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Politics live blog: PMQs, Fred Goodwin reaction and Nick Clegg on Lords reform Politics live blog: PMQs, Fred Goodwin reaction and Nick Clegg on Lords reform
(40 minutes later)
2.11pm: Labour have been going through the IFS green budget and the press release about it and they have highlighted these two sentences as particularly supportive of their economic stance.

The case for a significant short-term fiscal stimulus to boost the economy is stronger than it was a year ago. There seems little prospect that it would prompt an offsetting monetary tightening in the present climate ...
Regardless of whether or not Mr Osborne thinks that a substantial short-term fiscal stimulus is appropriate at the moment, he should set out now broadly what he would do under alternative scenarios where the economic outlook for the UK is sharply weaker – such as were the Eurozone to collapse. Under these circumstances, the arguments for a fiscal stimulus package would be greatly strengthened, as concerns that significant permanent damage was being done to the potential output of the UK economy would be increased. The most appropriate components of such a package would likely be a temporary cut to the main rate of VAT, a temporary cut in employer NICs and/or a short-term boost to public investment spending.
Rachel Reeves (left), the shadow chief secretary to the Treasury, has put out this comment.
Tough decisions on tax, spending and pay are essential to get the deficit down, but so too are more jobs and strong growth. The independent IFS is right to say that the case for short-term action on jobs and growth, for example through the temporary tax cuts Labour has been calling for, is now stronger and will get stronger still if the eurozone crisis deepens.

But rather than waiting for things to get even worse, George Osborne should take urgent action in next month's Budget. Years of slow growth and high unemployment are not just bad for families and for the deficit, but also risk permanent damage to our economy.

We agree with the IFS that the best form of stimulus would be a temporary cut in VAT, a cut in national insurance contributions for employers and additional infrastructure spending, which are three of the five elements in Labour's plan for jobs and growth.
1.59pm: More on Baldemort. (See 1.01pm.) Clevertrousers in the comments, and two readers on Twitter, tell me Malcolm Tucker used the line in The Thick of It to describe Julius.
1.15pm: Here's a lunchtime summary.

• Alistair Darling, the Labour former chancellor, and Digby Jones, the former head of the CBI, have strongly criticised the decision to remove Fred Goodwin's knighthood. Alex Salmond, Scotland's first minister, also said there was a whiff of "humbug" about the decision.
I suppose I'm not the only person to whiff some humbug in this whole business for two reasons. What about all the other people who are keeping their honours who were also involved in the financial collapse? Are they going to have their honours withdrawn?
Secondly, isn't this a bit of a distraction from moving ahead with the key issues at the present moment: the restrictions, the cuts in public spending that's taking place; the lack of capital investment in the economy.
I'm a bit suspicious that this is a convenient distraction, talking about one individual instead of facing up to the challenges that we as a community should be facing up to.
• David Cameron has accused Ed Miliband of "hypocrisy" over bankers' pay. As Miliband urged the government to implement a law passed by Labour saying banks should say how many of their employees are paid more than £1m, Cameron said Labour had approved a £1.3bn bonus pool for RBS. Cameron went on: "The issue for you is why are you in favour now in opposition of things you never did in Government? Some might call it Opposition, some people might call it hypocrisy." Cameron later withdrew the remark after being reprimanded by the Speaker for using unparliamentary language. Miliband said Cameron was giving "no leadership on top pay" and that the Conservatives had actually supported Labour's £1m pay law when they were in opposition.
• Nick Clegg has said that the referendum on Scottish independence should be held "as rapidly as possible". (See 11.48am.)
• A group of 365 GPs, specialists and health academics has urged the government to ditch the health and social care bill, which they say will "derail and fragment" the NHS. Miliband raised the issue at PMQs, telling Cameron:
A system that embodies social justice and has delivered widespread patient satisfaction, public support and value for money. We must make sure that nothing like this ever happens again. Why does the prime minister think he has so comprehensively lost the medical profession's trust?
Cameron told Miliband the NHS was getting better.
What I would say to him is look at what is actually happening in the health service, waiting times are down, infection rates are down, the number of people in mixed sex wards that we put up with for 13 years under Labour is down by 94%. He should be praising the good things that are happening in the health service, rather than having his policy which is to say an increase in NHS resources is irresponsible.
• Union leaders have voiced fears about the job implications of moves by the Indian government to give preferred bidder status to a French firm for a lucrative order for fighter planes. As the Press Association reports, BAE Systems had been hoping to partly assemble 126 Eurofighter Typhoon jets at Warton and Samlesbury in Lancashire for the Indian air force. India's government has signalled that French firm Dassault put in a lower bid with its Rafale jets, although no formal statement has been made. Asked about the matter at PMQs, Cameron said Typhoon was a "superb aircraft, far better than Rafale".
Of course, I will do everything I can - as I have already - to encourage the Indians to look at Typhoon, because I think it is such a good aircraft. The decision is obviously disappointing but it is about who the Indians have assessed as making the lowest bid and therefore asked to enter into further negotiations. They have not yet awarded the contract. We do not expect any job losses stemming from this decision and it does not rule out Typhoon for India.
• The Institute for Fiscal Studies has said in its green budget that George Osborne has scope for short-term tax cuts. But there is little scope for long-term tax cuts, it said.
• David Blunkett has renewed a £49,500 contract to advise Rupert Murdoch's News International on "social responsibility".
• Justine Greening, the transport secretary, has rejected a proposal to allow drivers to have MOT tests done every two years. The department was considering that as a deregulatory measures. But, in an announcement today, she said annual MOT tests would stay.
• Boris Johnson has announced plans for a small council tax cut for Londoners.
• The London assembly's environment committee has said that it would take Boris Johnson more than 100 years at current rates of progress to achieve his goal of getting 100,000 electric cars on the streets of London.
1.01pm: If David Cameron's "Baldemort" insult (see 12.25pm) sounded familier, that's because Cameron used it two years ago. My colleague Nicholas Watt wrote about it at the time. He says the phrase was originally coined by Guido Fawkes.1.01pm: If David Cameron's "Baldemort" insult (see 12.25pm) sounded familier, that's because Cameron used it two years ago. My colleague Nicholas Watt wrote about it at the time. He says the phrase was originally coined by Guido Fawkes.
12.35pm: PMQs verdict: It's been a good week for Ed Miliband. On Sunday night, as a direct result of Miliband's decision to call a parliamentary vote on the issue, Stephen Hester decided to give up his bonus. On Tuesday Miliband put in a first-class performance in the Commons yesterday responding to the EU statement. (Even Simon Hoggart - not a man to lavish praised lightly - said he was "very good".) And today, at PMQs, he came out top. He raised a relatively obscure piece of City corporate governance legislation, Sir David Walker's call for banks to have to reveal how many employees earn more than £1m, and Cameron did not have a particularly convincing answer. And he scored an easy hit with his catalogue of NHS organisations opposed to the health bill.12.35pm: PMQs verdict: It's been a good week for Ed Miliband. On Sunday night, as a direct result of Miliband's decision to call a parliamentary vote on the issue, Stephen Hester decided to give up his bonus. On Tuesday Miliband put in a first-class performance in the Commons yesterday responding to the EU statement. (Even Simon Hoggart - not a man to lavish praised lightly - said he was "very good".) And today, at PMQs, he came out top. He raised a relatively obscure piece of City corporate governance legislation, Sir David Walker's call for banks to have to reveal how many employees earn more than £1m, and Cameron did not have a particularly convincing answer. And he scored an easy hit with his catalogue of NHS organisations opposed to the health bill.
