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Coalition Policy - Key Points

 

CCN Briefing

Conservative – Liberal Democrat Coalition Policy – Key Points

 

 

This document sets out key points from the agreement reached between the Conservatives and Liberal Democrats on a range of issues.  The full text of the coalition agreement is available on the CCN website at http://www.countycouncilsnetwork.org.uk/Documents/Coalition%20agreement%20Full%20Text.doc
The coalition agreement does not cover all policy issues and a final Coalition Agreement covering the full range of policy is promised “in due course”.  Perhaps inevitably, although the list below includes some issues which relate to local government and public services it is silent on a number of areas (including local government reorganisation, housing and planning, regional and sub regional arrangements and adult social care).  CCN will produce further updates as more information becomes available.


THE ECONOMY

  • Emergency budget within 50 days
  • An accelerated reduction in the structural deficit over the course of a Parliament with the main burden borne by reduced spending rather than tax increases - £6bn of spending cuts to “non-frontline” services in 2010-11
  • Full Spending Review – reporting this autumn following consultative process involving all tiers of government and the private sector
  • Promotion of the radical devolution of power and greater financial autonomy to local government and community groups.  This will include a full review of local government finance
  • Arrangements to protect those on low incomes from the effect of public sector pay constraint and other spending constraints
  • Measures to promote financial stability and support business growth
  • Next year's 1% National Insurance tax rise to be partly scrapped (employers’ contributions)
  • Substantial rise in income tax allowances for lowest paid from April 2011
  • New ministerial committee to look at "structural" banking reform
  • New tax on financial transactions, clampdown on "unacceptable" bonuses Reduction in child trust funds and child tax credits for higher earners
  • Enhanced compensation for Equitable Life Policy holders

EDUCATION

  • Fund a significant premium for disadvantaged pupils from outside the schools budget by reductions in spending elsewhere
  • Reform of schools in order to ensure:
    • That new providers can enter the state school system in response to parental demand;
    • That all schools have greater freedom over curriculum;
    • And, that all schools are held accountable.

POLITICAL REFORM

  • Referendum on the Alternative Vote system for general elections
  • Fixed-term Parliaments - next election in May 2015
  • 55% of MPs required to bring government down in confidence vote
  • Committee to look at fully or mainly PR-elected House of Lords
  • Cut in number of MPs and equal size constituencies
  • Right of the public to "recall" corrupt MPs
  • Statutory register for lobbyists
  • Scottish Parliament to get more powers under Calman proposals
  • Referendum of devolution of further powers to Welsh assembly
  • Review of Scottish MPs voting on England-only legislation
  • Ban on "non-doms" sitting in Parliament
  • Reform of political donations and party funding

FOREIGN POLICY/EUROPE  

  • Strategic defence review to begin as soon as possible
  • Trident renewal to go ahead but cost scrutinised
  • No further powers ceded to EU without referendum
  • UK not to join euro in lifetime of Parliament
  • Work to limit application of EU Working Time Directive in UK

HEALTH

  • NHS spending to rise in real terms every year of the Parliament

CIVIL LIBERTIES

  • Great Repeal Bill including abolition of ID cards
  • Safeguards for use of personal details on the DNA database
  • Extension of the scope of the Freedom of Information Act to provide greater transparency

PENSIONS AND WELFARE

  • Commission to review the long term affordability of public sector pensions (while protecting accrued rights)
  • Restore the link between the state pension and earnings from April 2011
  • Default retirement age to be phased out
  • Review to examine when the state pension age will rise to 66
  • Benefits to be conditional on willingness to work

IMMIGRATION

  • Cap on immigration from outside the European Union

          (agreement to end the detention of children in immigration centres)

 

ENVIRONMENT

  • Aviation passenger duty replaced by plane tax
  • Third runway at Heathrow cancelled and no new runways at Gatwick or Stansted
  • New nuclear power stations (Lib Dems able to abstain on issue)
  • Creation of a green investment bank
  • High-speed rail network to be built
  • No new coal-fired power stations without carbon capture and storage
  • Increased target for share of energy from renewable sources
  • Measures to promote a huge increase in energy from waste through anaerobic digestion

FAMILIES

  • Tax break for married couples and civil partners (Lib Dems able to abstain)