ahead. Our party: from the comforts of opposition to the hard realities of government. Our country: from the sacrifices of austerity to the rewards of shared prosperity. Two journeys linked; the success of each depending on the success of the other. Neither will be easy and neither will be quick, but it will be worth it. And be in no doubt. If we secure our country’s future, we will secure our own.

We live at a time of profound change, almost revolutionary in its pace and scale. Here in Britain, we are faced with the gargantuan task of building a new economy from the rubble of the old. And of doing so at a time when our main export market – the Eurozone – is facing its biggest crisis since it was formed. And while the European economy has stalled, countries like Indonesia, Malaysia, India and China continue to grow, and at a phenomenal rate.

The potential consequences of this shift in power, should we in the West fail to respond, cannot be overstated. Our influence in the world, our standard of living, our ability to fund our public services and maintain our culture of openness and tolerance – all are in the balance. For power would move not only away from the liberal and democratic world, but within it too; from moderates to hard liners, from internationalists to isolationists, from those committed to the politics of cooperation to those hell-bent on confrontation. If history has taught us anything, it is that extremists thrive in tough times.

So yes, if we fail to deal with our debts and tackle the weaknesses in our economy, our country will pay a heavy political price. But the human cost would be higher still. Not only would we fall behind internationally, we would leave a trail of victims at home too.

So to those who ask, incredulously, what we – the Liberal Democrats – are doing cutting public spending, I simply say this: Who suffers most when governments go bust? When they can no longer pay salaries, benefits and pensions? Not the bankers and the hedge fund managers, that’s for sure. No, it would be the poor, the old, the infirm; those with the least to fall back on.

Labour may have thought it was funny, after crashing the economy and racking up record debts, to leave a note on David Laws’ desk saying: “there’s no money left”. But it’s no joke for the most vulnerable in our society; the people Labour claim to represent but let down the most. So let’s take no more lectures about betrayal. It was Labour who plunged us into austerity and it is we, the Liberal Democrats, who will get us out.

It’s easy to forget sometimes that the debate we’re having in this country is playing out across our continent. It’s a debate between those who understand how much the world has changed, and those who do not. And between those who understand the need to adapt to those changes, and those who baulk at the size of the challenge. And the fate of every European country – ours included – will depend on the outcome.

In the coming years, some countries will get their own house in order. But some will not. Those that do will continue to write their own budgets, set their own priorities and shape their own futures. But those that do not will find their right to self-determination withdrawn by the markets, and new rules imposed by their creditors, without warning or clemency. That that will never happen to us is often just blithely assumed; the comparisons with Greece, breezily dismissed. Yet it is the decisions we take – as a government, as a party – that will determine whether we succeed or fail. For the first time, the future is ours to make.

Our journey from austerity to prosperity starts, of course, with economic rescue; dealing with our debts and delivering growth. If you listen to Labour, you could be forgiven for thinking that austerity is a choice; that the sacrifices it involves can be avoided; that if we only enacted Ed Balls’ latest press release we’d be instantly transported to that fantasy world where there is no “boom and bust” and the money never runs out.

But the truth is this: there is no silver bullet that will instantly solve all our economic problems. Some of our problems are structural, others international. All will take time to overcome. We are dealing with an on-going surge in global energy, food and commodity prices. An existential crisis in the Eurozone. And a banking collapse which, more than four years on, is still blocking the arteries of our entire economic system.

Ranged against these forces, the idea that if government just deregulated a bit more as Liam Fox proposes, or borrowed and spent a bit more as Ed Balls proposes, we would, at a stroke, achieve strong and lasting growth, is just not credible. In my experience, if you’re being attacked by Liam Fox from one side, and Ed Balls from the other, you’re in the right place.

You see, what is needed – and what we’re delivering – is a plan that is tough enough to keep the bond markets off our backs, yet flexible enough to support demand. A plan that allowed us, when the forecast worsened last year, to reject calls for further spending cuts or tax rises and balance the budget over a longer timescale. A plan that, even at the end of this parliament, will see public spending account for 42 per cent of GDP – higher than at any point between 1995 and 2008 when the banks collapsed. And a plan that, because it commands the confidence of the markets, has given us the room to create a Business Bank, provide billions of pounds of infrastructure and house building guarantees and an £80 billion Funding for Lending scheme – the biggest of its kind anywhere in the world.

Of course so much of this is about perception. People keep telling me we should be doing what Barack Obama did with his fiscal stimulus. What they don’t tell you is that much of what the President had to legislate for, we are already doing automatically. So let’s not allow the caricature of what we are doing go unchallenged. If Plan A really was as rigid and dogmatic as our critics claim, I’d be demanding a Plan B, and getting Danny and Vince to design it. But it isn’t. Which is why you were right, earlier this week, to overwhelmingly reject the call for us to change our economic course. We have taken big and bold steps to support demand and boost growth. And we stand ready to do so again and again and again until self-sustaining growth returns.

Of course, arguments about economic theory are of no interest to the millions of people just struggling to get by right now. The home-help whose earnings barely cover the cost of childcare. The builder who knows the company will be laying people off, but doesn’t yet know if he’ll be one of them. The couple who want to buy their first home but can’t raise the money for a deposit. To them and to all the other hard working families just trying to stay afloat, I say this: the Liberal Democrats are on your side. You are the ones we are in government to serve. Not with empty rhetoric but real practical help. That is why we promised to cut your income tax bills by raising the personal allowance to £10,000. So you can keep more of the money you have worked for. So your effort will be properly rewarded. So the task of making ends meet is made that little bit easier.

At the last budget, we made two big announcements: that we were spending three thousand million pounds increasing the tax-free allowance, and just fifty million pounds reducing the top rate of tax while recouping five times that amount in additional taxes on the wealthiest. I insisted on the first. I conceded the second. But I stand by the package as a whole. Why? Because as liberals, we want to see the tax on work reduced, the tax on unearned wealth increased, and the system as a whole tilted in favour of those on low and middle incomes. The budget delivered all three.

But let me make one thing clear: Now that we have brought the top rate of tax down to 45p – a level, let’s not forget, that is still higher than throughout Labour’s 13 years in office – there can be no question of reducing it further in this Parliament. All future cuts in personal taxation must pass one clear test: do they help people on low and middle incomes get by and get on? It’s as simple as that.

At the next election, all parties will have to acknowledge the need for further belt tightening. That much is inescapable. But the key question we will all have to answer is who will have to tighten their belts the most? Our position is clear. If we have to ask people to take less out or pay more in, we’ll start with the richest and work our way down, not the other way around. We won’t waver in our determination to deal with our debts. But we will do it in our own way, according to our own plans, based on our own values. So we will not tether ourselves to detailed spending plans with the Conservatives through the next Parliament.

Colleagues, we should be proud of the fact we have delivered fairer taxes in tough times. We should be proud of the fact that we’re taking 2m people out of income tax altogether and delivering a £700 tax cut for more than 20m others, and should never miss an opportunity to tell people about it. But as we do so, remember this: our tax cuts, like our extra support for childcare, for schools, for pensioners – these are not stand-alone consumer offers. They are part of a broader agenda of economic and social reform to reward work, enhance social mobility and secure Britain’s position in a fast changing world. In short, national renewal. That is our mission. Our policies either serve that purpose, or they serve none at all.

One of the things about governing is it forces you to confront the inconvenient truths oppositions choose to ignore. Like the fact that, over the last 50 years, our economy has grown threefold, but our welfare spending is up sevenfold. Or the fact that, to sustain our spending, we are still borrowing a billion pounds every three days. Or that, as a result of that borrowing, we now spend more servicing the national debt than we do on our schools. In combination, these three facts present us with a fundamental challenge: to not only regain control of public spending, but to completely redirect it so that it promotes, rather than undermines, prosperity.

How we do that – how we reshape the British state for the economic challenges of the 21st century – is a debate I want our party to lead. For there are only two ways of doing politics: by following opinion, to get yourself on the populist side of each issue, or by leading opinion, and standing on the future side of each issue. The first brings short-term rewards, of course it does. But the big prizes are for those with the courage and vision to get out in front, set the agenda and point the way.

So let us take the lead in building a new economy for the new century. An open, outward looking economy in the world’s biggest single market. A strong, balanced economy built on productive investment, not debt-fuelled consumption. An innovative, inventive economy driven by advances in science and research. And yes, a clean, green economy too, powered by the new low-carbon technologies. Britain leading the world.

But I have to tell you, we will not succeed in this last task unless we can see off that most short-sighted of arguments: that we have to choose between going green and going for growth. Decarbonising our economy isn’t just the right thing to do; it’s a fantastic economic opportunity. The green economy in Britain is growing strongly right now, bringing in billions of pounds and creating thousands of jobs – in wind, solar and tidal energy; the technologies that will power our economy in the decades to come. Going green means going for growth. But more than that, it means going for more energy that we produce ourselves and which never runs out; it means going for clear air and clean water and a planet we can proudly hand over to our children. Going green means going forward.

So let the Conservatives be in no doubt. We will hold them to their promises on the environment. Of course, there was a time when it looked like they got it. It seems a long time ago now. When the Tories were going through their naturalist phase. The windmills gently turning; the sun shining in. As a PR exercise, it was actually quite brilliant. Until, at last year’s party conference, they went and ruined it all, admitting that you can’t in fact “vote blue and go green”. Well of course you can’t. To make blue go green you have to add yellow, and that’s exactly what we’re doing.

As we plot our path from austerity to prosperity, we need to remember that nothing we do will make a decisive difference if we don’t make the most important investment of all: in the education and training of our young people. For we will only fulfil our collective economic potential, if we fulfil our individual human potential. Yet the legacy of educational inequality in Britain is an economy operating at half power, with far too many young people never getting the qualifications they could get, never doing the jobs they could do, never earning the wages they could earn.

The true cost of this cannot be counted in pounds and pence. Yes it’s a huge drag on our economy, but more than that, it is an affront to natural justice and to everything we Liberal Democrats stand for. Because if you strip away all the outer layers to expose this party’s philosophical core, what do you find? An unshakeable belief in freedom. Not the tinny sound of the Libertarian’s freedom – still less the dead thud of the Socialist’s – but the rich sound of Liberal freedom, amplified and sustained by the thing that gives it real meaning: opportunity. The freedom to be who you are. The opportunity to be who you could be. That, in essence, is the Liberal promise.

And that is why this party has always been – and must always be – the party of education. Because just as there can be no real freedom without opportunity, so there can be no real opportunity without education.

Every parent knows how it feels when you leave your child on their first day at school. That last look they give you before the door closes behind them. The instinct to go with them, to protect them, to help them every step of the way. That’s how we should feel about every child. That’s the responsibility we have to every parent. To support them at every stage: from nursery to primary, from primary to secondary and from secondary to college, university or work.

That’s why we’re providing more money so the poorest two-year-olds, as well as every three and four-year-old, can now benefit from pre-school education. Delivering our Pupil Premium – £900 per child next year – so the most disadvantaged children get the more intensive, more personalised support they need. And why, when they leave school, we’re providing scholarships, bursaries, grants, loans, apprenticeships and wage subsidies, to help them go on learning or start earning.

But extra resources won’t make a difference unless matched by greater ambition. Which is why money must be accompanied by reform. Reform to ensure all children can read and write. To make schools focus on the performance of every child. To turn around failing schools, and put more pressure on coasting schools. And yes, reform to replace GCSEs, not with an O Level, but with a new more rigorous qualification that virtually every child will be able to take, and every well taught child will be able to pass.

And to ensure they do, I can announce that from this year, we will provide a new ‘catch-up premium’ – an additional £500 for every child who leaves primary school below the expected level in English or maths. If you’re a parent whose child has fallen behind; who fears they might get lost in that daunting leap from primary to secondary school; and who is worried by talk about making exams tougher, let me reassure you. We will do whatever it takes to make sure your child is not left behind. A place in a summer school; catch-up classes; one-to-one tuition; we are providing the help they need. So yes, we’re raising the bar. But we’re ensuring every child can clear it too.

I am proud of the resolve we Liberal Democrats have shown over the last two and a half years. We’ve had some real disappointments: tough election results, a bruising referendum. But through it all, we have remained focused, determined, disciplined. It hasn’t always been easy, and, when we’ve made mistakes, we’ve put our hands up. But we’ve stuck to our task – and to the Coalition Agreement – even as others have wavered. The received wisdom, prior to the election, was that we wouldn’t be capable of making the transition from opposition to government. The choices would be too sharp, the decisions too hard.

The Liberal Democrats, it was said, are a party of protest, not power. Well two years on, the critics have been confounded. Our mettle has been tested in the toughest of circumstances, and we haven’t been found wanting. We have taken the difficult decisions to reduce the deficit by a quarter and have laid the foundations for a stronger, more balanced economy capable of delivering real and lasting growth. But conference, our task is far from complete, our party’s journey far from over.

I know that there are some in the party – some in this hall even – who, faced with several more years of spending restraint, would rather turn back than press on. Break our deal with the Conservatives, give up on the Coalition, and present ourselves to the electorate in 2015 as a party unchanged. It’s an alluring prospect in some ways. Gone would be the difficult choices, the hard decisions, the necessary compromises. And gone too would be the vitriol and abuse, from Right and Left, as we work every day to keep this Government anchored in the centre ground.

But conference, I tell you this. The choice between the party we were, and the party we are becoming, is a false one. The past is gone and it isn’t coming back. If voters want a party of opposition – a “stop the world I want to get off” party – they’ve got plenty of options, but we are not one of them. There’s a better, more meaningful future waiting for us. Not as the third party, but as one of three parties of government.

There’s been a lot of discussion on the fringe of this conference about our party’s next steps; about our relationship with the other parties; and about what we should do in the event of another hung parliament. It’s the sort of discussion politicians love – full of speculation and rumour. But I have to tell you, it is all based on a false, and deeply illiberal, assumption: that it is we, rather than the people, who get to decide. In a democracy, politicians take their orders from the voters.

So let’s forget all the Westminster gossip and focus on what really matters: not our relationship with the other parties, but our relationship with the British people. Imagine yourself standing on the doorstep in 2015 talking to someone who hasn’t decided who to vote for. This is what you’ll be able to say: we cut taxes for ordinary families and made sure the wealthiest paid their fair share. We put more money into schools to give every child a chance. We did everything possible to get people into work - millions of new jobs and more apprenticeships than ever before. And we did the right thing by our older people too - the biggest ever cash rise in the state pension. But most importantly, we brought our country back from the brink and put it on the right path.

Then ask them: are you ready to trust Labour with your money again? And do you really think the Tories will make Britain fairer? Because the truth is, only the Liberal Democrats can be trusted on the economy and relied upon to deliver a fairer society too. And to help get that message out there, I can announce today that Paddy Ashdown has agreed to front up our campaign as chair of the 2015 General Election team. I must admit, I’m not quite sure I’m ready for all those urgent e-mails and 5am phone calls. But I can’t think of anyone I’d rather have by my side. Paddy, it’s great to have you back.

Fifty, sixty years ago, before I was born, small groups of Liberal activists would meet up to talk politics and plan their campaigns. Stubborn and principled, they ignored the cynics who mocked them. They simply refused to give up on their dreams. They refused to accept that Liberals would never again be in government. And they refused to accept that Liberalism, that most decent, enlightened and British of creeds, which did so much to shape our past, would not shape our future. We think we’ve got it tough now. But it was much, much tougher in their day. It was only their resolve, their resilience and their unwavering determination that kept the flickering flame of Liberalism alive through our party’s darkest days.

At our last conference in Gateshead, I urged you to stop looking in the rear view mirror as we journey from the party of opposition that we were, to the party of government we are becoming. But before we head off on the next stage of our journey, I want you to take one last look in that mirror to see how far we’ve come. I tell you what I see.

I see generations of Liberals marching towards the sound of gunfire. And yes, I see them going back to their constituencies to prepare for government. It took us a while but we got there in the end. These are the people on whose shoulders we stand. They never flinched, and nor should we. We owe it to them to seize the opportunity they gave us, but which they never had. Taking on the vested interests. Refusing to be bullied. Refusing to give up. Always overturning the odds. Fighting for what we believe in, because we know that nothing worthwhile can be won without a battle. A fair, free and open society. That’s the prize. It’s within our grasp. So let’s go for it.

Nick Clegg’s rally speech at Liberal Democrat Autumn Conference

Sun, 23 Sep 2012 00:45:00 GMT

Check against delivery

We are now two and a half years into a five-year parliament. The most important five years in the modern history of our party. What we have done and what we will do in these five years will define who we are and change the direction of our country. There have been some real highs and more than a few lows. But it’s only half time and there is all to play for.

These five years are important for us as Liberal Democrats because we are no longer a party that just talks about change, but one that can actually deliver change. They are important for everyone who believes in plural politics, that people are better served when their leaders put their differences aside and work together.

And they are important, above all else, because the country is at a crossroads. These are some of the most uncertain economic times anyone can remember. It is in dark times that countries can turn in on themselves. Fear can turn people against each other. How we respond as a country will decide if we go into the future as an open, confident and outward looking country or an insular, fearful and divided one.

But for the first time we are not watching from the sidelines as the country’s fate is played out. Liberal Democrats are right there at the heart of government. Making a difference to people’s lives. Steering the country to a better future. We belong in government because we share the same values as the British people.

Just look at the qualities we displayed as a country this summer: unity; generosity; diversity; openness; community; fair play. Look at the heroes we celebrated: Jessica Ennis – a mixed race woman from Sheffield who conquered the world with grace and humility. What a role model she is. And Mo Farah – what a wonderful thing it says about us as a country that we have taken an immigrant called Mohammed to our hearts. At a press conference Mo Farah was asked whether he would have preferred to run for Somalia. He said ‘Listen mate, this is my country’. And in a single sentence every argument the BNP and the EDL have ever put forward was crushed. This is his country. This is all of our country.

These are difficult times. People are really struggling. Fear and worry are a fact of life for too many. But this summer has shown that our better nature can trump our darker instincts. Unity can trump division. Hope can trump fear. At our best, Great Britain is open, generous and proudly diverse. In a word: liberal.

So what does it mean to have Liberal Democrats in power? We are only half way through this parliament and already we have cut taxes for working people and lifted the poorest workers out of paying Income Tax. Already the Pupil Premium and the expansion of early years education are making a real difference to the lives of our children. Already we have created a record number of apprenticeships. We have put in place a Youth Contract to help young people earn or learn. Set the toughest climate change targets yet. Created a revolutionary Green Investment Bank. Announced the most ambitious home insulation programme the UK has ever seen. We have taxed the banks to the tune of £10bn. We have ended child detention. We have increased the state pension. We are giving every couple, whatever their gender, the right to commit and celebrate their love through marriage. We have done these things because we have fought for them.

And we have stopped the like-for-like replacement of Trident in this parliament and have started the search for alternatives which will continue to keep our country safe. But, where possible, at a lower cost to the British people. And on that, I want to pay tribute to the pioneering work Nick Harvey has done. I want to assure you we are going to build upon his good work. That’s why I have decided to put Danny Alexander in charge of the review into the replacement for Trident. Danny has spoken out repeatedly about how expensive and unnecessary a like-for-like replacement would be. And there is no one better when it comes to getting value for money for the taxpayer. I am more determined than ever to find the right alternative to such a monumentally expensive replacement for a Cold War deterrent.

So when our critics tell us we have sold out, that we have achieved nothing, tell them this: Britain will be a greener, fairer, better place because of what we have done and what we will do.

We chose to govern with our political opponents because our country needed a stable government at a critical time. Not because it was easy but because it was right. That is still true. We have avoided an economic catastrophe. We have steadied the ship. Now we must set it sailing. And as we do so Liberal Democrats will not stop fighting to make this government and this country fairer.

One of the most important ways we can do that is by making taxes fairer. It’s just wrong that people on low and middle incomes who work hard and play by the rules are taxed so much while Russian oligarchs pay the same council tax as some of you do on a family home. Liberal Democrats are fighting to change that. Lower taxes on work and more on unearned wealth. I want to reward people who put in a proper shift, not those who sit on a fortune. People for whom a bonus means a few extra quid at Christmas not a million pound windfall. By April we will have lifted two million of the poorest workers out of paying Income Tax altogether. We have brought in tough new taxes on the very rich and cut taxes for millions of working people by £550. But we need to go further.

It is no secret that we have different priorities to our coalition partners. I can do my bit around the cabinet table, but most of the seats at that table are occupied by Conservatives, not Liberal Democrats. So I need you to do your bit the old fashioned way: getting out there and campaigning. You should have been given a leaflet about our campaign for fairer taxes. By the end of the year I want you to have delivered three million of them. Campaign hard and we will deliver fairer taxes.

This is the first time anyone in modern Britain has experienced a national coalition government. We must show them it is a form of government that works well for them. If we don’t we will have lost not only the argument for having Liberal Democrats in power but for having a third party at all. The country will revert to the two-party system that has served it so badly in recent years. But if we succeed, we will have done something remarkable. We will have broken the two-party stranglehold on British politics. We will have created a new model of modern plural politics for our country. And we will have created a platform for ourselves and those that follow us from which we can go further than we ever thought possible.

We are proving that coalition works. But we need discipline. Yes, we must show people that we are different from our coalition partners. But if all people see is squabbling then they will think coalition is a messy, incoherent thing. We must not put the progress we have made in jeopardy by retreating to our comfort zone. I know that as a party of political reform, the defeats we have had to accept on AV and reform of the House of Lords have been hard to take. But the biggest prize for political modernisers will not be a Bill on the statute book. It will be the proof, in the eyes of the British people, that coalition politics works and that three-party politics is here to stay.