Unusually, Miliband decided to split his questions 4:2 and this seemed to work too. Two questions on the NHS seemed just enough. Sometimes he peforms badly at PMQs because he asks, say, two or three good questions on a subject but then keeps going when he does not have anything new to say.Unusually, Miliband decided to split his questions 4:2 and this seemed to work too. Two questions on the NHS seemed just enough. Sometimes he peforms badly at PMQs because he asks, say, two or three good questions on a subject but then keeps going when he does not have anything new to say.
On the big picture, it is now clear that one of the key questions in British politics is this: Is it better to be weak or out-of-touch? At almost every PMQs now Cameon attacks Miliband as weak. And Miliband hits back by describing the prime minister as out-of-touch. Polling evidence suggests both charges have some traction. But I'm not sure which is more damaging.On the big picture, it is now clear that one of the key questions in British politics is this: Is it better to be weak or out-of-touch? At almost every PMQs now Cameon attacks Miliband as weak. And Miliband hits back by describing the prime minister as out-of-touch. Polling evidence suggests both charges have some traction. But I'm not sure which is more damaging.
12.33pm: Marcus Jones, a Conservative, invites Cameron to condemn Labour for "flip-flopping" over welfare.12.33pm: Marcus Jones, a Conservative, invites Cameron to condemn Labour for "flip-flopping" over welfare.
Cameron says they are not "flip-flopping". They are just "flopping", he says.Cameron says they are not "flip-flopping". They are just "flopping", he says.
12.32pm: Nigel Dodds, the DUP MP, says the DUP will support the government on the benefit cap tonight.12.32pm: Nigel Dodds, the DUP MP, says the DUP will support the government on the benefit cap tonight.
12.31pm: Greg Mulholland, a Lib Dem, asks if the government will allow people accused of drink driving to have their licence taken away as part of their bail conditions before they go on trial.12.31pm: Greg Mulholland, a Lib Dem, asks if the government will allow people accused of drink driving to have their licence taken away as part of their bail conditions before they go on trial.
Cameron says he will look at this.Cameron says he will look at this.
12.30pm: Labour's Rosie Cooper accuses Cameron of not keeping his promise to protect midwives.12.30pm: Labour's Rosie Cooper accuses Cameron of not keeping his promise to protect midwives.
Cameron says Cooper's figures are wrong. There are more midwives now than under Labour, he says.Cameron says Cooper's figures are wrong. There are more midwives now than under Labour, he says.
12.29pm: Julian Huppert, a Lib Dem MP, asks if Cameron will agree to go "further and faster" in terms of lifting the income tax allowance.12.29pm: Julian Huppert, a Lib Dem MP, asks if Cameron will agree to go "further and faster" in terms of lifting the income tax allowance.
Cameron says the government is committed to making further progress during this parliament on this policy.Cameron says the government is committed to making further progress during this parliament on this policy.
12.26pm: Labour's Thomas Docherty asks Cameron if he accepts that Lord Ashcroft, the former Conservative deputy chairman, got his peerage on false pretences in the light of the revelations in Monday's Panorama programme.12.26pm: Labour's Thomas Docherty asks Cameron if he accepts that Lord Ashcroft, the former Conservative deputy chairman, got his peerage on false pretences in the light of the revelations in Monday's Panorama programme.
Cameron says he has answered this many times.Cameron says he has answered this many times.
12.25pm: Cameron describes Liam Byrne, the shadow work and pensions secretary, as "Baldemort".12.25pm: Cameron describes Liam Byrne, the shadow work and pensions secretary, as "Baldemort".
12.24pm: Cameron challenges Labour to say whether they will vote with the government on the benefit cap. Just nod if you are in favour, he tells Miliband. When Labour don't respond, he says that he cannot take tough decisions.12.24pm: Cameron challenges Labour to say whether they will vote with the government on the benefit cap. Just nod if you are in favour, he tells Miliband. When Labour don't respond, he says that he cannot take tough decisions.
12.23pm: Labour's Katy Clark asks Cameron to confirm that the lower rate of disability living allowance for children will be cut from £54 to £27.12.23pm: Labour's Katy Clark asks Cameron to confirm that the lower rate of disability living allowance for children will be cut from £54 to £27.
Camerons says that no disabled child will lose out as a result of the move to universal benefit.Camerons says that no disabled child will lose out as a result of the move to universal benefit.
12.22pm: Esther McVey, a Conservative, asks about over-charging by the Labour-led council in Liverpool.12.22pm: Esther McVey, a Conservative, asks about over-charging by the Labour-led council in Liverpool.
Cameron says he will look into this.Cameron says he will look into this.
12.20pm: Margaret Ritchie, an SDLP MP, asks about the withdrawal of tax credits from families.12.20pm: Margaret Ritchie, an SDLP MP, asks about the withdrawal of tax credits from families.
Cameron says tax credits used to go all the way up the income scale. Even MPs could apply. That is why the government decided to reform the system.Cameron says tax credits used to go all the way up the income scale. Even MPs could apply. That is why the government decided to reform the system.
12.17pm: Laura Sandys, a Conservative, asks Cameron to confirm that South Thanet is still a leading centre for life sciences, despite the Pfizer closure.12.17pm: Laura Sandys, a Conservative, asks Cameron to confirm that South Thanet is still a leading centre for life sciences, despite the Pfizer closure.
Cameron says he agrees.Cameron says he agrees.
12.13pm: I was wrong about that. Miliband is back for another two questions.12.13pm: I was wrong about that. Miliband is back for another two questions.
On the NHS, he quotes the editorial published by three leading medical journals. Why has Cameron lost the trust of the medical profession?On the NHS, he quotes the editorial published by three leading medical journals. Why has Cameron lost the trust of the medical profession?
Cameron says he notices that Miliband is not discussing the benefit cap. Doctors are already implementing the government's NHS reforms. Miliband should be praising the government.Cameron says he notices that Miliband is not discussing the benefit cap. Doctors are already implementing the government's NHS reforms. Miliband should be praising the government.
Miliband says every time Cameron talks about the NHS he shows how out of touch he is. He lists groups and royal colleges against the bill. Labour MPs join in, panto style, chanting "against the bill". Will Cameron drop the bill?Miliband says every time Cameron talks about the NHS he shows how out of touch he is. He lists groups and royal colleges against the bill. Labour MPs join in, panto style, chanting "against the bill". Will Cameron drop the bill?
Cameron says the government is introducing choice and transparency. There will always be objections to a move like this, he says. He quotes from what Tony Blair said about reform. Blair "is a man who knows about bonuses and pay", he says. Blair said reform was always denounced as a disaster. But then people accept it. Blair knew about reform, he says.Cameron says the government is introducing choice and transparency. There will always be objections to a move like this, he says. He quotes from what Tony Blair said about reform. Blair "is a man who knows about bonuses and pay", he says. Blair said reform was always denounced as a disaster. But then people accept it. Blair knew about reform, he says.
12.12pm: PMQs snap verdict: Only four questions, but it looks as if Miliband has decided to quit while he was ahead - as he was. More later ...12.12pm: PMQs snap verdict: Only four questions, but it looks as if Miliband has decided to quit while he was ahead - as he was. More later ...
