Conservative/Liberal Democrat Coalition: Policy Briefing

28 May 2010

The purpose of this briefing is to provide a summary of the latest policy developments from the new coalition government formed on the 11th of May. The final updated was on 28th May to include ministerial responsibilities and the Queen’s Speech.

Summary Key Policies – Financial Services & banking ƒ A reprieve for the FSA. The Bank of England will now “control macro-prudential regulation and [have] oversight of micro-prudential regulation”. But the FSA will not be disbanded. ƒ The creation of an independent committee that will outline agreements on a banking levy, robust action on unacceptable bonuses in financial services and ensuring credit flow to SMEs. It will also investigate the splitting of investment and retail banks. It will report in a year’s time. ƒ A free national financial advice service (Money Guidance).

Key Policies – Deficit reduction ƒ There will be a significantly accelerated reduction in the structural deficit over the course of a Parliament. Cuts will begin this year and the coalition expects that with the main burden will fall on public spending and not increased taxes. ƒ There will be £6.2bn worth of cuts in 2010-11. These will be outlined in the Budget on 22nd June. ƒ A spending review of government departments to be undertaken. It will report in the autumn.

Key Policies – Taxation ƒ There will be an increase in the personal allowance from April 2011 for those on lower and middle incomes. The longer term policy objective is to further increase the personal allowance to £10,000. ƒ There will be no national insurance rise for employers. However there will be a 1% increase for employees. ƒ There will be an increase in tax on non-business capital gains at rates “similar to income tax”.

Key Policies – Pensions ƒ There will be a restoration of the earnings link to the basic state pension from 2011. ƒ The default retirement age will be phased out and there will be an end to compulsory annuitisation at 75.

Key Policies – Other ƒ There will be a commission to look at the issue of long term care. ƒ Home Information Packs will be scrapped. ƒ There is the commitment not to seek to join the Euro during the new parliament. ƒ Political reform will see legislation to introduce five-year fixed term parliaments. There is also to be a committee to investigate the possibility of an elected House of Lords.

Please note: This is an internal analysis of current policy trends and does not constitute a CII view on any of the political parties.

Policy Briefing: 28 May 2010

Overview After five days of negotiation a deal was finally reached between the Conservatives and Liberal Democrats which meant that Britain had its first coalition government since the Second World War and its first Tory Prime Minister for 13 years. Following the electoral stalemate on 7th May which saw no single party win a workable majority many wondered what the outcome would be. In the end after fevered speculation and much negotiation the Conservatives and Liberal Democrats chose to go ahead with a historic coalition arrangement. The move has provided with David Cameron the keys to Number 10 and a good working majority and Nick Clegg with key Cabinet positions. It has also allowed both parties to adopt parts of the others’ manifesto, water down policies that have not been well received and in some cases make face saving tactical retreats which would not have been possible as the single governing party. The coalition arrangement has been hailed as the start of an era of “new politics”. Whether this ends up being the case remains to be seen. The pressure of governing the country will inevitably throw up issues that will test the strength of the agreement. Since the coalition was agreed on 11th May two documents have been published outlining the programme for government (For the more detailed paper published on 20th May click here). Both papers have given a flavour of what to expect from the new government and points of interest are covered in this briefing. The Queen’s Speech included legislation on some policy proposals and we expect further detail to be provided in the emergency Budget.

Financial Services Regulation The cornerstone of the Conservative’s financial services pre-election was the abolition of the FSA with its responsibilities divided between the Bank of England and other new agencies. However the need for a coalition partner has meant that George Osborne has been unable to secure this particular policy. New Business Secretary Vince Cable was opposed to the plans believing that they would cause too much disruption at such a crucial time. Though this is a climb-down on Osborne’s part, the nature of the new coalition government has provided as face-saving way in which to drop something that had been questioned by many in the City. There will still be changes to the regulatory system despite the FSA’s apparent reprieve as the coalition has made it clear that it believes the system to be “fundamentally flawed”. The Bank of England will now “control macro- prudential regulation and [have] oversight of micro-prudential regulation”. It is expected that a new committee chaired by the Governor of the Bank of England will be given the power to instruct the FSA if too much risk is building up in the system. The FSA CEO will also sit on the committee. The coalition also set out more underlying regulatory principles such as the “one in, one out” rule whereby no new regulation is introduced with another being cut and the imposition of “sunset clauses”. The document of 20th May also promises an end to tick box regulation. Instead inspections will target high risk organisations through “co- regulation and improving professional standards”. We will watch developments on this last point in particular with interest.

