17 September 2010
The coalition government is most likely to split up over economic policies, a report from the Institute for Government warns today.
United we stand? Coalition government in the UK looks at how coalitions have worked in other countries. It warns that financial policy disagreements are by far the most common area of tension, contributing to 35% of all splits.
The report says: ‘Redistributive challenges pose tough questions about government priorities and force trade-offs to be made. As a result, these issues strike at the heart of coalition politics.'
Coalitions that have collapsed over fiscal matters include centre-Right alliances in Sweden in 1981 and Austria in 2002, both of which fell apart over tax reform plans. There is also tension between partners in the current German coalition government over the affordability of planned tax reductions.
The IfG's report also says that UK Deputy Prime Minister Nick Clegg has ‘insufficient support’ in his role at present, ‘which may lead to tensions down the line if left unaddressed’. It recommends there should be a permanent secretary level official appointed at the head of Clegg’s private office.
The UK has not had a deputy prime minister with the responsibilities held by the Liberal Democrat leader since 1942.
Report author and IfG senior researcher Akash Paun also calls for the coalition agreement to be reviewed after two years in office. Furthermore, there should be a formal process for ministers to confirm that any submissions made to Cabinet have been cleared with the other party, he says.