12.07pm: Miliband says hypocrisy is saying that you will block a £1m bonus for Stephen Hester and then nodding it through.12.07pm: Miliband says hypocrisy is saying that you will block a £1m bonus for Stephen Hester and then nodding it through.
Will the government legislate to put workers on remuneration committees?Will the government legislate to put workers on remuneration committees?
John Bercow says the use of the word hypocrisy in relation to an individual member is not parliamentary. He tells Cameron to withdraw it (but not Miliband, who seemed to make the same accusation.)John Bercow says the use of the word hypocrisy in relation to an individual member is not parliamentary. He tells Cameron to withdraw it (but not Miliband, who seemed to make the same accusation.)
Cameron accepts that, and then accused Labour of presiding over big bonuses. On workers on remuneration committees, he says this idea is not practical. He claims that Miliband, in his Glasgow speech, came out against all bonuses.Cameron accepts that, and then accused Labour of presiding over big bonuses. On workers on remuneration committees, he says this idea is not practical. He claims that Miliband, in his Glasgow speech, came out against all bonuses.
Miliband says Osborne went to Davos to tell businesses to lobby against the 50p tax rate.Miliband says Osborne went to Davos to tell businesses to lobby against the 50p tax rate.
Cameron says he does not know what the word is for criticising someone for going to Davos when he went to Davos himself. But Peter Mandelson had a word for Miliband in Davos. It was "struggling".Cameron says he does not know what the word is for criticising someone for going to Davos when he went to Davos himself. But Peter Mandelson had a word for Miliband in Davos. It was "struggling".
Bercow intervenes again. He says Cameron is exceptionally well educated, and probably has a very good vocabulary.Bercow intervenes again. He says Cameron is exceptionally well educated, and probably has a very good vocabulary.
12.04pm: Ed Miliband says Labour passed legislation before the election to force banks to say how many people earned more than £1m. But the coalition has not implemented this legislation. Will it now?12.04pm: Ed Miliband says Labour passed legislation before the election to force banks to say how many people earned more than £1m. But the coalition has not implemented this legislation. Will it now?
Cameron says the government has introduced tough rules on bankers' pay. David Walker, who proposed the Labour idea, said the disclosure rule should only come into force when other countries adopt it.Cameron says the government has introduced tough rules on bankers' pay. David Walker, who proposed the Labour idea, said the disclosure rule should only come into force when other countries adopt it.
Miliband says George Osborne said before the election he supported this measure. "It's another broken promise from this government." Will the government implement the legislation?Miliband says George Osborne said before the election he supported this measure. "It's another broken promise from this government." Will the government implement the legislation?
Cameron says the government is following the advice of the man who produced the report for Labour. Labour supported RBS having a bonus pool of £1.3bn. Why is Mliband advocating things he did not support when he was in government? Some would call that "hypocrisy".Cameron says the government is following the advice of the man who produced the report for Labour. Labour supported RBS having a bonus pool of £1.3bn. Why is Mliband advocating things he did not support when he was in government? Some would call that "hypocrisy".
12.03pm: Cameron says the benefit cap is "right and fair". It introduces a new principle into the welfare system. The Commons will find out whether Labour supports the cap in tonight's vote, he says.12.03pm: Cameron says the benefit cap is "right and fair". It introduces a new principle into the welfare system. The Commons will find out whether Labour supports the cap in tonight's vote, he says.
12.02pm: Labour's Paul Farrelly says chief constables have warned about policing being on a cliff edge. Yet during the TV debates in the election Cameron said there were not enough officers on the streets.12.02pm: Labour's Paul Farrelly says chief constables have warned about policing being on a cliff edge. Yet during the TV debates in the election Cameron said there were not enough officers on the streets.
Cameron says the percentage of officers on the front line has increased. In 2010 there were 6,000 uniformed officers doing back office roles. Labour now supports the police cuts, he says. And Labour MPs are lining up to become elected police commissioners.Cameron says the percentage of officers on the front line has increased. In 2010 there were 6,000 uniformed officers doing back office roles. Labour now supports the police cuts, he says. And Labour MPs are lining up to become elected police commissioners.
12.01pm: David Cameron starts with a tribute to two soldiers killed in Afghanistan. They were dedicated soliders, he says.12.01pm: David Cameron starts with a tribute to two soldiers killed in Afghanistan. They were dedicated soliders, he says.
11.59am: Here comes PMQs.11.59am: Here comes PMQs.
11.48am: Here are the main points from Nick Clegg's evidence to the Lords constitution committee.11.48am: Here are the main points from Nick Clegg's evidence to the Lords constitution committee.
• Clegg said that he wanted the referendum on Scottish devolution to be held as soon as possible. Alex Salmond wants it to be held in the autumn of 2014, but Clegg implied that it should be much sooner.• Clegg said that he wanted the referendum on Scottish devolution to be held as soon as possible. Alex Salmond wants it to be held in the autumn of 2014, but Clegg implied that it should be much sooner.
Given the uncertainties that clearly now cloud the future of Scotland until this issue is resolved, one way or another, then it would be desirable ... to move as rapidly as possible to having this clear, fair, decisive and legal outcome.Given the uncertainties that clearly now cloud the future of Scotland until this issue is resolved, one way or another, then it would be desirable ... to move as rapidly as possible to having this clear, fair, decisive and legal outcome.
• He criticised the SNP for not being able to answer basic questions about independence.• He criticised the SNP for not being able to answer basic questions about independence.
Every time the SNP adminstration is asked really very, very simple questions - what would you do with your currency, what would do with defence bases, what does it mean for investment, what does it mean for taxation - I would have thought, call me naive, if you are a party whose sole purpose in life is independence of Scotland, you might have done a little bit of homework about what independence actually means.Every time the SNP adminstration is asked really very, very simple questions - what would you do with your currency, what would do with defence bases, what does it mean for investment, what does it mean for taxation - I would have thought, call me naive, if you are a party whose sole purpose in life is independence of Scotland, you might have done a little bit of homework about what independence actually means.
• He said that there was not point having a referendum on giving further powers to the Scottish parliament until Scotland had resolved the question of whether or not it wanted to stay in the UK. He also said that the Lib Dems were in favour of the Scottish parliament getting more powers. Devolution was a process, he said, and the Lib Dems supported "home rule".• He said that there was not point having a referendum on giving further powers to the Scottish parliament until Scotland had resolved the question of whether or not it wanted to stay in the UK. He also said that the Lib Dems were in favour of the Scottish parliament getting more powers. Devolution was a process, he said, and the Lib Dems supported "home rule".
• He dismissed rumours that the government was going to appoint 60 new government peers to help it get its legislation through the Lords. He said 60 was an "absurdly large number". But he did not rule out the idea that some new government peers may be appointed.• He dismissed rumours that the government was going to appoint 60 new government peers to help it get its legislation through the Lords. He said 60 was an "absurdly large number". But he did not rule out the idea that some new government peers may be appointed.
• He said that he did not accept that having elected peers should lead to the Lords having more powers.• He said that he did not accept that having elected peers should lead to the Lords having more powers.
• He said the government would be amending its plans to introduce individual voter registration in the light of the complaints raised about the possibility of millions of voters being disenfranchised.• He said the government would be amending its plans to introduce individual voter registration in the light of the complaints raised about the possibility of millions of voters being disenfranchised.
11.47am: The Clegg hearing is over. I'm afraid it didn't quite live up to my 8.55am billing, but it wasn't completely hopeless. I will post a summary very soon.11.47am: The Clegg hearing is over. I'm afraid it didn't quite live up to my 8.55am billing, but it wasn't completely hopeless. I will post a summary very soon.