Banking

Despite initial reports to the contrary, banking reform will be the responsibility of the Treasury. It had been thought that Vince Cable would oversee that particular portfolio; however this is not the case. The parties aim is to reduce systemic risk and have agreed on a number of policies including: ƒ the introduction of a banking levy; ƒ tackling unacceptable bonuses; ƒ fostering diversity in financial services, promote mutuals and create a more competitive banking industry; ƒ getting a flow of credit to small businesses and a loan guarantee scheme. They have also announced the creation of an independent committee that will investigate the issue of separating retail and investment banking. It will be given a year to report. This is perhaps a softer approach than some in the banking sector were expecting. There is no mention of the selling of shares in the nationalised banks and an absence of the Lib Dems £2000 cash bonus limit.

CII Group Policy & Public Affairs 2

Policy Briefing: 28 May 2010

Deficit Reduction

Though both parties agreed prior to the election that significant cuts were needed to tackle the deficit their manifestoes differed in the timescale for action. The Conservatives favoured swift action while the Liberal Democrats said it would be dangerous to cut spending before 2011-12. The coalition agreement states that there will be “a significantly accelerated reduction in the structural deficit over the course of a Parliament, with the main burden of deficit reduction borne by reduced spending rather than increased taxes”. This wording is very close to that of the Tory manifesto. The detailed plan for deficit reduction will be set out in an emergency budget, to take place on Tuesday 22nd June. This could represent the first real test of the coalition. In an announcement on 24th May the Treasury announced £6.2bn cuts in 2010-11. Some details such as the ending of Child Trust Fund payments and the amount each department has to save were provided, but the majority of the cuts have yet to be made clear. The creation of an Office of Budget Responsibility (OBR) was also announced. This independent body is a Conservative idea from its financial services White Paper and will look at forecasting growth figures and borrowing levels. The office was formally announced on Monday 17 May by the Chancellor. Sir Alan Budd will lead the new OBR with Geoffrey Dicks and Graham Parker completing the 3-member Budget Responsibility Committee. Legislation was announced in the Queen’s Speech to provide the OBR with a statutory footing. The Bank of England has come out in support of this acceleration of cutting spending and it is thought that it will reassure markets. For this to remain the case, more details on the cuts will need to be given sooner rather than later. The coalition partners have also announced that they will be holding a full spending review of government departments (reporting this autumn) and that there will be an independent commission to review public sector pensions.

Taxation

Agreement on taxation is one of the areas which will have required much negotiation given the differing approaches set out in the respective pre-election manifestos. The coalition agreement paper does show compromise on both sides but does still leave a number of question marks in terms of funding. Early indications of the tax measures are: ƒ an increase in the personal allowance from April 2011 for those on lower and middle incomes. There is also the longer term policy objective of further increasing the personal allowance to £10,000. This tax cut will take priority over other cuts, including inheritance tax (which had been a key Conservative policy). The Lib Dems had planned to pay for this with a “mansion tax”, however that idea has been scrapped; ƒ the cancellation of the planned national insurance rise for employers but not for employees; ƒ an increase in tax on non-business capital gains at rates similar to income tax. There will be exemptions for some entrepreneurial business activities. This is expected to pay for the increase in personal allowance; ƒ The Conservative election promise of recognising marriage in the tax system will be put to the Commons. However, Lib Dem MPs will be able to abstain on Budget resolutions to introduce transferrable tax allowances for married couples. George Osborne has also signalled that the creation of the “most competitive tax regime in the G20” through the reform of corporate taxation is a long term objective. There are still many questions that remain unanswered on taxation, in particular: the ratio between tax rises and spending cuts in tackling the deficit (the ratio was 1:1 when Ken Clarke was Chancellor in the 1990s); what implications tax cuts will have on public spending; and which taxes will need to rise in future (VAT springs to mind). Further details will be given in the emergency budget which will take place on Tuesday 22nd June.

