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The Conservative–Liberal Democrat coalition agreement (officially known as The Coalition: Our Programme for Government) was a policy document drawn up following the 2010 general election in the United Kingdom. It formed the terms of reference governing the
Cameron–Clegg coalition The Cameron–Clegg coalition was formed by David Cameron and Nick Clegg when Cameron was invited by Queen Elizabeth II to form a new government, following the resignation of Prime Minister Gordon Brown on 11 May 2010, after the general el ...
, the
coalition government A coalition government, or coalition cabinet, is a government by political parties that enter into a power-sharing arrangement of the executive. Coalition governments usually occur when no single party has achieved an absolute majority after an ...
comprising MPs from the Conservative Party and the Liberal Democrats. The general election resulted in a
hung parliament A hung parliament is a term used in legislatures primarily under the Westminster system (typically employing Majoritarian representation, majoritarian electoral systems) to describe a situation in which no single political party or pre-existing ...
, with no party emerging with an overall majority in the
House of Commons The House of Commons is the name for the elected lower house of the Bicameralism, bicameral parliaments of the United Kingdom and Canada. In both of these countries, the Commons holds much more legislative power than the nominally upper house of ...
, for the first time in 36 years since February 1974. As a result, the first and third parties in terms of votes and seats, the Conservatives and Liberal Democrats respectively, entered into negotiations with the aim of forming a full coalition, the first since the
Second World War World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
. The initial
agreement Agreement may refer to: Agreements between people and organizations * Gentlemen's agreement, not enforceable by law * Trade agreement, between countries * Consensus (disambiguation), a decision-making process * Contract, enforceable in a court of ...
was published on 12 May 2010 (dated 11 May), detailing what had been agreed in the various policy areas, in order for a coalition government to be able to be formed, with a final agreement published on 20 May.


Initial agreement

The initial agreement was published on 12 May 2010. It consisted of a seven-page document, in 11 sections. In the foreword, it stated "These are the issues that needed to be resolved between us in order for us to work together as a strong and stable government". Of the 57 Liberal Democrat MPs, only two refused to support the Conservative Coalition agreement, with former party leader
Charles Kennedy Charles Peter Kennedy (25 November 19591 June 2015) was a British politician who served as Leader of the Liberal Democrats from 1999 to 2006, and was the Member of Parliament (MP) for Ross, Skye and Lochaber from 1983 to 2015. Kennedy wa ...
and
Manchester Withington Manchester Withington is a Constituencies of the Parliament of the United Kingdom, constituency represented in the House of Commons of the United Kingdom, House of Commons of the UK Parliament since 2015 by Jeff Smith (British politician), Jeff ...
MP John Leech both rebelling against. The 11 sections were as follows: # Deficit Reduction # Spending Review – NHS, Schools and a Fairer Society # Tax Measures # Banking Reform #
Immigration Immigration is the international movement of people to a destination country of which they are not usual residents or where they do not possess nationality in order to settle as Permanent residency, permanent residents. Commuting, Commuter ...
#
Political Reform Reform refers to the improvement or amendment of what is wrong, corrupt, unsatisfactory, etc. The modern usage of the word emerged in the late 18th century and is believed to have originated from Christopher Wyvill's Association movement, which ...
# Pensions and Welfare #
Education Education is the transmission of knowledge and skills and the development of character traits. Formal education occurs within a structured institutional framework, such as public schools, following a curriculum. Non-formal education als ...
# Relationship with the EU #
Civil liberties Civil liberties are guarantees and freedoms that governments commit not to abridge, either by constitution, legislation, or judicial interpretation, without due process. Though the scope of the term differs between countries, civil liberties of ...
# Environment


Deficit

To tackle the
budget deficit Within the budgetary process, deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit, the opposite of budget surplus. The term may be applied to the budg ...
and
national debt A country's gross government debt (also called public debt or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit occ ...
, the agreement detailed "significantly accelerated reduction in the structural deficit" over the Parliament, with £6,000,000,000 cuts to be made in the financial year 2010–11, with plans to be published in an emergency budget within fifty days.