11.44am: Lord Rennard, the former Lib Dem chief executive, asks Clegg if he will change his plans for individual voter registration because of the concerns about millions of people being disenfranchised.11.44am: Lord Rennard, the former Lib Dem chief executive, asks Clegg if he will change his plans for individual voter registration because of the concerns about millions of people being disenfranchised.
Clegg says he will be amending his plans. The government's new proposals will be published very soon, he says.Clegg says he will be amending his plans. The government's new proposals will be published very soon, he says.
11.40am: Lord Powell asks Clegg if the government will change the law to ensure that, if people are in a queue at a polling station at 10pm, they should be allowed to vote. The committee published a report recommending this recently (pdf).11.40am: Lord Powell asks Clegg if the government will change the law to ensure that, if people are in a queue at a polling station at 10pm, they should be allowed to vote. The committee published a report recommending this recently (pdf).
Clegg says he accepts that it was wrong that voters in this position were not allowed to vote in 2010. It was a particular problem in his constituency, he says. But he says he is not sure legislation is necessary. It may just have been an adminstrative problem, he says.Clegg says he accepts that it was wrong that voters in this position were not allowed to vote in 2010. It was a particular problem in his constituency, he says. But he says he is not sure legislation is necessary. It may just have been an adminstrative problem, he says.
11.32am: Lord Goldsmith, the former Labour attorney general, suggests that it would be best for the government to clarify the application of Parliament Act as part of Lords reform.11.32am: Lord Goldsmith, the former Labour attorney general, suggests that it would be best for the government to clarify the application of Parliament Act as part of Lords reform.
Clegg says that he takes the view "if it ain't broke, don't fix it". Some peers pick up on this because it is the argument used to justify the Lords remaining as it is. Clegg means that he thinks there is no need to codify this issue.Clegg says that he takes the view "if it ain't broke, don't fix it". Some peers pick up on this because it is the argument used to justify the Lords remaining as it is. Clegg means that he thinks there is no need to codify this issue.
He says that he finds it "ironic" that people who normally support evolutionary constituional change are demanding new legislation on this point.He says that he finds it "ironic" that people who normally support evolutionary constituional change are demanding new legislation on this point.
11.29am: Norton asks if Clegg thinks there should be a referendum on Lords reform.11.29am: Norton asks if Clegg thinks there should be a referendum on Lords reform.
Clegg says he does not support this.Clegg says he does not support this.
The government is not seeking to abolish the Lords, he says.The government is not seeking to abolish the Lords, he says.
11.29am: Clegg says he accepts that Lords reform does not "exercise" people very much. But that does not mean it is not important, he says.11.29am: Clegg says he accepts that Lords reform does not "exercise" people very much. But that does not mean it is not important, he says.
11.24am: Lord Norton of Louth, a Conservative peer and a political scientist, says the preamble to the 1911 Parliament Act did envisage the powers of the Lords changing after the Lords became elected.11.24am: Lord Norton of Louth, a Conservative peer and a political scientist, says the preamble to the 1911 Parliament Act did envisage the powers of the Lords changing after the Lords became elected.
11.20am: Clegg says that he does not think that there is an automatic link between composition and function in relation to the Lords.11.20am: Clegg says that he does not think that there is an automatic link between composition and function in relation to the Lords.
11.18am: Pannick asks if the government is planning to change the powers of the Lords.11.18am: Pannick asks if the government is planning to change the powers of the Lords.
Clegg says that the fact that the Lords becomes elected should not necessarily lead to the Lords taking on new powers. The composition of the Lords has already changed considerably in recent years, he says. It has become more partisan.Clegg says that the fact that the Lords becomes elected should not necessarily lead to the Lords taking on new powers. The composition of the Lords has already changed considerably in recent years, he says. It has become more partisan.
11.15am: Lord Pannick, a crossbencher, asks if the Parliament Act will remain in place after Lords reform starts.11.15am: Lord Pannick, a crossbencher, asks if the Parliament Act will remain in place after Lords reform starts.
Clegg says that that is the government's assumption.Clegg says that that is the government's assumption.
11.11am: Hart asks if the Lords is too big. (Currently, 787 peers are eligible to attend.)11.11am: Hart asks if the Lords is too big. (Currently, 787 peers are eligible to attend.)
Clegg says this is not a new problem. Just before the Life Peerages Act there were about 800 members. But the number of active peers has not changed dramatically, he says.Clegg says this is not a new problem. Just before the Life Peerages Act there were about 800 members. But the number of active peers has not changed dramatically, he says.
He also insists that he is in favour of making the Lords smaller.He also insists that he is in favour of making the Lords smaller.
Hart says there have been rumours about the government planning to appoint another 60 peers to help get its legislation through.Hart says there have been rumours about the government planning to appoint another 60 peers to help get its legislation through.
Clegg says that sounds like "an absurdly large number".Clegg says that sounds like "an absurdly large number".
But, interestingly, he does not rule out the idea that some new peers may be appointed soon.But, interestingly, he does not rule out the idea that some new peers may be appointed soon.
Hart says there have been calls for the government to stop appointing new peers because the Lords is over-crowded.Hart says there have been calls for the government to stop appointing new peers because the Lords is over-crowded.
Clegg says he does not see the need for this.Clegg says he does not see the need for this.
11.06am: They are now turning to Lords reform.11.06am: They are now turning to Lords reform.
Lord Hart of Chilton, a Labour peer, asks about the timetable for Lords reform.Lord Hart of Chilton, a Labour peer, asks about the timetable for Lords reform.
Clegg says the government wants the first tranche of elections to the Lords to take place in 2015. Working backwards, that means the legislation needs to go through parliament soon. The joint committee is going to report soon. After it does, the government will produce a definitive bill.Clegg says the government wants the first tranche of elections to the Lords to take place in 2015. Working backwards, that means the legislation needs to go through parliament soon. The joint committee is going to report soon. After it does, the government will produce a definitive bill.
Hart asks if the bill will be a flagship bill if it is in the Queen's Speech.Hart asks if the bill will be a flagship bill if it is in the Queen's Speech.
Clegg says the economy will remain the government's priority.Clegg says the economy will remain the government's priority.
Hart asks if a yes vote in a Scottish referendum would affect the Lords reform programme.Hart asks if a yes vote in a Scottish referendum would affect the Lords reform programme.
Clegg says a yes vote would affect all kinds of things.Clegg says a yes vote would affect all kinds of things.
11.04am: Clegg says the Scotland bill involves a "huge" transfer of power to the Scottish parliament. People are forgetting how significant it is. "And I don't think it will be the last step," he says. Devolution is a "living, breathing thing".11.04am: Clegg says the Scotland bill involves a "huge" transfer of power to the Scottish parliament. People are forgetting how significant it is. "And I don't think it will be the last step," he says. Devolution is a "living, breathing thing".
11.00am: Clegg say he is surprised the SNP have not done more "homework" about what independence would actually mean.11.00am: Clegg say he is surprised the SNP have not done more "homework" about what independence would actually mean.
A referendum should be simple, clear and decisive, Clegg says.A referendum should be simple, clear and decisive, Clegg says.
Powell suggests Clegg wants to call the SNP's bluff.Powell suggests Clegg wants to call the SNP's bluff.