It’s half time and as we look ahead at the second half of this parliament, we should take a moment to look at our opponents. Look at the Labour Party: Divided, deluded and with no sense of direction. With nothing to show for themselves but a piece of paper that is still blank after two and a half years. As we approach the second half, my message to Labour is this: Tell us who you are. Tell the country what you are for, not just what you are against.

Labour have had a lot of fun at my expense in recent days because of the apology I made. There are some pretty big things I think people would like to hear them apologise for. How about a personal apology from you Ed Balls for nearly bankrupting the country after you went on a prawn cocktail charm offensive in the City of London to let the banks off the hook? And how about, Ed Miliband, an apology, on behalf of your party, for dragging our country into an unjust and illegal war in Iraq?

My message to those Conservative backbench MPs who seem to think they have the right to force a turbo-charged right wing agenda on our country is this: You didn’t win the last election. You do not have a majority. The British people have not given you the right to act like you do. We formed this coalition in good faith and for the good of the country at a time of crisis. That required compromise on both sides. Liberal Democrats have kept our side of the bargain. You must too.

It’s half time in this parliament. There were times in the first half when we as a party made errors. And we’ve learned some hard lessons. When the second half is over we will emerge with a few scars. But we will be able to tell people the things we have achieved. Whether it is in school, in work or in retirement, we are showing people we are a party that shares their values: Fairness; openness; compassion; equality; community; diversity.

If there’s one lesson we should take from the first half it is that nothing comes easy. If we want a fairer Britain we have to fight for it. If we want fairer taxes we have to campaign for them. And if we want credit for what we are doing then we have to go out there with our heads held high and tell people. No one else will do it for us.

These five years are the most important our party has ever faced. Now it’s time for the second half. Let’s go out there and show the country what we’re made of.

We made a pledge, we didn’t stick to it, and for that I’m sorry

Wed, 19 Sep 2012 23:26:00 GMT

The video will be broadcast nationally on Monday evening [24 September]. An email has been sent to all party members to give them a preview of the broadcast ahead of the party’s Autumn Conference, which starts this weekend.

I'd like to take this opportunity to put a few things straight. When I meet people around the country, it's obvious that many of you have strong – and pretty mixed – reactions to some of the things Liberal Democrats have done in government.

Many of you tell me you're glad that at a time of real economic uncertainty, we put aside our political differences to provide our country with stable leadership. But, I also meet people who are disappointed and angry that we couldn't keep all our promises – above all our promise not to raise tuition fees.

To those people, I say this: we made a promise before the election that we would vote against any rise in fees under any circumstances. But that was a mistake. It was a pledge made with the best of intentions – but we shouldn’t have made a promise we weren’t absolutely sure we could deliver.

I shouldn’t have committed to a policy that was so expensive when there was no money around. Not least when the most likely way we’d end up in Government was in coalition with Labour or the Conservatives, who were both committed to put fees up. I know that we fought to get the best policy we could in those circumstances.

But I also realise that isn’t the point. There’s no easy way to say this: we made a pledge,
we didn’t stick to it – and for that I am sorry.

When you’ve made a mistake you should apologise. But more importantly - most important of all – you’ve got to learn from your mistakes. And that’s what we will do. I will never again make a pledge unless as a party we are absolutely clear about how we can keep it.

I accept that won’t be enough for everyone. But I owe it to you to be up front about it. And I don’t believe it should cast a shadow over everything else the Liberal Democrats are achieving in government.

When we’re wrong we hold our hands up. But when we’re right we hold our heads up too. We were right to leave the comfort of opposition to face the realities of government. And I know we are fighting for the right things, day in, day out, too: rebuilding our economy to make it strong; changing the tax system to make it fair; defending the vulnerable in these tough times.

That’s what my party believes in. That’s what I believe in. And, if we’ve lost your trust, that’s how I hope we can start to win it back.

Nick Clegg recognises ‘outstanding work’ with Paralympic invitation

Wed, 29 Aug 2012 22:13:00 GMT

Thanks to being nominated by the Deputy Prime Minister, Elle Bradley-Cox and Matthew Turner from WORK Ltd will be watching swimming events at the Olympic Park.

Sheffield based WORK Ltd creates opportunities for people with learning disabilities to develop life skills which helps to build confidence, self-esteem and encourages each individual to strive to reach their potential.

26 year old Elle and 18 year old Matthew have both volunteered at the WORK Ltd centre on Ringinglow Road.

Elle said: -

“I am overjoyed to be representing WORK Ltd at the Paralympic games. When we heard that Nick Clegg had chosen our charity we couldn't believe it, we were overwhelmed. It's a fantastic opportunity, and one that I hope to tell my grandchildren about.”

Nick Clegg MP said:-

“I have been a longstanding supporter of WORK Ltd and the outstanding work they do to help improve the lives of people.

“Sheffield has so many good causes that rely on help from local people like Elle and Matthew, it is fantastic to be able to recognise this work and give something back.”

Nick Clegg proposes new wealth tax

Wed, 29 Aug 2012 18:02:00 GMT

"If we want to remain cohesive and prosperous as a society, people of very considerable personal wealth have got to make a bit of an extra contribution,

“In addition to our standing policy on things like the mansion tax, is there a time-limited contribution you can ask in some way or another from people of considerable wealth so they feel they are making a contribution to the national effort? What we are embarked on is in some senses a longer economic war rather than a short economic battle.”

You can read the full article here.

Click here to read our Tax Policy Briefing.

Nick Clegg statement on Lords reform

Mon, 6 Aug 2012 19:00:00 GMT

I support an elected House of Lords because I believe that those who make the laws of the land…
Should be elected by those who have to obey the laws of the land.
That is democracy – and it is what people rightly expect from their politics in the 21st Century.

When the Liberal Democrats came into Government, I knew that creating a democratic Lords would not be straightforward.
This cause has long been blocked by an establishment resistant to change;
And by the vested interests who benefit from maintaining the power of political patronage...
While keeping the power of people out.

However, Lords reform was in each party’s manifesto.
It was written into the Coalition Agreement – without argument or controversy.
And I had hoped that, with enough compromise and cross-party involvement...
We could build a consensus…
Delivering it once and for all.

After the election I convened cross-party talks.
The Government then published a draft bill and white paper...
With a clear commitment from myself and the Prime Minister to hold the first elections to the Lords in 2015.
We then established a joint committee, of both Houses, to scrutinise our proposals.
We amended the Bill once the Joint Committee reported – taking on the majority of their changes.
And, last month, in a historic vote...
An overwhelming majority of MPs backed an elected House of Lords during the Bill’s second reading.

However, despite these painstaking efforts…
The Labour party and Conservative backbenchers united to block any further progress...
Preventing government from securing a timetable motion…
Without which the Bill effectively becomes impossible to deliver.
At that point, the Prime Minister said he needed more time, over the summer, to persuade his MPs …
And I, of course, agreed to that reasonable request.
Unfortunately, the PM has confirmed to me, since then, that an insufficient number of his MPs have been persuaded to support the Bill.

In my discussions with the Labour Party leadership, they have made it clear that:
While they continue to back Lords reform in principle…
They are set on blocking it in practice.
Supporting the ends, but – when push comes to shove – obstructing the means.

I invited Ed Miliband to propose the number of days that Labour believe is necessary for consideration of the Bill.
He declined to do so.
Instead he confirmed Labour would only support individual closure motions – which could bog down parliament for months.
Regrettably Labour is allowing short-term political opportunism to thwart longterm democratic change.

So, after a long process – almost two and a half years...
We do not have the Commons majority needed to ensure this Bill progresses through Parliament.
It is obvious that the Bill’s opponents would now seek to inflict on it a slow death:
Ensuring Lords reform consumes an unacceptable amount of parliamentary time.
Clearly, it would be wrong for me to allow Parliament to be manipulated in this way...
Not least at a time when there is so much else for us to concentrate on.
So I can confirm today that we do not intend to proceed with the Bill in this parliament.
The government will make a full statement on this – to parliament – as soon as it returns in September.

To modernisers and campaigners, let me say this:
I am as disappointed as you that we have not delivered an elected Lords this time around.
But Lords Reform has always been a case of two steps forward, one step back.
And my hope is that we will return to it, in the next Parliament…
Emboldened by the overwhelming vote in favour of our Bill at second reading.
An unelected House of Lords flies in the face of democratic principles and public opinion.

It makes a mockery of our claim to be the mother of all democracies.
And – even if you put all of that to one side – the ever increasing size of the Lords makes it an unsustainable chamber.
It cannot keep growing; reform cannot be forever ducked.

As you know, an elected House of Lords was part of the Coalition Agreement:
A fundamental part of the contract that keeps the coalition parties working together in the national interest.
A contract not just to each other, but a set of commitments we have made, collectively, to the British people.

My party has held to that contract even when it meant voting for things that we found difficult.
The Liberal Democrats are proving ourselves to be a mature and competent party of Government...
And I am proud that we have met our obligations.

But the Conservative party is not honouring the commitment to Lords reform...
And, as a result, part of our contract has now been broken.

Clearly I cannot permit a situation where Conservative rebels can pick and choose the parts of the contract they like...
While Liberal Democrat MPs are bound to the entire agreement.
Coalition works on mutual respect; it is a reciprocal arrangement, a two way street.

I have told the Prime Minister that when Parliament votes on boundary changes for the 2015 election Liberal Democrats in Parliament will oppose them.
When part of a contract is broken, it is normal to amend that contract...
In order then to move on.

Lords reform and boundaries are two, separate parliamentary bills…
But they are both part of a package of overall political reform.
Delivering one but not the other would create an imbalance – not just in the Coalition Agreement, but also in our political system.
Lords reform leads to a smaller, more legitimate House of Lords.
Boundary changes lead to a smaller House of Commons, by cutting the number of MPs.
If you cut the number of MPs without enhancing the legitimacy and effectiveness of the Lords...
All you have done is weaken parliament as a whole…
Strengthen the executive…
And its overmighty government that wins.

So, for these reasons, I have decided, reluctantly...
To push the pause button on these controversial parliamentary reforms.
Throughout this process my aim has always been too honour the Coalition Agreement in full – no more, no less.
I stood ready – and stand ready – to deliver reforms that are controversial for my party…
Because that is part of a wider, reciprocal arrangement.

That is why, for instance, in a last ditch attempt to keep both sides of the bargain intact…
I suggested a solution that would have allowed us to progress with both reforms:
A referendum on Lords Reform on election day in 2015…
With first elections to the Lords taking place in 2020…
While deferring boundary changes to 2020 too.
That would have been in keeping with the Coalition Agreement – in which neither policy had a set timetable.

But that offer was not accepted.
So we must now restore balance to the Coalition Agreement…
Allowing us to draw a line under these events…
And get on with the rest of our Programme for Government.

My Liberal Democrat colleagues and I remain focused on the urgent task that brought the Coalition together:
Rescuing, repairing and rebalancing our economy.
And, just as we are determined that this Government delivers economic reform...
We are determined to deliver social renewal too.
There are many things that brought me into politics...
Many things which animate my party:
Political reform is one. A fairer tax system is another. Internationalism. The environment. Civil liberties.

But the thing I care about most – the central purpose of the Liberal Democrats in this government...
Is to build a fairer society.
A more socially mobile society, where a person’s opportunities do not depend on the circumstances of their birth...
Where every individual has the chance to flourish.
We will continue with that critical work.
We will continue to anchor this government firmly in the centre ground.

Nick Clegg: Scotland and other UK nations are better together

Mon, 25 Jun 2012 17:24:00 GMT

“We welcome the fact that the three pro-UK parties in Scotland have come together to make the positive case for Scotland in the United Kingdom.

“We share the view that Scotland and all of the nations of the UK are stronger together – on the economy and jobs, on defence and security, on our influence in the world and so much more.

“The decision facing Scots is a big one and any decision to leave the UK family would be irreversible.

“So we need a proper debate to get underway, and we are confident that Scots will listen to the arguments and take the positive view that we are all better together.”

Leading the global fight against poverty and climate change

Wed, 20 Jun 2012 22:13:00 GMT

In an article for the Guardian today, Nick Clegg has today set out his three priorities for the summit:

“First, we want more national governments to broaden their understanding of wealth. Gross domestic product is vital in measuring economic performance, but it doesn't capture the full picture. It says nothing about natural capital – the forests, farmland, rivers, and coastline on which future prosperity depends. The UK is working on a kind of "GDP+" so that, by 2020, our national accounts reflect these assets.

…

“Second, Rio must set out a plan for the future. The best way to drive progress is through clear ambitions with hard deadlines…We're proposing a package of sustainable development goals to rally the international community around ensuring that all people, everywhere, have access to food, clean water and green energy. Agreeing these will be a huge undertaking – but this week we need to get them off the ground.

…

“And finally, we need to bring business in. Using resources responsibly is in business's own interests too…The UK will press for governments to come together, working with those companies already blazing a trail, to give "sustainability reporting" a global push. By agreeing common standards and practices we can get many more firms on board. And in the UK, from the start of next financial year, all firms listed on the London Stock Exchange will have to report the levels of greenhouse gases they emit.”

The decision to force companies to report their carbon emissions has been welcomed by Christian Aid, who said: 'We know that the world's poorest people are hit first and worst by the changing climate and this decision provides some hope that the UK government is serious about tackling the crisis’.

You can follow Nick Clegg on Twitter by clicking here.

Nick Clegg: Freedom to love is a fundamental right

Wed, 20 Jun 2012 18:02:00 GMT

Please find a transcript below

“I’ve always been very clear on this: love is the same, straight or gay, so the civil institution should be the same too.

“All couples should be able to make that commitment to one another, regardless of who they love.

“I fought for equal marriage before I was in Government, and I’m even more committed to making it happen now – as a Liberal Democrat and as Deputy Prime Minister.

“We brought forward our proposals; they have provoked a heated debate.

“But these are proposals about when and how to open up civil marriage to gay and lesbian couples. It’s not a matter of ‘if’ anymore.

“And to those who are worried about some of the opposition to this move or the tone of the debate, let me just say, whether you are gay, lesbian, bisexual, transsexual or straight: your freedom to love who you choose is a fundamental right in a liberal society – and you will always have our support. That’s why I’m Out4Marriage.”

Tram Train announcement great news for Sheffield

Thu, 17 May 2012 15:55:00 GMT

The announcement was made today by Liberal Democrat Transport Minister Norman Baker.

The scheme, the first of its kind in the UK, will boost the local economy by improving connections across the region, and is also expected to create 35 new jobs.

Commenting, Nick Clegg said:

“This is great news for Sheffield and South Yorkshire, not just for passengers but businesses too.

“The Liberal Democrats are determined to boost businesses and create jobs in Sheffield, as well as making life easier for passengers and promoting clean, green technology.

“That’s why I am proud the Coalition Government has given the go ahead to this landmark scheme right here in our city.”

Commenting further, Norman Baker said:

“Providing better connections between Sheffield and Rotherham’s city centres and residential areas will help to reinvigorate the local economy.

“It will also encourage people to leave their cars at home, making this pilot environmentally friendly.

“Tram Trains have already proven hugely popular on the Continent. Now we will be able to test whether they can bridge the gap between tram and train networks in this country.”

I want to pay tribute to all the great work Lib Dem councillors have done

Fri, 4 May 2012 20:36:00 GMT

“It’s been a disappointing and difficult night for the Liberal Democrats. I’m really sad that so many colleagues and friends, Liberal Democrat councillors, who’ve worked so hard, so tirelessly, for so many years, for communities and families in their local areas, have lost their seats. And I want to pay tribute to all the great work that they have done.

“I’m determined that we will continue to play our role in rescuing, repairing, and reforming the British economy. It’s not an easy job and it can’t be done overnight. But our duty is to boost jobs and investment and restore a sense of hope and optimism to our country.

“I believe that, over time, people will come to acknowledge our unique role, the Liberal Democrats, in this Government as the only party that combines responsibility on the economy with social fairness.”

Nick Clegg: The myth - green versus growth

Wed, 11 Apr 2012 17:01:00 GMT

There is a myth doing the rounds in political debate today:
That, here in the UK, environmentalism has hit a wall.
That green is for the good times.
We cannot up our efforts to protect our environment...
While simultaneously growing our economy.
That we have to make a choice.

The story goes something like this:

Up until just a few years ago, the green movement was approaching a kind of heyday.
Europe had agreed a plan to combat global warming.
In the UK, the major political parties had united behind the Climate Change Act...
Enshrining our carbon reduction commitments in law.
Al Gore's “An Inconvenient Truth” was a box office hit.
In affluent societies, as sustained growth satisfied citizens' basic needs...
Climate change was graduating from niche issue to mainstream concern.

Then: the credit crunch happened.

The global economy was plunged into unprecedented turmoil.
And, ever since, economic recovery has overtaken every other social and environmental priority.
The assumption is that cash-strapped citizens cannot be expected to live more sustainably:
They have other, more urgent worries to contend with.
Struggling businesses must be liberated from burdensome environmental regulations.
And the upshot, we are told, is that our environmental ambitions must, temporarily, take a back seat.

But this new wisdom, however widely held, is utterly wrong.
Yes, right now climate change may be lower down some people' thoughts.
Yes, we need to be sensitive to businesses' needs.
But in so many ways, for so many consumers, for so many firms...
Going green has never made so much sense.

How can we relieve some of the pressure on hard-up households?
By helping families use less energy to cut their bills.

How can we rebalance our economy away from its overreliance on the City of London?
By capitalising on our competitive edge in green industries...
Generating jobs and wealth outside of London and the South East.

How will we find the money needed to renew our infrastructure?
By competing successfully in the global low carbon market...
To attract billions of pounds worth of outside investment to the UK.

And, as we make our way along this choppy recovery...
How can we better shield bill payers from price shocks in oil and gas?
By depending less on fossil fuels...
By producing more clean energy ourselves.

It is simply not true that you have to give up on the green economy if you want to grow.
The countries powering away from the recession...
Germany, China, Korea, Brazil...
Are investing heavily in low carbon industries.

Nor is it true that the best way to unleash growth is through a bonfire of environmental protections.
That's why, for example, I was determined we get the balance right in our planning reforms - as many of you were.
So not development-at-any-cost.
But sustainable development, driven by local needs.

Our dilemma is not choosing between green and growth.
It's marrying the two.

Lean times can be green times

I won't pretend that is easy.
While austerity need not be the death of environmentalism...
It does create challenges.
While greening our lifestyles and decarbonising our economy might be the right thing to do...
For millions of people, it doesn't always feel like the easy thing to do, especially now.

But, while sceptics say that it's all too difficult at a time of deep fiscal consolidation...
That economic uncertainty poses too many challenges...
I say that periods of economic reinvention force us to do things differently.
I say that lean times can be green times too.

Just think about today's Britain:

A nation burned by its excesses.
Paying the price for years spent living on borrowed time and borrowed money.

A nation turning the page on a culture of reckless consumption...
Where we sacrificed tomorrow to get-rich-quick today.

A nation thriftier, more frugal, more careful than before.
Determined to clean up this generation's mess and leave a better legacy for our children.

We are undergoing a profound transformation within our economy.
And for the first time ever our economic and environmental mantras are exactly the same:
Waste not, want not.
Whether it's waste of energy, waste of money, waste of our potential...
We are focused on conserving our precious resources.
Responsibility and sustainability are the watchwords of the day.

And that creates a unique opportunity to put environmental thrift into the mainstream.
As we learn to live within our economic means...
We can learn to live within our environmental means too.

To do that, we have to stop treating the environment like an add on; an afterthought.
We must show that, in so many ways, consumer interests, business interests and green interests are the same.
We have to give people the practical help to make more sustainable choices.
Where the benefits of going green are clear.

Of course, the environment contributes to our economy in a range of ways...
Many we don't always appreciate.
For example, anyone who's been on the Southbank this morning will have seen Friends of the Earth have turned it into a wildflower meadow...
To publicise the importance of bees to UK GDP.
Because bee populations are in decline and Friends of the Earth estimate it would cost farmers £1.8bn a year to pollinate their crops without them.
I plan to say more about the importance of natural capital in the coming months.
I'll be representing the UK at the Rio+20 Summit in the summer...
Where I'll be pushing for greater global protections for our natural assets.

But there are two specific areas I want to focus on today.
Two areas where going green is in the clear interests of individual families and the wider economy...
And where Government is doing everything we can to help consumers and businesses go green.

One: through a radical new approach to energy efficiency to cut emissions and bills.

Two: through building up the low carbon sectors on which our future prosperity depends.

Going green is good for consumers: energy efficiency

First, energy efficiency.

The UK still has some of the most energy inefficient buildings in Europe.
Fifteen million homes - more than half - are not properly insulated.
That's costing us in carbon:
A third of our emissions come from heating our homes.
And it's costing us in pounds:
Adding hundreds, every year, to bills for the most inefficient homes.

So the case for saving energy is compelling.
It fits perfectly with the waste not, want not mentality.
But we can't just preach at people.
We can't just demand everyone turns off their lights.
That has never worked before and it certainly won't work now.
Instead we have to understand and dismantle the obstacles that can put people off.

One problem is the hassle factor.
Of course, there's only so much Government can do here.
And making home improvements can be temporarily disruptive.
But there are ways to minimise that disruption...
And we are working with business to test innovative solutions.

For example, we've been working with B&Q and Sutton Council to see if offering a loft clearance service makes a difference.
B&Q clear your loft for you;
You go through your belongings while they install the insulation;
They put back the things you want to keep;
And everything else gets taken to Cancer Research shops to be sold for charity.

