10am WATCH: George Osborne tells Sky News that any spare cash going at banks should be made available to businesses and not paid out in bonuses

ToryDiary: The Conservative plan to paint Britain blue for a generation

Also in ToryDiary: David Willetts proposes new access rights for grandparents to their grandchildren

Ali Miraj on Platform: Who, in Parliament, speaks for the white working class?

Seats and Candidates:

• Immigration and Unemployment are the big issues of the week for Margot James in Stourbridge, as she also finds time in her schedule to begin preparing for Christmas…
• Christina Dykes: All-Women Shortlists break all notions of fairness

Local Government: Islamic extremists funded to start schools

WATCH: Conservative Future backs the NO2ID campaign with the support of Damian Green

George Osborne demands emergency measures to prevent banks paying cash bonuses…

"Emergency moves to stop the retail banks paying out cash bonuses and instead to divert the money on to balance sheets to support new lending will be demanded by the Conservative leadership today. In a marked hardening of the party’s stance, George Osborne will say the Government can no longer wait “for the promised land of a new responsible bonus culture which looks more remote than ever.” The Shadow Chancellor will call on the Treasury and the Financial Services Authority to combine forces to stop banks paying out profits in “significant cash bonuses.” – The Times

"In a speech to Thomson Reuters in Canary Wharf, east London, Osborne will tell financiers: "We cannot wait for the promised land of a new responsible bonus culture which looks more remote than ever. We need to take emergency steps to support bank lending and move the economy forward. I am today calling on the Treasury and the Financial Services Authority to combine forces and stop retail banks paying out profits in significant cash bonuses. Full stop. Then the cash that would have been paid out should be put on to banks' balance sheets explicitly to support new lending. This should be a condition of continuing to receive taxpayer guarantees and liquidity support." – The Guardian

"The independence of Scotland's oldest bank could be re-established if the Conservatives come to power in the next election. Shadow chancellor George Osborne hinted that the Bank of Scotland could rise again under a Tory government as part of plans to dismantle the UK's superbanks." – The Scotsman

> Last night's ToryDiary: Osborne warns banks that they'll lose state aid if they keep paying big cash bonuses

…as Bruce Anderson calls for more richer bankers

"Bankers are in it for the money. If they cannot make money here, they will leave. London is an international financial centre, which means that banks and bankers end up paying a lot of UK tax on a large number of transactions that have nothing to do with Britain. There is no law of nature which decrees that this is inevitable. If the tax demands are too high, the bees will move to another hive." – Bruce Anderson writing in The Independent

Ken Clarke again urges the Government to part-privatise the Royal Mail…

"Ken Clarke, the shadow business secretary, said Lord Mandelson should not intervene in the dispute, but urged him to revive the Postal Services Bill to pave the way for part-privatisation of the Royal Mail. It was when the Business Secretary dropped the bill in July that the CWU began preparing for the current round of strikes, in the hope of getting out of the modernisation agreement sealed in 2007, Mr Clarke added. He indicated that a Conservative Government would get private management and capital into the Royal Mail and would not be willing simply to pour hundreds of millions of pounds into preserving the Post Office in its current state." – Daily Telegraph

…as he says the UK economic recovery will be feeble

"Britain's economic recovery will be "feeble and fragile" and whoever wins the next election will need a full Parliament to nurse it back to health, shadow business secretary Kenneth Clarke has predicted. The former Chancellor's comments came after Gordon Brown pledged to return the economy to growth by the end of the year… Mr Clarke said he believed that Britain's route to recovery would be "L-shaped" – suggesting a lengthy period of stagnation and minimal growth – rather than the V-shaped swift return to healthy growth that Mr Brown is hoping for or the W-shaped "double dip" recession that some economists fear." – Press Association

"While wasteful public spending must be reined in, the most important policy that an incoming Tory administration needs to set out is a strategy for growth. We have heard a lot from the Conservatives about spending restraint, but not a great deal about economic revival… Growth will only return when private enterprise is given the freedom and incentive to invest, make a profit and recruit staff. Mr Cameron is beginning to talk the right language and we need to hear more of it." – Daily Telegraph editorial

William Hague hails the UUP and Conservatives as "natural allies"

"British Conservatives and Ulster Unionists are “natural allies” who have similar views and philosophies about “UK-level issues”, the Tory deputy leader [sic] has told The Irish Times.  Speaking before his address to the UUP conference in Belfast at the weekend, William Hague said it was only right that the two parties co-operate at the next Westminster election so that the Northern electorate would “be able to be part of [a] winning majority”. UUP MPs could serve as ministers in a David Cameron-led government, he added. He denied that his party’s official ties with unionism meant an appeal was being made to one section of Northern Ireland society only." – Irish Times

How the new alliance could land a handful of Westminster seats – Analysis by Gerry Moriarty of the Irish Times

The Guardian backs David Cameron's intervention on all-women shortlists

"David Cameron is right to warn local parties that although things are much better than they were, they are still nowhere near good enough, and the appalled reaction to his proposal last week for all-women shortlists (AWS) suggests how far Tory culture still has to go to understand how discrimination works… After his conference speech announcing the end of big government, it is an early reminder to the Tory leader that without central control it is necessary to tolerate undesired outcomes. Mr Cameron has a sufficient record of concern about female representation to refute the sceptics' suggestion that he is merely seeking a confrontation with his party. But that is what he has got, and only the power of the centre is going to deliver victory." – Guardian editorial