Clegg says that is not the point. He accepts the SNP have a right to have a referendum.Clegg says that is not the point. He accepts the SNP have a right to have a referendum.
He says he does not want referendums to become lists of options, "confected for political convenience".He says he does not want referendums to become lists of options, "confected for political convenience".
The government could have decided to put various options on the AV referendum ballot paper. But it chose to put just one option to the voters.The government could have decided to put various options on the AV referendum ballot paper. But it chose to put just one option to the voters.
10.57am: Lord Powell of Bayswater (Charles Powell, Margaret Thatcher's former foreign affairs adviser) asks if Clegg would be willing to see a second question (on "devo max") on the ballot paper.10.57am: Lord Powell of Bayswater (Charles Powell, Margaret Thatcher's former foreign affairs adviser) asks if Clegg would be willing to see a second question (on "devo max") on the ballot paper.
Clegg says that because devolution is evolving all the time, he does not see the point.Clegg says that because devolution is evolving all the time, he does not see the point.
Also, there is no point having a vote on that unless Scotland has first decided whether or not it wants to stay in the UK.Also, there is no point having a vote on that unless Scotland has first decided whether or not it wants to stay in the UK.
10.52am: Lord Crickhowell, a Conservative and a former Welsh secretary, says Scottish independence would affect all parts of the UK.10.52am: Lord Crickhowell, a Conservative and a former Welsh secretary, says Scottish independence would affect all parts of the UK.
Clegg says devolution and independence are qualitatively different. One is a divorce; the other is a negotiation.Clegg says devolution and independence are qualitatively different. One is a divorce; the other is a negotiation.
Britain is not a "neat federal state", he says.Britain is not a "neat federal state", he says.
10.50am: Renton asks if Scottish independence would work.10.50am: Renton asks if Scottish independence would work.
Clegg says it should not just be a choice between the status quo and independence. Devolution is "a process", he says. He believes in home rule, he says. The Lib Dems have set up a commission to look into this.Clegg says it should not just be a choice between the status quo and independence. Devolution is "a process", he says. He believes in home rule, he says. The Lib Dems have set up a commission to look into this.
I believe there should be greater steps, fiscal and otherwise, towards autonomy in Scotland.I believe there should be greater steps, fiscal and otherwise, towards autonomy in Scotland.
Clegg says the debate should not be framed in "rigid, polarised" terms.Clegg says the debate should not be framed in "rigid, polarised" terms.
10.46am: Lord Renton of Mount Harry, a Conservative, asks Clegg how the government will handle the Scottish independence referendum issue.10.46am: Lord Renton of Mount Harry, a Conservative, asks Clegg how the government will handle the Scottish independence referendum issue.
Clegg says there are two consultations underway. The UK government has launched a consultation on its paper about the need to give the Scottish parliament the legal means to hold a referendum. And the Scottish government has published its own consultation paper.Clegg says there are two consultations underway. The UK government has launched a consultation on its paper about the need to give the Scottish parliament the legal means to hold a referendum. And the Scottish government has published its own consultation paper.
There is "some overlap", he says.There is "some overlap", he says.
The UK government thinks there should be just one question, he says.The UK government thinks there should be just one question, he says.
Clegg also says he thinks that it would be best to have the referendum as soon as possible.Clegg also says he thinks that it would be best to have the referendum as soon as possible.
10.45am: They are turning to devolution now. Perhaps it might get interesting ....10.45am: They are turning to devolution now. Perhaps it might get interesting ....
10.45am: Clegg says he is not persuaded that changing the timing of the AV referendum would have affected the nature of the debate.10.45am: Clegg says he is not persuaded that changing the timing of the AV referendum would have affected the nature of the debate.
10.41am: Lord Rodgers of Quarry Bank, the Lib Dem peer, is now asking about the AV referendum. Would it have been better to postpone it?10.41am: Lord Rodgers of Quarry Bank, the Lib Dem peer, is now asking about the AV referendum. Would it have been better to postpone it?
Clegg says the AV referendum was an example of the executive engaging with the public. There is no greater form of engagement than putting something to a referendum. He says he does not know whether there would have been more interest if the referendum had been held at another time.Clegg says the AV referendum was an example of the executive engaging with the public. There is no greater form of engagement than putting something to a referendum. He says he does not know whether there would have been more interest if the referendum had been held at another time.
But the government did give the public a chance to make up its mind, he says.But the government did give the public a chance to make up its mind, he says.
Rodgers asks the question again.Rodgers asks the question again.
Clegg says it was a very simple question. If the referendum had been held in 2014, would people have been more interested. "I doubt it very much," he says.Clegg says it was a very simple question. If the referendum had been held in 2014, would people have been more interested. "I doubt it very much," he says.
10.30am: Lord Goldsmith asks about the recommendation in the committee's report on the process of constitutional change saying that when ministers introduce a bill, they should publish a written statement setting out the constitutional impact of the bill. (See paragraphs 125 and 126 of the report.)10.30am: Lord Goldsmith asks about the recommendation in the committee's report on the process of constitutional change saying that when ministers introduce a bill, they should publish a written statement setting out the constitutional impact of the bill. (See paragraphs 125 and 126 of the report.)
Clegg says the government has gone further than this. The government is being open about its legislation, and subjecting itself up to scrutiny.Clegg says the government has gone further than this. The government is being open about its legislation, and subjecting itself up to scrutiny.
10.25am: Lady Jay says Clegg's tone is more "constructive" than she expected from Clegg formal response to the committee's report.10.25am: Lady Jay says Clegg's tone is more "constructive" than she expected from Clegg formal response to the committee's report.
(Having promised earlier that this could be lively, I feel an apology may be in order soon. So far, it's been desperately dull. But I still live in hope ...)(Having promised earlier that this could be lively, I feel an apology may be in order soon. So far, it's been desperately dull. But I still live in hope ...)
10.19am: Nick Clegg is giving evidence now.10.19am: Nick Clegg is giving evidence now.
He is talking about the committee's report on constitutional change.He is talking about the committee's report on constitutional change.
It is difficult to come up with a watertight definition of the constitution, he says.It is difficult to come up with a watertight definition of the constitution, he says.
10.13am: This is what Nick Clegg had to say about the House of Lords in his "Open Society" speech at the end of last year.10.13am: This is what Nick Clegg had to say about the House of Lords in his "Open Society" speech at the end of last year.

Lloyd George described the House of Lords as being "a body of five hundred men chosen at random from amongst the unemployed". To be honest, it might be better if it was. Of course among our peers there are those with valuable experience and expertise.
Lloyd George described the House of Lords as being "a body of five hundred men chosen at random from amongst the unemployed". To be honest, it might be better if it was. Of course among our peers there are those with valuable experience and expertise.
But a veneer of expertise can surely no longer serve as an alibi for a chamber which legislates on behalf of the people – but is not held to account by the people. The Lords as currently constituted is an affront to the principles of openness which underpin a modern democracy.But a veneer of expertise can surely no longer serve as an alibi for a chamber which legislates on behalf of the people – but is not held to account by the people. The Lords as currently constituted is an affront to the principles of openness which underpin a modern democracy.
Now he's about to give evidence to the Lords constitution committee, on Lords reform and other matters. I'll be covering it in detail.Now he's about to give evidence to the Lords constitution committee, on Lords reform and other matters. I'll be covering it in detail.