The first trial found that people were three times more likely to go for this than straight insulation.

[Awareness]

Another problem is awareness
Very few of us really know how much energy we use.
So we have replaced extraordinarily confusing Energy Performance Certificates with a much clearer document...
Showing, in simple terms, the cost of fuelling your home...
And the potential savings of using less energy.

From the summer, we'll be trialling a new project with First Utility and America's OPOWER...
Where consumers are told how much energy other, similar households use.

Working with US utilities, OPOWER has helped encourage American households to reduce consumption by around 2%.
That may not sound a lot, but it soon adds up.
In the States, they've helped reach around 11 million homes...
So far saving people around $85m.
We want to see what the same approach could achieve here.

And, of course, the biggest barrier for many people is the prospect of expense.
So that’s where we are providing most help.

The Government's Green Deal, which we'll begin rolling out in the Autumn...
Will offer businesses and homeowners energy saving home improvements...
But at no upfront cost.
Customers will have energy saving measures installed in their homes by trusted suppliers...
From high street brands to local traders.

They will only begin paying for those improvements once they're complete.
Payment will be made through their bills, over a period of time.
And they shouldn't be out of pocket because their homes will be more energy efficient...
Allowing them to save on their energy bills each month.
We'll ensure customers are never charged more for the home improvements than we expect them to make back in cheaper bills.
Plus the charge is attached to the property, rather than the person.

So if you move, you stop paying.

That is maximum affordability, with savings that should more than cover costs.
Where families still find it difficult to take up the Green Deal...
They will get help with their home improvements.

I can confirm today that we will be requiring the energy companies to provide at least £540m to fund energy saving improvements in the worst off homes:
So for low-income and vulnerable homes, older people, people with disabilities.
These are the households most at risk of fuel poverty.
And there will be specific support for the most deprived areas.

We expect the investment to help 180,000 fuel poor households a year...
Delivering the lasting improvements that will make their homes cheaper to heat – for good.

And, to help everyone with their bills...
To get more people switched on to the energy they use...
I can announce today that we have secured a landmark deal with the six big energy companies...
Who cover 99% of customers...
To give customers a guaranteed offer of the best tariff for them.

Right now, 7 out of 10 customers are on the wrong tariff for their needs – so paying too much.
Yet people rarely switch.
Despite the fact some families could save over £100 a year.
And there are currently over 120 different tariffs...
Making it very difficult to know where to start.

So, as of this Autumn, your supplier will have to contact you, every year, with the best tariff for you.
And, if you call them, they’ll have to offer you the best deal too.

We’re also working with energy companies to put special barcodes on energy bills.
You’ll be able to scan them with your smartphone to get quotes and switch tariff or supplier in a matter of minutes.

Plus we’re working with consumer groups to make it easier for people to club together and switch supplier...
Helping consumers use their collective

purchasing power to bring down bills.

These are the kinds of changes that help people save money.
That get us thinking about the energy we use.
That promote the kind of thrift that is good for pockets as well as the planet.
Going green is good for the economy: boosting low carbon industry

And just as we help UK consumers reap the benefits of going green...
We need to help more businesses seize the opportunities it presents too.

This country is already a powerhouse in green industries.
The sixth largest low carbon market in the world.
Home to an unrivalled research base;
With enviable natural resources for wind and wave energy.

In just the last year £5.7bn worth of planned investment in UK renewables has been announced...
In wind, biomass and energy from waste...
Potentially supporting tens of thousands of new jobs.

And we’re seeing traditional British firms excelling in new markets.
I recently visited David Brown Gear Systems...
A Huddersfield-based business that has successfully bid for Regional Growth Fund money.
During the First World War they built propulsion units for warships.
Now, by combining a tradition of British engineering with cutting edge innovation...
They’ve secured a multimillion pound contract to help build wind turbines for Samsung.

And yet, despite our clear strengths in these sectors...
We are still not tapping all of our potential.

When I speak to representatives from low carbon sectors...
I am always struck by their optimism for their companies and this country.
But I also hear time and time again that they have concerns about expanding;
They’re finding it difficult to secure investment;
They have to go elsewhere to source their supply chains because British firms can’t support their needs.

It cannot be right that our competitors aggressively back their strengths...
While we tread hesitantly around ours.
Perhaps part of that timidity is a hangover from the 1970s.
Where the attempt to back winners collapsed into huge state subsidies for losers.
But, whatever the reason, we’ve swung too far the other way.

So I am determined that this Coalition strains every sinew...
To give these sectors the certainty and backing they need;
To help more of our businesses move into these markets;
And to help energy intensive industries make the transition...
Securing their place in our low carbon markets of the future.

That’s not the same as picking winners...
The market has already done that – these sectors and firms are already a success.
It’s government joining the dots to make the most of all our talents and skills.

Whether by improving infrastructure...
Where we’re setting up the Green Investment Bank...
With UKGI beginning lending next month.

Whether by making sure we have the right skills.
For example through protecting science spending...
And massively increasing investment in apprenticeships.

We’re supporting green R&D.
For example in low carbon cars...
Encouraging companies like Nissan to build these vehicles here in the UK
We’re working extremely hard to open up export markets...
Using UKTI to identify high value, environmentally friendly infrastructure projects that can be supplied by UK companies.

We’re creating better, smarter regulation... Crucially by overhauling our electricity market...
And more detail on that will be coming in the Queen’s Speech.
We’re using the tax system – with our Carbon Price Floor and the Climate Change Levy.

And, because not all companies can change to low carbon overnight...
We’re helping traditional industries become more sustainable.
One of the first areas UKGI will look at, for example, will be industrial energy inefficiency...
Making £100m available from this month.

We need to be realistic about the time transition will take.
Which is why we’re looking at how we ensure these companies aren’t disproportionately affected by some of our measures.
Because, let’s be clear:
It is in no one’s interests for these industries to pack up and go abroad.
They are vital for UK jobs.
Their products – steel, chemicals – are critical to green industry.
And would we rather have them here, where we can help them cut their emissions?
Or in countries with lower environmental standards and ambitions?

So proper support. Real certainty.
With Government sending a clear signal across the world:
We want the UK to be the number one destination for clean, green investment.
We want low carbon industries serviced by British supply chains.
In waste not, want not Britain, we are going to play to all our strengths.

So, to finish as I began:
There is no choice between protecting the environment and growing the economy.
Go green and you help hard-pressed families with their bills.
Go green and you build up the businesses that will be generating jobs and wealth for years to come.

I cannot remember a time when consumers, industry and environmentalists had so much in common.
Those of us who believe in a more sustainable future must seize the opportunity that creates.

Don’t believe the naysayers when they tell you environmentalism is off the agenda.
And don’t be in any doubt of our commitment to being the greenest government ever.

This is a Coalition that has committed to halving greenhouse gas emissions by 2025:
The boldest target set, in law, by any government, anywhere in the world;
And we’ll be pressing our neighbours to set much more ambitious EU targets at talks in Denmark next week.

A Coalition leading the biggest shakeup of the electricity market in thirty years.

A Coalition creating the UK’s first ever market in energy efficiency through the Green Deal.

A Coalition investing in a series of world firsts despite the huge pressures on the public purse:

The first ever national bank devoted to green investment.

The first ever Carbon Capture and Storage project at commercial scale.

In just four months, the greenest ever Olympic and Paralympic Games.

Make no mistake: the economic situation creates challenges...
But it has not weakened our resolve.
It has only strengthened our ambition.

Thank you.

Cheaper Energy Bills and Green Growth

Wed, 11 Apr 2012 16:43:00 GMT

Nick Clegg has announced that the big six energy companies – EDF, E.On, British Gas, Southern, Scottish Power and NPower, who supply 99 per cent of British homes with energy - will now write to customers every year to specifically tell them what the best tariff is for them and how to get it.

‘Going Green has never made so much sense’
The Deputy Prime Minister made the announcement in a speech where he also hit out at people who believe you must dismiss the green agenda in order to deliver growth.
In his speech Nick Clegg said:

“There is a myth doing the rounds in political debate today; that here in the UK environmentalism has hit a wall; that green is for the good times; and that we cannot up our efforts to protect our environment while simultaneously growing our economy.
“But this new wisdom, however persuasive, is utterly wrong. Yes, right now climate change may be lower down some people’s thoughts. Yes, we need to be sensitive to businesses’ needs. But in so many ways, for so many consumers, for so many firms, going green has never made so much sense.”

You can read the full speech here.

Cheaper Bills
Currently there are more than 120 different tariffs on offer by the energy companies and seven out of 10 people aren’t on the best tariff for them. The average customer tends to stay on theirs for years, despite the amount of energy they use varying over time. In 2010, 75 per cent of people did not change their tariff.
The Government wants people to save money on their bills whilst also becoming more switched on to the idea of saving energy through green measures to make further savings and protecting the environment.

Nick Clegg said:

“We need to get bills as low as possible. I know that many families are struggling with rising energy bills. We can't control volatile world energy prices. But we can still help people get their bills down.
“We want to see consumers saving money and engage with the energy they use. Precisely the kind of thrift that is good for pockets as well as the planet.”

Bills can be further reduced with energy efficiency measures such as installing loft and cavity wall insulation – which the Government requires the big energy suppliers to help households with and provide free to some of the most vulnerable consumers.

Liberal Democrat councillors working to protect services

Tue, 3 Apr 2012 19:27:00 GMT

“Liberal Democrat councillors across the country are working to protect the services that people value most, while Liberal Democrats in the Coalition clear up the economic mess Labour left behind.

“Our priority is clear, in difficult times we must make sure we do all we can to help ordinary working people. That is why, unlike Labour or the Conservatives, every Liberal Democrat council in England has frozen council tax. That is why Liberal Democrat councils are more likely to earmark funds for the lowest paid than any other. And that is why this month Liberal Democrats in Government are delivering tax cuts for 25m working people.

“Liberal Democrats have a strong record in local government and are committed to fighting for communities across the UK.”

Nick Clegg: A Budget every Liberal Democrat can be proud of

Wed, 21 Mar 2012 19:20:00 GMT

“As Liberal Democrats, our clear priority has been to bring about tax cuts to millions of ordinary hard working families.

“We said it, we promised it, today we’ve done it.

“There are many winners and indeed losers in any Budget.

“So who are the losers in the Budget? The millionaires who weren’t paying their fair share.

“The winners are over 20m basic rate taxpayers who will be £220 better off because of what we have just announced in the Budget today.

“This is a Budget every liberal can be proud of.

“We’re proud of the fact that we have delivered the largest increase in the Personal Allowance ever.

“We are proud of the fact we have halved the tax bill for people working on the minimum wage.

“We are very proud that we are taking over 2m people out of paying Income Tax altogether.

“We have delivered from the front page of our manifesto to the pay-packets of millions of ordinary working people.”

The Liberal Democrats have ensured this is a budget for the millions not for the millionaires, delivering a £3.5billion tax cut to average working people. Read more here.

Nick Clegg’s speech to Spring Conference

Sun, 11 Mar 2012 17:21:00 GMT

This year will show the best of Britain. The Olympics and the Diamond Jubilee, a nation proud of our past, but with our face to the future. A nation that treasures liberty, honours hard work and values fair play and fair chances. That is the character of our country: strong, confident, united.

And our character as a nation is being tested, because even in this year of celebration families are under pressure, worrying about paying their bills, about keeping their jobs, about the future.

The road to full recovery for our economy will be long, and it will be hard. Anybody who says there is a quick or easy way out is kidding themselves. So the Coalition Government is working hard to clean up after the financial storm of 2008. Sweeping up Labour’s mess and keeping our economy safe.

At times like these, we must pull together. Not let ourselves be pulled apart. Pull together as one nation. A liberal nation because that is the spirit of Britain.

Some people think there is something slightly un-British about liberalism. But this country, our country, is the home of liberty. And we Liberal Democrats are heirs to the great, British liberal cause. I am proud that now, in this Coalition Government, Liberal Democrats are repairing Labour’s industrial-scale destruction of liberty.

Reversing 28 days of detention without trial, destroying the DNA records of innocent people held by the state, ending the illiberal nonsense of ID cards.

British liberties restored by British liberals.

Before 2015, because of us there will be:

the first gay marriage - and an end to child detention

the first bank levy - an end to huge tax loopholes for the rich

the first elections to House of Lords - an end to Control Orders

the first coalition government in our lifetimes

and an end to the myth that Liberal Democrats can’t govern.

We are governing to fix our economy. We are governing to fight for fairness. We are in government - and we are on your side.

So yes, these are hard times. But this will be a good year for a great nation. A good year for Britain.

But let me tell you, this will be a good year for British liberalism too.

Our biggest challenge is to rescue our economy. We need to sort out the financial mess Labour left us. But we need economic reform too. We need a new economy that serves not one square mile, but one nation. Not creative accounting, but creative industries. Not the City, but all our cities. Healing the divide between North and South. That’s why our Regional Growth Fund – that Ian Wrigglesworth has helped to lead – is investing £2.4 billion. Creating more than 300 hundred thousand jobs in the areas that need them most.

And we will bring sanity and responsibility to our banking sector. That’s why we’ve put up the bank levy. And why we are protecting high street banks from risky investments.

We will free our cities. That’s why we are striking deals with our biggest cities:

Sheffield and Manchester

Liverpool and Leeds

Bristol and Birmingham

Nottingham and Newcastle

Giving all of these great cities new powers and new opportunities, to be the engines of growth again.

And we will rebalance power in the workplace. That’s why I want us to build a ‘John Lewis’ economy, where workers have a real stake. Not capital versus labour, bosses versus workers but modern enterprises built on shared endeavour and shared profit.

An old liberal idea to build a new liberal economy.

And a sustainable economy, one that protects the environment. Tackling climate change, green jobs for the future, green apprenticeships and a Green Deal to cut energy bills.

Some say we have to choose between boosting growth and being green. What a load of rubbish. Going for growth means going green. The race is on to lead the world in clean energy. The new economic powerhouses - China, India, Brazil - are competing.

So the choice for the UK is simple: wake up, or end up playing catch up. Going green is not a luxury for the good times. It is the best road out of the bad times.

Our party is the green party of government. We have always been a green party. And let me tell you this: we always will be a green party because we need an economy fit for the future to pull us out of this economic downturn.

And in these hard times, we have to look out for each other. That’s why I fought so hard for benefits to be increased fully in line with inflation. The biggest cash rise ever in the basic state pension because we promised to look after pensioners. And we will.

Benefits for the unemployed were protected, too. Not everyone agreed with me on this, if you believed some of the stories. You would think these benefits are unlimited handouts for so-called “scroungers’’. But these are benefits for ordinary people. Many of them laid off through no fault of their own and who strive to get back into work.

Most people who claim Job Seekers Allowance are off benefits within three months. They don’t all sit there waiting for the next welfare cheque. That is a dangerous myth, that dishonours those down on their luck.

A friend of mine recently shared his memories of his father becoming unemployed. His Dad signed on but every day, he set the alarm for the same time as he had done for his job. He got up, shaved, put on a shirt and tie and sat at the kitchen table, working to get a job. And my friend said: “I’ve never been more proud of my Dad”.

So let’s never forget. Unemployment benefits are benefits for people who fall on hard times and hard times are not the moment to slash them. But if you are on benefit, you owe it to the nation, to yourself, and to your family to strain every sinew to find a job. To get up every day, just like my friend’s Dad at the kitchen table and work at finding a job.

That’s why I am such strong supporter of the basic idea driving the Coalition’s welfare reforms to make work pay, boost independence and give real help finding a job rather than leaving people stuck on the dole, enslaved by poverty.

That is why, in a few weeks time, I will be launching the new Youth Contract. A Liberal Democrat drive for youth jobs: 20,000 more apprenticeships, 160,000 new jobs and 250,000 work experience places. A £1 billion scheme to get every jobless youngster earning or learning, getting all our young people earning or learning.

Because no matter how hard things may be we will never, ever leave our young people behind.

That includes encouraging work experience. There’s been some controversy about this policy but I make no apology for it because we are doing the right thing. Labour’s benefit rules actually penalised unemployed youngsters for getting work experience. So thousands of them ended up on the sofa, glued to the TV, cut off from the world of work, wasting time and losing hope. Our policy means young people can get up and get on, keep their skills alive, keep up the habits of a working life and improve their chance of landing a job.

Because let me tell you this: there is nothing liberal about leaving our young people to waste away on the dole.

So: we all have a part to play, a duty to the nation, and this duty is greatest of all for those with the greatest means. Those with the broadest shoulders should carry the heaviest burden – that is basic justice, Liberal justice. But that is not how it feels today.

Too often, rather than paying their dues the wealthy pay their accountants to get them out of it. Avoiding tax, minimising the amount they have to contribute – that’s the name of their game. Boasting about the latest wheeze for moving an asset here, a property there and a loophole everywhere. All to make the tax bill lower.

Let me tell you, few things make me angrier as the unemployed struggle to find work, as ordinary families struggle to make ends meet, as young people struggle to get on the housing ladder: the sight of the wealthiest scheming to keep their tax bill down to the bare minimum is frankly disgraceful. Multimillionaires avoiding tax by moving their money around.

So: we will call time on the tycoon tax dodgers and make sure everyone pays a fair level of tax. We’ve already raised capital gains tax, cut tax reliefs for the wealthiest, clamped down on tax avoidance at the top and we will go further because the Liberal Democrats have a crystal clear approach.

A philosophy of tax as old as our party, described by Mill, pursued by Gladstone, implemented by Lloyd George: tax wealth, not wages. That is why we will raise the income tax threshold to £10,000. A radical tax policy. Our tax policy.

From next month, 25 million people will have more money in their pocket and over a million low-paid workers will have stopped paying income tax altogether. Just think about that for a moment: a million more workers with no tax bill because of us, because of you.

That’s what it means to be a Liberal Democrat: real tax cuts at a time of real need. But we have to do more. That is why the Budget in ten days time and must offer concrete help to hard-pressed, hard-working families: a big increase in the income tax threshold, further and faster towards £10,000.

Help we promised, help we must deliver in Government, today.

I want the Budget to show how we are anchoring this Government in the centre ground. Credible - but fair. The last Labour budgets led our nation to the economic precipice. Fantasy budgets issued by a party in denial – out of ideas – and abdicating responsibility.

This month’s Coalition budget will show the determination of both parties in Government to repair the public finances. Keep our economy safe and help working families.

The last big tax-cutting budget was in 1988. Nigel Lawson cut billions from the tax bills of the highest-paid workers: a budget for the few, not for the many. But this year’s Coalition Budget must be a budget for fairness – not an 80s Lawson budget but a modern liberal budget.

Because we need a tax system for a nation pulling together: not being pulled apart. More important now than ever, when the forces of division are so strong. In dark economic times, people can turn inwards, close their doors, look for scapegoats. Fear can breed resentment and division: divisions between north and south between the nations of the UK, between different races or religions, between rich and poor, between the generations. Britain has a proud record of diversity and tolerance but we cannot be complacent. When the economy weakens, prejudice can breed.

So let’s fight it, in every corner of our nation.

We are bringing forward proposals for gay marriage, already provoking debate. Let me just say, if you are a young gay person, your freedom to love who you choose is a

fundamental right in a liberal society - and you will always have our support.

Let’s also fight for liberalism in London where just one more Liberal Democrat member of the Assembly would ensure the BNP gets kicked off. What a great moment for British tolerance that would be.

Let’s wipe away the ugly face of racism and reaction. I call on all Londoners – vote for Brian Paddick, vote Liberal Democrat and kick out the BNP bigots.

And let me also say a word or two about Scotland. I want the Scottish people to have much more power for over Scottish affairs. The Liberal Democrats are, after all, the party of home rule. But I also know that, as nations in a United Kingdom, we are better together than we would be apart: richer, safer and stronger

Alex Salmond wants to break up the nations of the United Kingdom. I want to keep them together. He says this is a time for division – I say it is a time for unity. He wants to split us apart – I want us to pull together.

It is our job, as liberals, to fight against the forces of division. Fight for our vision of an optimistic, open and tolerant nation: a nation confident enough to face outwards to the world. Arguing, as I will be, at the Rio+20 Summit for green growth to create jobs, engaging with emerging nations to drive free trade, supporting President Obama’s drive, in Korea this year to keep nuclear material out of the hands of terrorists and becoming the first major economy to hit the UN’s 0.7 per cent target for foreign aid.

Real help for the poorest in the world, promised by us and the Conservatives in opposition – delivered by us together in government. This is a time that demands a better politics. A politics of the national interest.

That’s why I am proud of this Coalition Government. We have shown that two parties, two very different parties, can govern together. Never again will the political Luddites be able to say that coalitions don’t work. Coalition is working, it is has been tested and it has passed the test.

Take NHS reform. Controversial, yes. Difficult, yes. But the value of coalition has been proven because this is a coalition Government. The health bill was stopped in its tracks and rewritten because this is a coalition Government. Competition will be the servant of health care, not the master because this is a coalition government.

This is a bill for patients not profits. It is not a Liberal Democrat health bill but it is a better bill because of the Liberal Democrats, a better bill because of you. A better bill because of Shirley Williams – Shirley: thank you.

So: I am proud of how Coalition is working but I am even more proud of us, of you. The Liberal Democrats are once again a truly national party of government. The only party of the centre ground, not of the left or right, of north or south, rich or poor but doing the right thing for the whole nation.

The other parties are bound and gagged by vested interests. We are not. The other parties are hemmed into certain parts of the country. Look at the electoral map: blue seats in the south, red ones in the north. Look at where the money comes from: trade unions on one side, City financiers on the other. That is why we can say today: the Liberal Democrats are the only true one nation party.