> Weekend Seats and Candidates posts on All-Women shortlists:

• Twenty ideas to encourage more women Tory MPs
• The Mail on Sunday identifies the eighty likely femail Tory MPs as £15,000 is donated to an Association of Associations to resist All Women Shortlists

Tories accuse ministers of "bedroom snooping" in census for 2011

"The nation’s sleeping arrangements are to come under scrutiny in the next countrywide census, it has emerged. The 2011 survey will include questions on the number of bedrooms in a person’s home, as well as the name, sex and birth-date of any overnight visitors. Nick Hurd, the Shadow Cabinet Office Minister, yesterday called it a “snooper” census, hitting out at “invasive and intrusive” new demands." – The Times

The Sun predicts the "dirtiest general election ever"

"Britain is heading for its dirtiest General Election in memory – with party chiefs already drawing up plans for personal attack. The Tories will target Gordon Brown, asking voters: "Can you face another five years of this man?" And Labour will try to paint David Cameron as a "rich toff" with no idea how ordinary people live. Both parties know there is a danger that personal attacks will put voters off, but recent research in America shows undermining opponents often sways the electorate." – The Sun

Government to backtrack over TA cutbacks

"Gordon Brown is being forced to backtrack over planned cuts in Territorial Army training amid fears that it would turn into a political disaster rivalling his humiliation over the Gurkhas." – Daily Telegraph

> Recent ToryDiary: Liam Fox condemns "twisted" plan to suspend TA training

Boris Johnson: Teachers need the law on their side

"We want the next education secretary to stand up and say that the law is plainly and unambiguously on the side of the teacher exercising reasonable discipline – and not on the side of the violent little squirts who are trying to make their jobs impossible." – Boris Johnson writing in the Daily Telegraph

Julian Glover: The battles ahead for Cameron with Labour's appointocracy

"David Cameron could find old regime partisans sniping at him from the hills; the people who sit on boards and commissions, hold chairs and run reviews: the whole well-intentioned infrastructure of progressive society that, almost like royalty, remains in place from one government to the next… Typical of the skirmishing to come is the conflict between Boris Johnson and Liz Forgan, chair of the Arts Council (and also of the Scott Trust, which runs the Guardian), over the mayor's attempt to appoint Veronica Wadley, a former editor of the Evening Standard, to an arts job in London: one establishment grappling with the demands of another." – Julian Glover writing in The Guardian

Brown favours Commons questions for Mandelson

"Gordon Brown has opened the way for Lord Mandelson to become the first Cabinet minister from the House of Lords to be grilled at the Commons dispatch box. The Prime Minister has written to John Bercow, the Speaker of the House of Commons, and said that he saw “no reason” why ministers who are normally confined to answering questions in the Lords should not be held to account in front of MPs in the Commons chamber… It is understood that Mr Brown wants to go further than Mr Bercow’s idea for peers like Lord Mandelson, the Business Secretary, and Lord Adonis, the Transport Secretary, to be quizzed by MPs in a special debate in Westminster Hall, a smaller chamber currently used for backbench debates." – Daily Telegraph

> Recently in Parliament: MPs may soon get the opportunity to question Lord Mandelson and other ministers from the Upper House

David Miliband backs Blair for European President

"David Miliband has ruled himself out of taking a senior role within the EU, while endorsing Tony Blair for the new post of European president. There have been suggestions the foreign secretary may become the new EU high representative for foreign affairs, to be created under the Lisbon Treaty. But Mr Miliband told the BBC he was not "available" to be a candidate." – BBC

> WATCH: David Miliband backs Tony Blair to be EU's first permanent President

Philip Johnston: Book me a seat on low-cost easyCouncil

"In this internet age, where people are more used to shopping around and object to being told to like it or lump it, all the assumptions about equal access to public service provision that have held sway in this country almost since the end of the Second World War need to be revisited. The burghers of Barnet are at least trying to come up with some innovative ideas to help save money and keep taxes down. Would that we had an easyGovernment that did the same." – Philip Johnston writing in the Daily Telegraph

> Friday's Local Government post: easyCouncil takes shape

Boris Johnson planning £15m monument for Olympic park – Guardian

Gaddafi apologises for Yvonne Fletcher murder – Daily Telegraph


Two selections in safe seats in Seats and Candidates:

• Rory Stewart selected for Penrith and the Border
• Liz Truss selected for South West Norfolk

ToryDiary posts:

• Hague, Fox and Osborne top shadow cabinet league table
• Can UKIP save Brown?
• Unconvinced voters need more from Cameron on immigration
• ConHome readers want a bolder Tory leadership

Mark Wallace in Local government: End national pay bargaining

Melanchthon on CentreRight pens a bleak portrait of the challenges facing a Tory government

WATCH:

• Eve Burt tells Channel 4 News that she is
  ready to go to court to protect her employment as secretary to her
  husband, Alistair Burt MP
• A behind-the-scenes Conservative Party video talks to Sayeeda Warsi before and after her Question Time clash with Nick Griffin

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