Conservative Party Conference 2013: day two live But Shapps appears to be standing by the line that the Tories won't stand for any deals with Ukip at local level. Meanwhile... Farage's cat is still well-and-truly among the pigeons. 12.54 Much mirth is being had on Twitter the somewhat poetic close to Osborne's speech. Here's a recap of that first: We're going to recover together. And together, we're going to share in the rewards. For the sun has started to rise above the hill. And the future looks brighter than it did, just a few dark years ago. And a few of the responses... 12.45 I'll post more detail from Osborne's speech shortly but some snap reaction first. Here's Steven Swinford on the fuel duty announcent: Fuel duty will be frozen until after 2015 to ease the cost-of-living crisis, George Osborne has told the Conservative Party conference. Mr Osborne's pledge, which follows a campaign by Tory back-benchers, came as he pledged to "share the rewards" of a recovering economy. He detailed a series of other policies including plans the long-term unemployed into work, a married tax allowance, and bringing forward the next phase of the help to buy scheme. His speech signals an attempt to brand the Conservatives as a "serious" party of government compared to the "magic wand" spending commitments of Labour. "The sun has started to rise above the hill," he said. ...and James Kirkup has blogged on Osborne's line on borrowing for tax cuts. Here's a fascinating line from George Osborne's speech to the Conservative conference: I've never been for tax cuts that are borrowed. He didn't elaborate, but I can't help but remember that only a few days ago, David Cameron announced a tax cut for millions of married couples. That tax cut will cost the Exchequer somewhere in the region of £600 million. And where is that money coming from? Well, given that the UK Government will next year spend around £120 billion more than it will raise in tax, there's only one way to fund it: more borrowing. 12.42 A lukewarm reception to Osborne's speech, according to my colleague Tim Wigmore. 12.40 Osborne closes by paying tribute to Baroness Thatcher, saying that at her funeral he wondered: "for what will Margaret Thatcher best be remembered?" Her optimism, he says. She believed Britain had a great future. That British people could lead better and more prosperous lives. And so do we. We are at our best when we are optimists. We are at our best when we have faith that our country's better days lie not behind us, but ahead. We've fought hard battles these last three years. Held our nerve when all around urged us to give in.And I want people to look back at these years and say: yes, these were the years of difficult cuts and sacrifice ... And we say to the people of this nation: We rescued the economy together. 12.34 Osborne pays tribute to British engineering, singling out the Bloodhound SSC supersonic car, built in Bristol, that will travel at 1,000mph. He says that Britain should lead the world in scientific progress. Should we, the nation of Newton and Crick, should we say "let others in the world lead mankind's science endeavour, it's all too difficult for us"? Not for us the comfort of the past, ours is the Britain of the future. 12.32 Work for benefits scheme On the unemployed, Osborne says the Tories will "not abandon them as Labour did," but "no one will get something for nothing." A fair welfare system is fair to those who need it and fair to those who pay for it 12.22 Small business and Help to Buy Osborne pays tribute to his parents, who are in the room. They took a risk to set up their own small business, he says. He says the Tories "are nothing if not the party of small business." He goes on to home ownership. Saying that the Conservatives are the "homebuilding party of Macmillan, the party of Thatcher's Right to Buy and now the party of David Cameron's Help to Buy." To critics of the Help to Buy scheme, who say it risks creating another housing bubble, Osborne says they should visit parts of the country in which young people who work hard and have a decent wage. They can afford mortage repayments, he says, but not the deposit on a home. 12.19 Osborne is making a staunch defence of spending cuts. He says that there should have been a surplus before the financial crash, under the last Labour government. He says the Tories will never make the same mistake, and that their goal is to be in a surplus by the next parliament. It's going to require discipline and spending control if we want to protect pensions and healthcare and equipment for our Armed Forces ... I've never been for tax cuts that are borrowed, I want tax cuts that are paid for. What is the alternative? A Conservative government will fix the roof while the sun is shining, he says. 12.10 Osborne says he is offering