A one nation party of the radical centre, representing all regions and nations. Seeing not what divides us - but what unites us. Sound on the economy, passionate about fairness: doing the right thing and battling vested interests. Challenging the status quo

For this is the timeless liberal mission: taking on the establishment when it fails the people. A more urgent challenge today than for generations because the old establishment has failed.

The two square miles - the City and Westminster have failed. Failed the ordinary people of this country and must not be allowed to fail them again. Now that we’re in Government, people might ask if we can still be the party that challenges the establishment. The answer to that is an emphatic yes.

I may be Deputy Prime Minister but let me tell you: I am as much of a radical as ever.

Jo Grimond decried the conservatives of all parties, those who he said showed a ‘sentiment in favour of things as they are’:

Things as they are means an economy for executives not ordinary workers

Things as they are means a bank system that bankrupts our economy

Things as they are means life chances being crushed by the fortunes of birth

Things as they are means a tax system that hurts ordinary working families

Things are they are means a House of Lords stuffed with machine politicians

Things as they are means political parties kow-towing to media moguls

Things as they are just won’t do any more

And we are in politics to change them. We are the pioneers of British politics: our eyes on the horizon. By 2015, we will have done a lot but we will have plenty left to do.

Take education – a touchstone issue for this party. We will have changed the landscape by the end of this parliament, spending £2.5 billion a year on our pupil premium to strengthen our schools and create new opportunities for our children.

But that is just the beginning.

So I want our ambitions for education to be at the very heart of our manifesto in 2015. Education that delivers on the liberal promise: that every child can go as far as their talent will take them. That is what we Liberal Democrats will fight for.

So: 2015 is not the destination. 2015 is a staging post. This country will be a more liberal nation but we will just be beginning to tackle the deep problems that cramp the lives of our citizens and hobble our economy.

Because let me tell you this: in 2015 we won’t be looking back, asking people to thank us for what we have done. We will be looking forwards and asking for their support for what we can do together in the future.

We won’t have finished the job in 2015. We will just be getting started, just getting started on making this nation.

Stronger

Fairer

Greener

Freer

A more liberal Britain with every passing year: that’s the prize.

Let’s get out there and fight for it.

Nick Clegg speech to Scottish Liberal Democrat Conference

Fri, 2 Mar 2012 20:00:00 GMT

Liberals from the Highlands and Islands have always been at the heart of our party. From the late great Jo Grimond and Russell Johnston, great leaders like Bob Maclennan, Charles Kennedy and Jim Wallace in Scotland, to our current team at Westminster, Highland and Island voices have shaped who the Liberal Democrats are.

In Danny Alexander and Alistair Carmichael, I have Liberals from the Highlands and Islands with me right at the heart of British Government. At Holyrood too Highlanders have made their voices heard. And on the Highland Council we’ve boosted our numbers with Carolyn Carrick’s stunning by-election win before Christmas.

SCOTTISH PARTY

The last time I was here in the Highland capital we were looking ahead to the Scottish parliamentary elections. They didn’t quite turn out the way we had hoped, indeed it was a painful experience. As a party we lost a lot of excellent people from the Scottish Parliament. And a few weeks later we had the hardest loss of all – the sad passing of Andrew Reeves. These elections will be our first in Scotland without Andrew and to say he will be sorely missed is a huge understatement. His humour, commitment and sheer force of personality have been steering us through election campaigns for many years. But what Andrew would have wanted is for us to put last May behind us and move on.

That’s exactly what Willie Rennie has done at Holyrood. And with his team of Alison, Tavish, Liam and Jim he is more than making up for in quality what we lack in numbers. Doing what Liberal Democrats do best – punching above our weight. Whether it’s on defending the right of Scots to go to the Supreme Court. Being prepared to speak out against restrictions on free speech contained in bad law on sectarianism. To the campaign to protect the Scotland’s colleges; to increase affordable housing; to promote equal marriage; Willie and his team have been holding the SNP to account and running rings around Labour and the Conservatives.

And we have a proud record of achievement in councils up and down Scotland. In Edinburgh, where Liberal Democrats have cut crime by a fifth thanks to real, community-based neighbourhood policing. In Fife, where Liberal Democrats have improved recycling rates and made it one of the greenest councils in Scotland. And in Aberdeen, where Liberal Democrats know a thing or two about clearing up Labour’s mess. They brought the budget back from a cliff edge and are now held up as an example to follow by Audit Scotland. Our councillors don’t get the same recognition as our MPs, MSPs and our MEP but they are the unsung heroes of politics here in Scotland. The work they do and the commitment they show to their local areas is crucial. Liberal Democrats have always understood that politics is local. Across Scotland, Liberal Democrat councillors are fighting for the things that matter most to their communities. Our councillors are the lifeblood of this party. Without their good work we would not be able to make the difference we are making in Holyrood or Westminster.

INDEPENDENCE

But that election last May altered more than the balance of power at Holyrood. The SNP victory changed the landscape of Scottish politics and it presented us all with a new and formidable challenge. The SNP now has a mandate to ask the people of Scotland whether they want to be separated from the rest of the United Kingdom? Do the Scottish people want to stay within the family of the UK or break up the longest and most successful political and social partnership of nations in history?

My hope, and that of our party, is that the people of Scotland choose to stay in the UK. As an Englishman I believe that our countries are much stronger together than they would be apart. That Scotland, like the other parts of the UK, has fared better in this global economic crisis than many of our European neighbours because we are part of one of the world’s strongest economies. That we have all been protected from the worst of the recession by the credibility and low interest rates the UK government has been able to secure and maintain.

But the question of Scottish independence shouldn’t be a numbers game. Too much of the debate over independence is about what divides us, not what unites us. The people of the United Kingdom have a rich shared heritage. We share a culture, a history and an identity. We live side by side in towns and cities across the British Isles. Scottish, English, Welsh and Northern Irish people are together every day, in offices and factories, school classrooms and playing fields. We have rallied together in hard times. Our forefathers fought together and died together, just as brave Scottish, English, Welsh and Northern Irish service men and women are fighting side by side in faraway lands right now. For centuries we have crossed each others borders, married each other, raised families together. What Scot doesn’t have any English, Welsh or Northern Irish in their family tree? I believe the bonds that bring us together are stronger than the forces that would tear us apart.

But it is not for me to tell the people of Scotland what they should think. The debate over Scotland’s future is one for the people of Scotland. The referendum - which our excellent Secretary of State for Scotland Mike Moore is doing such a great job ensuring will be legal, fair and decisive – must be made here in Scotland for the people of Scotland. And I hope all of you will support Mike and Danny, and Willie and all of our team in Scotland in making the case for staying in the UK.

DEVOLUTION

Liberal Democrats believe Scotland is stronger when its two governments are working together. And we also believe in making Scotland stronger still. We have always been a party that is committed to devolution. For Liberal Democrats devolving power is in our DNA and we are delivering that in Government. The Scotland Bill which Mike Moore is leading through Parliament is the biggest single transfer of power from the UK to Scotland since the Act of Union. More power for Scotland because Liberal Democrats are in power in Westminster.

But don’t think we’re stopping there. That’s why we have set up the Home Rule Commission to look at the next stage in the relationship between Scotland and the rest of the UK. And who better to lead that process than Ming Campbell, a statesman who commands such huge respect on both sides of the border. We need to settle the independence question first. But if the Scottish people decide they want to remain in the United Kingdom, then we can get on with the business of giving Scotland more power.

ECONOMIC VISION FOR SCOTLAND

Liberal Democrats in the Coalition Government don’t believe in simply throwing a few headline measures at Scotland and hoping that is enough. We have a real vision for Scotland’s future. I want nothing short of a green economic renaissance for Scotland. A Scotland where green jobs fuel a thriving economic future. Dockyards reopened as wind farm factories. Wind and wave power providing the green energy of the future. Scottish universities developing new green technologies for Scottish companies to export around the world. With Scotland’s young people trained in the skills they need to be at the heart of our green economy.

It is early days, but we are seeing the start of this green energy revolution already. Between April last year and January this year, more than half a billion pounds was invested in renewable energy in Scotland, creating more than 2,500 jobs. And there is much more in the pipeline because Liberal Democrats have a vision for Scotland’s economic future. A nation with vast natural resources. A nation of thriving businesses with skilled, motivated workers. A nation at the heart of a green energy revolution.

We don’t believe in putting Scotland in its box. We believe a strong Scotland is good for the United Kingdom and a strong United Kingdom is good for Scotland. Four strong countries pulling together as one United Kingdom.

WHAT LIBERAL DEMOCRATS HAVE DONE FOR SCOTLAND

Nonetheless these are anxious times. I know how families are feeling. And I know how people worry about paying their bills. If you haven’t had a pay rise for two years or more. If you can’t plan for the future because you look around and you worry about what might happen if you lose your job or if your partner does. And all the while things are getting more expensive. One day you come back from the supermarket and wonder why your weekly shop costs more than it did. The next your gas and electricity bills arrive and they’ve gone up again, just like they did last time and the time before. You fill up at the petrol station and the price has gone up again since the last time you filled your car. If you’re young and you don’t own a home you wonder if you ever will. You get up early, you work hard, you never ask for anything and yet everything is getting harder.

We are coming out of a crisis, an economic heart attack, and there is no magic wand that will make everything better overnight. But as we build a new economy from the rubble of the old, Liberal Democrats in the Coalition Government are giving you real, practical help in tough times. That’s why we have cut your taxes, even as we’ve had to take difficult decisions to raise money elsewhere. Thanks to Liberal Democrats, by raising the point at which you start paying income tax, we put £200 a year back in your pockets last year and another £130 from next month. And we want to go further and faster, lifting millions of the poorest workers out of tax altogether by raising to £10,000 the amount you can earn tax-free, putting £60 a month back in your pockets. Already we have lifted 72,000 Scottish workers out of paying tax altogether and two million Scottish workers have received a tax cut. Liberal Democrat tax cuts for the many – not the few.

This Coalition Government is standing up for the culture of work that is such a proud part of Scotland’s history. By making sure that work always pays. By making sure people can keep more of the money they earn. And by making sure our young people have the skills they need to enter the world of work. And for those of you whose working life is over, Liberal Democrats are on your side too.

Thanks to our pensions triple lock, a million Scottish pensioners will receive the most generous rise in the state pension for a generation. From next month, you will receive an extra £5.30 a week. No more of Labour’s insulting 75p pension rises. Liberal Democrats are giving you real help.

In November Danny Alexander announced that the Scottish Government was to receive £103m from the Fossil Fuel levy to invest in renewable energy. That is real investment in Scotland by Liberal Democrats in Government. Last week this government’s policies led to a reduction in fuel prices on the islands through the Rural Fuel duty derogation scheme. Labour didn’t do it. The SNP said we wouldn’t do it. Now we have done it. Liberal Democrats in Government delivering for Scotland.

So we go into this May’s elections with our heads held high. A record of fighting for local communities in councils up and down Scotland. A record of holding the SNP’s feet to the fire in Holyrood. And a record of delivering real help for Scottish people in Westminster. Putting more money in your pockets. Making work pay and giving our young people a fighting chance. And putting Scotland at the heart of the new, green economy that will fuel Britain’s future. From our grassroots to our Government ministers, Liberal Democrats are building a freer, greener and more liberal Scotland in a fairer, greener and more liberal United Kingdom.

Nick Clegg's tax cut speech at the Resolution Foundation

Thu, 26 Jan 2012 16:19:00 GMT

Today I want to make clear that I want the Coalition to go further and faster in delivering the full £10,000 allowance.

Because the pressure on family finances is reaching boiling point.

Yesterday's GDP figures remind us that the road to the UK’s economic recovery will be long and progress will be uneven.

Those GDP figures remind us that we cannot simply ride out these troubles.
Waiting for the good times to roll around again, nor can we return to business as usual.

The financial crash and the recession that followed were unprecedented, and they were global. But the UK’s weakness in the face of those events was a damning indictment of the way our economy had been run.
An economy that became closed, elitist, driven by vested interests. Where we prized recklessness and short-term gains, and undervalued stability and hard work.

So picking ourselves up for good means fundamental reform. Hitting the reset button to ensure that not only does prosperity return, but, this time, it’s properly shared and really lasts.

The first part of that is clearly deficit reduction.
Filling the black hole; wiping the slate clean;
Preventing years of higher interest rates and fewer jobs;
Ensuring that the next generation does not pay for this generation’s mistakes;
Creating the sound public finances, the macroeconomic stability that we know is a prerequisite for lasting growth.

But, beyond that, we must also rebalance our economy: ending our overreliance on financial services and the South East;
Shifting from consumption to investment;
From debt-driven bubbles to sustainable growth.

And there is another element of rebalancing.
Rebalancing our tax and benefits system, because both need to be rebuilt with work at their heart, restoring some sense to the assistance and rewards the state provides.

We cannot pin all our hopes on the traders or the bankers. It will be the millions of hardworking Britons who deliver the nation from these difficult times. So we must now make the most of all of our human capital. And we must help struggling families stand on their own two feet. That means a benefits system that gets more people into work and a tax system that ensures work pays.

Today I want to say a word on each.

First, benefits.

I have always believed in a welfare system that helps those in need - those who cannot work must be protected. And those who have jobs must be confident that, should they lose them, there is a safety net in place.

That is precisely why, in the Autumn Statement last year the Coalition committed to the full uprating for pensions and out-of-work benefits from April - 5.2%, in line with inflation. Not everyone agreed that “the unemployed” should receive the full uplift, certainly not in the current climate. And, if you believed everything you read, you would think that these benefits are, essentially, unlimited handouts for the ‘idle poor’.
But that just shows what is so often wrong with this debate.

For one thing, for decades now benefits have been uprated in line with prices while earnings have generally increased at a faster rate. So the value of benefits such as Jobseekers Allowance have actually shrunk over the years compared with the incomes of those in work.

But, even more importantly, abuse of the benefits system by a minority has obscured the needs of a deserving majority.
The older people who have contributed to our society for their whole lives.
Those who cannot work due to disability or serious illness.
And - the group most often forgotten - working people who have been laid off, through no fault of their own. And, most often, for short periods of time.

Yes, sometimes the system is exploited - and that cannot be accepted.
But the majority of people who claim JSA are off benefits within three months.
People who pay their taxes, support their families, but are temporarily down on their luck. So we need a benefits system that helps those who can work into work.

And it is that simple principle that drives the Coalition’s welfare reforms. From the Universal Credit, to the benefits cap, to the Work Programme and the Youth Contract.

While the economy was booming. We saw four and a half million people stuck on out-of-work benefits.

The number of young and unemployed hardly changed. There are now 2.6m people on incapacity benefits. 900,000 of them have been parked there for 10 years or more. And where children grow up in homes where no one works they are twice as likely to experience long spells of unemployment themselves.

It isn’t right; the country can’t afford it. The Coalition is determined to see it change.

Nearly 70 years ago, when William Beveridge designed the welfare state he imagined a system that would give people protection from cradle to grave. Not one that would act as a crutch every day in between. The state must offer security in hard times.
But it should not, he warned, ‘stifle incentive, opportunity, responsibility’.
In the words of another great liberal, John Stuart Mill, ‘assistance should be a tonic - not a sedative’. I couldn't agree more.

Tax - the different traditions

And it is those same values, that same belief in the potential of ordinary men and women to flourish that needs to be instilled in our tax system too.

My philosophy on tax is simple: The system should reward effort, enterprise and innovation and bear down on those things which are bad for our society.

That sounds like a proposition with which most people would agree. But attitudes to tax are a good proxy for our deepest political instincts. And the three major political traditions in the UK – conservatism, socialism and liberalism – have very distinct approaches.

For those on the philosophical right, taxes are necessary but there is an understandable fear that tax-done-badly can threaten entrepreneurialism and business, strengthening the hand of an intrusive state. That wariness means the right can be less inclined to promote tax as a way of redistributing wealth and opportunity, putting less of an emphasis on using the tax system to tackle inequality, for example, between those who earn their income and those who are asset rich.

For the traditional left, on the other hand, taxes are the principal means of redistribution. Socialists will support a penal rate of tax on the highest earners, simply because it makes them poorer.

For them, tax is a badge of socialist success: the more, the better. They would rather draw money in through the state and then hand it back to people rather than letting them keep more of their earnings in the first place.

The liberal approach, put most simply, is based on a profound commitment to the value of paid work.

Citizens are empowered when they can keep the fruits of their own labour. As Gladstone said, it is better for money to ‘fructify in the pockets’ of the people who earn it, rather than in the Treasury and fiscal liberalism supports taxes on unearned wealth, precisely to lighten taxes on the wages of the hardworking.

A simple choice

Those principles could not be more important today. Because, in developed economies around the world, in every country now seeking to get back on the right path, where money is scarce, where every day families are tightening their belts, the biggest question we face is this: how is that burden shared?

That’s why, this week, we heard President Obama devote his State of the Union Address to greater fairness in the American tax system. It’s why tales of tax avoidance are filling our newspapers everyday. And every politician now has a simple choice: do you support a tax system that rewards the hard-working many? Or do you back taxes that favour the wealthy few?

I know which side of the line I stand on: The UK’s tax system cannot go on like this.
With those at the top claiming the reliefs, enjoying the allowances, hiring other people to find the loopholes, while everyone else pays through the nose.

So the Coalition is calling time on our unfair and out-of-whack tax system.

We’ve put up Capital Gains Tax - Ending the scandal, under Labour, of a hedge fund manager paying less on their shares than their cleaner paid on their wages.

We’ve reduced tax breaks on pension funds for the very rich.

We’ve clamped down on avoidance and taken steps to raise an extra £7bn through closing the tax gap.

And our priority in Government, from the front cover of the Liberal Democrat manifesto to the pages of the Coalition agreement, is freeing the lowest-paid from income tax altogether and cutting income tax for millions of ordinary workers.
Raising the personal threshold to help the squeezed middle

Over recent weeks you will have heard a great deal about fairness at the top, through Vince Cables’ reforms to curb excessive executive pay.

You will have heard a great deal about fairness at the bottom, through reform of our welfare system to ensure benefits are fair and reasonable, and to get more claimants into work.

This is about fairness in the middle. More money in the pockets of the people who need it.

Whether you call them the ‘squeezed middle’, ‘hard-working families’, or, as I have, ‘alarm clock Britain’, cutting income tax is one of the most direct tools we have to ease the burden on low and middle earners. The people whose incomes are too high to qualify for welfare benefits, but too low to provide any real financial security. The group whose plight the Resolution Foundation has done so much to highlight.

The working mum whose bills keep rising but whose wages do not.

The father kept awake in the dead of the night, worried tomorrow the company will be laying people off.

The young couple who used to look forward to the holiday they would book or the car they would buy, but who now know that if the boiler breaks or the washing machine packs up, the money just isn’t there.

Go back 50 years or so and many more working people were exempt from income tax thanks to a more generous tax-free threshold. But over the last few decades wage rises have outpaced the increase in the allowance. Sucking more and more people into the income tax net. And, while in the early 70s, the Personal Allowance was worth around 28% of average earnings. By 2010 that had dropped to around 20%.

At the last election my party promised to raise the personal allowance to £10,000 for ordinary taxpayers. And I am extremely proud that the Coalition is on track to do so over the course of this Parliament. We’ll make sure that anyone earning £10,000 or less will pay no income tax at all and for those on middle incomes, the first £10,000 they earn will be tax free.

For millions of basic rate taxpayers – ordinary, hardworking people – that means paying £700 less in income tax each year, around £60 a month.

In the 2010 Budget we increased the tax allowance from £6,475 to £7,475. This year we have already announced a planned rise of an additional £630 - meaning that a total of 1.1 million more people will no longer pay income tax at all.

But today I want to make clear that I want the Coalition to go further and faster in delivering the full £10,000. Because, bluntly, the pressure on family finances is reaching boiling point.

Compared to those at the top, these families have seen their earnings in decline for a decade and that’s got worse since 2008, with lower real wages and fewer hours at work.

Ongoing consolidation in the UK public finances has meant necessary increases in taxation, reductions in spending, restrictions on public sector pay, and higher contributions on pensions.

Last year brought much higher world inflation, some food prices have doubled, some energy prices have gone up by 50%.

And, yes, we are now seeing some moderation in inflation.

But, in just three years, real household disposable incomes have fallen by some 5 per cent, one of the biggest squeezes since the 1950s, since the records began. These families cannot be made to wait.

Household budgets are approaching a state of emergency. And the Government needs a rapid response.

Delivering the £10,000 personal allowance more quickly will need to be fully funded. We cannot just cut taxes by raising borrowing – that is just extra taxation deferred. And it would undermine our success in restoring stability and credibility to the public finances. So we need to find the money. And that will not be easy, of course.

But to those who say: we cannot afford to do this. I say: we cannot afford not to do this. And it is because of the pressure our economy is under that there is now an urgent need to give families more help; an urgent need to rebalance our tax system so it rewards work and encourages ordinary people to drive growth. And that means those who are better off paying their fair share.

In its recent excellent report Divided We Stand, the OECD noted how the incomes of the richest 1 per cent have soared away from everyone else over the last 20 years and showed that these people could be making a bigger tax contribution.

They also made clear that the right way to do this is not to increase marginal tax rates on work any further. This would simply drive many of the rich away to other countries. Or encourage them to use tax avoidance mechanisms more aggressively.
Instead, they suggest, governments need to look at tackling industrial-scale tax avoidance.

As well as at the allowances and reliefs which favour those on very high incomes that is how we can raise the average taxes paid by the very rich, without any further rise in marginal rates.