CII Group Policy & Public Affairs 3

Policy Briefing: 28 May 2010

Climate Change

The finds of the Pitt Review will be taken forward to improve flood defences and to prevent unnecessary building in areas of high flood risk.

Free Financial Advice

The coalition has said it will support a free national financial advice service. This will be funded in full by a new social responsibility levy on the financial services sector. No further details were given on who will provide the advice and which firms will have to pay the new levy.

Pensions, Retirement and Savings

Pension rules and regulations Pension rules and regulations will be simplified to help “reinvigorate occupational pensions, encourage companies to offer high quality pensions to all employees”. The coalition will also work with business to support auto-enrolment. The coalition has also stated that it will “explore the potential to give people greater flexibility in accessing part of their personal pension fund early”. Prior to the election the Conservatives had considered a flexible lifetime savings vehicle. The model they had spoken of was KiwiSave from New Zealand. The big difference from pensions is that savers have limited access to funds. State Pension The coalition has said that it will restore earnings link to the basic state pension from 2011 (that had been abolished in 1979). The detail of the policy is a compromise between Lib Dem and Tory manifesto promises. Clegg’s party had called for an immediate restoration, whereas Cameron’s party had promised action by 2012. This will be included in the upcoming Pensions and Savings Bill. The Lib Dem’s “triple guarantee” that pensions will be raised by the higher of earnings, prices or 2.5% has been adopted. The FT has said that this has the potential to be a hugely expensive exercise, suggesting it could hit £2bn a year by 2015. Retirement Age In terms of the default retirement age, the coalition has agreed to phase it out and review when state pension age should rise to 66 (though not before 2016 for women and 2020 for men). They have also agreed to end compulsory annuitisation at age 75. It appears that these proposals are a lot closer to the Conservative manifesto. The rise in pension age was announced by George Osborne last year and the Tories had pledged to look at how to abolish the default retirement age (rather than scrap it as the Lib Dems had promised).

Social Care

The agreement document of the 20th May provided some information on the issue of long term care. A commission will be set up to consider the issue and will report within a year. It will consider a variety of ideas including the Conservative policy of a voluntary insurance scheme (£8000 one off payment 65 to cover all fees for permanent residential care) and the partnership scheme proposed by Derek Wanless.

Skills and Education

Skills System As expected the number of quangos (and not just skills related ones) will be cut. In announcing the audit of public spending on 17th May, Treasury ministers made it clear that savings would be made from reducing the number of quangos and this point was reiterated in the document published on 20th May. The coalition also said that it will “seek ways to support the creation of apprenticeships, internships, work pairings and college and workplace training places” as part of its policy to “get Britain working”. We await further details of what this might mean.

CII Group Policy & Public Affairs 4

Policy Briefing: 28 May 2010

Schools Policy The coalition will implement elements of both manifestos with the Lib Dem’s flagship policy of a “pupil premium” (whereby funding follows disadvantaged pupils) and the Conservative’s promise to allow independent providers the state school system in response to parental demand. The pupil premium will be paid for by “reductions in spending elsewhere”.