Spending

In spending, the agreement committed the government to a full Spending Review of government including a full Strategic Security and Defence Review to be completed by the Autumn, an increase in
National Health Service The National Health Service (NHS) is the term for the publicly funded health care, publicly funded healthcare systems of the United Kingdom: the National Health Service (England), NHS Scotland, NHS Wales, and Health and Social Care (Northern ...
funding in real terms and funding of disadvantaged pupils from outside the normal education budget. It would also establish an independent commission to review the long term affordability of public sector pensions, and restore the earnings link for the basic state pension from April 2011. Britain's independent nuclear deterrent would be maintained, but the proposed replacement of the Trident system would be reviewed for value for money.


Tax

In
taxation A tax is a mandatory financial charge or levy imposed on an individual or legal person, legal entity by a governmental organization to support government spending and public expenditures collectively or to Pigouvian tax, regulate and reduce nega ...
, the agreement committed to increasing the personal income tax allowance to £10,000 by 2015 to take many of those on the lowest salaries out of the tax system. The de-prioritising
Inheritance Tax International tax law distinguishes between an estate tax and an inheritance tax. An inheritance tax is a tax paid by a person who inherits money or property of a person who has died, whereas an estate tax is a levy on the estate (money and pro ...
cuts, and also laid out measures and arrangements on the issues of marriage, aviation, non-business capital gains taxes, and
tax avoidance Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable. A tax shelter is one type of tax avoidance, and tax havens are jurisdictions that facilitate reduced taxe ...
. The planned 1% rise in
National Insurance National Insurance (NI) is a fundamental component of the welfare state in the United Kingdom. It acts as a form of social security, since payment of NI contributions establishes entitlement to certain state benefits for workers and their famil ...
will be partially scrapped.


Banking

In the
banking system A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...
, the agreement announced various reforms to "avoid a repeat of Labour's financial crisis" and stimulate the flow of credit, including the introduction of a banking levy, and controlling unacceptable bankers' bonuses and regulatory reform.


Immigration

The section regarding
immigration Immigration is the international movement of people to a destination country of which they are not usual residents or where they do not possess nationality in order to settle as Permanent residency, permanent residents. Commuting, Commuter ...
, markedly shorter than all others, merely stated in one paragraph that there would be an annual cap on the number of non-EU workers admitted to live and work in the UK, with the mechanism decided later. The practice of child detention for immigration purposes would also be ended.


Political reform

As part of reform of the political system, the parties agreed to creating fixed-term parliaments. An early motion would set the date of the next general election as the first Thursday of May 2015, with later legislation establishing five-year fixed terms and introducing a new minimum of 55% of MPs supporting a motion before Parliament could be dissolved outside this timetable. Both parties would ensure their MPs voted for the introduction of a Referendum Bill on the question of whether the electoral system for electing MPs to the
House of Commons The House of Commons is the name for the elected lower house of the Bicameralism, bicameral parliaments of the United Kingdom and Canada. In both of these countries, the Commons holds much more legislative power than the nominally upper house of ...
should change from
first-past-the-post First-past-the-post (FPTP)—also called choose-one, first-preference plurality (FPP), or simply plurality—is a single-winner voting rule. Voters mark one candidate as their favorite, or First-preference votes, first-preference, and the cand ...
to
alternative vote Instant-runoff voting (IRV; ranked-choice voting (RCV), preferential voting, alternative vote) is a single-winner ranked voting election system where one or more eliminations are used to simulate runoff elections. When no candidate has a ...
, and whether MPs constituencies should be changed in size or number. On the issue of
devolution Devolution is the statutory delegation of powers from the central government of a sovereign state to govern at a subnational level, such as a regional or local level. It is a form of administrative decentralization. Devolved territori ...
, the parties agreed to establish a committee on the West Lothian question (Scottish MPs in Westminster voting on English issue), implement the Commission on Scottish Devolution proposals, and offer a referendum on further devolution for
Wales Wales ( ) is a Countries of the United Kingdom, country that is part of the United Kingdom. It is bordered by the Irish Sea to the north and west, England to the England–Wales border, east, the Bristol Channel to the south, and the Celtic ...
. Other political reform measures included introducing the power to recall MPs, bringing forward the Wright Committee proposals for Commons reform, and introducing proposals for reform of the
House of Lords The House of Lords is the upper house of the Parliament of the United Kingdom. Like the lower house, the House of Commons of the United Kingdom, House of Commons, it meets in the Palace of Westminster in London, England. One of the oldest ext ...
by December 2010, review local government and voter registration.