a "serious plan for a grown-up country." Without a credible economic plan you can not have a living standards plan. He hits out at Labour and the Lib Dems, accusing the Lib Dems of jostling for position at their conference, and jokes that Nick Clegg has said he will form a new coalition... working properly for the first time with Vince Cable. He also says Labour's energy plan is "drawn up on the back of a fag packet," and it's flagship apprenticeship scheme is "illegal." We understand that there can be no recovery for all if there is no recovery at all. 12.05 Osborne begins with a sustained dig at Labour, capitalising on it's embrace of socialism in Brighton last week. Labour believes the global race is a race to the bottom, with gains being shared by a decreasing few. That is essentially the argument made by Karl Marx in Das Kapital, and it is what socialists always believe. It is what socialism always brings about and it is the historic work of this party to put that right. 12.00 Brady announces that she has been made ambassador for small businesses by the Tories, before going on to introduce Osborne. Ladies and gentlemen, the only person I would ever be an apprentice for, he is the man with the plan who stuck to the plan, the man whose plan is putting us on a path to a brigher future... She calls him the "man with the plan again," and he's on. 11.53 Karen Brady, of The Apprentice fame, is warming up the crowd for George Osborne with jokes about her time running Birmingham Football Club and a short speech about opportunities for entrepreneurs and small businesses. Cameron took his seat shortly before to a round of applause. 11.45 Former Tory minister and chairman Norman Fowler has just been on the Daily Politics with Andrew Neil, talking energy price controls. He acknowledged that Ed Miliband's policy was popular, but argued that three months down the line it would not be what the public wants. He said it was useful for the Tories for putting clear waters between the two parties. What Ed has done is open up an opportunity for the Tories, because what he's done is go back to the 70s and price control ... That has put clear water between the two parties. I accept that there has been a repsonse to from the Government to Ed Miliband, but if you go forward a few months you'll see that's not actually what the public wants. 11.38 George Osborne on welfare scheme - Osborne has spoken to Sky News ahead of his speech. He denied that his marquee welfare scheme, labelled 'work for the dole', is "heartless." I'll tell you want I think is heartless - it is leaving the long-term unemployed to just recycle through job centres and never get a proper chance of getting a job. This is for people who have been unemployed for more than three years and we are saying we are going to help you get into work, but we're going to ask for something in return ... I think it is a very compassionate approach to people who previous governments just ignored, and I don't think that's very fair. He also insisted that jobs are available for those willing to do them, hailing the announcement of 1,000 new positions at mail delivery company TNT Post. There are jobs being created in our economy, for example today TNT Post, the big delivery company, has announced a thousand jobs here in Manchester, and they've explicitly said they want to help long-term unemployed people get those jobs, Jobs are being created in our economy because we are fixing the economy and the economic plan is working. I just want to make sure we don't leave behind a generation who are long-term unemployed. That's what happened, I'm afraid, over the last couple of decades and I think that's one of the big social problems we've now got an opportunity to tackle. 11.28 Here's a a few key quotes from David Willetts' speech, in which he talked about manufacturing, science investment, and the invention of graphene. Science investment We are not going to win in the global race if we waste the talents of half the British people. The proportion of engineers who are women is one of the lowest in Europe and we've got to raise our game. That is why we support the ambition to double the proportion of engineering degrees taken by women. Today I can announce two initiatives to help us achieve that. We will extend fee loans to part time students of engineering, technology, and computer science who already have a degree in a different discipline. And we will invest £200 million in new teaching facilities for science and engineering in our universities. Universities will have to match it with private money. So that makes £400 million of investment so that students can be taught on the latest equipment ready for the world of work. That is our commitment to working with universities and business to help win the global race. Manufacturing The