To that end the Coalition set up the Aaronson Review to look at a General Anti-Avoidance Rule on tax so that the tax industry cannot spend all its time creating ever more contrived schemes, undermining the principles and intentions of the system.

There are a range of other, specific areas where we need to be tough too, not least stamp duty avoidance, particularly on higher end property sales and the transferring of assets and income abroad to avoid UK tax.

We need to look at what more can be done to “green” the tax system. Not just because we care about the planet we leave our children - although that would be reason enough. But because, when the decision is between taxing pollution or taxing hard-graft, the right impulse is obvious.

And, there is another big part of the tax system where I believe we need to be much more ambitious: Serious, unearned wealth.

The eye wateringly lucrative assets so often hoarded at the top. We still live in a society where, for so many people. How much you earn can never compete with how much others own. Our tax system entrenches that divide. And we need to be bold enough to shift the burden right up to the top.

I know the Mansion Tax is controversial, but who honestly believes it is right that an oligarch pays just double the Council Tax of an average homeowner even if their house is worth one hundred times as much?

And who seriously thinks we would kill aspiration through a levy on the 0.1% of the population who own £2 million pound homes? The Mansion Tax is right, it makes sense and the Liberal Democrats will continue to make the case for it. We’re going to stick to our guns.

So, to finish as I began: we are living in tough times. And many families are feeling the pinch. We need more of those who can work in work, and real rewards and incentives for those who are.

It is often said that to govern is to choose and, in particular, to choose whose side you are on. That is especially true when there is no money around. My choice – the Liberal Democrat’s choice – is clear:

I want to help the hard-pressed and the hardworking. If that means asking more from those at the top – so be it.

We are committed to eliminating the deficit, and eliminate it we will. But I am determined that we do so in a way that is fair.

That rebalances our economy.

That gives the right people their dues.

People look to the Liberal Democrats to keep this Coalition anchored in the centre ground. They want economic competence, but they want compassion too.
It is our job to make sure this Government delivers both.

Thank you.

Nick Clegg: Re-election of Sharon Bowles MEP welcome news

Mon, 23 Jan 2012 18:11:00 GMT

“Sharon is one of the most influential thinkers and legislators in Europe on financial services and the Eurozone crisis. Her re-election is good news for Europe and the UK.

“As party leader, I am proud that we have a leading Liberal Democrat in such a prominent and powerful position on the international scene. As UK Deputy Prime Minister, I am delighted and relieved to know that the EU financial services brief is in such expert hands.

“In the wake of the financial crisis, it is absolutely right that we undertake a complete overhaul of the rule book governing global finance and banking at the European, national and international level.

“Ministers and industry figures must now redouble our efforts to re-engage across Europe, pro-actively work with our partners to shape EU legislation that builds a more responsible, safe and successful banking sector, and deploy our financial expertise to help resolve the ongoing Eurozone crisis.

“I look forward to working with Sharon over the coming months in addressing these overwhelmingly important issues for the UK and Europe as a whole.”

Nick Clegg announces Leadership Programme participants

Mon, 16 Jan 2012 21:01:00 GMT

More than two-thirds of participants are female and a third are from BME backgrounds. Furthermore, a significant number of participants are disabled, openly LGBT, under 30 years old and/or from a lower socio-economic background.

Download the Candidate Leadership Programme Participant Profiles document here.

Commenting, Nick Clegg said

“The Leadership Programme is now ready to start changing the face of the Liberal Democrats. For too long, our party in Westminster has been too male and too pale.

“If we want to represent all of the country then we must have all of the country represented in us. That is why the Leadership Programme has sought out talented Liberal Democrats from across the country to ensure that over the coming years we will together change the makeup of the party.

“I know this excellent Leadership Programme will support them as they seek selection for a seat all the way until they sit in the House of Commons. I am proud to have met them all this weekend and I know we will be hearing a lot more from them in the months and years to come.”

Nick Clegg speech on responsible capitalism

Mon, 16 Jan 2012 16:07:00 GMT

Another week, another speech about the evils of capitalism. Let me start by asking: who here is in favour of irresponsible capitalism? Because you won’t find many people arguing for more recklessness, more short-termism or greater rewards at the top. On the contrary - the growing consensus is that we need the opposite: a more sustainable economy; a more balanced economy, where rewards are proportionate and relate to real success.

That consensus, emerging among the political parties, has attracted a little cynicism.
I can understand that. It is, after all, bonus season in our banks. But there is a more generous interpretation of the shifting political mood. One that says: perhaps the penny has finally dropped.

Liberal Democrats have been arguing for a more balanced capitalism for many years. Vince Cable warned in 2006 that bank lending levels were “recklessly irresponsible” at a time that “bad debts were growing.” We saw the gulf emerging in our economy between a small number of winners and everyone else. And we warned against the corrosive effects. So we welcome the new political vogue – although it is not so new for us. And we want to seize on growing support for so-called ‘responsible capitalism’ and actually deliver it.

To do that, as this debate moves forward, we need to be clear about what we mean.
Because, whether you call it a new economy, an ethical economy, moral markets, responsible capitalism, there is a big difference between having strong views on bonus culture or excessive top pay and wanting real change in the practices and principles that guide corporate life. A bit of wrist slapping or moralising at the worst offenders will not be enough. This should not be a war of words but a real contest of ideas about how to reform our economy.

So this morning I want to offer a liberal diagnosis of what’s wrong; and then a liberal remedy.

First, diagnosis. Why is our capitalism in crisis? I will argue that this is, at root, a crisis of power.
That we now have an economy driven by immensely powerful vested interests. Interests that politicians have abjectly failed to stand up to.

The remedy, put most simply, is a redistribution of power. Last month I set out my vision for an Open Society and I talked about the need to disperse political power to create strong citizens.
Today I want to talk about dispersing economic power to that same end.

Before I say any more, I want to make one thing clear: Capitalism may be today’s political punchbag, but let’s take a long view: it’s one of history’s great success stories. No other human innovation has driven progress – and raised living standards – so consistently. Markets catalyse ideas, invention and experimentation. When they work well, they are meritocratic and liberating.
And they generate the wealth to support the most vulnerable and needy in society.

Liberals believe strongly in the virtues of the market. But only if it is a market for the many, not a market for the few. Our economy is in danger of becoming the latter, monopolised by a minority, serving narrow and sectional interests.

I am not here to take a cheap shot at big business – this would hardly be the right crowd.
Big British firms are the backbone of our economy: our employers, our wealth generators, leaders in our society. And I am grateful to many of our major firms, particularly, for the commitment they are showing to greater corporate and social responsibility.

Just last week over 100 large companies signed up to the Coalition’s Business Compact, opening their doors to young people from all backgrounds in order to improve social mobility.
I’m delighted to see some of them represented here today.

And I know many people in this room will agree: our economy is now seriously out of whack. It simply cannot be right that, right now, because of the crash and the recession, millions of ordinary people are struggling to get by. Yet relatively little has changed for those at the top.
It cannot be right that, for example, for most people, on average, wages are falling, by around 3% a year, yet executive pay is rising – on average, by 13%. Over the last 25 years, top Chief Exec pay has shot up by 1200%.

That is a gross imbalance, with wealth and influence hoarded among the few. It’s socially destabilising. Morally, it cannot be justified. And it’s bad for the economy too.

Our problem is what Jesse Norman has called crony capitalism. It’s easy to throw rhetorical rocks at directors, bankers and businesses. But, if we are honest, this is as much a failure of politicians and regulators, the authorities too often cowed by corporate power. Whether that is political parties of all stripes in hock to vested interests or regulators struggling to stop supermarkets from putting the squeeze on small suppliers, whether it’s politicians kow-towing to media barons, the problem is endemic.

There’s nothing new about it. Kings have always bestowed privileges on their favourite merchants. Corporations will naturally seek a dominant market position. It’s one of the reasons liberals from John Bright to the present day have been such fierce advocates of free trade. The agricultural landlords of the 19th century and early 20th century were happy for working people to pay more for their food because of protective tariffs. What Lloyd George in 1906 memorably called ‘stomach taxes’. So long as their own profits were protected.

This has always been capitalism’s greatest danger: a tendency for the rule makers and the money makers to get too close. And we saw the consequences of that closeness play out in the most dramatic fashion right here, in the City, just three years ago. It was a political failure; a regulatory failure; and a market failure too.

Political failure, because Whitehall became so dependent on City revenues. That politicians would not see the problems that were brewing. Instead, they hoped the goose would keep laying golden eggs.

Regulatory failure, because the Financial Services Authority failed spectacularly in its duties. Regulators are meant to guard vigilantly against industry excesses. But they turned soft – either captured by or intimidated by those they were supposed to keep in check. And, just like the politicians, just like the industry, the FSA ignored the alarm bells ringing.

And market failure, as short-termism and recklessness eventually consumed our banks, taking the whole economy to the edge of a cliff.

Politicians in the pockets of vested interests, regulators asleep at the wheel, an unrestrained economic elite. The primary symptoms of crony capitalism.

I welcome much of what Ed Miliband said last week on the need for a more responsible capitalism. Although, like others, I think it is difficult for Labour to be credible on the economy until they fully acknowledge the mistakes they made as the party sitting in government while our economy became so dangerously unbalanced. And, Ed Miliband cannot credibly claim to be a crusader against vested interests when he is in hock to one of them: the trade unions, who won him the leadership – and now pay for his party.

For liberals – from Gladstone to Grimond – the role of the state has always been to break up unaccountable, opaque concentrations of power. To protect the national interest from those vested interests. That is why, as well as the moves the Coalition Government is making to bring greater transparency to government contracting and lobbying, we need real reform of party funding to reduce the influence of those interests in politics. We need tougher border controls between the political class and the corporate world.

And we also need a better distribution of power within our economy.

The three main political traditions in Britain - conservatism, socialism and liberalism - bring different instincts to the question of where power in the economy should lie. Right now, I think liberals have the best argument.

The traditional conservative right has a strong faith - at worst, a blind faith - in the capacity of markets to correct themselves. To automatically ensure real competition and a level playing field.
This means that the role of the state is, as far as possible, to get out of the way. But markets left to their own devices can generate huge concentrations of economic power: monopolies and cartels that cripple competition and act against the interests of ordinary people.

The traditional left is historically suspicious of market outcomes but has a deep belief in the economic wisdom of the state. So while socialists abhor concentrations of economic power in the market, they want to draw economic power towards the state.

But an overly intrusive state crowds out the dynamism that makes markets so successful, both in terms of raising living standards and liberating consumers.

Liberals, alternatively, believe the role of the state is to hold power in balance so that it is neither hoarded in the market, nor wielded, unduly, by the state. Liberals don't want to substitute state power for corporate power. But we will use the power of the state to ensure power is properly distributed within the market. Breaking up monopolies and fiercely defending open, free and fair competition. Liberal economics is not laissez faire economics – it’s fair economics.

Let me take wage inequality as an example – and quite a topical one. The right-wing view is that soaring executive pay will be corrected by the healing power of a competitive labour market.
The left-wing view is that the state will have to set maximum wages or impose penal tax rates, that politicians will have to take matters into their own hands. Liberals take a more balanced approach. We understand that the market for executive pay can become closed, uncompetitive and self-serving. And that the state can and should intervene to clamp down on egregious excesses.

That’s why, for example we want new rules to stop an executive serving in one company from sitting on the pay board at another, so that directors’ salaries are no longer, effectively, decided by their mates. And we see an extremely important role for the state in redistributing wealth through income tax. In fact, one of the Coalition’s most significant reforms is our changes to income tax. Making it more progressive – so that lower earners keep more of what they earn.

But liberals also recognise that narrowing wage inequality is not solely a task for the state. We also need to put much more power in the hands of other stakeholders in the economy - shareholders and employees - when it comes to setting top pay. Trusting not the unfettered market, nor the interventionist state, but trusting people.

That is the core of a more responsible capitalism: power in the hands of people. Strong economic citizens able to keep vested interests in check. So let me say a word on the Coalition’s approach to empowering two groups in particular: shareholders and employees.

First, shareholders. Part of the challenge is getting more of them to behave like business owners rather than absentee landlords. If they are unhappy, we don’t want them just to sell up and move on, we want them to throw their weight around so that the company improves: but we need to make sure they have the right tools at their disposal and they know how to use them.

The Coalition has said we will introduce binding shareholder votes to curb executive pay as part of a package of measures to moderate boardroom behaviour. Vince Cable will set out that package next week but I can tell you today that we are going to overhaul the way shareholders – and others – can access information.

Often, the reason investors are passive is because they can’t see the reasons to act. Take annual and pay reports. Shareholders should be able to use them as a kind of report card so they can see how well their money is being spent. But, you’ve read them, many – not all, but many – are impenetrable texts: obscuring rather than illuminating. Hundreds and hundreds of pages of facts, figures, charts and graphs. Plenty of information but nowhere – nowhere – a simple, clear single figure showing who gets paid what; Or a simple summary of where the money goes – how much is spent on directors, how much on dividends, or re-invested into the business.

That information is absolutely essential for any investor trying to calculate value for money. Some companies do much better on making it transparent and easy to understand, but not enough.
And where companies bury it – that is deeply cynical.

So the Coalition will force companies to open up their books, so that investors don’t need an accountancy degree to decipher them. We are looking at a range of ways of increasing transparency, but here are two very simple changes:

One: shareholders will only need to look at one number, not a dozen, to see how generously top executives are being paid, and they will need a clear policy in place for departing CEOs so that, if they deviate from that policy, and if a hefty payment is made for failure, that decision is up in lights.

Two: the way money is spent will need to be crystal clear. So if a company is spending too much on boardroom pay compared to the amount being reinvested in the business, they will have to explain why: show investors where their money is going. That’s how to unlock shareholder power.

But it’s not just shareholder power that matters. Ultimately investors seek profits, just like executives expect high pay. Some enlightened shareholders might see the benefits of a well-rewarded workforce, but the people best placed to look after the interests of staff are staff. And that is what, so far, has been missing from this debate: ordinary people.

In an open society, a liberal society, people don’t just hold more power in politics, but in the economy too. And, over time, empowering workers can have a hugely transformative effect over corporate culture. People want to work in companies which are dynamic, but they also value stability. They want firms that secure big profits, but not at any cost. They believe that effort and achievement should be rewarded above all else.

Aren’t those precisely the values everyone is now clamouring for businesses to hold?

There are, of course, a range of ways employees can be given a louder voice.
More rights, for example: like the new right to request flexible working and more flexible parental leave – to name just two.

But today I want to focus specifically on employee ownership, a touchstone of liberal economic thought for a century and a half.

John Stuart Mill hoped that employee-owned firms could end what he called the ‘standing feud between capital and labour’ and liberals have been championing it ever since. Because we don’t believe our problem is too much capitalism: we think it’s that too few people have capital. We need more individuals to have a real stake in their firms.

More of a John Lewis economy, if you like.

And, what many people don’t realise about employee ownership is that it is a hugely underused tool in unlocking growth.

I don’t value employee ownership because I believe it is somehow “nicer” - a more pleasant alternative to the rest of the corporate world. Those are lazy stereotypes. Firms that have engaged employees, who own a chunk of their company, are just as dynamic, just as savvy, as their competitors. In fact, they often perform better: lower absenteeism, less staff turnover, lower production costs. In general, higher productivity and higher wages. They weathered the economic downturn better than other companies.

Is employee ownership a panacea? No. Does it guarantee a company will thrive? Of course not. But the evidence and success stories cannot be ignored, and we have to tap this well if we are serious about growth. The 80s was the decade of share ownership. I want this to be the decade of employee share ownership.

Now that’s a big ambition, I know. And it won’t happen overnight. But it won't happen at all without Government taking a lead, so I am kickstarting a drive in Government to get employee ownership into the bloodstream of the British economy.

We’re already doing this in the public sector, though the work of the Mutuals Taskforce, under Julian le Grand, and work being led by Francis Maude. And, of course, the radical reform of the Royal Mail - on that, I’d like to pay special tribute to Ed Davey. Governments have been grappling with the future of the Royal Mail for decades. Under Ed’s stewardship it will finally be transformed into an organisation in which staff have a meaningful stake. And now I've asked Ed to turn his hand to employee ownership in the private sector too.

Working with professional bodies and businesses, the Coalition is going to find out where the barriers are, so that we can knock them down. Do staff and business owners know enough about employee ownership? Are the accountants and lawyers who advise them taught enough about it? Is there red tape we can cut? Does the tax system treat these firms fairly? Do we need an off-the-peg model so that more ordinary people take this up?

We’ll appoint an independent adviser - an expert in the field – to help us find the answers and solutions to these kinds of questions, which will be brought together at a Summit I will chair in the summer.

Crucial to all of this, of course, will be encouraging take up. One option, to give you an idea, could be giving employees a new, universal “Right to Request” shares. Imagine: an automatic opportunity for every employee to seek to enter into a share scheme, enjoying the tax benefits that come with it, taking what for many people might seem out of their reach, and turning it into a routine decision. Clearly the details of that kind of policy need to be properly thought through. We need to establish which companies would and wouldn't benefit - it might not be feasible for microbusiness, for example. But we need to start by thinking big: not asking ‘why?’, but asking 'why not?' Looking across the board – tax, regulation, simplicity, awareness - to help more of these companies flourish, in order to put more employees at the helm.

And that brings me to the thought I want to end on today: economic power in more hands.

As the debate on a more responsible capitalism moves forward, Liberals will remain set on that goal:

An end to crony capitalism, where vested interests trump the national interest. A better balance of power, in the economy - and between politics and business. That is the route to a safer, more stable, more prosperous economic future. This is how we will spread wealth and share rewards.

A more responsible capitalism. A more liberal capitalism.

Thank you.

Nick Clegg: High Speed Rail great for Sheffield

Tue, 10 Jan 2012 21:40:00 GMT

“This is great news for the whole country, but especially for Sheffield and the great cities of the North.

“For too long governments have spent too much time concentrating on London and the South East. This is a big investment that will link North and South so that everybody can share in the prosperity of the future.

“It will take some years to build but this is the right thing to do. It is a long-term investment to help heal the North-South divide.

“Liberal Democrats have long supported High Speed Rail and I am proud that the Coalition is making it happen.”

Nick Clegg: I wish you all a very happy New Year

Wed, 28 Dec 2011 13:14:00 GMT

We have had to make some very difficult decisions, but they've been the right ones for the long term good of our country.

But that economic rescue mission is not over yet. That's why, thanks to the Liberal Democrats, the Coalition has been helping people get through these difficult times with measures to make life fairer and easier.

2011 was the year we lifted nearly a million low paid workers out of paying income tax altogether and cut taxes for 23m people - because I believe putting money back into peoples pockets makes all the difference.

It was the year more than a million children got a fairer start in life, with extra support at school through our Pupil Premium and free early years education for toddlers - because I believe that helping the youngest take their first steps in life makes all the difference.

It was the year we guaranteed pensioners a decent increase in their pension - because I believe dignity in retirement makes all the difference.

Throughout, we have taken big long-term decisions that will change the way our economy works for the better - rebalancing it away from the City of London towards stronger, more sustainable growth.

And next year we will do more. The world's first Green Investment Bank putting millions into green jobs and growth; our youth contract to get every young person out of work earning or learning; more apprenticeships than this country has ever had before; and we will take further steps to make our tax system fairer too.

What we're doing as a party, and as a Coalition, it's not easy, but it's right. We are putting the interests of the country first, and we have taken the first steps towards building a fairer, greener and more liberal country.

The next year will be one that poses many great challenges for everyone in Britain, but I know we must continue to do what's right for our country.

And with that, I wish you all a very happy New Year.

Nick Clegg MP
Leader of the Liberal Democrats and Deputy Prime Minister

Deputy Prime Minister speech to Demos and the Open Society Foundation

Mon, 19 Dec 2011 15:34:00 GMT

First, let me thank Demos and the Open Society Foundation for inviting to me to speak. I can think of no better moment to talk about the open society, and the urgent need to rally to its defence.

The values of the open society – social mobility; political pluralism; civil liberties; democracy; internationalism – are the source of my liberalism. And reflecting on the events of the last year, it is clear to me that they have rarely been more important than they are today.

Because we are at a critical, and potentially dangerous, moment - both in the world at large and here in the UK. History teaches that, at times of deep economic uncertainty, societies become more exposed to the forces of division – populism, insularity, separatism, an ‘us versus them’ mentality.

Rather than remaining open to the world and facing the future, societies can begin to turn inwards and lose confidence in progress.

The danger in the UK is that the forces of reaction and retreat overwhelm our instinct for openness and optimism. That we succumb to fear - the greatest enemy of openness - in these dark economic times.

So today I will set out my vision of an open society – at the heart of liberal politics – and identify the key battles that we face to promote fairness, liberalism and openness in these difficult days.

We British are an open-spirited people. But we are hobbled by closed institutions. By instinct we believe in fair play and giving everyone a fair chance in life.

But our politics and economy are distorted by unaccountable hoards of power, wealth and influence: media moguls; dodgy lobbyists corrupting our politics; irresponsible bankers taking us for a ride and then helping themselves to massive bonuses; boardrooms closed against the interests of shareholders and workers. The values of the hoarders are increasingly out of touch with the spirit of openness alive in the UK.

It is not often you’ll hear me say this, but I agree with Tony Blair. In his words “the big difference is no longer between left and right, it is between open and closed”.

So what is an open society?

