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4pm Nadhim Zahawi MP on Comment: The Government shouldn't be picking winners. We need a balanced economy that takes all sectors of innovation into account

3.15pm MPsETC: Government defeats "fatal" Lords amendment to NHS Bill

2.45pm Local government: Poll for Gravesham Council byelection

2.30pm Sam Bowman on Comment: For long-term growth, Britain should make its tax code more attractive to highly-skilled workers

PMQs 12th oct1pm ToryDiary: Cameron on the back foot as Miliband attacks unemployment figures

11am ConHomeUSA: Today's top Republican and American political news

10.30am ToryDiary: As unemployment rises, Chris Grayling says: Britain can't escape world economic turbulence

9am MPsETC: Roger Helmer MEP to resign from the European Parliament

ToryDiary: Conservative Ministers furious over LibDem adviser appointments

Also on ToryDiary: Why targets don't help the poor

Anthony Browne on our Columnists' page: As much as the Coalition may want to avoid one, a fight over Eurozone integration looks inevitable

Screen shot 2011-10-11 at 17.51.27Simon Burns MP on Comment: Don't let Labour wreck the health bill in the Lords

The Right 100: The most important conservative journalist in Britain – Paul Dacre

MPsETC: "Fresh Start Project" publishes goal of new UK-EU relationship

International: John Key's seven messages for New Zealand

Local Government: Several Tory councils refusing even to consider restoration of weekly rubbish collection

WATCH: Earl Howe: Referring the NHS bill to a select committee would pose an "unacceptable risk" to the bill

Ministers fear defeat in Health Bill

Lansley2"The House of Lords could deliver a “fatal” blow to the Government’s Health Bill, ministers warned last night, as they pleaded with peers not to back an amendment that could scupper the reforms. … The fears centre on an amendment put forward by Lord Owen, the former leader of the SDP, and Lord Hennessy of Nympsfield, which calls for a new select committee to be set up to scrutinise the role of the Secretary of State under a new health system. In a clear sign of panic, Lord Howe, the Health Minister, wrote to every peer yesterday warning of an “undue risk” to the policy." – The Times (£)

  • "Health Secretary Andrew Lansley faced the humiliation of touring the House of Lords bars and tearooms to sweet-talk peers into backing his reforms, which are unpopular with Lib Dems." – Daily Mail
  • Patients are in the driving seat over their NHS care – Simon Burns MP in the Daily Telegraph

> Coverage from yesterday:

Liam Fox's friend Adam Werritty linked to Conservative donor

Fox Liam Tall"The close friend of Dr Liam Fox whose meetings with the Defence Secretary have triggered an official investigation works out of an office belonging to one of the Conservative Party’s biggest donors, The Daily Telegraph can disclose. Adam Werritty has been provided with a free desk by Michael Hintze, the founder of the CQS hedge fund, at the company’s London base." - Daily Telegraph

"Liam Fox's claim that Adam Werritty was operating in "a private capacity" when the men met twice in Dubai this year has been thrown into fresh doubt by hotel records seen by the Guardian. They reveal that Werritty booked into the five-star Shangri-La hotel earlier this year describing his position as "office of Dr Liam Fox" and naming his company as "Atlantic Bridge", the defence secretary's controversial rightwing charity which had close links to a group of powerful American business lobbyists." – Guardian

  • "Mystery last night surrounded the reason why Tory chiefs covered up a key detail of an early-hours burglary at Liam Fox's flat.They insisted the embattled Defence Secretary was sleeping there ALONE at the time. But The Sun can reveal a "younger man" was staying overnight at the posh London Bridge apartment. It was raided at the height of last year's General Election campaign." – The Sun
  • Liam Fox denies cover-up over burglary at his home – BBC
  • "North Somerset Conservative Association raised concerns with Liam Fox about his close friendship with Adam Werritty on a number of occasions over the past decade, it has been revealed." – Bristol Evening Post
  • "Liam Fox’s close friend operated as a one-man intelligence service to help the Defence Secretary overcome Whitehall inertia, according to authoritative sources." – The Times (£)
  • "David Cameron's aide worked for Liam Fox charity. Gabby Bertin, now PM's press secretary, was paid £25,000 by drug firm Pfizer to work as a researcher for Atlantic Bridge" – Guardian
  • "Adviser" joined Fox at talks on Iran sanctions – Independent
  • Harriet Harman: Government is blocking full Liam Fox inquiry – Daily Telegraph

> Coverage from yesterday:

Daniel Finkelstein: The Prime Minister would be reluctant to get rid of a Cabinet colleague he likes simply to ease the news cycle for the Coalition 

FINKELSTEIN DANNY HANDS"David Cameron doesn’t know any better than anyone else the nature and consequences of the Defence Secretary’s relationship with Adam Werritty. But he does have a different responsibility. If he sacked Dr Fox based on concern about where the stories might go in future, he would be ending a man’s career. And all to make it easier for him, David Cameron, to get through the next 48 hours. The Prime Minister would be inflicting a terrible blow on someone he has worked with closely (Dr Fox is rather liked by the Downing Street team, even though they think he is, ahem, “a card”). He is reluctant to do this just to make the story go away." – Daniel Finkelstein in the Times (£)

  • "Sorry is not enough. Fox has to go and, if he won't, Cameron should fire him" – Jonathan Freedland in the Guardian