Pensions and welfare

In pensions, compulsory retirement at sixty-five years of age would be abolished, although the earliest age for the state pension would be increased from 65 to 66, from a date no earlier than 2016 for men, 2020 for women. Changes would be made to the Jobseeker's Allowance and welfare to work systems, including a rule that receipt of benefits would be conditional on willingness to work. Payments would be made to Equitable Life policy holders.


Education

A "significant" funding premium for children from poorer backgrounds will be established, incentivising schools to take them in and giving them more resources to devote to them. In
schools A school is the educational institution (and, in the case of in-person learning, the building) designed to provide learning environments for the teaching of students, usually under the direction of teachers. Most countries have systems of ...
, new providers would be allowed to enter the state schooling system where demanded, schools would be granted greater freedom over the
National Curriculum A national curriculum is a common programme of study in schools that is designed to ensure nationwide uniformity of content and standards in education. It is usually legislated by the national government, possibly in consultation with state or othe ...
, and schools would be "held properly accountable." The parties would await Lord Browne's
proposals Proposal(s) or The Proposal may refer to: * Proposal (business) * Research proposal * Marriage proposal * Proposition, a proposal in logic and philosophy Arts, entertainment, and media * ''The Proposal'' (album), an album by Ransom & Statik Se ...
for
higher education Tertiary education (higher education, or post-secondary education) is the educational level following the completion of secondary education. The World Bank defines tertiary education as including universities, colleges, and vocational schools ...
with the agreement stating the Liberal Democrats may abstain if they do not like proposed changes (i.e. if there was to be an increase in tuition fees).


European Union

As part of the agreement the parties ruled out joining the
euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...
while the coalition was in force. The parties agreed Britain would be a "positive participant" in the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
, although there would be "no further transfer of sovereignty or powers over the course of the next Parliament", ensured by amendment of the 1972 European Communities Act requiring referendums on future treaties, and requiring
primary legislation Primary legislation and secondary legislation (the latter also called delegated legislation or subordinate legislation) are two forms of law, created respectively by the legislative and executive branches of governments in representative democ ...
before any Passerelle clause could be enacted, and through examination of a possible United Kingdom sovereignty bill. Other measures include non-participation in establishment of a
European Public Prosecutor The European Public Prosecutor's Office (EPPO) is an independent body of the European Union (EU) with a juridical personality, established under the Treaty of Lisbon between 24 of the 27 states of the EU following the method of enhanced cooper ...
, limiting the Working Time Directive, deciding the stance on the forthcoming EU budget, and pressuring the
European Parliament The European Parliament (EP) is one of the two legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union (known as the Council and informally as the Council of Ministers), it ...
to abolish its seat in Strasbourg and maintain only a single seat in
Brussels Brussels, officially the Brussels-Capital Region, (All text and all but one graphic show the English name as Brussels-Capital Region.) is a Communities, regions and language areas of Belgium#Regions, region of Belgium comprising #Municipalit ...
.