It is a society where powerful citizens are free to shape their own lives. It has five vital features:

social mobility, so that all are free to rise;
dispersed power in politics, the media and the economy;
transparency, and the sharing of knowledge and information;
a fair distribution of wealth and property; and
an internationalist outlook

By contrast a closed society is one in which:

a child’s opportunities are decided by the circumstances of their birth
power is hoarded by the elite
information is jealously guarded
wealth accumulates in the hands of the few, not the many; and
narrow nationalism trumps enlightened internationalism

Closed societies – opaque, hierarchical, insular – are the sorts of society my party has opposed for over a hundred and fifty years.

That’s why Gladstone fought for a liberal internationalism; why Lloyd George battled the House of Lords; and why liberals from Cobden to Grimond sought to break up the monopolies and cartels that allow economic vested interests to trump the interests of ordinary citizens.

I will shortly say more about each of the five features of an open society. But first, let me demonstrate how this liberal vision of an open society is distinct from the philosophies of both left and right.

There are three main political traditions in Britain: socialism; conservatism; and liberalism.

Socialists support the idea of the good society, typically judged in terms of equality of income. In order to bring about this end they use the state quite aggressively in terms of labour market regulation, centralised public services and through tax and benefits.

Conservatives support the idea of a big society, with responsibility shared throughout society - people are responsible both for themselves and each other. The emphasis is naturally on non-state institutions such as marriage, the family, churches and voluntary organisations.

The liberal ideal is of the open society, where power is vested in people, not in the state or other institutions. This means that individuals need the capabilities and opportunities to chart their own course through life, and to hold institutions to account. So while the good society needs a strong state, and the big society needs strong social institutions, the open society needs strong citizens.

Of course these three political streams of thought will sometimes overlap. The Prime Minister’s particular approach to the big society, for example, is broadly compatible with the liberal concept of an open society.

Making users of public services more powerful; shifting power down to voluntary or community groups; and encouraging people to take responsibility for themselves: none of these do violence to the principles of the open society. Quite the opposite.

But there is nonetheless an important philosophical difference here. Advocates of both a big society and an open society will be sceptical of state power - and aware of the dangers of state oppression. But open society champions are more alive to the way in which society and social institutions can be oppressive, too. A culture of intolerance can destroy liberty even when the state has liberal laws. Societies can oppress, as well as states. As Isaiah Berlin reminded us, ‘To be deprived of my liberty at the hands of my family or friends or fellow citizens is to be deprived of it just as effectively.’ That is why the constitution of my party warns that people can be enslaved not only by ignorance and poverty, but also by conformity.

The institutions of our society are constantly evolving. Just look at the way the roles of men and women, and attitudes to marriage and divorce, have changed over the last century.

We should not take a particular version of the family institution, such as the 1950s model of suit-wearing, bread-winning dad and aproned, homemaking mother – and try and preserve it in aspic.

That’s why open society liberals and big society conservatives will take a different view on a tax break for marriage. We can all agree that strong relationships between parents are important, but not agree that the state should use the tax system to encourage a particular family form.

It is clear that one of the most important differences between the three traditions is in our attitudes towards change. Open society liberals are progressives: we believe that the future can and ought to be better than the past.

Conservatives, by definition, tend to defend the status quo, embracing change reluctantly and often after the event.

Socialists see themselves as progressives, with a vision for a better future. The problem is: they have a fixed blueprint for what that better society looks like.

Like the conservative right, the socialist or left-wing social democrat view is that “we – either the elite or the state - know what is good for you”. Liberals pay people the compliment that they know what is good for them, without ideological instruction.

So liberals are optimistic about the potential of people, collectively and individually, to lead good lives and shape good communities. And we value diversity, as societies experiment their way forward. Open societies are raucous, noisy, and sometimes unpredictable - but that is a price eminently worth paying for our freedom. The open society is not for those who want a quiet life.

Let me now turn to the five key features of an open society.

First, in an open society there should be no unfair barriers to people’s talent and aspiration. All roads must be open.

In a closed society, the routes to advancement are blocked by an elite who hoard opportunities for themselves and their children. A series of ‘glass floors’ ensure that the children of the affluent maintain their standing relative to other groups. A closed society is one in which people ‘know their place’. In an open society, people choose their place.

A social mobility approach to fairness is different to Labour’s ‘good society’ agenda, which focuses more on inequalities in terms of current income. Labour’s approach was based on a snapshot view of current income levels, rather than long-term life chances.

But real fairness is about real opportunities. Inequalities become injustices when they are fixed; passed on, generation to generation. So our focus must be on equipping people to flourish, and get on in life.

That is why I have made clear that intergenerational social mobility is the principal objective of the Coalition’s social policy. And why I have been so determined to increase our investment in the vital early years, including, recently, by extending the new two-year old offer to an additional 130,000 toddlers in working families.

Even in these lean times, we have found an additional £1 billion for a Youth Contract to head off long-term youth unemployment, which can scar life chances.

But Government cannot do this alone. Some of our key professions still need to do a much better job of opening their doors. To take one example, the legal profession remains woefully unrepresentative.

More than two thirds of all high court judges and top barristers are privately-educated. Nine out ten QCs are men. Nineteen out of twenty are white.

I know that us politicians have to get our house in order too. Not least my own party, which is too male and too pale. We are working hard to fix that. But my message to the legal profession, and especially to the bar, is: you are not doing enough either. It cannot be right that justice for the many is overseen by the representatives of the few.

Both the law and politics must, above all, represent the nation as a whole. But the nation is not represented in them. We’ve had years of warm words and incremental progress. It’s time for a step change.

The second distinguishing feature of an open society is a wide dispersal of power: both political and economic.

In terms of politics, this means maximum devolution and localism, including real financial decentralisation. That’s why we are giving much more power to local authorities, taking away central government financial controls and giving borrowing powers.

That’s why we are striking deals with our major cities, so that they can once again be the real engines of growth in our economy.

In public services, dispersing power means more flexibility, more personalisation and more choice. More personal budgets in health and social care, for example. These are a perfect example of the way that more power can lie in the hands of the users of universally-provided, taxpayer-funded public services.

Opponents of localism brandish the phrase “post code lottery” to dramatize differences in provision between areas.

But it is not a lottery when decisions about provision are made by people who can be held to democratic account. That is not a postcode lottery -- it is a postcode democracy.

Of course it is challenging for central governments to give away power. To give credit to the Labour party, there were some real achievements in terms of devolving power during their early years in office. Devolution to Scotland and Wales and the creation of the London mayoralty were big, positive steps. But after that initial flourish, Labour reverted to centralising, conservative (small-c conservative) type.

And there is still much more to do to open up our political system, not least reform of party funding to loosen the hold of vested interests; a register of lobbyists; the right to recall MPs; and, finally, real reform of the House of Lords.

The Lords is perhaps the most potent symbol of a closed society. Because we are in the process of building support for a Lords reform package, I am sometimes advised not to be too outspoken on this issue. But I’m afraid this is one boat that urgently needs rocking.

Lloyd George described the House of Lords as being “a body of five hundred men chosen at random from amongst the unemployed”. To be honest, it might be better if it was. Of course among our peers there are those with valuable experience and expertise.

But a veneer of expertise can surely no longer serve as an alibi for a chamber which legislates on behalf of the people – but is not held to account by the people. The Lords as currently constituted is an affront to the principles of openness which underpin a modern democracy.

So we will have a House of Lords reform Bill in the second session of this parliament. I am hopeful that we can secure a significant degree of cross-party consensus on this, and indeed support from Lords themselves. But let there be no doubt: if it comes to a fight, the will of the Commons will prevail.

Turning to the economy, there are hoards of power in the City of London; in certain industries; on the boards of large corporations. The result of this power imbalance is an economy that is lopsided: too reliant on London and the South East, too in thrall to financial services, delivering unequal rewards in terms of wages; and promoting short-termism over the long-term investment necessary for our shared prosperity.

And I understand the anger that people feel at the bonuses still flowing to bankers, especially those who have been bailed out by the taxpayer.

If we are serious about tackling wealth inequality; serious about responsible capitalism; serious about ensuring everyone contributes fairly to the government’s coffers, then we cannot be neutral on this issue.

We took a tough line on bank bonuses last year, particularly in the banks where the government is the biggest shareholder. We ensured that the bonus pools in RBS and Lloyds shrank; that all bonuses paid to chief executives and executive directors were entirely in deferred shares, not in cash; and that a limit of £2,000 was placed on cash bonuses.
The profound impact of the banking implosion on our economy, and on our society, has since become even clearer. There has been no lessening of public anger towards the banks - and there will be no let-up in the Government's determination to keep the clamps on bonus payments.

So, on the eve of bonus season, let no-one be in any doubt about our determination to use our clout as the major shareholder in these banks to block any irresponsible payments, or any rewards for failure.

I share the view of many that we need a more responsible capitalism. The question is what we do about it. Typically, for those on the left, building a more responsible capitalism means more state regulation. While for those on the right, it is principally a question of individual morality.

Judicious regulation and individual responsibility both have a part to play, of course. But we cannot rely on moral individuals to deliver a responsible capitalism. Nor can responsibility be mandated from on high, by the state.

For liberals, the key issue is here is the distribution of power. Shareholders with real power over boards. Workers with a real stake in their businesses – for example through employee ownership. Only by rewiring the power relations in our economy can we build a responsible capitalism. (I’ll have more to say on this subject in a speech in the New Year.)

The third characteristic of an open society is the sharing of knowledge and information. In a closed society the elite think that, for the masses, ignorance is bliss. But in an open society there is no monopoly of wisdom. So transparency is vital.

That is why the Freedom of Information Act was a quintessentially open society measure. It is unfortunate that Blair now says he regrets passing it. The Coalition Government is extending FOI to other bodies, and also reducing the 30-year rule to 20 years.

Transparency is not just necessary in government activities. There is a good case for it in a range of areas within the private sector, too - such as bonuses, gender pay gaps and environmental activities. And indeed earnings differentials, to help restrain excessive top pay.

That’s why the Coalition Government has recently completed a call for evidence on options in this area, and we’ll be looking very hard at the results in the next few weeks.

We also need a positive approach to the freedom of our press. A free press is absolutely central to an open society in which information is dispersed, corruption is exposed, and the powerful are kept honest. That is why we are already taking far-reaching action to reform England’s libel laws, so that public-spirited journalists are not muzzled by the threat of litigation by big businesses and wealthy individuals.

But we must also remember that media outlets serve commercial interests. So this calls for, firstly, a credible approach to media regulation and governance. The Leveson Inquiry must be enabled and encouraged to do a thorough job.

Second, ensuring diversity of ownership. A corporate media monopoly threatens a free press almost as much as a state one. We must be just as vigilant against vested interests in the media as in politics or business, and ensure genuine plurality.

The fourth feature of an open society is a fair distribution of wealth. Wealth underpins independence. There is a reason for the phrase ‘independently wealthy’. Wealth and property can act as a buffer against difficult economic times. And it gives people a real stake in society.

Wealth inequality is very much greater than income inequality, and widening. The bottom third of households hold just three per cent of the nation’s wealth. The top third hold three-quarters of it. This inequality of wealth then cascades down the generations, potentially widening the opportunity gap.

To give you a practical example, those people without financial help from the ‘bank of mum and dad’ now have to wait until their mid—30s before they can buy their first home.

Eighteen months ago, speaking as a guest of Demos then too, I argued that the liberal approach to tax distinguishes between earned income, and unearned wealth. That’s why we’ve put up capital gains tax while cutting income tax for ordinary working families. And, of course, I’d like to go further in pursuit of this fiscal liberalism. Lower taxes on work and effort, a greater contribution from the wealthy: an open society approach to tax.

The final feature of an open society is an intrinsically internationalist outlook – in contrast to a politics that clings solely to the nation state.

In my lifetime, the world has been sliced up and labelled in a number of different ways: “East” and “West”; “developed” and “developing”; “north” and “south”; “Christian” and “Muslim”, and so on.

But for me, the most important divide has always been between open societies and closed societies. Open societies choose democracy and freedom at home, and engagement and responsibility abroad. Closed societies favour protectionism in economic policy, and detachment from foreign affairs.

The temptation to turn inwards has been understandably strong over the last decade, given economic turbulence. The contagion that can spread across the world's financial system was demonstrated in dramatic fashion a couple of years ago. But there are more positive forms of contagion too. Investment flows across borders continue to increase, tying the fates of nations more closely together.

And it is simply no good attempting to be a closed nation in a more open world. Just as it is better to share power within a nation, it is often better to share power between nations.

And, when it has counted most, Europeans have stood together. Recognising that we are stronger shoulder-to-shoulder than we are apart. Now, we must do the same again. There is self-evidently a deep crisis in the eurozone. We had a disappointing outcome from the summit ten days ago.

This does not mean that the UK should step away from our European partners. So we will be re-engaging on a whole host of vital issues: staying open to the rest of the world, not least our Eastern and Southern neighbours; showing bold European leadership on defence and foreign affairs; pushing ahead to complete the single market.

So, to conclude. An open society is a liberal society, with five key features, from social mobility to internationalism. Open societies are challenging, fluid, progressive and innovative. They require energy and enterprise and courage.

Right now the fight for openness, against the forces of reaction and retreat, is as important as ever. But for liberals, there is no option of ducking this fight. For as Karl Popper himself wrote: “If we wish to remain human, then there is only one way, the way into the open society.”

Nick Clegg: Support for Europe has always been our cornerstone

Mon, 12 Dec 2011 21:34:00 GMT

As I have made clear since Friday, I am bitterly disappointed by the outcome of last weeks summit, which ended with the UK in a minority of one. There is now a real danger that over time the UK will be isolated and marginalised within the EU and as a consequence, our influence in the world will shrink. That is not good for jobs and growth; and will do nothing for struggling families across the country.

There is no doubt that we were in a difficult position because of the refusal to compromise from some member states and the eurosceptics in the Conservative Party. It was clear that some combination of guarantees on the operation of the single market, including in financial services, was necessary if we were going to ensure the safe passage of the package through Parliament. I regret the negotiations failed to arrive at a compromise, as I had hoped.

It is important that we now look to the future. That's why I, as a Liberal Democrat in this Coalition Government will do everything I can to make sure that this setback does not become a permanent divide. I am determined that we redouble our leadership on things like the single market, the environment, foreign policy, and defence - all the things that we need to do at a European level.

All my political life I have believed that Britain is stronger, better, greater when we lead and when we stand tall in Europe. Now, more than ever, we need a strong Liberal Democrat voice inside government making this case.

Nick Clegg: Watson will be a great leader for Liberals in Europe

Sat, 26 Nov 2011 14:24:00 GMT

Commenting, Nick Clegg said:

“In uncertain times we need strong leaders in Europe who are prepared to do the right thing in very difficult circumstances.

“That’s why I think Sir Graham will be a great leader for Liberals in Europe. His skill and wealth of experience will be invaluable as he brings people together to face these huge challenges.

“I have known Sir Graham for many years and he has always been a strong, passionate voice for the cause of Liberalism.”

After his election, Sir Graham Watson MEP said:

"I am honoured that ELDR has chosen me to lead our great party. I pledge to strengthen European Liberalism, support Liberal parties across our continent and build up the ELDR party by opening its doors to new members. I take inspiration from our strong base of Liberalism here in my South West constituency and the great work done by activists, Councillors and MPs. From the work of Ashdown to Penhaligon, the experiences and lessons we learn here will be emulated across the continent.

"My three main goals will be to expand our Party, to update its campaign techniques and to build it into a party which is truly pan-European in its thinking.

"It is our job as Liberals to explain how we offer a real, principled and economically responsible alternative to the behemoths of conservatism and socialism. And as President of ELDR I intend to do just that.

"The multiple crises we are currently mired in - economic, political and environmental - are an opportunity for Liberals to show what we are made of."

Nick Clegg launches Youth Contract

Fri, 25 Nov 2011 13:55:00 GMT

The aim is to ensure that all jobless young people are earning or learning again before long term damage is done. Over three years, the Youth Contract will provide at least 410,000 new work places for 18 to 24 year olds into work.

The Youth contract includes:

160,000 wage subsidies and 250,000 new work experience placements.
There will be at least 20,000 more incentive payments to encourage employers to take on young apprentices.
And there will be a new programme to help the most disengaged 16 and 17 year olds - getting them back to school or college, onto an apprenticeship or into a job with training.

Deputy Prime Minister Nick Clegg said:

“The aim of the Youth Contract is to get every unemployed young person earning or learning again before long term damage is done.

“This is a £1bn package and what’s different about it is gets young people into proper, lasting jobs in the private sector.

“But it’s a contract, a two-way street: if you sign up for the job, they’ll be no signing on for the dole. You have to stick with it.

“Youth unemployment is an economic waste and a slow-burn social disaster.

“We can’t lose the skills and talent of our young people – right when we need them most. We can’t afford to leave our young men and women on the scrap heap. We need the next generation to help us build a new economy.

“If people are out of work when they’re young they bear the scars for decades. If they have a false start, they might not ever fully catch up.

“These are tomorrow’s mothers, fathers and tax-payers. If they end up falling behind our whole society pays the price.

“It hasn’t been easy to find £1bn but it is the right thing to do.

“We won’t allow the children brought up in the boom to bear the brunt of the bust. The next generation must not pay the price for my generation’s mistakes. So the Coalition Government won’t sit on our hands and let a generation fall behind.

“We want to give every young person a reason to get up, a reason to go out, and a reason to feel great at the end of the day.

“Despite the huge pressures on the public purse we’re pulling out all the stops. But young people have to meet us halfway. If you break your side of the bargain, don’t just expect to live your life on benefits.”

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140,000 disadvantaged two-year-olds to benefit from free early education

Fri, 11 Nov 2011 21:27:00 GMT

This is a key Liberal Democrat policy delivered by the Coalition Government. It builds upon our achievement of extending free childcare to 15 hours a week for all three and four-year-olds.

Liberal Democrat Leader and Deputy Prime Minister Nick Clegg said:

"Giving children a fair start in life is at the heart of what I and the Liberal Democrats are about. It is an absolute disgrace that a child born today in one the poorest neighbourhood in Sheffield, where I am an MP, can expect to live 14 years less than one born in the wealthiest neighbourhood.

"We know that the earlier we help children the bigger difference we can make to their lives. That's why I am proud to announce plans to give 15 hours free childcare for the 140,000 two-year-olds most in danger of falling behind."

Liberal Democrat children’s minister Sarah Teather said:

“Our priority is to increase social mobility by helping children from the poorest backgrounds in their earliest years. High quality early education is the key to making a difference early on in a child’s life. It’s crucial for their healthy development and means they’re not falling behind before they have even started primary school.

“We want more children to be able to access their full early education entitlement. Too often, the most disadvantaged children don’t get what they are entitled to. It’s important we target early education at those who stand to benefit the most.

“We also want to make the entitlement more flexible, so that children don’t miss out on early education and parents can help balance their work and family life more easily.”

The announcement is part of a consultation, published today, on changes to free early education. The proposals published in the consultation will:

Make the free entitlement to 15 hours per week of free early education more flexible. This means parents would be able to access it earlier and later in the day – between 7am and 7pm – and across two days instead of three days.

Use the criteria which is used for free school meals to decide which disadvantaged two-year-olds should qualify for free early education.
Include two-year-olds who are looked after by the state in the eligibility criteria for free early education.
Slim down the guidance for local authorities from 100 pages to fewer than 20 pages.

Nick Clegg announced in October 2010 that the Government would extend 15 hours of free early education – currently available to all three-and four-year olds – to disadvantaged two-year-olds. From September 2013 up to 140,000 disadvantaged two-year-olds will stand to benefit.

Local authorities in England have been delivering a targeted offer of between 10 and 15 hours of free early education to some of the most disadvantaged two-year-olds since September 2009. The extension of 15 hours to all disadvantaged two-year-olds will mean an increase in the number of places from 20,000 per year to around 140,000 per year.

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Nick Clegg announces plans to cut red tape for small businesses

Tue, 25 Oct 2011 18:43:00 GMT

Below are extracts from his speech:

"The debate over regulation has been polarised around two extremes - on the one hand is the idea that it fixes every problem. Rules, targets, monitoring, endless government diktats to chivvy business in the right direction; mountains of form-filling so we can keep an eye on you.

“Previously, the approach has been ‘when in doubt, legislate’. We saw it in public services, in the criminal justice system and, on average, British businesses were lumbered with six new regulations every working day. Thousands of different rules were left on the statute books - because new rules are free; they’re easy; they make Ministers feel in control.

“On the other hand, you have the deregulation diehards who say we should scrap it all. They oppose regulation vehemently; on principle. The state has no business restricting business, and all we need to do to get the economy growing again is tear up the rule book; scrap environmental protections, workers’ rights, consumer rights and, hey presto, we’ll get business booming.

“Of course deregulation plays a role, but supply side liberalisation is not the be-all-and-end-all for growth. There is simply no evidence that – on its own – it is enough.

“So both extremes are ridiculous. And I’m not interested in a false debate about ‘how much’ regulation; I’m interested in what works.

“When I was working in Europe as an MEP, I campaigned for less red tape, I helped craft laws cutting it. Because liberals don’t believe in rules for rules sake. We believe in intelligent, effective regulation that gets the balance right. And I’ve been working hard over the last 18 months, and will continue to do so, to restore the balance.

“So the Coalition is on a mission to liberate small business. We have set ourselves the challenge of being the first British Government to leave office having reduced the overall burden rather than increased it.

“First, we’re halting the tide of new regulation. To that end, Vince Cable has introduced a radical one-in-one-out policy. It is the first of its kind in the world, and the Business Secretary has made new regulation a last resort in Whitehall.