10.00am: If David Cameron thought that the decision to strip Fred Goodwin of his knighthood would receive a postive write-up in the press, he was wrong. The papers are surprisingly critical. I've been looking at all the editorials. The Guardian and the Daily Express have not written leaders on the subject, but all the other national papers have and, of those, all the "broadsheet" papers are critical - sometimes very critical. The Daily Mail, which campaigned for Goodwin to lose his knighthood, is pleased, obviously. But the Sun, which would would expect to welcome the move, sounds relatively neutral, and the Daily Mirror is ambivalent too.10.00am: If David Cameron thought that the decision to strip Fred Goodwin of his knighthood would receive a postive write-up in the press, he was wrong. The papers are surprisingly critical. I've been looking at all the editorials. The Guardian and the Daily Express have not written leaders on the subject, but all the other national papers have and, of those, all the "broadsheet" papers are critical - sometimes very critical. The Daily Mail, which campaigned for Goodwin to lose his knighthood, is pleased, obviously. But the Sun, which would would expect to welcome the move, sounds relatively neutral, and the Daily Mirror is ambivalent too.
Here's a summary.Here's a summary.
Papers which are criticalPapers which are critical
The Times (paywall)The Times (paywall)
There is a strong case for a proper legal investigation into the activity of the financial services industry leading to the crash. A proper public inquiry into what happened is long overdue.There is a strong case for a proper legal investigation into the activity of the financial services industry leading to the crash. A proper public inquiry into what happened is long overdue.
Such an investigation might easily lead to prosecutions and convictions. Those found guilty can then be dealt with in the usual way. In a country ruled by laws, that is how things happen. People then know both how to behave and also the consequences of their behaviour. They know where they stand. They do not fear arbitrary justice. This is the essence of liberty.Such an investigation might easily lead to prosecutions and convictions. Those found guilty can then be dealt with in the usual way. In a country ruled by laws, that is how things happen. People then know both how to behave and also the consequences of their behaviour. They know where they stand. They do not fear arbitrary justice. This is the essence of liberty.
What has happened to Mr Goodwin stands in contrast to that. It is the selection of an individual for public humiliation, and the changing of the rules just for him in order to make sure he is properly humiliated. Due process is replaced by the rule of the mob. A committee meeting is quickly convened and comes up with an answer that is politically convenient for everybody and appeases the public mood. And all this is much more disturbing than allowing an arrogant businessman to retain a knighthood that he did not deserve in the first place.What has happened to Mr Goodwin stands in contrast to that. It is the selection of an individual for public humiliation, and the changing of the rules just for him in order to make sure he is properly humiliated. Due process is replaced by the rule of the mob. A committee meeting is quickly convened and comes up with an answer that is politically convenient for everybody and appeases the public mood. And all this is much more disturbing than allowing an arrogant businessman to retain a knighthood that he did not deserve in the first place.
Having an honours system may seem unecessary. A dishonours system seems sinister.Having an honours system may seem unecessary. A dishonours system seems sinister.
The IndependentThe Independent
More than anything else, the absurd treatment of Mr Goodwin – added to the furore over Stephen Hester's bonus – damages nothing as much as it damages Britain. It sends out the profoundly off-putting signal that Britain is anti-business and anti-wealth, a culture of harboured grudges, public vindictiveness and mob rule. At a time when the economy is more exposed than ever to the chill winds of global competition, when growth rates are stagnant at best, if not heading back into recession, it is the worst possible image to convey. Stripping Mr Goodwin of his knighthood is crass, childish, and wholly counter-productive.More than anything else, the absurd treatment of Mr Goodwin – added to the furore over Stephen Hester's bonus – damages nothing as much as it damages Britain. It sends out the profoundly off-putting signal that Britain is anti-business and anti-wealth, a culture of harboured grudges, public vindictiveness and mob rule. At a time when the economy is more exposed than ever to the chill winds of global competition, when growth rates are stagnant at best, if not heading back into recession, it is the worst possible image to convey. Stripping Mr Goodwin of his knighthood is crass, childish, and wholly counter-productive.
The Daily TelegraphThe Daily Telegraph
Why – as we asked last week – is the Honours Forfeiture Committee, a shadowy and allegedly independent body, not now looking into the peerages of Lord Archer (jailed for perjury), or Lords Hanningfield and Taylor (both jailed for expenses fraud)? It has surely exceeded its remit, which is to act only when an individual "has been found guilty by the courts of a criminal offence… or has been censured/struck off etc by the relevant regulatory authority or professional body for actions or failures to act which are directly relevant to the granting of the honour". In America, if executives are suspected of committing an offence, they are tried and dealt with severely. Here, in the absence of any evidence of criminal wrongdoing, we choose ritual humiliation instead.Why – as we asked last week – is the Honours Forfeiture Committee, a shadowy and allegedly independent body, not now looking into the peerages of Lord Archer (jailed for perjury), or Lords Hanningfield and Taylor (both jailed for expenses fraud)? It has surely exceeded its remit, which is to act only when an individual "has been found guilty by the courts of a criminal offence… or has been censured/struck off etc by the relevant regulatory authority or professional body for actions or failures to act which are directly relevant to the granting of the honour". In America, if executives are suspected of committing an offence, they are tried and dealt with severely. Here, in the absence of any evidence of criminal wrongdoing, we choose ritual humiliation instead.
It has been a disastrous few days for this country's reputation as an attractive place for financiers and businessmen. First, Stephen Hester, the new boss of RBS, was forced to relinquish his bonus; now Mr Goodwin has been dragged to the stocks. David Cameron and the other leading politicians who have encouraged this populist bloodlust should be ashamed of themselves. Now that the precedent has been set, the mob will want more, because it always does. So who will be next?It has been a disastrous few days for this country's reputation as an attractive place for financiers and businessmen. First, Stephen Hester, the new boss of RBS, was forced to relinquish his bonus; now Mr Goodwin has been dragged to the stocks. David Cameron and the other leading politicians who have encouraged this populist bloodlust should be ashamed of themselves. Now that the precedent has been set, the mob will want more, because it always does. So who will be next?
The Financial Times (subscription)The Financial Times (subscription)
True, there is more than a whiff of rough justice and political calculation here. Mr Goodwin can point to the fact that the Financial Services Authority did not take any action against him, in spite of a lengthy investigation. Others who have committed serious offences have not lost their honours. Lord Archer, the popular novelist who served a jail term for perjury, remains in the House of Lords.True, there is more than a whiff of rough justice and political calculation here. Mr Goodwin can point to the fact that the Financial Services Authority did not take any action against him, in spite of a lengthy investigation. Others who have committed serious offences have not lost their honours. Lord Archer, the popular novelist who served a jail term for perjury, remains in the House of Lords.
But Mr Goodwin has contributed to his own misfortune by his unrepentant demeanour since the collapse of RBS. Having disdained public opinion, he cannot complain about becoming a target for public opprobrium and for a prime minister eager to deflect attention to still-outsized bankers' bonuses.But Mr Goodwin has contributed to his own misfortune by his unrepentant demeanour since the collapse of RBS. Having disdained public opinion, he cannot complain about becoming a target for public opprobrium and for a prime minister eager to deflect attention to still-outsized bankers' bonuses.
The quondam Sir Fred was hardly the only titled banker to mess up before the crash. His humbling is a reminder that there has never been a proper accounting for the crisis, and very few prosecutions, unlike in the US. Much better if the courts and regulators rather than the honours forfeiture committee were leading the charge against pre-crash failings.The quondam Sir Fred was hardly the only titled banker to mess up before the crash. His humbling is a reminder that there has never been a proper accounting for the crisis, and very few prosecutions, unlike in the US. Much better if the courts and regulators rather than the honours forfeiture committee were leading the charge against pre-crash failings.