global race is not just about speed, it's about being smart and nimble too. We make the world's smallest, most affordable computer - called Raspberry Pi. In fact the conference session is being run off a Raspberry Pi. The millionth has just been produced in South Wales, bringing an old factory back to life. Who says we don't make things in Britain any more? We make satellites and computers, cars and diggers, airplane wings and engines. Last year we ran a trade surplus in cars for the first time since Red Robbo decimated our car industry. That is the march of the makers. Graphene Scientists here in Manchester used sticky tape to pull thin layers of material off a block of graphite until eventually they discovered graphene, one atom thick and 200 times stronger than steel. It is brilliant science with just a hint of Blue Peter. They got the Nobel prize for that in 2010 and two years ago in this very hall George backed them with £50 million. Now they are building a world-class lab - I was there this morning shovelling cement. 11.09 A somewhat stilted speech from Patrick McLoughlin there, possibly an autocue failure to blame. He backed HS2, which Ed Balls last week hinted at scrapping under a Labour government, and pledged to get transport infrastucture projects done 'on time, on budget'. Here's more on his HS2 comments from Peter Dominiczak. Patrick McLoughlin has said that the HS2 railway will be an "essential heart bypass" for the UK's transport system. The Transport Secretary insisted that the controversial project has the Government's "support" following weeks of criticism and suggestions that Labour could scrap the £50billion scheme. "The reason we need this line is that it will be an essential heart bypass for the clogged arteries of our transport system," Mr McLouglin said. His comments appear designed to end speculation that the beleaguered project has lost support amongst senior figures in the Coalition. 10.59 While you await George Osborne, here's Boris Johnson's Telegraph column, in which he memorably likens Ed Miliband in power to 'a turbine on a windless day'. Labour will seize the opportunity to go slow on the investment that this country so desperately needs. 10.50 Universities Minister David Willetts has just finished speaking. Chancellor George Osbone is up soon, he's being introduced now by Transport Secretary Patrick McLoughlin, who will make a speech on transport first. 10.48 Hijinks from the Labour press office on Twitter. Not for the first time. 10.38 The Labour ales are back at Conservative conference, including such withering delights as 'Miliband Ale, Weaker Than Brown' and 'David's Bitter'. I'll try and get my hands on some sales figures, see if they're outselling champagne. 10.25 Here are some of the key quotes from Owen Paterson's speech on the Environment. Priorites for the environment Paterson said he had four main priorities as Environment Secretary: "to boost the rural economy, improve the environment, save the country from animal diseases, and protect the country from plant diseases." Bovine TB and the badger cull Paterson stood squarely behind the badger cull and paid tribute to farmers who implemented it. The Republic of Ireland, where badgers are now culled, has seen TB infection levels fall by more than 45 per cent since 2000. They are slaughtering close to half the cattle they needed to 10 years ago. The pilot culls are now underway in the TB hotspots of Gloucestershire and Somerset. I would like to pay tribute to the local farmers and landowners who are undertaking the cull, often in difficult terrain and weather, and often in the face of intimidation by a small minority who are determined to stop this disease control policy. Plastic bag charge Paterson indicated that biodegradable bags may escape the plastic bag charge introduced by Nick Clegg at Lib Dem Conference. We will also be seeking to put an end to the blight that plastic bags cause to both the marine and land environment. In tandem with Nick Clegg's announcement of a 5 pence charge on plastic carrier bags, I want to work with industry on setting a standard for biodegradable bags. Any bags complying with this new standard could be given out by retailers for free or at a lower cost, reducing their environmental impact and incentivising a whole new industry. Farming exports Paterson said that Britain needs to reduce the amount of food imported that could be produced here - currently a fifth. I'm pleased to report that in the first six months of this year we've seen a 591 per cent increase in pork exports to China. In fact, the £45 million trade in pork and animal fat has taken our total food exports to China to £102 million, lifting the country into our top 10 biggest international food markets for the first time ... It's not just about promoting exports. We