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First Coalition Government formed in over 70 years…
So, after all that election activity we now have a coalition government – they have already been called the Cleggons, the Clamerons, the Con-Dems...
…and the highlights of how the Lib Dems and Conservatives reached this deal?
Defence & EU
Lib Dems will support the Trident nuclear weapons system renewal, something they'd strongly opposed until now
The Lib Dems have accepted that Britain will not join the Euro (for now)
The Conservatives keep their policy that any transfer of new powers to the EU would be put to a referendum for the Country to vote on
Crime and Country
Lib Dems have scrapped their plans for an amnesty on some illegal immigrants living in the UK and have agreed to a cap on immigrants coming to the UK from outside the EU
Money
Agreement on an emergency budget to be held within 50 days
Agreement on deficit reduction and economic recovery top priority – reduced spending opposed to increase in taxes
Both parties agree that there should be no rises in National Insurance
Lib Dems get their policy to increase the threshold at which people start paying income tax to £10,000k – no timeline on when this might happen though
The Conservatives have scrapped the introduction of raising the inheritance tax threshold to £1million
Lib Dems are able to pursue their proposals on reducing tax avoidance
Agreement on banking levies and ‘unacceptable’ bonuses
Living and working
Lib Dems and Conservatives agree that reductions to Child Trust Fund and tax credits can be achieved – this will affect those on higher incomes
Lib Dems 2.5% minimum increase for pensions is to be introduced
Conservative keep hold of phasing out 65 as the retirement age and phase in the age of 66 when state pensions starts (2016 earliest date for this to happen)
Parliament
The Conservatives have abandoned their commitment to retaining the current electoral system and agreed to a referendum on a form of proportional representation
The Conservatives and Lib Dems agreed to the reform the House of Lords which will require future members to be elected by proportional representation
The Conservatives and Lib Dems agreed to fixed term elections – next General Election to be held on May 2015
Agree on early legislation for the power of recall for errant MPs
Equality
Conservatives will continue their commitment to introduce a tax break for marriage
Agree to introduce a Freedom Bill – to include scrapping ID cards and biometric passports, allow for non-violent protests and increased regulation of CCTV usage
Education
Lib Dems keep school policy for more money to schools to match fevery child from a low income family
Conservatives retain their plans for the creation of new ‘free’ schools outside of the state funded sector
Environment
Agree to roll out of Smart Electricity meters
Lib Dems and Conservatives have opposing views on Nuclear Power, and processes will be drawn up to allow for this difference
The whole coalition agreement negotiation document can be found here
And finally …
Gordon Brown has resigned as Prime Minister but will remain an MP - Ed Mliband is now the leader of the Labour Party