Cameron demands more measures to tackle internet sleaze…

Cameron pale blue tie"Children in Britain are ‘growing up too early’, David Cameron warned last night as he hailed moves to make it easier for parents to shield them from internet sleaze. The Prime Minister said that a raft of measures to block access to pornography unveiled yesterday was just a first step – and that if significant progress is not made by the new year he will consider further action. As the Daily Mail revealed yesterday, four of Britain’s biggest internet providers – BT, Sky, TalkTalk and Virgin Media – have agreed that new customers will have to make an ‘active choice’ over whether they want access to explicit websites" – Daily Mail

…And holds a "child advertising summit"

"The prime minister held discussions with 30 media and retail executives, including broadcasters, magazine editors, trade bodies and advertisers. The drive would include controls on billboard advertising near schools, and make it easier for parents to complain about sexualised images on TV and video. David Cameron's move is part of an effort to win back women voters disturbed by the coalition's hardline deficit-reduction programme." – Guardian

Finucane widow rails at "insult" as Prime Minister rejects inquiry

"David Cameron has angered the family of a solicitor shot dead in Belfast in 1989 by rejecting their demand for an independent public inquiry … family representatives, led by his widow, Geraldine, walked out of a Downing Street meeting with the Prime Minister. She said she had been insulted by Mr Cameron's offer to review the case and felt so angry she could hardly speak." - Independent

George Osborne's manufacturing-led recovery hits set-back

Osborne on AM"The Chancellor's hopes for a manufacturing-led recovery were hit yesterday by new figures from the Office for National Statistics. The ONS's index of manufacturing production was 0.3 per cent lower in August than in July. The 0.1 per cent growth previously registered by the ONS for July was also revised down to a 0.2 per cent fall." – Independent

More riots are likely if Big Society falters, says Cameron aideThe Times (£)

  • Metropolitan police got riot tactics wrong, says new commissioner – Guardian

Andrew Mitchell pledges to give more British aid money to Commonwealth countries

"Andrew Mitchell, the Development Secretary, pledged to divert more cash to the former members of the Empire, countries he called Britain’s “friends and family”. Britain should be “proud” of its historic ties to the Commonwealth." – Daily Telegraph

Jonathan Djanogly faces inquiries into legal aid profits

"Jonathan Djanogly, the justice minister, has admitted for the first time to MPs that inquiries had been launched by his own department and the Cabinet Office following an investigation by the Guardian that revealed he could personally profit from changes he was piloting in the Commons" – Guardian 

Frustration with the new expenses system is damaging MPs’ mental well-being - Daily Telegraph

Ann Widdecombe: Education crisis has ceased to shock us

WiddecombeAnn5mins"Practice tests on the army's website asks applicants to match a number presented as numerals with its equivalent in words, eg, match thirty-two from a list including 32, 23, 332, 302 etc. Another question produces various shapes and asks which is the circle and which the rectangle. Such a revelation should be dynamite. It should be all over the front pages. But we are no longer shocked by anything which comes from British education and the utter crassness of tests for servicemen, teachers and other walks of life is no longer news." – Ann Widdecombe in the Daily Express

Patrick O'Flynn: David Cameron has got the message on mass immigrationDaily Express

Norman Lamont: The euro bailout is a huge Ponzi scheme

LAMONT-NORMAN"The uncomfortable truth is that, instead of rescuing it, it would probably have been better if Greece had been allowed to default. That would have hurt French banks holding Greek bonds. But the problem would have been containable and it would have been far better to have got the crisis over with, than to allow it to fester while writing large cheques that are going to create as many problems as they solve. There comes a point where the political costs of rescuing the euro are too high. As Winston Churchill once observed, if we  do not face reality, reality will face us. It would be better to recognise that the euro experiment has failed." – Norman Lamont in the Daily Mail

Families are facing the biggest fall in income since 1970s Daily Mail

Government child poverty targets "will not be met" – Daily Telegraph

Clegg U-turn over voter registration Guardian

Cabinet Secretary Sir Gus O'Donnell to stand down‎

10-downing-street"Cabinet Secretary Sir Gus who was yesterday asked by the Prime Minister David Cameron to head an inquiry into Defence Secretary Liam Fox's relationship with "adviser" Adam Werritty, said he will step down at the end of the year. Sir Gus, who has been in the role for six years and had enjoyed at 32-year career in the civil service, had previously announced that he would step down before the next general election." - Daily Telegraph

  • Sir Gus O'Donnell's resignation letter in full – Daily Telegraph 
  • "Jeremy Heywood, currently the permanent secretary at No 10, will take over as Cabinet Secretary. Sir Gus’s empire is to be broken up, giving Whitehall two “Sir Humphrey” figures of equal stature, rather than a single all-powerful top civil servant." – The Times (£)

> Yesterday on Columnists, Anthony Browne: Reformers should be glad that Jeremy Heywood will be the new Cabinet Secretary

Ed Miliband panned by former Labour ministers

Miliband Ed House"Charles Clarke and Frank Field said the Labour leader had failed to appear credible on the economy. Former Home Secretary Mr Clarke said Mr Miliband lacked a "coherent" argument. He added: "We are simply dismissed by most people thinking about the most central question facing the country today, which is the economy." Mr Field, minister for welfare reform under Tony Blair, said Labour should apologise for the mess they made of the country's finances." – The Sun

Labour leader sees lead over Tories cut to just one point

"Labour's lead over the Conservatives has dropped to just one point, its lowest for a year, according to The Independent'slatest "poll of polls". It suggests that David Cameron has emerged from the party conference season in a stronger position than Ed Miliband, who has barely made any difference to Labour's ratings in his first year as party leader." – Independent

And finally… "Millie's fillies": Ed Miliband shows off the feminine side of his shadow cabinet in photoshootDaily Mail

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