Coalition Government: who are the key players for financial services and skills? Treasury Chancellor of the Exchequer: George Osborne (Con - Tatton) George Osborne was appointed Chancellor of the Exchequer after holding the shadow post since May 2005. He was also responsible for the co-ordination of the Conservative’s 2010 election campaign and is recognised as the ‘political power’ behind ‘Team Cameron’. Ministerial responsibilities: Overall responsibility for HM Treasury. Chief Secretary to the Treasury: David Laws (Lib Dem - Yeovil) David Laws was appointed Chief Secretary to the Treasury in the 2010 coalition government. The move follows revelations in 2007 that he had declined an offer from George Osborne been offered a position in the Conservative Shadow Cabinet. He held this particular post as a Lib Dem shadow from 2002-2005. Ministerial responsibilities: Responsibility for public expenditure including: Spending reviews and strategic planning; In-year spending control; Public sector pay and pensions; Annually Managed Expenditure (AME) and welfare reform; Efficiency and value for money in public service Financial Secretary to the Treasury: Mark Hoban MP (Con - Fareham) Mark Hoban held this position in opposition and was the Shadow Treasury team’s spokesman on insurance. He was also regarded as their “go to guy” for City and finance. He was elected MP for Fareham in June 2001 and since December 2005, he has been a Shadow Minister for the Treasury. He is a chartered accountant and worked for PWC prior to becoming an MP. Ministerial responsibilities: Financial services policy including banking and financial services reform and regulation, financial stability, city competitiveness, wholesale and retail markets in the UK, Europe and internationally and the Financial Services Authority (FSA); Banking support, including responsibility for the Asset Protection Scheme, Recapitalisation Fund and other schemes; Bank lending; Responsibility for UK Financial Investments (UKFI); Equitable Life; Personal savings and pensions policy; Support to the Chancellor on EU and wider international finance issues. Exchequer Secretary to the Treasury: David Gauke MP (Con – South West Hertfordshire) Economic Secretary to the Treasury: Justine Greening MP (Con - Putney) Commercial Secretary: Sir James Sassoon. The architect of the Tory policy to abolish the FSA, is being given a junior job as a Minister in the Treasury. This is a similar move to the previous government bringing in Lord Myners to provide experience of the sector. He will be made a peer. He is a former senior official in HM Treasury and is expected he will work closely with Mark Hoban. Ministerial responsibilities: Treasury spokesman in the House of Lords; Assisting the Financial Secretary on financial services and banking policy, including UKFI; Working with the Financial Secretary to promote the Government’s financial services policies and the competitiveness of the UK. Business, Innovation and Skills Secretary of State for Business, Innovation and Skills: Vince Cable (Lib Dem - Twickenham) Vincent Cable was the Liberal Democrat Treasury spokesperson from 2003 until the creation of a Conservative/Liberal Democrat coalition government in May 2010. Dr Cable was elected Deputy Leader of the Liberal Democrats in March 2006 and from October to December 2007 he served as acting leader after Sir Menzies Campbell's resignation. Ministerial responsibilities: Overall responsibility for the Department for Work and Pensions. Minister of State (Minister for Universities and Science) – David Willetts (Con - Havant) Attends Cabinet. Minister of State for Skills and Lifelong Learning: John Hayes (Con – South Holland and the Deepings) John Hayes had responsibility for skills policy in opposition. Ministerial responsibilities: Further education, adult skills, Skills Funding Agency, skills strategy, lifelong learning, informal adult learning, apprenticeships, UK Commission for Employment and Skills, Sector Skills Councils, Workplace Training reforms, qualifications reform programme.

CII Group Policy & Public Affairs 5

Policy Briefing: 28 May 2010

Work and Pensions Secretary of State for Work and Pensions: Iain Duncan Smith (Con – Chingford and Woodford Green) Iain Duncan-Smith led the Conservative Party between 2001 and 2003 but his tenure as leader was not seen as successful. Since relinquishing the leadership and returning to the backbenches, Mr Duncan-Smith has been widely praised for his work with the Centre for Social Justice and a champion of the view that social justice should be natural territory for the political Right. Ministerial responsibilities: Overall responsibility for the Department for Work and Pensions. Minister of State (Pensions Minister): Steve Webb (Lib Dem – Thornbury and Yate) Steve Webb held the Work and Pensions brief for the Lib Dems from January 2009 until the election as well as previously between 2001 and 2005. His appointment has been welcomed by the industry. Ministerial responsibilities: Pension reform.

