Lib Dems refuse to back Nick Clegg’s NHS reforms

NICK Clegg was dealt a blow to his leadership after the Lib Dems refused to back the coalition government’s shake-up of the NHS south of the Border by voting out a crucial clause in a pro-health bill motion.

The move showed Mr Clegg remains at odds with many of his rank and file on the emotive issue. During his keynote speech at the party’s spring conference in Gateshead yesterday, the Deputy Prime Minister conceded that the shake-up was “controversial” and “difficult” but the “value of the coalition has been proven” because of it.

He said: “It is not a Liberal Democrat health Bill but it is a better Bill because of the Liberal Democrats.”

Activists signalled their opposition to the Health and Social Care Bill party policy on Saturday, instead opting to debate today the pro-reform “Shirley Williams motion”.

That saved the party leader from being in the potentially explosive position of pushing through legislation while presiding over a party that formally demanded its withdrawal.

Members voted yesterday to remove a crucial line in the motion that called for peers to back the final stages of the Bill. Although that does not oblige the Lib Dems to oppose the legislation, it demonstrates the widespread unease among the grassroots.

Mr Clegg also faced being locked into another collision course with some party members over his proposals for a tycoon tax.

Over the weekend he floated plans to echo moves in the US to set a minimum floor on the amount the wealthiest pay on their overall income.

It is unclear if senior Lib Dem figures, such as Business Secretary Vince Cable, are supportive of those plans. Close ally Lord Oakeshott, a party former Treasury spokesman, yesterday declared his opposition to the scheme.

The peer, who enjoyed a successful career in the City, called Mr Clegg’s plan a “superficially attractive measure that falls apart under scrutiny” which would “do nothing to deal with super-rich non-doms and non-residents”. The party leader scathingly denounced the comments from the conference stage.

He said: “The only person against the tycoon tax is one of our very own tycoons.”

Insisting the Lib Dems are pushing for “fairness” in the 21 March budget, he said Chancellor George Osborne “must offer concrete help to hard-pressed, hard-working families”.

He added: “I want the Budget to show how we are anchoring this government in the centre ground. Credible – but fair.

“The last Labour budgets led our nation to the economic precipice.

“Fantasy budgets issued by a party in denial – out of ideas and abdicating responsibility.

“This month’s coalition budget will show the determination of both parties in government to repair the public finances. Keep our economy safe and help working families.”