Well, I am impressed. The Lib Dems have obtained everything and more that I predicted yesterday. I couldn’t be happier. I’m astounded that the Lib Dems have achieved so much or that the Conservatives were prepared to concede so much. Congratulations are due to both Cameron and Clegg. This is a sensible, grown-up result. Full details of the coalition agreement are yet to be released (they will at 2pm London time), but it looks like:
The Cabinet
- Lib Dems to have five (!) seats in the cabinet, including deputy PM for Clegg.
Electoral Reform
- Fixed term (five year) parliament, with the next election to be held on the first Thursday of May, 2015 [Lib Dems].
- Adjustments to electoral boundaries to equalise the constituency sizes [Tories].
- A referendum on Alternative Vote — a.k.a. Preferential Voting — for the House of Commons [Lib Dems].
- Proportional Representation for the House of Lords! [Lib Dems]
Fiscal Policy
- An emergency budget within 50 days [Tories].
- A reduction in spending of six billion pounds for the 2010/2011 year [Tories].
- A gradual raising of the tax-free threshold to £10,000 [Lib Dems].
- Capital Gains Tax increased to match income tax, [Lib Dems] with lower rates for entrepeneurial business investments [Tories].
- Inheritance tax to remain unchanged [Lib Dems].
- The rise in employers’ National Insurance will be scrapped [Tories].
- The rise in employees’ National Insurance will remain to partially fund the increase in the tax-free threshold [Lib Dems].
- Tax cut for married couples will go ahead [Tories].
Europe
- No adoption of the Euro [Tories].
- Referendum on any future treaties that would cede any power to Brussels [Tories].
Immigration
- A limit on non-EU immigrants to the UK [Tories].
Security
- Trident gets replaced [Tories].
Financial Regulation
- Macroprudential regulation to be at the Bank of England [Tories].
- Microprudential regulation to be decided later (i.e. the FSA may not be dismantled) [Lib Dems].
- An independent commission to consider breaking up the biggest banks [Lib Dems].
Energy
- No agreement on nuclear power, but a Lib Dem will be secretary of state for the environment [Lib Dems].