CII Policy & Public Affairs 28 May 2010

***Please note that this is an internal analysis and does not constitute a CII view on any political party. All information is correct as of 28 May 2010.***

CII Group Policy & Public Affairs 6

Policy Briefing: 28 May 2010

Appendix Coalition Government: Full Cabinet

Prime Minister, First Lord of the Treasury and Minister for the Civil Service: David Cameron (Conservatives) Deputy Prime Minister, Lord President of the Council (with special responsibility for political and constitutional reform): Nick Clegg (Liberal Democrats) Nick Clegg’s office of the deputy Prime Minister will sit in the Cabinet Office. Mr Clegg will have special responsibility for political and constitutional reform. He will cover for the Prime Minister if he is away for Prime Minister’s questions. Cabinet Appointments by Department

Department Appointments

HM Treasury Chancellor of the Exchequer: George Osborne (Con) George Osborne was appointed Chancellor of the Exchequer in May 2010, after holding the shadow post since May 2005 when he was appointed by the then Conservative Leader Michael Howard. Chief Secretary to the Treasury: David Laws (Lib Dem) David Laws was appointed Chief Secretary to the Treasury in the 2010 coalition government. The move follows revelations in 2007 that he had declined an offer from George Osborne been offered a position in the Conservative Shadow Cabinet but had declined the offer from the then Shadow Chancellor George Osborne.

Department for Secretary of State for Business, Innovation and Skills: Vince Cable (Lib Dem) Business, Vincent Cable was the Liberal Democrat Treasury spokesperson from 2003 until the Innovation & creation of a Conservative/Liberal Democrat coalition government in May 2010. Skills Dr Cable was elected Deputy Leader of the Liberal Democrats in March 2006 and

from October to December 2007 he served as acting leader after Sir Menzies Campbell's resignation.

Foreign and First Secretary of State, Secretary of State for Foreign and Commonwealth Commonwealth Affairs: William Hague (Con) Office Foreign Secretary William Hague is one of the most recognisable and high-profile figures on the Government front bench, having led the party during Tony Blair's first term as Prime Minister. He was among the first Conservatives to be appointed to David Cameron's cabinet following the 2010 general election.

Ministry of Justice Lord Chancellor, Secretary of State for Justice: Kenneth Clarke (Con) One of the so-called "big beasts" of the Conservative Party, Ken Clarke made a surprise return to the front benches as Shadow Business Secretary in January 2009. Following the May 2010 general election, Mr Clarke remained on the frontbench as Justice Secretary and Lord Chancellor - a partial reprise of the role of Home Secretary that he discharged under John Major in 1992-1993.

Home Office Secretary of State for the Home Department; and Minister for Women and Equalities: Theresa May (Con)

Theresa May was appointed Home Secretary in David Cameron’s first cabinet after the 2010 General Election. A high profile Conservative and a noted moderniser, she was also given the post of Minister for Women and Equality.

Department for Secretary of State for Environment, Food and Rural Affairs: Caroline Spelman Environment, (Con) Food & Rural Caroline Spelman was appointed as Secretary of State for Environment, Food and Affairs Rural Affairs having held the brief for Communities and Local Government while in opposition. She was formerly Chair of the Conservative Party and has been on the

CII Group Policy & Public Affairs 7

Policy Briefing: 28 May 2010

Conservative front bench since the 2001 General Election.

Department for Secretary of State for International Development: Andrew Mitchell (Con) International Andrew Mitchell was appointed International Development Secretary in David Development Cameron’s first Cabinet having held the shadow post since the 2005 election. First elected in Gedling in 1987, he was one of a handful of Conservative ministers to lose his seat in the 1997 election. He returned to Parliament in 2001 as MP for Sutton Coldfield.

