5.45pm Parliament: Philip Davies stands by his view that those with disabilities might be more able to get a job by working for less than the minimum wage

3.30pm Local Government: Yesterday's council by-election results

2.30pm WATCH: George Osborne says the Government is "within touching distance" of reaching a fair deal with the unions over public sector pensions

1pm Neil Carmichael MP and Edward Wild on Comment: How to improve school governance

Noon ConHomeUSA: Today's Republican and conservative news

Eric Pickles cheerful11.30am Eric Pickles MP in Local Government: Smarter procurement in local government could save up to £450 per household

10.45am Andrew Lilico on Comment: Don't forget that not even every Eurozone member has agreed to participate in the bailouts – so why should we?

10.15am WATCH: Treasury Chief Secretary Danny Alexander says that increasing public sector workers' retirement age to 66 is essential if their pensions are to be affordable

ToryDiary: Losing billions on defaults is the price Ministers are willing to pay to avoid blame abroad

Teck Khong Dr Teck Khong on Comment: It is competitiveness – not competition – that we should be promoting inside the NHS

Also on Comment, Nick Ramsay AM: Why I want to lead the Welsh Assembly Conservatives

LeftWatch: Lib Dem recriminations continue over defeat in the AV referendum

Parliament: Jeremy Hunt explains what will happen to the Government's 9,000 allocated Olympic tickets

Local Government: Birmingham is achieving radical change in delivering public services

Seats and Candidates: Just five candidates will contest the Inverclyde by-election

WATCH: Michael Gove explains why he is going to make the weakest 200 primary schools into academies

Public-sector workers warned: strike, and pensions will suffer

Danny Alexander "Danny Alexander, the Liberal Democrat Chief Secretary to the Treasury, tells millions of trade union members that only by agreeing to the Coalition’s new terms will they be able to keep “the best pensions available”. Writing in The Daily Telegraph, he warns that opposition to the change – that will require many in the public sector to work longer and pay more into their retirement funds – will mean a worse deal in future. “The history of reform is littered with examples of people simply denying the facts,” he writes. “Eventually reality bites. And when it does, change is urgent and uncompromising.” – Daily Telegraph

"It is unjustifiable that the taxpayer should work longer and pay more tax so that public sector workers can retire earlier and get more than them." – Danny Alexander's article in the Daily Telegraph

  • Government will raise public sector retirement age to 66 – BBC
  • Lowest paid to escape pensions blow – FT(£)

> Yesterday's ToryDiary: Taking advantage of weak strike laws, union leaders see Cameron as more of a Heath than a Thatcher, who will give ground on public sector pensions

An elected second chamber looks more distant as the Lords nominates peers to serve on Joint Committee

"Liberal Democrats are exploring a climbdown over Lords reform as Nick Clegg’s plans for an elected Upper House face a mauling from members of both Houses. Peers yesterday loaded their membership of the committee that will examine Mr Clegg’s plans with opponents of major change. It is to be chaired by Lord Richard, the former Labour leader of the Lords, who has a record of voting against any elected element of the Upper House." – The Times (£)

The Daily Mail speculates about Steve Hilton's future

Hilton-Steve "David Cameron’s controversial policy guru Steve Hilton was said yesterday to be considering ‘taking his bat home’ amid fallout over policy retreats. Number Ten was forced to dismiss rumours that Mr Hilton, the architect of the Prime Minister’s ‘Big Society’, plans to quit Downing Street at the end of the year as he is disheartened by Coalition U-turns in areas such as the NHS." – Daily Mail

The Sun brands Ken Clarke "The paedophiles' pal"

"Ken Clarke was blasted last night over the latest scandal in his crusade for soft justice – halving sentences for thousands of paedophiles. Fury erupted as it was confirmed the 90 per cent who admit their depravity will benefit from the Justice Secretary's plans to reward guilty pleas." – The Sun

Tory MP in the clear over indecent assault allegation

"Tory MP Andrew Bridgen was cleared yesterday over claims he sexually assaulted a female political aide. Police told Mr Bridgen, 46, he will not face charges and the case against him was being dropped." – Daily Express

> Last night's ToryDiary: Police confirm Andrew Bridgen MP has no complaint to answer

Baroness Ashton "defeats William Hague in EU's UN battle"