Civil liberties

Agreement on
civil liberties Civil liberties are guarantees and freedoms that governments commit not to abridge, either by constitution, legislation, or judicial interpretation, without due process. Though the scope of the term differs between countries, civil liberties of ...
included measures to "reverse the substantial erosion of civil liberties under the Labour Government and roll back state intrusion." This included: the scrapping of the National Identity Card and register, the next generation biometric passport and the ContactPoint database. The Scottish model of implementation of the United Kingdom National DNA Database was to be extended to the whole of the United Kingdom. The Freedom of Information Act would be extended, and a Freedom (Great Repeal) Bill is to be introduced. Other reviews, reinforcements and repeals would take place in the fields of the right to
trial by jury A jury trial, or trial by jury, is a legal proceeding in which a jury makes a decision or findings of fact. It is distinguished from a bench trial, in which a judge or panel of judges makes all decisions. Jury trials are increasingly used ...
, the right to
non-violent protest Nonviolent resistance, or nonviolent action, sometimes called civil resistance, is the practice of achieving goals such as social change through symbolic protests, civil disobedience, economic or political noncooperation, satyagraha, construct ...
,
libel laws Defamation is a communication that injures a third party's reputation and causes a legally redressable injury. The precise legal definition of defamation varies from country to country. It is not necessarily restricted to making assertions ...
and
freedom of speech Freedom of speech is a principle that supports the freedom of an individual or a community to articulate their opinions and ideas without fear of retaliation, censorship, or legal sanction. The rights, right to freedom of expression has been r ...
,
anti-terrorism legislation Anti-terrorism legislation are laws aimed at fighting terrorism. They usually, if not always, follow specific bombings or assassinations. Anti-terrorism legislation usually includes specific amendments allowing the state to bypass its own l ...
, regulation of
CCTV Closed-circuit television (CCTV), also known as video surveillance, is the use of closed-circuit television cameras to transmit a signal to a specific place on a limited set of monitors. It differs from broadcast television in that the signa ...
, storage of internet and email records, and creation of new criminal offences. Fingerprinting of children at school without parental permission was to be outlawed.


Environment

In pursuit of the parties' policies on creation of "a low carbon and eco-friendly economy", a range of measures would be adopted. In
transport Transport (in British English) or transportation (in American English) is the intentional Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land tr ...
, a high speed rail network would be established, while the proposed third runway at
London Heathrow Airport Heathrow Airport , also colloquially known as London Heathrow Airport and named ''London Airport'' until 1966, is the primary and largest international airport serving London, the capital and most populous city of England and the United Kingd ...
would be cancelled, and no new runways would be approved for
London Gatwick Airport Gatwick Airport , also known as London Gatwick Airport (), is the Airports of London, secondary international airport serving London, West Sussex and Surrey. It is located near Crawley in West Sussex, south of Central London. In 2024, Gatwic ...
or
London Stansted Airport Stansted Airport is an international airport serving London, the capital of England and the United Kingdom. It is located near Stansted Mountfitchet, Uttlesford, Essex, northeast of Central London. As London's Airports of London, third-bu ...
. The legislation required for the building new nuclear power stations would proceed, without public subsidy for the projects. Any new
coal-fired power station A coal-fired power station or coal power plant is a thermal power station which burns coal to generate electricity. Worldwide there are about 2,500 coal-fired power stations, on average capable of generating a gigawatt each. They generate ...
s would be required to implement
carbon capture and storage Carbon capture and storage (CCS) is a process by which carbon dioxide (CO2) from industrial installations is separated before it is released into the atmosphere, then transported to a long-term storage location.IPCC, 2021Annex VII: Glossary at ...
, while the targets for energy from renewable sources would be increased, subject to the advice of the
Climate Change Committee The Climate Change Committee (CCC), originally named the Committee on Climate Change, is an independent non-departmental public body, formed under the Climate Change Act 2008, Climate Change Act (2008) to advise the United Kingdom and devolved G ...
. Other measures include a
smart grid The smart grid is an enhancement of the 20th century electrical grid, using two-way communications and distributed so-called intelligent devices. Two-way flows of electricity and information could improve the delivery network. Research is main ...
,
smart meter A smart meter is an electronic device that records information—such as consumption of electric energy, voltage levels, current, and power factor—and communicates the information to the consumer and electricity suppliers. Advanced meterin ...
s and
feed-in tariff A feed-in tariff (FIT, FiT, standard offer contract,Couture, T., Cory, K., Kreycik, C., Williams, E., (2010)Policymaker's Guide to Feed-in Tariff Policy Design National Renewable Energy Laboratory, U.S. Dept. of Energy advanced renewable tariff, ...
s, a green investment bank would be created, and promotion of
anaerobic digestion Anaerobic digestion is a sequence of processes by which microorganisms break down biodegradable material in the absence of oxygen. The process is used for industrial or domestic purposes to Waste management, manage waste or to produce fuels. Mu ...
of waste for energy,
marine energy Marine energy, also known as ocean energy, ocean power, or marine and hydrokinetic energy, refers to energy harnessed from waves, tides, salinity gradients, and temperature differences in the ocean. The movement of water in the world's oceans sto ...
, home energy improvement, green spaces and wildlife corridors, and electric car recharging networks. Home Information Packs would be abolished, albeit retaining the energy performance certificates. Import or export of illegal timber would be criminalised.