Department of Secretary of State for Communities and Local Government: Eric Pickles (Con) Communities and Communities Secretary Eric Pickles was appointed to this position following the May Local 2010 general election, having been Chairman of the party since January 2009 (a Government role he had been widely tipped to retain).

Mr Pickles had previously held the role of Shadow Secretary of State for Communities and Local Government whilst in Opposition.

Department for Secretary of State for Education: Michael Gove (Con) Education Michael Gove was appointed to David Cameron’s first Cabinet as Secretary of State for Education having held the shadow post from 2007. Michael Gove was already a relatively well-known figure prior to his election to Parliament in 2005, having had a successful career as a columnist for the Times.

Leader of the Leader of the House of Lords, Chancellor of the Duchy of Lancaster: Lord House of Lords Strathclyde (Con) Lord Strathclyde had been Shadow Leader of the House of Lords since 1998. Entering the chamber as a hereditary peer in 1986 at the age of 26, he was quickly promoted to the Whips Office and went on to become Tourism Minister in 1989.

Department of Secretary of State for Health: Andrew Lansley (Con) Health Andrew Lansley became Secretary of State for Health in May 2010, as part of the newly formed Conservative – Liberal Democrat coalition Government. As such, he became the first Conservative Health Secretary since Stephen Dorrell in 1997, having held the Health brief in opposition since November 2003. Having built a strong reputation during his long period as Health spokesperson, Mr Lansley’s position seemed briefly in doubt during the spring of 2009, when he commented on the possible need for a future Conservative government to cut public spending.

Northern Ireland Secretary of State for Northern Ireland: Owen Paterson (Con) Office Owen Paterson took on the role of Secretary of State for Northern Ireland, having been responsible for the same portfolio in opposition since July 2007. He was first elected to Parliament in 1997 having spent 20 years in the leather industry. He joined his family business after attending the National Leathersellers College, and travelled the world through his work. He was once President of COTANCE, the European Tanners' Confederation.

Department for Secretary of State for Work and Pensions: Iain Duncan Smith (Con) Work and Perhaps one of the more surprising appointments to the new Cabinet, Iain Duncan- Pensions Smith led the Conservative Party between 2001 and 2003 but his tenure as leader was not seen as successful. Since his rejection by the parliamentary party and return to the backbenches, Mr Duncan-Smith has been widely praised for his work with the Centre for Social Justice and a champion of the view that social justice should be natural territory for the political Right.

CII Group Policy & Public Affairs 8

Policy Briefing: 28 May 2010

Wales Office Secretary of State for Wales: Cheryl Gillan (Con) Cheryl Gillan was appointed Secretary of State for Wales in May 2010 having preformed the Shadow role since 2005. She first joined the Conservative front bench in 1995, having been a junior minister for Education and Employment in the final two years of John Major's term as Prime Minister.

Ministry of Secretary of State for Defence: Liam Fox (Con) Defence Liam Fox was appointed Defence Secretary by Prime Minister David Cameron in May 2010, after serving as Shadow Defence Secretary since 2005. He took up his shadow position following his strong showing in the 2005 Conservative Party leadership election, in which he finished third. He had campaigned on the idea of promoting Britishness and widening the appeal of the party.

Department for Secretary of State for Transport: Philip Hammond (Con) Transport Philip Hammond was appointed Transport Secretary by David Cameron in his first Cabinet as Prime Minister. Mr Hammond had worked as Shadow Chief Secretary to the Treasury while in opposition and before that, Shadow Work and Pensions Secretary. Before entering politics he had a long business career working in the medical equipment industry.

Department for Secretary of State for Culture, Olympics, Media and Sport: Jeremy Hunt (Con) Culture, Media & Jeremy Hunt entered the Commons in 2005, replacing veteran Conservative MP Sport Virginia Bottomley in the traditionally Tory constituency of South West Surrey in 2005. His speedy rise through the Conservative ranks culminated in his being appointed Shadow Culture Secretary in 2007. He now retains this portfolio in the new coalition Government.