need to make a significant dent in the 22 per cent of food that's imported but could be produced here. I am hosting a series of meetings with farmers, manufacturers and retailers to make it easier for businesses to grow in the UK market. Broadband Paterson said 90 per cent of the UK should have superfast coverage by early 2016. The current public investment of £1.2 billion means that 90 per cent of the UK should have superfast coverage by early 2016. This programme will benefit over 4 million rural homes and businesses. Across the country, 100,000 properties are being connected every week. Our £20 million Rural Community Broadband Fund is also playing a key role in providing opportunities for some communities in the most hard to reach locations to get superfast broadband sooner. 09.56 My colleague James Kirkup has just filed on the speech by Energy and Climate Change Minister Greg Barker. Councils need to "have a bit more backbone" and curb the building of large solar power sites in the rural areas, a Conservative environment minister has said. Greg Barker told the Conservative Party conference in Manchester that Britain needs more large solar arrays, but insisted that should not harm the countryside. Solar panels should be installed on "brownfield" former industrial land, he said. "There are plenty of places where it can deployed without ruining the countryside or visual amenity," Mr Barker said. Local planners occasionally need to have a bit more backbone. Many Conservative voters and MPs are unhappy with the Coalition's drive to increase Britain's renewable energy generation. That an agenda that means more wind turbines and solar arrays, facilities critics say spoil the countryside without delivering reliable power supplies. 09.44 The Churchill-Stalin-style pact between Cameron and Farage, mooted by Tory MP Peter Bone on Today this morning (see my 08.50 update), is highly unlikely to ever occur. That hasn't stopped our picture desk visualising it. Read more on the idea from Peter Dominiczak here. 09.32 The video tribute to Baroness Thatcher, shown at the opening of conference yesterday and followed by a lengthy standing ovation, is now up on YouTube. Here it is. 09.28 Energy and Climate Change Minister Greg Barker is up now at conference. He'll be followed by a panel session and speech with Environment Secretary Owen Paterson. More on that soon. Here's more from my colleague Peter Dominiczak on the fallout from Osborne's green energy energy comments on Today earlier (see my 08.29 update for more). The Chancellor told the BBC's Today programme that he accepts that climate change "is happening" but that "saving the planet should not cost the earth" ... His comments are certain to infuriate campaigners and Liberal Democrats including Ed Davey, the Energy Secretary, who are calling for Britain to be at the forefront of the green energy industry. 09.15 The Paper Leaders - what the papers had to say this morning, ahead of Osborne's speech. The Telegraph: Economic recovery remains the top priority The Mail: First step to restoring the bedrock of society The Guardian: Conservatives: raising the mental drawbridge The Times: Tories must take economic argument to Labour 09.06 Benedict Brogan's morning briefing is out. Osborne's stock is on the rise, he writes. Has George Osborne won back the affection of the Conservative party he mislaid following the omnishambles budget? His speech today will give us a measure of his restored credibility with activists. There is a vacancy for the under-a-bus candidate who would be the obvious choice in case of a sudden crisis. Some suggest the Chancellor has clawed his way back to that position, though for my money William Hague is the more obvious bet. It's the economy that's done it. A rising tide raises careers as well as yachts. The better things get, the more Mr Osborne is forgiven for his misjudgments. MPs are relieved that circumstances have changed in their favour. Activists too. Mr Osborne gets credit for holding his nerve, sticking to Plan A, and therefore crushing Ed Balls into the dust. There's more from Brogan on Nigel, Boris, Lynton, Samantha, and the TUC. Fill your boots here. 08.50 A little more on the possibility of local Tory-Ukip pacts at the next election, mischeivously mooted by Nigel Farage in this morning's Times. Farage said he is open to local candidates running a joint ticket, and on the Today Programme this morning Tory MP Peter Bone agreed. There's a big plus - 47% of the electorate consistently in the opinion polls want to vote for a centre right party, either us or UKIP - if you can harness that vote somehow we could have a Conservative majority or centre-right majority government and that must be the great prize, so I think this is a huge opportunity, not just a risk. There is a risk that we go