Final agreement

The initial agreement published on 12 May 2010 stated that it would be followed "in due course by a final Coalition Agreement, covering the full range of policy and including foreign, defence and domestic policy issues" which were not covered in the initial agreement.
David Cameron David William Donald Cameron, Baron Cameron of Chipping Norton (born 9 October 1966) is a British politician who served as Prime Minister of the United Kingdom from 2010 to 2016. Until 2015, he led the first coalition government in the UK s ...
,
Nick Clegg Sir Nicholas William Peter Clegg (born 7 January 1967) is a British retired politician and media executive who served as Deputy Prime Minister of the United Kingdom from 2010 to 2015 and as Leader of the Liberal Democrats from 2007 to 2015. H ...
, George Osborne,
Theresa May Theresa Mary May, Baroness May of Maidenhead (; ; born 1 October 1956), is a British politician who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 2016 to 2019. She previously served as Home Secretar ...
and
Vince Cable Sir John Vincent Cable (born 9 May 1943) is a British politician who was Leader of the Liberal Democrats from 2017 to 2019. He was Member of Parliament (United Kingdom), Member of Parliament (MP) for Twickenham (UK Parliament constituency), Twic ...
held a press conference at
HM Treasury His Majesty's Treasury (HM Treasury or HMT), and informally referred to as the Treasury, is the Government of the United Kingdom’s economic and finance ministry. The Treasury is responsible for public spending, financial services policy, Tax ...
to unveil the final Coalition Agreement. The final agreement is based on three core values shared by both parties "Freedom, fairness and responsibility". Of the 57 Liberal Democrat MPs, only two refused to support the Conservative Coalition agreement, with former leader
Charles Kennedy Charles Peter Kennedy (25 November 19591 June 2015) was a British politician who served as Leader of the Liberal Democrats from 1999 to 2006, and was the Member of Parliament (MP) for Ross, Skye and Lochaber from 1983 to 2015. Kennedy wa ...
and Manchester Withington MP John Leech both rebelling.


See also

*
Local Government Act 2010 The Local Government Act 2010 (c. 35) is an Act of Parliament, Act of the Parliament of the United Kingdom. It revokes structural change orders that would have established Exeter and Norwich as Unitary authorities of England, unitary authorities a ...
*
Postal Services Act 2011 The Postal Services Act 2011 (c. 5) is an act of the Parliament of the United Kingdom. The act enabled the British Government to sell shares in Royal Mail to private investors and includes the possible mutualisation of the Post Office. The act ...
* Savings Accounts and Health in Pregnancy Grant Act 2010 * Superannuation Act 2010 *
Cameron–Clegg coalition The Cameron–Clegg coalition was formed by David Cameron and Nick Clegg when Cameron was invited by Queen Elizabeth II to form a new government, following the resignation of Prime Minister Gordon Brown on 11 May 2010, after the general el ...


References


Further reading

* * *


External links


At-a-glance: Cameron coalition's policy plans
BBC News, 13 May 2010
The Coalition: Our Programme For Government
Cabinet Office, 2010
Final agreement
(pdf) Cabinet Office
Interim agreement
(pdf) Conservative Party {{DEFAULTSORT:Conservative - Liberal Democrat coalition agreement Premiership of David Cameron Nick Clegg 2010 in British politics 2010 establishments in the United Kingdom 2015 disestablishments in the United Kingdom May 2010 in the United Kingdom