Conservative–Liberal Democrat coalition agreement

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The Conservative–Liberal Democrat coalition agreement (officially known as The Coalition: Our Programme for Government) was a policy document drawn up following the 2010 general election in the United Kingdom. It formed the terms of reference governing the Cameron–Clegg coalition, the coalition government comprising MPs from the Conservative Party and the Liberal Democrats.^[1][2][3]

The general election resulted in a

The initial

1. Deficit Reduction
2. Spending Review – NHS, Schools and a Fairer Society
3. Tax Measures
4. Banking Reform
5. Immigration
6. Political Reform
7. Pensions and Welfare
8. Education
9. Relationship with the EU
10. Civil liberties
11. Environment

Deficit

To tackle the

In spending, the agreement committed the government to a full Spending Review of government including a full Strategic Security and Defence Review to be completed by the Autumn, an increase in National Health Service funding in real terms and funding of disadvantaged pupils from outside the normal education budget. It would also establish an independent commission to review the long term affordability of public sector pensions, and restore the earnings link for the basic state pension from April 2011. Britain's independent nuclear deterrent would be maintained, but the proposed replacement of the Trident system would be reviewed for value for money.

Tax

In taxation, the agreement committed to increasing the personal income tax allowance to £10,000 by 2015 to take many of those on the lowest salaries out of the tax system. The de-prioritising Inheritance Tax cuts, and also laid out measures and arrangements on the issues of marriage, aviation, non-business capital gains taxes, and tax avoidance. The planned 1% rise in National Insurance will be partially scrapped.

Banking

In the banking system, the agreement announced various reforms to "avoid a repeat of Labour's financial crisis" and stimulate the flow of credit, including the introduction of a banking levy, and controlling unacceptable bankers' bonuses and regulatory reform.

Immigration

The section regarding immigration, markedly shorter than all others, merely stated in one paragraph that there would be an annual cap on the number of non-EU workers admitted to live and work in the UK, with the mechanism decided later. The practice of child detention for immigration purposes would also be ended.

Political reform

As part of reform of the political system, the parties agreed to creating fixed-term parliaments. An early motion would set the date of the next general election as the first Thursday of May 2015, with later legislation establishing five-year fixed terms and introducing a new minimum of 55% of MPs supporting a motion before Parliament could be dissolved outside this timetable.

Both parties would

On the issue of devolution, the parties agreed to establish a committee on the West Lothian question (Scottish MPs in Westminster voting on English issue), implement the Commission on Scottish Devolution proposals, and offer a referendum on further devolution for Wales.

Other political reform measures included introducing the power to recall MPs, bringing forward the Wright Committee proposals for Commons reform, and introducing proposals for reform of the House of Lords by December 2010, review local government and voter registration.

Pensions and welfare

In pensions, compulsory retirement at sixty-five years of age would be abolished, although the earliest age for the state pension would be increased from 65 to 66, from a date no earlier than 2016 for men, 2020 for women. Changes would be made to the Jobseeker's Allowance and welfare to work systems, including a rule that receipt of benefits would be conditional on willingness to work. Payments would be made to Equitable Life policy holders.

Education

A "significant" funding premium for children from poorer backgrounds will be established, incentivising schools to take them in and giving them more resources to devote to them. In

As part of the agreement the parties ruled out joining the

Civil liberties

Agreement on

The legislation required for the building new nuclear power stations would proceed, without public subsidy for the projects. Any new coal-fired power stations would be required to implement carbon capture and storage, while the targets for energy from renewable sources would be increased, subject to the advice of the Climate Change Committee.

Other measures include a smart grid, smart meters and feed-in tariffs, a green investment bank would be created, and promotion of anaerobic digestion of waste for energy, marine energy, home energy improvement, green spaces and wildlife corridors, and electric car recharging networks. Home Information Packs would be abolished, albeit retaining the energy performance certificates. Import or export of illegal timber would be criminalised.

Final agreement

The initial agreement published on 12 May 2010 stated that it would be followed "in due course by a final Coalition Agreement, covering the full range of policy and including foreign, defence and domestic policy issues" which were not covered in the initial agreement. David Cameron, Nick Clegg, George Osborne, Theresa May and Vince Cable held a press conference at HM Treasury to unveil the final Coalition Agreement. The final agreement is based on three core values shared by both parties "Freedom, fairness and responsibility". Of the 57 Liberal Democrat MPs, only two refused to support the Conservative Coalition agreement, with former leader Charles Kennedy and Manchester Withington MP John Leech both rebelling.^[5]

See also

• Local Government Act 2010
• Postal Services Act 2011
• Savings Accounts and Health in Pregnancy Grant Act 2010
• Superannuation Act 2010
• Cameron–Clegg coalition

References

Further reading

• ISBN 978-1849540803
  .
• ISBN 978-1849540810
  .
• Hazell, Robert; Yong, Ben (2012). The Politics of Coalition: How the Conservative-Liberal Democrat Government Works. Hart Publishing.
  ISBN 978-1849463102
  .

• At-a-glance: Cameron coalition's policy plans BBC News, 13 May 2010
• The Coalition: Our Programme For Government Cabinet Office, 2010
• Final agreement (pdf) Cabinet Office
• Interim agreement (pdf) Conservative Party