“On top of limiting new rules, we’re also hacking away at the ones that already exist. Our Red Tape Challenge invites ordinary people to identify overlaps, complexity and to highlight where the benefits are out of synch with the costs. That project has already looked at 400 regulations just in retail and hospitality. Over half – 220 – will be simplified or scrapped.

“Where people have expressed support for regulation, we’re keeping it. Like with the hallmarking system for gold and silver. But, if it’s tedious and pointless, its going. So no more insisting that a shop selling kitchen descaler has a poisons licence. No more having to pay for a piece of paper just to put on a little live music in a pub. Where there were twelve pieces of legislation on consumer rights, we’re collapsing them into one.

“The end result will be a system designed for busy, working people rather than a job creation scheme for accountants and lawyers. And a system that saves you money. The Coalition’s attack on red tape has already saved British businesses £3 billion. A further £600 million worth of savings could come just from the decision to exempt more companies from being audited.

“And there is another, specific, area of work I can unveil this morning. Changing the mindset within central government is one thing. But we make the rules – we don’t enforce them. There are a range of bodies responsible for inspection: HMRC, the Environment Agency, the Health and Safety Executive, to name a few. And they need to undergo this culture change too. They need to understand that their job is to make your life easier, not harder.

“So there will be a major shake up of business inspection - going through the regulators, asking ‘are they still necessary?’; ‘Should they still exist?’; making sure that, yes, they intervene when necessary, they offer advice and support, but otherwise they let you get on with it.

“They will need to respect the Regulators’ Compliance Code, which says regulators must think about and encourage economic growth. And they will have to make sure they aren’t breathing down your necks. Why, for example, should regulators be able to turn up at your door whenever they want and as often as they want? Why can’t we limit the number of inspections to, say, two a year, ensuring these bodies coordinate amongst themselves to stick within that limit?

“We also know that which-body-does-what can be extremely unclear. So we’re minimising the number of authorities you will have to deal with in the future, introducing sunset clauses for new regulators, placing them under rolling review; if they become irrelevant, or their functions are replicated elsewhere, they’ll go.”

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Nick Clegg's speech to Liberal Democrat Conference

Wed, 21 Sep 2011 20:30:00 GMT

Liberal Democrats, we have now been in Government for 500 days. Not easy, is it? None of us thought it would be a walk in the park, but I suspect none of us predicted just how tough it would turn out to be. We've lost support, we've lost councillors, and we lost a referendum. I know how painful it has been to face anger and frustration on the doorstep.

Some of you may have even wondered: Will it all be worth it in the end? It will be. And today I want to explain why.

But above all I want to pay tribute to you. Your resilience. Your grace under fire. I have been genuinely moved by your spirit and your strength. Thank you. Thank you, above all, for never forgetting what we are in politics for. After the May elections, Alex Cole-Hamilton, one of our defeated candidates in Edinburgh said that if losing was part payment for ending child detention then, as he said: "I accept it, with all my heart."

That is the liberal spirit and that is something we will never lose. The spirit that gave birth to our party a century and half ago, that kept us alive when the other two parties tried to kill us off. The spirit that means however great our past, our fight will always be for a better future.

Down in Westminster we've been vilified like never before. The Left and the Right didn't like us much in opposition. They like us a whole lot less in Government. The Left accuse us of being powerless puppets, duped by a right wing Conservative clique.

The Right accuse us of being a sinister left wing clique, who've duped powerless Conservatives. I do wish they'd make up their mind.

So yes, it has been hard. And adversity tests the character of a party just as it tests any person. We've shown - you've shown - immense strength. After being hit hard, we picked ourselves up and we came out fighting. Fighting to keep the NHS safe. Fighting to protect human rights. Fighting to create jobs. Fighting for every family. Not doing the easy thing, but doing the right thing. Not easy, but right.

And as for all those seats we lost in May, let me tell you this: I won't rest, we won't rest, until we've won every single one of those seats back.

These may not be easy times for us as a party. But much more importantly: These are not easy times for the country. Economic insecurity. Conflict and terrorism. Disorder flaring up on our streets. Times like these can breed protectionism and populism. So times like these are when liberals are needed most. Our party has fought for liberal values for a century and half: justice, optimism, freedom. We're not about to give up now.

This conference centre is on the site of the old Bingley Hall where William Gladstone stood a hundred and thirty years ago to found the National Liberal Federation. Gladstone observed that day that Birmingham had shown it was no place for 'weak-kneed Liberalism'. No change there then.

So we are strong. United. True to our values. Back in Government and on your side.In Government you're faced with hard choices every day. The question is how you make them. Some ask 'how can we get a market to work here?' Others 'how can this win us more votes?' A few 'what will the press think?' For liberals, the litmus test is always the national interest. Not doing the easy thing. Doing the right thing.

And that takes a certain kind of character. One which we've seen on display over the last few months. And indeed the last few days here in Birmingham. Brave. Principled. Awkward. Resolute. Optimistic. Unstoppable. No I'm not just talking about Paddy Ashdown. I am talking about everyone in this hall.

But I think people still need to know more about the character of our party. Not just how we govern, but why. We proved something about ourselves last year, when we faced a historic choice: Whether or not to enter Government in coalition with the Conservatives.

The easy thing would have been to sit on the opposition benches throwing rocks at the Government as it tried to get control of the public finances. It might even, in the short run, have been more popular, but it would not have been right. At that moment, Britain needed a strong government.

Alistair Darling's recent book is called "Back from the Brink" - in reality Labour left us on the brink. Teetering on the edge of an economic precipice. So we put aside party differences for the sake of the national interest. People before politics. Nation before party. And while other countries have been riven by political bickering, we have shown that a coalition forged in a time of emergency could be a different kind of government, governing differently.

Because let me tell you this: You don't play politics at a time of national crisis. You don't play politics with the economy. And you never, ever play politics with people's jobs.

Our first big decision was to clear the structural deficit this parliament. To wipe the slate clean by 2015. This has meant painful cuts. Agonisingly difficult decisions. Not easy, but right. Because handing control of the economy to the bond traders: that's not progressive.

Burying your head in the sand: that's not liberal. Saddling our children with the nation's debt: that's not fair.

Labour says: the Government is going too far, too fast. I say, Labour would have offered too little, too late. Imagine if Ed Miliband and Ed Balls had still been in power. Gordon Brown's backroom boys when Labour was failing to balance the books, failing to regulate the financial markets, and failing to take on the banks. The two Eds, behind the scenes, lurking in the shadows, always plotting, always scheming, never taking responsibility. At this time of crisis what Britain needs is real leadership. This is no time for the back room boys

Labour's economy was based on bad debt and false hope. Labour got us into this mess. But they are clueless about how to get us out. Another term of Labour would have been a disaster for our economy. So don't for a moment let Labour get away with it. Don't forget the chaos and fear of 2008. And never, ever trust Labour with our economy again.

Government has brought difficult decisions. Of course the most heart wrenching for me, for all of us, was on university funding. Like all of you, I saw the anger. I understand it. I felt it. I have learned from it. And I know how much damage this has done to us as a party. By far the most painful part of our transition. From the easy promises of opposition to the invidious choices of Government.

Probably the most important lesson I have learned is this: No matter how hard you work on the details of a policy, it's no good if the perception is wrong. We can say until we're blue in the face that no one will have to pay any fees as a student, but still people don't believe it. That once you've left university you'll pay less, week in week out, than under the current system, but still people don't believe it. That the support given to students from poorer families will increase dramatically, but still people don't believe it.

The simple truth is that the Conservatives and Labour were both set on increasing fees, and in those circumstances we did the best thing we could. Working tirelessly to ensure anyone who wants to go to university can. Freeing part time students from up front fees for the first time. Ensuring fairer repayments for all graduates. But we failed to properly explain those dilemmas. We failed to explain that there were no other easy options. And we have failed so far to show that the new system will be much, much better than people fear.

So: lessons learned. But the most important thing now is to get out there and show that university is for everyone. We should all take a leaf out of Simon Hughes' book - who has been busting a gut as the Government's Advocate for Access. Travelling the country, explaining the new system and finding ways to get young people from all backgrounds to apply to university. Simon didn't like the decision we made, and for reasons I respect. But rather than sitting back he has rolled up his sleeves and got on with making the new system work. Simon, thank you.

Right now, our biggest concern is of course the economy. The recovery is fragile. Every worker, every family knows that. There is a long, hard road ahead. In the last few days alone we have seen a financial storm in the Eurozone. Rising unemployment. Falling stock markets.

So we were right to pull the economy back from the brink. It is clearer now than ever that deficit reduction was essential to protect the economy, to protect homes and jobs. Deficit reduction lays the foundations for growth. But on its own it is not enough. That's why we're already: investing in infrastructure, reducing red tape, promoting skills, getting the banks lending. But the outlook for the global economy has got worse. So we need to do more, we can do more, and we will do more for growth and for jobs.

Because we're not in politics just to repair the damage done by Labour, to glue back together the pieces of the old economy. We are here to build a new economy. A new economy safe from casino speculation. That's why a Liberal Democrat business secretary is putting a firewall into the banking system.

Protecting the people who have worked hard and saved. A new economy that safeguards the environment. That's why a Liberal Democrat environment secretary is creating the world's first Green Investment Bank, spending three billion pounds to create green jobs.

A new economy where the lowest-paid get to keep the money they earn. That's why a Liberal Democrat chief secretary to the Treasury has put two hundred pounds into the pocket of every basic rate taxpayer and taken almost a million workers - most of them women - out of income tax altogether.

A new economy based on skills. That's why one Liberal Democrat minister is creating a quarter of a million new apprenticeships, and another is investing in schools and early years education.

A new economy that works for families. Where men and women can choose how to balance work and home. That's why Liberal Democrats are bringing in shared parental leave and more flexible working.

And a new economy run for ordinary people rather than big finance. After the so-called masters of the universe turned out to be masters of destruction instead. Which is why when we come to sell those bank shares, I want to see a payback to every citizen. Your money was put at risk. Your money was used to bail out the banks. And so the money made by the banks is your money, too. An economy for everyone: In Scotland, Wales, in every part of the United Kingdom. For women and men. Young, old. Town, country. North, South. A new economy for the whole nation.

Because as Liberal Democrats we act for the whole nation. In our long, proud liberal history, we have never served: the media moguls, the union barons or the bankers. We do not serve, and we will never serve, vested interests. We are in nobody's pocket. That's why we can make decisions in the national interest: Not easy, but right.

That's why we speak up, first and loudest, when the establishment lets the people down. In the last three years, we've seen establishment institutions exposed one by one. The City of London, shattered by the greed of bankers. The media, corrupted by phone hacking. Parliament, shamed by expenses.

I was brought up to know that it is not polite to say 'I told you so'. But I'm sorry: We did. In 2006 when Vince Cable warned that "bad debts were growing" and that bank lending levels were "recklessly irresponsible". In 2002 when Tom McNally said: "The Government must guard the public interest as assiduously as Mr Murdoch guards his shareholder interests." And in 1996 when Paddy said that Parliament had become "A rotten mess.a dishevelled, disfigured old corpse of what was once called the Mother of Parliaments." Free to tell it like it really is because we are in nobody's pocket.

Of all the claims Ed Miliband has made, the most risible is that his party is the enemy of vested interests. While we were campaigning for change in the banking system, they were on their prawn cocktail offensive in the City. While we've led the charge against the media barons, Labour has cowered before them for decades. The most shocking thing about the news that Tony Blair is godfather to one of Rupert Murdoch's children is that nobody was really shocked at all.

And today Labour is in hock to the trade union barons: After their government stipend, 95% of Labour's money comes from unions. Most of it from just four of them. Let me be clear: The values of trade unionism are as relevant as ever. Supporting workers. Fighting for fairness at work. But I don't think the unions should be able to buy themselves a political party. Ed Miliband says he wants to loosen the ties between Labour and the union barons who helped him beat his brother. Let's see him put his money where his mouth is. Let's see if he'll support radical reform of party funding. Every previous attempt has been blocked by the vested interests in the other two parties.

We are all stuck in a system that we know is wrong. We've all been damaged by it. But if we learned anything from the expenses scandal. It is surely that if the system's broken. We should not wait for the next scandal. We should fix it and fix it fast.

So whether it is securing the economy, sorting the banks or cleaning up politics, we are making the big, difficult decisions. Not easy, but right. That's what it means to be a party of national government again. Not just making arguments, making change.

In a coalition, we have two kinds of power: The power to hold our coalition partners back and the power to move the government forwards. So we can keep the government to a liberal path. Anchor the government in the centre ground.

We were absolutely right to stop the NHS bill in its tracks. To ensure change on our terms. No arbitrary deadlines. No backdoor privatization. No threat to the basic principles at the heart of our NHS.

We are right to stand up for civil liberties. No retreat to the illiberal populism of the Labour years. We are right to insist on keeping the tax system fair. Asking the most of the people who have the most. And we will always defend human rights, at home as well as abroad. The European Convention on Human Rights and the Human Rights Act are not, as some would have you believe, foreign impositions. These are British rights, drafted by British lawyers. Forged in the aftermath of the atrocities of the Second World War. Fought for by Winston Churchill. So let me say something really clear about the Human Rights Act. In fact I'll do it in words of one syllable: It is here to stay.

So we will always hold the liberal line. But much more important is the positive power of government: Not just stopping bad things but doing good things.

Last year I walked through the door of No 10. But we all walked through a kind of door together. To being, once again, a party of national government. So we must move now beyond the reflexes of opposition to the responsibilities of government, and the opportunities of government, too. New social housing. Criminal justice reform. Fixed term parliaments. Keeping our Post Offices open. House of Lords reform. Better mental health care. Safer banks. Income tax down for ordinary workers. Capital gains tax up for the rich. Compulsory retirement scrapped. Pensions protected by a triple lock. ID cards: history. Child detention: ended.

Just look at what we've announced in the last five days. After decades of campaigning, and thanks to Lynne Featherstone: Equal marriage, straight or gay. More power for consumers over the energy companies. Calling time on rewards for failure in boardrooms. Investing in education for girls in developing countries. New powers to turn empty homes back into family homes. A five hundred million pound investment in growth. Liberal achievements from a liberal party of government.

And we have stood by our commitments to act on the environment. The pollsters tell us that climate change has dropped down people's list of worries. That people have more immediate concerns. I understand that. So the politically convenient thing would have been to put this off to another day. Instead we have acted immediately. Not easy, but right. Ambitious carbon targets. Energy market reform. Councils generating renewable energy. A Green Deal to make bills lower and homes warmer. Carbon capture and storage. Green buses, trains and trams. The world's first ever green investment bank. Green achievements. From a green party of government.

I've learned quite a bit in the last 500 days. About the responsibilities of government. About the resilience of our party. The integrity of our members. About our determination to do the right thing.

In government, every single day brings hard choices. You can quickly lose your way unless you are certain of your cause. Of why you are there in the first place. Every one of us in this hall has strong political convictions: Civil liberties. Internationalism. Human rights. Political reform. Responsible capitalism. Fighting climate change. But every one of us has a political passion too. The fire inside that drew us to politics in the first place. Let me tell you what I care most about. My passion is ensuring a fair start for every child. I have a simple, unquenchable belief: That every child can do good things, great things if only we give them the opportunities they deserve.

Equal opportunity. It sounds so simple doesn't it? Everyone agrees with it. But then we allow prejudice, tradition and class to crush a million hopes and dreams, watch young children's lives go off track even before they go off to school, sit idly by while talent goes to waste. I know I have had all the advantages - good school, great parents. I was lucky. But it shouldn't be about luck.

On Saturday I met a group of young people working with a charity called UpRising, here in Birmingham. All from really difficult backgrounds. One young woman, Chantal, told me that she only started to thrive when she found someone who believed in her. I want every child to believe in themselves. In terms of opportunity, we are a nation divided:

Children from a poor background a year behind in language skills before the age of five; more young black men in prisons than at Russell Group universities. And within one city, two nations: In Hammersmith and Fulham in West London, more than half the children leaving state schools head to a good university. Just thirty minutes east - down the district line to Tower Hamlets - and just 4 percent do. Odds stacked against too many of our children. A deep injustice, when birth is destiny. That's why I've been leading the charge for social mobility - for fairer chances, for real freedom.

People keep telling me that it's too hard. That it's futile to push for fairness into the headwinds of an economic slow down, or that it will just take too long. And that I should find some politically convenient 'quick wins' instead. I've also encountered fierce resistance from those who do so well out of the status quo. But for liberals the only struggles worth having are the uphill ones. Allowing schools to move poorer children up the queue for admissions. Making universities open their doors to everyone. Making firms work harder to get women on their boards. Breaking open internships. All controversial. All difficult. Not easy, but right.

So I'm not backing down. I'm not slowing down. Because this will not be a liberal nation until every citizen can thrive and prosper, until birth is no longer destiny, until every child is free to rise.

This summer, we saw the consequences of a society in which some people feel they have no stake at all. Nobody could fail to be horrified by what we saw during the riots. These weren't organised campaigns for change. They were outbursts of nihilism and greed. I'll never forget the woman I met in Tottenham, who told me the clothes she stood in were all the possessions she had left in the world after her home was torched.

But in every city where trouble broke out, most people did the right thing. So many more people went out to clean up the streets than went out to trash them. In Manchester I met a café owner who boarded up her broken windows and started serving tea and coffee straight away to the people who were helping clear up. And here in Birmingham the community stood together in the face of disorder and tragedy. Or emergency services, our police and our courts all rose to the challenge.

But we have to ensure that the offenders become ex-offenders for good. hree out of four had previous convictions. So we have to push ahead with the Government's rehabilitation revolution: Punishment that sticks, that changes behaviour. An end to the corrosive cycle of crime. And I want the criminal to look their victims in the eye to see the consequences of their actions, and to put it right. That's why there will be community payback projects in every city affected. Why we are investing in drug recovery wings in our prisons. Tackling gang culture. Tougher community penalties. Effective justice. Restorative justice. Liberal justice.

But let me say something else: The rioters are not the face of Britain's young people. The vast majority of our young people are good, decent and doing the best they can. Don't condemn all of them because of the actions of a few. You know what really struck me? How so many of those who did join in the riots seemed to have nothing to lose. It was about what they could get, here and now. Not what lies in front of them, tomorrow and in the years ahead. As if their own future had little value. Too many of these young people had simply fallen through the cracks. Not just this summer but many summers ago, when they lost touch with their own future. So often the people who have gone off the rails are the ones who were struggling years earlier, not least in making that critical leap from primary to secondary school. So today I am launching a new scheme to help the children who need it most. In the summer before they start secondary school. A two-week summer school helping them to catch up in Maths and English, and getting them ready for the challenges ahead. We know this is a time when too many children lose their way, so this is a £50m investment to help them along the right path.

And that is why we have found the money, even now, to invest in education. Protecting the schools budget. A two and a half billion pound Pupil Premium by the end of the parliament. More investment in early years education: 15 hours for all three and four year-olds. New provision for the poorest two-year-olds. All steps towards a society where nobody is 'enslaved by poverty, ignorance or conformity'. Towards a liberal society. These are investments that will take years or even decades to pay off. By the time the two year-olds we help next year come to vote, I'll be 60. So why are we doing it, when it costs so much and takes so long? Because investing early makes such a huge difference, especially for the poorest children: Not easy, but right.

So hold your heads up and look our critics squarely in the eye. This country would be in deep trouble today if we had not gone into Government last year. And Britain will be a fairer nation tomorrow because we are in Government today. Never apologise for the difficult things we are having to do. We are serving a great country at a time of great need. There are no shortcuts, but we won't flinch. Our values are strong. Our instincts are good: Reason not prejudice. Compassion not greed. Hope not fear.

After the summer riots, message boards sprang up. They became known as 'peace walls'.

And on the peace wall in Peckham there was a note that simply read: Our home. Our children. Our future. Six words that say more than six hundred speeches. Our home. Our children. Our future.

Britain is our home. We will make it safe and strong. These are our children. We will tear down every barrier they face. And this is our future. We start building it today.

Nick Clegg: Proud to launch the Leadership Programme

Sun, 18 Sep 2011 01:00:00 GMT

Commenting, Nick Clegg said:

“I am very proud to be joined today by some outstanding candidates who are the first of many people to take part in the Leadership Programme.

“Increasing the diversity of our elected representatives is an absolute priority for me and the Liberal Democrats. To best represent Britain, we need to have candidates from all walks of life and all backgrounds.

“The Leadership Programme will be key to ending the too male and too pale image of our party and I am immensely looking forward to working with them over the next few years.”

Nick Clegg's Rally Speech: Make no mistake – we are punching above our weight.

Sun, 18 Sep 2011 01:00:00 GMT

Welcome to Birmingham, a city with a great, outspoken liberal tradition. The home of Joe Chamberlain, where Gladstone called for Home Rule in one of the most rousing speeches of his life, and where Lloyd George nearly lost his life when he spoke out against the Boer War. Now it’s the home of those great modern day, outspoken liberals – John Hemming and Lorely Burt.

I have spent the last few weeks criss-crossing the country, speaking to as many of you as possible, hearing your concerns and answering your questions. We did what Lib Dems do: discussed, debated, argued – honestly and respectfully. There has never been a gathering of Liberal Democrats in our history that hasn’t seen some sort of disagreement. These meetings were no different, but they reminded me that above all else the Liberal Democrats are a family. We all felt that in May when good friends and dedicated colleagues lost their seats. And I think we all felt it this summer when we heard the tragic news of the untimely death of Andrew Reeves. No one embodied the passion, the dedication, and the warmth, of the Liberal Democrats like Andrew. And I thought it was particularly fitting, given his passion for social media, that so many people paid tribute to him on Twitter that he became one of the top trending topics in the country. To say that Andrew will be greatly missed is a huge understatement. He was there in good times and bad, one of us, one of the family.