Scotland Office Secretary of State for Scotland (and providing ministerial support to the Deputy Prime Minister in the Cabinet Office) Danny Alexander (Lib Dem)

Danny Alexander became Secretary of State for Scotland in the first Conservative – Liberal Democrat coalition Cabinet after the 2010 General Election. Prior to this he had been Chief of Staff to Party Leader Nick Clegg and Chair of the Party's Manifesto group, in which role he took the lead in writing the Party's manifesto for the 2010 election. He had also previously been Shadow Work and Pensions Secretary.

Conservative Minister without Portfolio (Minister of State): Baroness Sayeeda Warsi (Con) Party Chairman She became the Conservative Shadow Minister for Community Cohesion during the reshuffle that followed Gordon Brown becoming Prime Minister, and was nominated to become a life peer. In 2005, she had been the first Muslim woman selected to fight a seat as a Conservative candidate. Her appointment to the House of Lords meant that she would not fulfil her stated ambition of becoming the first ever female Muslim Conservative MP.

Other Cabinet Attendees

Whips Parliamentary Secretary to the Treasury and Chief Whip: Patrick McLoughlin (Con)

Patrick McLoughlin was appointed Chief Whip in the Conservative/Liberal Democrat coalition government formed after the May 2010 general election. Mr McLoughlin was the Opposition Chief Whip prior to entering government, having been appointed to this post by David Cameron when he was elected leader of the party in December 2005. He has been a Whip since the Major Government and previously served as Deputy Chief Whip from 1998.

CII Group Policy & Public Affairs 9

Policy Briefing: 28 May 2010

Leader of the House of Commons, Lord Privy Seal: Sir George Young (Con) Born in Oxford in 1941, Sir George Young was educated at Eton and Oxford. He inherited the family Baronetcy in 1960. Sir George worked as a merchant banker and as an economist at the Post Office before being first elected to Parliament in Ealing in 1974. His love for cycling to work earned him the nickname 'the bicycling baronet'. Under Margaret Thatcher, Sir George served as a Health Minister and Environment Minister.

Minister of State (Universities and Science) – Department for Business, Innovation and Skills: David Willetts (Con) Widely regarded as one of the most intelligent Conservative MPs, David Willetts was a member of the Conservative Shadow Cabinet as Shadow Minister for Universities and Skills, with special responsibility for family policy. He previously shadowed the Department for Innovation, Universities and Skills until it was disbanded in June 2009.

Cabinet Office Minister for the Cabinet Office, Paymaster General: Francis Maude (Con) Francis Maude was appointed Cabinet Office Minister in the Conservative-Liberal Democrat coalition government in May 2010. He had previously been Chairman of the Conservative Party from 2005 but lost the job two years later amid complaints that he had alienated party members in his drive to modernise. He was then given the role of Shadow Cabinet Office Minister. Born into a political family, his late father was Angus Maude, a founder member of the 'One Nation Group' of Conservative MPs in 1950 and Paymaster General under Margaret Thatcher. Minister of State – Cabinet Office (providing policy advice to the Prime Minister in the Cabinet Office): Oliver Letwin (Con) Oliver Letwin supported David Cameron in his leadership campaign and is widely considered as being central to the party's policy formulation process. Mr Letwin was made Chairman of the Conservative Party's Research Department and Policy Review by Mr Cameron in December 2005 and led the party's policy development into the 2010 election.

Attorney Attorney-General (invited to cabinet when required): Dominic Grieve (Con) General’s Office Dominic Grieve was appointed Attorney General in David Cameron’s first Cabinet having previously served in the equivalent shadow post between 2003 and September 2009. He had become Conservative Shadow Home Secretary in 2009 following David Davis' decision to stand down from Parliament to fight a by-election on the issue of 42-day detention for terror suspects.

CII Group Policy & Public Affairs 1 0