and like the SDP and Labour split the vote and let the Conservatives in, so we must find, there's a lot of common ground on policy, let's find some common ground between the two parties and hopefully between the two party leaders. Yeah, Tim [Montgomerie] said they didn't like each other, but I think Churchill and Stalin worked together so I don't see why it would be so difficult for Nigel and David to work together. Gag of the morning so far goes to Montgomerie, for replying: "Which one's Churchill and which one's Stalin?" Montgomerie, Comment Editor at the Times, suggested that the Tories would not attempt to prevent local candidates striking such deals, as it would be chaos to police, but George Osborne struck against the idea just now on Today, nailing his colours to the mast. Candidates have to be approved by the Conservative Party and we will be fielding Conservative only Candidates. That is stating the obvious. 08.38 George Osborne pictured this morning at Conservative Party Conference, Manchester. 08.29 Chancellor George Osborne has just finished on the Today programme. Here are some of the key exchanges. On Iain Duncan Smith Q: Why are you announcing this, this should be Iain Duncan Smith's policy shouldn't it? And is it true that you said he was "thick" or "not very clever"? (claims made in a book by Matthew d'Acona, being serialised in the Telegraph) Osborne denies saying either thing about IDS, saying he works very closely with the work and pensions secretary and calls him a "remarkable and deeply compassionate individual who has transformed the entire debate about welfare in this country." Q: And very clever? And very clever. On being a party for the rich Q: Labour said last week that under the Conservatives a rising tide now just lifts the yachts. You will be aware of the accusation that the Tories are the party for the rich? Osborne says that under Labour the rich paid less tax then their cleaners. He says that the minimum wage is going up tomorrow, under a Conservative government. Increasing the personal allowance is the easy thing to do, paying for it is the difficult thing to do and we've found a way to do it. On climate change Q: There is a suspicion you don't buy into these green policies, do you really accept all that? Osborne says he accepts mad made climate change but it is hard on the economy to challenge it if other countries don't. I do accept that and I do acceptt climate change is happening and I accept the overwhelming evidence that it is manmade. But It makes no sense to close an aluminium smelter in the north of England, that then opens in China. That doesn't help climate change at all ... Britain wants to challenge climate change, but it can't be out there on it's own. On Ukip Q: What about Conservative candidates doing deals with Ukip? There will be no deals, says Osborne. There will be no deals with Ukip locally, the only candidates that stand for the Conservatives at the local elections will be Conservatives. Q: Will you ban Conservative candidates from being endorsed by Ukip on their election material? Osborne puts to bed the idea that the Tories might tacitly allow local candidates to do deals. 08.11 Ukip, the other front page story - unlike the rest of the national broadsheets, the Times has splashed on its own story on Ukip. Writing in the paper's comment pages this morning, Ukip leader Nigel Farage says he is happy for his party to link with the Tories. Farage describes the extent to which Ukip is persona non grata among Cameron's government - including an apparent ban on Farage himself entering the 'secure zone' around the conference hall - but adds: However, despite the way that the Tory leadership feels there are individuals, such as Jacob Rees-Mogg and Peter Bone, who feel differently. If they, or others like them - even Labour MPs - with their local associations chose to propose running a joint ticket, then I would leave the local Ukip association to have those negotiations. 08.06 The top story this morning is that welfare claimants will have to "work for the dole" by cooking meals for the elderly, picking up litter and cleaning up graffiti, to be outlined by Osborne in his speech. That's the splash in this morning's Telegraph, Mail, Independent, Guardian and i. Here's more on the policy from my colleague James Kirkup: Read the full story: Welfare claimants will have to work for dole money 08.00 Good morning. Today is day two at Conservative Party Conference, Manchester. Highlights include speeches from the Chancellor, George Osborne and the Home Secretary, Theresa May, as well as with Environment Secretary Owen Paterson. Here's the full agenda for today: Home Secretary Theresa May Justice Secretary Chris Grayling 4:30pm-5:30pm The Road to 2015 Panel discussion on the shape of the Conservative 2015 manifesto.