EU-FLAG "Lady Ashton and her EU foreign service have overridden British protests to increase its representation and speaking rights at the UN from its New York general assembly to 61 other bodies, including a politically sensitive human rights council… Bill Cash, the chairman of the House Commons European scrutiny committee, which holds the government to account on EU matters, said the move was "quite clearly a humiliation"… David Lidington, the Europe minister, insisted yesterday that the latest UN development would not threaten British foreign policy." – Daily Telegraph

Liam Fox: 9,500 troops will remain in Afghanistan

"Defence Secretary Liam Fox insists that a force of 9,500 will remain in Afghanistan until 2014, mainly in Helmand Province. Dr Fox told a news conference in Kabul that there was capability to withdraw some of the personnel currently in the country who were "in non-combat roles". – Daily Telegraph

Ed Balls calls for £51bn tax cut to jump start British economy (just don't ask him how we'll pay for it)

Picture 26 "Ed Balls was branded a deficit denier last night after calling for an unfunded tax cut that would plunge Britain up to £51billion  further into debt. In his first major policy intervention as shadow chancellor, Mr Balls called for a cut in VAT to boost the economic recovery… Tory MP Charlie Elphicke said: 'Ed Balls is making it up as he goes along. Calling for an unfunded tax cut to deal with a deficit he’s still in denial about is verging on the deranged'." – Daily Mail

> Yesterday on ConHome:

Labour is suffering from a lack of ideas, not just a struggling leaderThe Economist

Nick Clegg the atheist looks at Catholic school for sons

"Nick Clegg, the Deputy Prime Minister, indicates he may send his children to a leading Roman Catholic secondary school, despite having declared himself an atheist. Mr Clegg, who has spoken of his opposition to faith schools, is understood to have toured the London Oratory, the state school to which Tony Blair sent his sons." – Daily Telegraph

Argentine President attacks Cameron over Falklands

Picture 27 "The president of Argentina, Cristina Fernandez de Kirchner, has called Britain "arrogant" for refusing to negotiate on the Falklands. She was speaking a day after UK Prime Minister David Cameron said the issue of sovereignty was non-negotiable. President Fernandez called his refusal to hold talks on the sovereignty of the Falklands, or Malvinas, arrogant and bordering on stupidity." – BBC

Hardline IMF forced Germany to guarantee Greek bailout

"Germany was forced to agree to bail out Greece for the second time in a year under strong pressure from the International Monetary Fund following the resignation last month of its head, Dominique Strauss-Kahn, the Guardian has learned." – The Guardian

  • Sean O'Grady: IMF had no option in rush to prevent a horror show – The Independent

> Andrew Lilico on Comment yesterday: Twenty things Westminster needs to know about Greece and its debts

Peter Oborne: With several senior Labour figures and most of the media on side, David Cameron does not realise what a powerful position he is in

OBORNE "He should be regarded as one of the most powerful peacetime premiers we have ever had. Certainly, Mrs Thatcher found herself in a comparable position for a brief period after the 1983 general election victory. So did Blair after his landslide victories of 1997 and 2001, though on each occasion he threw his opportunity away. The paradox is that David Cameron shows no sign of being aware of his new power and authority." – Peter Oborne in the Daily Telegraph

Other Comment:

  • The coalition’s retreat on health-care reform looks like a backward step for the NHS – The Economist
  • George Osborne is ready to sell Northern Rock. This could end badly – Andrew Lilico in the Daily Telegraph

Other news in brief:

  • 3,200 criminals, failed asylum seekers and benefit tourists can't be kicked out because of "right to family life" – Daily Mail
  • Biggest banks face capital  clampdown – FT (£)
  • Shut failing hospitals, says nurses’ union chief – The Times (£)
  • EU shelves plan to extend fully paid maternity leave to 20 weeks 'because we can't afford it' – Daily Mail
  • CBI says Coalition is 'losing its way' on public sector reforms – BBC

And finally… Nick Clegg mocks Chris Huhne over lunch with journalists

HUHNE BBC INTERVIEW "Nick Clegg yesterday mocked former party leadership rival Chris Huhne over his speeding allegations. Police are investigating accusations the Lib Dem Energy Secretary asked his ex-wife to take penalty points on her driving licence after he was caught speeding. The Lib Dem leader told a Westminster lunch: “­Whatever people say or think about Chris Huhne, I don’t know any politician who is better at getting his points across.” – Daily Mirror