Papers which are supportivePapers which are supportive
Daily MailDaily Mail
When the Mail first reported MPs' demands that Fred Goodwin should be stripped of his knighthood, we warned that such decisions should be reserved strictly for the most exceptional cases.When the Mail first reported MPs' demands that Fred Goodwin should be stripped of his knighthood, we warned that such decisions should be reserved strictly for the most exceptional cases.
Otherwise, we argued, the honours system could all too easily be abused as a means of settling old political scores, with governments cancelling the garlands bestowed by their predecessors.Otherwise, we argued, the honours system could all too easily be abused as a means of settling old political scores, with governments cancelling the garlands bestowed by their predecessors.
We believed, however, that the case for making an example of the then Sir Fred was indeed exceptional and compelling ...We believed, however, that the case for making an example of the then Sir Fred was indeed exceptional and compelling ...
Bankers themselves are looking forward to stuffing their pockets with another round of massive bonuses.Bankers themselves are looking forward to stuffing their pockets with another round of massive bonuses.
Mr Goodwin's fate should teach them that today they have a clear choice. It lies between the dishonour of selfish greed – and their duty to help this nation out of the crisis they caused.Mr Goodwin's fate should teach them that today they have a clear choice. It lies between the dishonour of selfish greed – and their duty to help this nation out of the crisis they caused.
Papers which are ambivalent Papers which are ambivalent
The Daily MirrorThe Daily Mirror

David Cameron did what he always does when he's in trouble... spin.
David Cameron did what he always does when he's in trouble... spin.
The timing of Fred Goodwin's lost ­knighthood is decidedly suspicious, reeking of a ­diversionary tactic by a rattled PM.The timing of Fred Goodwin's lost ­knighthood is decidedly suspicious, reeking of a ­diversionary tactic by a rattled PM.
Experience and circumstantial evidence lead us to wonder if the man who broke the bank was last night made plain Mr Goodwin to deflect public attention from Mr Cameron's ham-fisted handling of the bonus row.Experience and circumstantial evidence lead us to wonder if the man who broke the bank was last night made plain Mr Goodwin to deflect public attention from Mr Cameron's ham-fisted handling of the bonus row.
That said, Goodwin deserved to lose his knighthood. And the stripping of honours should not end with the shamed former head of the Royal Bank of Scotland.That said, Goodwin deserved to lose his knighthood. And the stripping of honours should not end with the shamed former head of the Royal Bank of Scotland.
The SunThe Sun

So the poster boy for reckless, greedy gamblers is finally stripped of the knighthood Labour gave him.
So the poster boy for reckless, greedy gamblers is finally stripped of the knighthood Labour gave him.
Fred The Shred's arrogance and incompetence cost taxpayers £45billion and helped plunge us into recession.Fred The Shred's arrogance and incompetence cost taxpayers £45billion and helped plunge us into recession.
His much-lauded "services to banking" proved to be services to bankruptcy.His much-lauded "services to banking" proved to be services to bankruptcy.
Sir Fred may now be just plain Fred.Sir Fred may now be just plain Fred.
But with a £6,500-a-week pension to fall back on, he's still laughing all the way to the bonk, sorry, bank.But with a £6,500-a-week pension to fall back on, he's still laughing all the way to the bonk, sorry, bank.
9.47am: The Institute of Directors has warned that the Goodwin decision could fuel "anti-business hysteria". The BBC has the full story.9.47am: The Institute of Directors has warned that the Goodwin decision could fuel "anti-business hysteria". The BBC has the full story.
9.41am: Jim Pickard was not impressed by what Michael Fallon (left), the Conservative deputy chairman (and a member of the Commons Treasury committee) had to say about the Goodwin decision this morning. (See 9.35am.) Here's the key quote from Fallon. I've taken it from PoliticsHome.9.41am: Jim Pickard was not impressed by what Michael Fallon (left), the Conservative deputy chairman (and a member of the Commons Treasury committee) had to say about the Goodwin decision this morning. (See 9.35am.) Here's the key quote from Fallon. I've taken it from PoliticsHome.
This decision hasn't been done on a whim. It is three and a half years after the collapse and follows a detailed response by the [Financial Services Authority]. It came out before Christmas. Our own reviewer said the report amounted to censure. Ministers don't control the timings of the forfeiture committee. This is an entirely independent committee of civil servants. There are no politicians on the committee. They are there to monitor the integrity of the system and make sure those given honours continue to deserve them, which in this case [Fred Goodwin] didn't. They are also making clear this was an exceptional case, because of the scale and severity of what he did as chief executive of RBS.This decision hasn't been done on a whim. It is three and a half years after the collapse and follows a detailed response by the [Financial Services Authority]. It came out before Christmas. Our own reviewer said the report amounted to censure. Ministers don't control the timings of the forfeiture committee. This is an entirely independent committee of civil servants. There are no politicians on the committee. They are there to monitor the integrity of the system and make sure those given honours continue to deserve them, which in this case [Fred Goodwin] didn't. They are also making clear this was an exceptional case, because of the scale and severity of what he did as chief executive of RBS.
9.35am: Here's some Twitter comment on the Goodwin decision.9.35am: Here's some Twitter comment on the Goodwin decision.
From the Guardian's Patrick WintourFrom the Guardian's Patrick Wintour
Kerslake head of civil service needs to explain himself in public. At moment he looks like a stooge for populism.Kerslake head of civil service needs to explain himself in public. At moment he looks like a stooge for populism.
From the FT's Jim PickardFrom the FT's Jim Pickard
Michael fallon tells today that the forfeiture committee was independent of political pressure. Sure. Of course. #todayMichael fallon tells today that the forfeiture committee was independent of political pressure. Sure. Of course. #today
From the Independent on Sunday's John RentoulFrom the Independent on Sunday's John Rentoul
I tried to explain to a normal person why Fred Goodwin had lost his knighthood. Failed. Shows why it is a bad idea.I tried to explain to a normal person why Fred Goodwin had lost his knighthood. Failed. Shows why it is a bad idea.
9.24am: On the Today programme Sir Jackie Stewart (left), a friend of Goodwin's, popped up to defend the former RBS boss. Stewart said that he had not spoken to Goodwin since the decision was announced yesterday - Goodwin's mobile is switched off, apparently - but he said that RBS had made £11bn a year for Britain in the good days. This is what he said when he was asked how Goodwin would be feeling about the loss of his K. I've taken the quote from PoliticsHome.
9.24am: On the Today programme Sir Jackie Stewart (left), a friend of Goodwin's, popped up to defend the former RBS boss. Stewart said that he had not spoken to Goodwin since the decision was announced yesterday - Goodwin's mobile is switched off, apparently - but he said that RBS had made £11bn a year for Britain in the good days. This is what he said when he was asked how Goodwin would be feeling about the loss of his K. I've taken the quote from PoliticsHome.
I should think he is very, very disappointed first of all. I should think very sad that he has lost this, because when you receive a knighthood it if from Her Majesty and is for what you have done. There are different opinions on that, but is a dangerous precedent, because if this is the case who else is up for having a knighthood or any other honour of that kind removed, just because something happened elsewhere at a different time.I should think he is very, very disappointed first of all. I should think very sad that he has lost this, because when you receive a knighthood it if from Her Majesty and is for what you have done. There are different opinions on that, but is a dangerous precedent, because if this is the case who else is up for having a knighthood or any other honour of that kind removed, just because something happened elsewhere at a different time.
