Time for grand coalition of Labour and the Tories?

With all polls pointing towards a hung parliament, a new coalition government of some sort looks inevitable.

But why does it have to be one of the big parties hooking up with one or two of the smaller ones? (Havew you seen what the Greens stand for?) Why not a ‘grand coalition’ of Labour and the Conservatives? It happens in other countries – notably Germany – why not here?

The new ICM poll for The Guardian, which included a “favourite coalition” question, found most respondents (19 per cent) opting for a Labour-led administration including the SNP and the Greens. A Tory-Ukip coalition was the second most popular idea (15 per cent), while a Labour-Lib Dem or second Tory-Lib Dem coalition came equal third (13 per cent).

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A grand coalition of Labour and the Tories was the least popular (nine per cent). But could that be because few voters consider such an alliance likely or even possible?

Paul Waugh, editor of Politics Home, believes it is possible. He says there is “a small band of people in both main parties” who are considering it as an option. What unites them, he says, “is an equal loathing of the Lib Dems, but also the SNP, Ukip and the Greens”.

Waugh points to two recent mentions in parliament of the possibility of a grand coalition.

In a Lords debate on the NHS, the Tory life peer Lord Cormack said: "Let us remind ourselves that the health service is, in effect, via Beveridge, the product of a grand coalition. Whether we will ever have a grand coalition like that again, I do not know… However, it may be that the strange results in June [he meant May] could make that an infinitely preferable solution to the SNP holding the balance of power..."

When Labour and the Conservatives joined forces last week to vote through the Charter for Budget Responsibility, David Mowat, Tory MP for Warrington South, asked:

"Why is the Labour party going to troop through the Lobby to support the government? I have only one explanation. I may be wrong, and it is possibly above my pay grade to get involved, but I think that Labour’s decision to support the government tonight is the start of overtures around a grand coalition.”

For most MPs, says Waugh, the idea of a grand coalition is a bit of a joke. “And yet, and yet. A few free radicals in both parties are privately talking about the idea as a means of providing stability in the national interest.”

The solution might well please the City. As the Financial Times reported earlier this week, the main worry among financiers is not so much who will win the election but that a period of uncertainty after 7 May will be damaging.

The fun, of course, is in imagining who would get what job and, indeed, who would be tolerated by the other party. Tory MP David Mowat, in raising the idea last week, had one proviso for the government front bench: “If we decide to go into a grand coalition with the Labour party on the basis of its support today, could they please not give the right hon member for Morley and Outwood a job in the Treasury?"

No points for guessing the identity of the Member for Morley and Outwood – Ed Balls.