David Cameron is to abandon plans to reform the House of Lords
"The Prime Minister will announce in coming days that the reforms have been shelved in a decision likely to cause a major Coalition rift. Nick Clegg, the Deputy Prime Minister and Liberal Democrat leader, had viewed the introduction of elected peers as a key policy and senior Conservatives now fear he will scupper planned reforms to electoral boundaries." - The Telegraph
"He and Osborne must come up with a radical supply-side agenda for growth over the next few months, while retaining the planned public spending cuts. They need to show that they get it. If they don’t budge, and the economy continues to shrink, and the deficit to rise, the clamour for a change of leadership at the top of the Conservative party – still a minority view among MPs – will become unstoppable." - Allister Heath in City AM
Yesterday's ToryDiary: Osborne will still be Chancellor in 2015
George Osborne told by Conservative aide that 'dramatic' action needed to escape ‘economic mire’ - The Telegraph reports on yesterday's intervention on ConHome.
The Telegraph's Donata Huggins: "Mr Stride's suggestions for George – even when sandwiched in plenty of caveats and flattery – demonstrate that Mr Stride must be feeling confident in his criticism. Statements like Britain needs "something pretty dramatic to pull us out of the current economic mire" aren't exactly party line."
George Osborne’s allies slam talk of plan to nationalise RBS as ‘nuts’ -Scotsman
Alistair Darling came within a whisker of fully nationalising the Royal Bank of Scotland and Lloyds in January 2009 as their share prices plunged, the Financial Times has learnt. The former Labour chancellor eventually refrained from doing so, deciding instead to keep the money in reserve in case further bank bailouts were needed."
- RBS has this morning reported a half-year loss of £2bn, compared with £1.4bn a year earlier - BBC
Cough drops won't do when chemotherapy is required; Polly Toynbee encourages Miliband to be radical against capitalism - Guardian
Research shows that the wages of under-30s have dropped by more than 10% - Independent