9.11am: Digby Jones (left), the former CBI director general, was on the Today programme this morning talking about the Goodwin decision. He detected "a whiff of the lynch mob on the village green". I've taken the quotes from PoliticsHome.9.11am: Digby Jones (left), the former CBI director general, was on the Today programme this morning talking about the Goodwin decision. He detected "a whiff of the lynch mob on the village green". I've taken the quotes from PoliticsHome.
The problem is how we got there, because there's a whiff of the lynch mob on the village green about this. Why just him? There are a fair few knights on the board. Where does this stop? This probably throws up the need for some serious guidelines about when it will happen, when it won't. It's very clear [that people lose honours if convicted of a criminal offence.] I sincerely hope it's very clear about the Mugabes and the Ceausescus, but Fred Goodwin has had nothing examined in any court, nor found guilty.The problem is how we got there, because there's a whiff of the lynch mob on the village green about this. Why just him? There are a fair few knights on the board. Where does this stop? This probably throws up the need for some serious guidelines about when it will happen, when it won't. It's very clear [that people lose honours if convicted of a criminal offence.] I sincerely hope it's very clear about the Mugabes and the Ceausescus, but Fred Goodwin has had nothing examined in any court, nor found guilty.
Jones also said that this decision, and the row about Stephen Hester's bonus, could be sending out the wrong signals about Britain's attitude to entrepreneurs.Jones also said that this decision, and the row about Stephen Hester's bonus, could be sending out the wrong signals about Britain's attitude to entrepreneurs.

What we need to do is make sure that there's a kid in Bangalore today who's thinking he will come to Britain, make his fortune, create jobs, pay tax, and he thinks, 'hey - don't go there' - not because of the money, but because of the lynch mob mentality if someone fails.
What we need to do is make sure that there's a kid in Bangalore today who's thinking he will come to Britain, make his fortune, create jobs, pay tax, and he thinks, 'hey - don't go there' - not because of the money, but because of the lynch mob mentality if someone fails.
9.03am: Alistair Darling has set out his views on the decision to strip Fred Goodwin of his knighthood in an article in the Times (paywall). Here's an extract.9.03am: Alistair Darling has set out his views on the decision to strip Fred Goodwin of his knighthood in an article in the Times (paywall). Here's an extract.

There is something tawdry about the government directing its fire at Fred Goodwin alone; if it's right to annul his knighthood what about the honours of others who were involved in RBS and HBOS? If policy is not based on principle but is about individuals, the government will carry on being blown in the wind. That makes for bad government.
There is something tawdry about the government directing its fire at Fred Goodwin alone; if it's right to annul his knighthood what about the honours of others who were involved in RBS and HBOS? If policy is not based on principle but is about individuals, the government will carry on being blown in the wind. That makes for bad government.
8.55am: Was it a good idea to strip Fred Goodwin of his knighthood? In the papers and on the airwaves there is quite a backlash against the move today. Sometimes populist gestures turn out to be not that popular, although we won't know what the public think until we see some polling. But we know what Alistair Darling, the Labour former chancellor, thinks. This is what he told the Today programme.8.55am: Was it a good idea to strip Fred Goodwin of his knighthood? In the papers and on the airwaves there is quite a backlash against the move today. Sometimes populist gestures turn out to be not that popular, although we won't know what the public think until we see some polling. But we know what Alistair Darling, the Labour former chancellor, thinks. This is what he told the Today programme.

I really think that in a country like ours, where we pride ourselves on the rule of law and there being a due process and where others look to us, to get ourselves into this situation ... [Goodwin] wasn't the only one that caused problems, and we have a problem here. The government is going after the question of bonuses in one bank in relation to one man. You have to have a principle so people know if they are doing right or wrong ... I am not here to defend Sir Fred. I, of all people, know how difficult the problems were. I just think we are getting into awful trouble here if we go after people on a whim, and we don't have a clear set of principles against which we can judge people.
I really think that in a country like ours, where we pride ourselves on the rule of law and there being a due process and where others look to us, to get ourselves into this situation ... [Goodwin] wasn't the only one that caused problems, and we have a problem here. The government is going after the question of bonuses in one bank in relation to one man. You have to have a principle so people know if they are doing right or wrong ... I am not here to defend Sir Fred. I, of all people, know how difficult the problems were. I just think we are getting into awful trouble here if we go after people on a whim, and we don't have a clear set of principles against which we can judge people.
I'll post more reaction to the Goodwin decision shortly.I'll post more reaction to the Goodwin decision shortly.
We've also got PMQs, and Nick Clegg giving evidence to the Lords constitituion committee. Given what Clegg had to say about the Lords in his recent "Open Society" speech, it could get quite lively.We've also got PMQs, and Nick Clegg giving evidence to the Lords constitituion committee. Given what Clegg had to say about the Lords in his recent "Open Society" speech, it could get quite lively.
Here's the full agenda for the day.Here's the full agenda for the day.
10am: The Institute for Fiscal Studies publishes its green budget.10am: The Institute for Fiscal Studies publishes its green budget.
10am: Ed Richards, the Ofcom chief executive, gives evidence to the Leveson Inquiry. The other witnesses will be Advertising Standards Authority chief executive Guy Parker, Ofcom chairman Colette Bowe and Press Standards Board of Finance chairman Lord Black of Brentwood.10am: Ed Richards, the Ofcom chief executive, gives evidence to the Leveson Inquiry. The other witnesses will be Advertising Standards Authority chief executive Guy Parker, Ofcom chairman Colette Bowe and Press Standards Board of Finance chairman Lord Black of Brentwood.
10.15am: Nick Clegg gives evidence to the Lords constitution committee about Lords reform, devolution and the funding of political parties.10.15am: Nick Clegg gives evidence to the Lords constitution committee about Lords reform, devolution and the funding of political parties.
12pm: David Cameron and Ed Miliband clash at PMQs.12pm: David Cameron and Ed Miliband clash at PMQs.
12.30pm: MPs start debating the welfare bill. As Patrick Wintour reports, the government will seek to overturn the seven defeats it suffered when the bill was in the Lords.12.30pm: MPs start debating the welfare bill. As Patrick Wintour reports, the government will seek to overturn the seven defeats it suffered when the bill was in the Lords.
2.15pm: Caroline Spelman, the environment secretary, gives evidence on the green economy to the Commons environmental audit committee.2.15pm: Caroline Spelman, the environment secretary, gives evidence on the green economy to the Commons environmental audit committee.
As usual, I'll be covering all the breaking political news, as well as looking at the papers and bringing you the best politics from the web. I'll post a lunchtime summary at around 1pm and another in the afternoon.As usual, I'll be covering all the breaking political news, as well as looking at the papers and bringing you the best politics from the web. I'll post a lunchtime summary at around 1pm and another in the afternoon.
If you want to follow me on Twitter, I'm on @AndrewSparrow.If you want to follow me on Twitter, I'm on @AndrewSparrow.
And if you're a hardcore fan, you can follow @gdnpoliticslive. It's an automated feed that tweets the start of every new post that I put on the blog.And if you're a hardcore fan, you can follow @gdnpoliticslive. It's an automated feed that tweets the start of every new post that I put on the blog.