Like all families, we have our faults too. That’s why it was great to hear Chris Lucas speak so eloquently earlier about putting one of them right. I stood before you at the rally in Sheffield and said that we are too male and too pale, that if we want to represent all of the country then we must have all of the country represented in us. I look forward to formally launching our Leadership Programme tonight and helping to deliver a party that better reflects our country.

I’d also like to pay tribute to another member of our family – Chris Fox – who is standing down as Chief Executive in the next few months. Chris has done a fantastic job since he took over in 2009. He has modernised and professionalised our party operation, culminating in the move from Cowley Street to the new headquarters in Great George Street this summer. His legacy is a finely tuned political operation that is ready and able to take us on to bigger and better things. Chris has been Chief Executive at a really challenging time for our Party and we all owe you Chris a really heartfelt thanks.

So, The Liberal Democrats are a family. There are those who wish to drive a wedge between us – our opponents, the vested interests in politics and the media who want to put us back in our place. They won’t succeed. Because whether you consider yourself more of a social democrat or a classical liberal, whether your hero is Gladstone or Keynes, Paddy Ashdown or Shirley Williams, we are all, to one degree or another, all of the above. We share the same inheritance. We are cut from the same cloth. We are Liberal Democrats.

Like all families, we have our share of rows – I’m sure we’ll have one or two
this week – but they are rows for a reason. To get NHS reform right, to keep fair taxes as our priority, to keep the government green. But after we've had our debates we get out there together and fight for it, even when it is uncomfortable or even unfashionable. Telling hard truths. Asking what Jo Grimond called the 'prickly questions' of politics. And when we've set ourselves to something we don't give up, no matter how long it takes. We never oppose for the sake of opposition but we never shrink from telling it like it s and fighting for what is right. If that makes us a bit awkward, a bit challenging, a bit difficult, so be it. We are prepared to be awkward. It's the same quality that makes Liberal Democrat ministers fight tooth and nail in their departments for the things we believe in. In government, it means sometimes we have to be awkward. As our Coalition partners are finding out on a daily basis, we are not here to make things easy. We’re here to put things right.

What you told me is that we’re not getting across clearly enough what we are achieving in government. You have heard tonight how we are delivering in government - fair taxes, a fair start for children, building a new green economy and fixing our broken politics. These are the things we put on the front page of our manifesto and now we are delivering them for our country. And more than that – whether it’s the environment, civil liberties, Europe, localism, pensions, ending child detention, boosting apprenticeships – the list goes on. This government has Liberal Democrat written through it like a stick of Brighton Rock.

We didn’t win the election so we can’t do everything we want to, but we are doing a remarkable amount. Make no mistake – we are punching above our weight. The BBC recently reported research showing that three quarters of our manifesto is being delivered in government – more than the Conservative manifesto. Not bad given we have just eight percent of the MPs in Westminster. And our liberal voice is loud and clear.

On the NHS – your vote at spring conference in Sheffield were carried into the corridors of Whitehall, resulting in real change. On Rupert Murdoch – Liberal Democrats have been in the lead, taking on the vested interests in the media. On human rights – I am proud to stand up for one of the absolute cornerstones of our free, liberal society. This Coalition government has a distinct Liberal Democrat voice and you will hear it.

But we can’t have all our fights in public. While times are hard, while people are struggling, the last thing people want is to see the nation’s leaders squabbling and point scoring. That’s why I can’t tell you about every debate we have behind closed doors. But rest assured, we are fighting for Liberal values every day.

I’m also proud that we are proving that we can do things differently. That politicians of different parties can come together and put the country first. Remember before the General Election when we were being told a hung parliament would lead to chaos, that government would grind to a halt and the economy would fall off a cliff. Well it didn’t. We have proved the doubters wrong. We are proving, every day, that coalition politics works. As someone who has always believed in electoral reform, in pluralism, in the idea that people are better served if we look for common ground instead of tribal division, that makes me very proud.

We may not agree with everything our coalition partners say – they certainly don’t agree with everything I say – but that’s the point. We have not become the same and we never will. We are putting our differences aside and putting the country first.

These are tough times. If we had been able to choose when to enter government for the first time in nearly 70 years I doubt many of us would choose to do so in the hardest economic conditions in our lifetimes. But we can also be proud of what we are proving about ourselves.

We could have bottled it. We could have taken the easy way out, washed our hands of any responsibility and let the Conservatives deal with the mess on their own. We could have stood on the sidelines and watched a government that couldn’t even command a majority in the House of Commons try to tackle an economy teetering on the edge of a cliff. That would have been cowardly and it would have confirmed so many people’s worst suspicion about us – that when push comes to shove we’d prefer to shout from the sidelines than take responsibility. We didn’t do that. We did the right thing. We rose to the challenge. And we did it knowing it meant working with our political enemies and almost certain short-term unpopularity.

People can no longer claim we’re not up to the job. They can no longer say we don’t have it in us to put our necks on the line for the good of the country. We are proving every day that we are no longer a luxury vote or a protest vote or, worst of all, a wasted vote. We are proving that we can be trusted to govern – from the centre, for the people, for the whole nation. We are the only party that can honestly claim to represent the entire country – from Land’s End to John O’Groats – and we are proving we can put the whole country’s interests first. Taking the difficult decisions but making a positive difference to people’s lives too. Cutting taxes, not for the rich but for millions of people on low and middle incomes. Helping pensioners by restoring the earnings link. Creating a quarter of a million new apprenticeships. A political family doing this together, showing we have the courage of our convictions and creating a better country for our children.

In difficult times you need to know two things about your government: that it has the strength to take the decisions needed to fix the big problems; and that there are people in that government who are looking out for you. Those people are there. They’re in government and on your side. They’re called Liberal Democrats.

Nick Clegg: Speech on the economy to London School of Economics

Wed, 14 Sep 2011 19:42:00 GMT

Good morning. Today I’m going to talk about the economy. I’m certainly in the right place. For more than a century LSE scholars have been at the forefront of every major economic debate asking - and answering - the most pressing questions of the day.

Today, the big question facing governments is this: Given the unprecedented pressures in the global economy, what can we do to restore stability and encourage growth?

The Coalition will be saying more about that between now and our Autumn Statement, but I wanted to make this speech today because the international situation has changed dramatically. It is worse, even, to just six months ago. To quote Christine Lagarde, the new head of the IMF: ‘We are in a dangerous new phase’. A huge rise in oil and food prices. A slowdown in overseas markets. Continued turmoil in the Eurozone. Ongoing uncertainty in the US. Far from a one off shock, the 2008 banking crisis has set off a chain reaction that continues to reverberate around the globe.

And here in the UK, we are still feeling the pressure. This week we’ve heard that inflation is still high at 4.5%. And, in the last hour, we’ve been told unemployment has risen.

So, the reality we face is stark; there is now little margin for error. But that does not mean we are helpless. It does not mean we intend to sit on our hands while the global economy falters.

Our critics say that all this government is capable of is cuts. That, beyond lowering a few business taxes, reducing a bit of red tape there is little else we are willing or able to do. That is absolutely wrong. We can do more, we are doing more, we will do more. Internationally, promoting cooperation, discouraging our global partners from turning inwards. And here in the UK, where, yes, we must stay firm on tackling our deficit but, at the same time, where there are levers we can pull to stimulate growth, not least to deliver infrastructure - something I want to give special attention to today.

First, international cooperation. As important today as it was in the weeks that followed Lehman Brothers’ collapse, but even harder to achieve because, for so many of us, the options available now are even fewer than we had then. And, everywhere, governments are calculating the trade off between protecting their national interests and working together for our collective good. That is a false choice. Our fates are tied.

We urgently need to rebalance global demand and unwind dangerous imbalances. Having contracted for a while, the imbalance between countries in deficit and in surplus has widened again. Countries with large deficits and fiscal vulnerabilities must put in place credible fiscal consolidation plans, pushing forward structural reforms to improve their competitiveness, and surplus countries must actively increase domestic demand, keeping their markets open. Beggar-thy-neighbour approaches may be attractive now. They will be less so if, in another three years, we’re still not out of this mess.

In terms of the Eurozone, the real failure has not been the original concept of monetary union. It’s that the rules were never applied stringently enough. The Stability and Growth Pact was actively watered down in 2005, allowing members to wriggle out of their fiscal commitments to each other. Now we are seeing the effects.

But on a day like today, when people are talking openly about the possibility of Greek default, the key question is not: how do we seek to renegotiate the UK’s place in the European Union in a treaty that hasn’t even materialised yet. The single-most important question, the urgent question is what role can we play in helping the Eurozone avoid further turmoil, creating the stability needed for prosperity and jobs – in the Eurozone and in the UK too. A stable, healthy Eurozone matters massively to the UK. It’s where we send 40% of all of our exports and, together, we all face a longer term problem of competitiveness - a problem not even a raft of new treaties could fix.

So beyond the immediate issues surrounding fiscal and monetary policy, what we need is deepening and widening of the Single Market. The world’s largest, borderless marketplace – designed by a British Commissioner. A market that already adds £520bn to our shared economy and, if liberalised, in services and digital industry, could add £690bn. As Europe undergoes a period of longer-term change, that should be the UK’s real priority – completing the Single Market is how we put UK’s interests first.

We also need international cooperation to bring stability to our international banking system. Working together to implement agreements on bank capital under Basel 3, agreeing a common approach to the extra capital the most systemically important banks should hold. And, we need to get our act together on trade. Many countries are – so far at least – resisting the lure of protectionism, but progress on trade liberalisation has dramatically stalled. It would be a huge mistake to give in to that deadlock, to give up on the Doha round worth £110bn to the world economy every year. History shows that protectionism invariably follows in the wake of global economic slowdown. Our task is not to repeat history, but to learn from it. Yes, we do need to be realistic – progress will be slow. And Doha doesn’t cover everything, for example on services and investment. So we must keep pushing on bilateral agreements, between the EU and others. Working harder to bring the EU and the US together – the world’s largest economic areas.

So that’s what we are striving for internationally. What about here, in the UK? The Coalition has always said our first priority is tackling our deficit. When we came into power our deficit was bigger that Spain’s, Italy’s, Portugal’s, even Greece’s. Because we set out a decisive plan to reduce it, we have not been picked off by the markets. As the OECD repeated last week, our plan remains right for the UK.

So there will be no deviation on deficit reduction. We knew our recovery would be choppy. We knew our political opponents would holler endlessly for a Plan B, even though their path leads to soaring interest rates and crashing credibility. That is the luxury of opposition. But, to those who say: “the facts have changed” - yes, they have. The economic context is much worse than before. But – more than ever – we have a responsibility to hold our nerve, seeing through the difficult decisions; maintaining market confidence; creating a platform for growth.

But let’s get something straight: this is about economics. Not ideology. Not stubbornness. And our plan doesn’t put a straitjacket on policy. Credible fiscal policy allows us to retain loose, responsive monetary policy. And our plan allows for the automatic stabilisers to work.

So the Government is not blind to the deterioration of the environment in which we operate. More needs to be done for our recovery – that’s obvious. But deficit reduction was only ever intended as a means to an end. It’s a fiscal framework to ensure stability and there are other, crucial steps we must take to deliver growth.

So what can government do for growth? Let’s start with the wrong approach. It’s a mistake for government to try and do everything. Before the crash, the previous Government’s economic record, flattered by years of unsustainable household and government borrowing, led them to believe government was the only thing that mattered for the economy. Gordon Brown, as Chancellor and then Prime Minister, believed the money would never stop flowing, that whole communities could be sustained by public sector spending, that private sector growth could be driven by endless initiatives from the centre.

But the money did stop. And, despite over 3,000 schemes aimed at business support, an array of incomprehensible tax break, endless so called ‘business solutions’, business investment simply did not grow in the way it should have.

Whitehall cannot grow an economy. We need the ceaseless experimentation of thousands of businesses, private saving and investment to channel money where it is most productive. Equally, government shouldn’t do nothing. Deal with the deficit, but then step back in the hope a thousand flowers will bloom.

That’s as bad as trying to do everything, wishful thinking at its worst.

Take regulation. Some people will tell you: all regulation is bad for growth, the hallmark of the meddling state inhibiting the functioning of a market economy. That simply isn’t true. Some rules are a problem: usually endless form-filling and unnecessary red tape. That’s why we’re looking across the board to reduce that burden. But some regulations are positively pro-growth. Instances of the state stepping in to protect businesses and support industry, like patenting rules – encouraging our creators to invest in new ideas - or competition law – ensuring the best can expand, the worst leave the market, and new players enter too.

Rather than do nothing, rather than do everything governments should do less, but do it better creating the conditions for growth. Like in tax, where this Government is simplifying the system and reducing corporation tax to make us more competitive. In our banks, where we have this week welcomed proposals to ringfence retail banks, protecting them from the volatility of global investment banking. That reform will take some time and in the short term our priority must remain, first and foremost, to get the banks to honour their commitment to lend £190m to businesses this year. In skills, where we’re maintaining cash investment in schools, creating hundreds of thousands of new apprenticeships and taking what are controversial decisions on higher education funding to keep our universities world class. All supply side interventions to make the UK a better place to invest and do business.

But this isn’t just about supply side reform. You have to think about demand too. Our troubles have very much been a demand crisis. The banks’ sudden withdrawal of funds, asset price falls, volatility in the markets – all hit demand. And even if we had the least regulated, most skilled, most competitive economy on the planet, if no-one spends any money, that’s not enough. Clearly, with debt so high – private and public – we have to be realistic about the restraints on boosting demand. And I’ve asked Vince Cable to do some work on how we create the environment and incentives for business to free up new capital now. When we need them to, rather than hold off.

And that brings me to infrastructure, because investment in infrastructure stimulates demand not overnight, but more quickly than many supply side measures. And it raises productivity well into the future too. Not just any infrastructure – we need to be clear about that. The previous Government took a kitchen sink approach: any and all capital spending constituted pro-growth investment. But that’s not true. Most capital spending is worthwhile. But it doesn’t all support long-term prosperity. You have to be ruthless, focusing on the investments that transform growth potential: transport, energy, digital communications. Roads and rail so manufacturers can transfer goods. Better broadband so small, high-tech companies can flourish. Renewable energy so low-carbon industry can too.

If you modernise this kind of infrastructure you stimulate activity in the shorter term and you build systems high growth industries can use for years to come. Transport schemes announced in the Spending Review, for example, will deliver major boosts to growth. Like the Switch Island link road in Merseyside, where £20m of Government investment will generate 35 times that in economic benefits. Or increasing the capacity of the M62, which will generate over £1bn for GDP. Investments that will keep on giving. The kinds of investments the UK needs.

We may be one of the best countries to set up and run a business. But we rank 28th in the world for infrastructure. A nation that once led the way in engineering and construction. The home of Wren, Brunel, Stephenson. It was Tim Berners-Lee, a British scientist, who developed the World Wide Web. Yet we rely on water and waste networks from the 19th Century. Our railways are a throwback to the 1970s. We have some of the most congested roads in Europe. While our competitors continue to invest in cutting edge infrastructure.

The approach has been too incremental. Haphazard. Slow. Governments have focused on specific projects instead rather than setting out a vision. Costs stayed high and investors took their money elsewhere. That has to change. So, last year the Coalition produced the UK’s first ever National Infrastructure Plan to deliver the world-beating infrastructure our businesses need from High Speed Rail, to Cross Rail, to green energy, to the best superfast broadband network in Europe. And we’re galvanising around that plan with renewed energy. A gear shift in government to unblock the system and get the money out the door.

First, money. Infrastructure doesn’t come cheap. So, over the spending review period, we have matched the plans of the previous Government for capital spending at least, in each year. We’re protecting spending in science and research, investing, for example, in new technology and innovation centres around the country. If we had more money, we would spend more on infrastructure, but there’s no longer a tap in Whitehall, to be turned on in times of need and the absolute crux of this is stimulating private investment too.

One way is by leveraging private money through public funds, as our Regional Growth Fund does. For every £1 of government investment, the private sector is putting in £5 to create thousands of new jobs targeted at areas too dependent on the public sector. I’ve asked Michael Heseltine and his panel, when reviewing bids for the second round, to prioritise infrastructure projects that will deliver sustainable economic growth. And I’ll be chairing a meeting of Ministers to begin looking at them this afternoon.

Our Green Investment Bank will also leverage funds for low carbon infrastructure, in the region of an extra £18bn by 2014-15. Vince Cable is ensuring Government identifies the first projects to get support faster than originally planned, looking at those from next month to get them moving as quickly as possible. And Chris Huhne will shortly be setting out our support for renewable energy – a year ahead of schedule - providing certainty for investors, capitalising on the UK’s position as the largest market for offshore wind.

We’re also ramping up our sales pitch. We know that the UK misses out because investors simply don’t know the opportunities on offer. We know they hesitate if they don’t see a long-term strategy. So I’ve asked Lord Green to use his Trade and Investment Committee to get our plan out there. Next week, Lord Sassoon will travel to Canada to pitch to pension fund investors. Later this month, Lord Green will do the same to leaders of the Gulf Sovereign Wealth Funds. We’re targeting the Middle East, Latin America and China, where there are investors with five year investment plans of over £150bn each. We’re also going to be much more proactive with institutional investors here at home too.

Finally, finding the money isn’t just up to us. The Cities Minister, Greg Clark, and I met with representatives from our big cities last week. They are desperate to deliver the infrastructure their cities need. So we’re drawing up new money-raising powers for councils to do that where they can borrow against future growth from locally raised business rates. Tomorrow Philip Hammond will also set out our plans to giving communities more power over the funding and decisions for local transport schemes.

So: as much public money as we can afford; a hunt for private investment; new money-raising powers for local communities. But we also have to make sure that money gets spent. There are a range of obstacles that can delay new infrastructure. Planning is most often cited. That’s going to change. Under our plans, if a development is sustainable, the starting point is: it will go through.

Socially sustainable, economically sustainable, and environmentally sustainable. Those reforms are the subject of some debate, but let me lay a few myths to rest. This isn’t anything-goes-planning, or the death of the countryside. We are putting local people in the driving seat in a way they never have been before. Scrapping top down, regional decision-making so local people can choose the areas they want developed – and those they don’t. And, crucially, making sure they get the roads, rail, housing and other infrastructure their community needs.

The other barrier I want to talk about is actually within Government: Whitehall. Identifying projects and funnelling cash to them can take time – I understand that. These are big investments, and you have to get them right. But failure to deliver major infrastructure projects on time, on budget, is a perennial problem in the UK. The extension of the Jubilee line – delayed by over a year, costing an extra £1.4bn. Wembley Stadium – meant to open in 2003; didn’t open until 2007. Improvements to the West Coast Mainline – should have cost £2bn and been completed in 2005 - didn’t finish until 2008, and cost four times that much. The list goes on and on. And too often, Whitehall is part of the problem. We have to break this cycle. The country needs jobs, and time is no longer on our side.

So Whitehall will put its foot on the accelerator, making sure we deliver on our commitments. To that end, I can announce that we’re going through the nation’s capital spending plans to hand-pick up to 40 of the biggest infrastructure projects, the ones most important to growth, which will be given new special priority status.

Each will be rigorously examined by Ministers to make sure there are no delays, no blockages and the economy feels the benefits as quickly as possible. That includes, for example, high speed broadband rollout, work to transform the efficiency of the national grid, major improvements to the rail network, like Crossrail and Great Western Electrification and projects to reduce congestion on our road network. Targeting pinch points on the M1, the M25, and elsewhere.

Where we need to get investors and developers in, we’ll do so. Where local conversations need to happen, we’ll make them happen. Whatever the problem is – regulation, funding, procurement, planning - if we can help unblock it, we will.

Good work is already happening. For example, by Philip Hammond and his Transport team, responsible for a huge chunk of Government infrastructure investment. To make sure it happens across the board, Danny Alexander, the Chief Secretary, will be tasked with shaking the Whitehall tree so no-one is stockpiling capital that can be put to good use today. Danny has, this week, left Cabinet Ministers and top civil servants in no doubt of their responsibilities. Secretaries of State will have to report back to him on their progress throughout the Autumn - and no one likes falling out with the Treasury.

Since we came into government Ministers have been expected to make savings. Now they’re under the same pressure to spend the money they’ve got and, on top of all that, we’ll also soon be announcing our plans to boost to housebuilding -still its lowest since the 1920s.

So, to finish as I began, Government is not helpless. The Coalition is not reluctant. Despite the darkening global picture, despite the need to stay on top of the deficit, we’ll do whatever it takes to return our economy to health. Whether driving cooperation abroad or pulling the right levers at home, as I said, a gear change for growth.

Thank you.

Riot communities and victims panel announced

Wed, 31 Aug 2011 17:43:00 GMT

Darra Singh, Chief Executive of Job Centre Plus and former Chief Executive of Ealing and Luton Councils, will chair the panel announced by the Deputy Prime Minister on 16 August. The other panel members will be Simon Marcus, Heather Rabbatts and Maeve Sherlock.

The panel will deliver early findings by November, and present a final report to by March 2012, to the Prime Minister, Deputy Prime Minister and the Leader of the Official Opposition.

The panel will be able to structure their work as they deem appropriate, but it will be a purely grassroots exercise to listen to the experiences of those in communities affected by the riots and disorder including residents, shopkeepers, parents and young people.

Read the full article on the Cabinet Office website here