12 May 2010

UK immigration cap agreed under Conservative-Lib Dem coalition deal

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David Cameron has become the youngest prime minister in almost 200 years after putting together an historic Conservative/Liberal Democrat coalition Government.

Nick Clegg has been appointed as deputy PM, one of five Liberal Democrat cabinet ministers of the total 20 government posts. The key jobs of Chancellor and Foreign Secretary will go to Conservatives George Osborne and William Hague.

After failing 20 seats short of a majority, Mr Cameron was forced to negotiate with the Lib Dems on key issues including UK immigration and the economy.

Under the terms of the coalition, the Lib Dems won a referendum to bring in an alternative vote system, new five-year fixed term parliaments, an entirely or mainly elected second chamber and a commission to review party funding.

According to this plan, the next general election will be held on the first Thursday of May 2015.

The Lib Dems have also negotiated to reduce the tax burden on low earners and the Tory plan to reduce inheritance tax has been scrapped.
New pupil premium to be introduced, steering more funding to schools for every child they take from poor homes to help close class gap in school results.

The Conservatives have secured £6billion in cuts this financial year and a reversal of some planned rises in national insurance contributions, and a cap on UK immigration with Lib Dem plans for an amnesty on illegal immigration dumped.

The Tories will increase capital gains tax sharply on the sale of second homes, shares and other “non-business” assets to fund the Lib Dem demanded income tax cuts for lower-paid workers.

There will be no proposals to join the euro and a referendum lock will ensure that any proposal to transfer new powers must by law be put to a referendum.

The Conservatives have also kept their plan for a £150 marriage tax break, and the Lib Dems will abstain but not oppose the plan.
Other agreements include a commitment to maintaining Britain's nuclear deterrent, and school reforms to introduce more Swedish-style "free" schools.


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