David Laws

Following the 2010 general election, Laws was one of four negotiators for the Liberal Democrats who negotiated a deal to go into a governing coalition with the Conservatives.[10] His account of the coalition's formation was published in November 2010 as 22 Days in May.[11]

Laws was one of five Liberal Democrats to obtain Cabinet positions when the coalition was formed, becoming Chief Secretary to the Treasury, tasked with cutting spending and increasing tax take without increasing rates of taxation to eliminate the national deficit.[12] He was appointed as a Privy Counsellor on 13 May 2010.[13]

Laws's predecessor Liam Byrne, wrote a note to his successor as Chief Secretary to the Treasury which read "Dear Chief Secretary, I'm afraid there is no money. Kind regards - and good luck! Liam". Byrne said the letter was meant as a private joke but Laws published it, slightly misquoting it (from memory) at a press briefing as "I'm afraid to tell you there's no money left".[14] Looking back in 2013 he said that he had thought the note was a joke but that he felt it was in poor taste given the poor state of the economy. He had not expected the revelation of the contents of the note to be taken as significantly as it was.[14]

Outlining spending cuts in May 2010, Laws said Child Trust Fund payments would be axed by January 2011. He said halting these payments to newborns from the end of the year – and the top-up payments – would save £520m. Mr Laws said: "The years of public sector plenty are over, but the more decisively we act the quicker and stronger we can come through these tough times." He said that "We also promise to cut with care, we are going to be a progressive government even in these tough times".[15] Iain Martin of The Wall Street Journal published an article on Laws's early performance and described him as a "potential future prime minister"[16]

Laws speaking in 2013

On 28 May 2010, The Daily Telegraph disclosed that Laws had claimed more than £40,000 on his expenses in the form of second home costs, from 2004 to late 2009,[17] during which time he had been renting rooms at properties owned by what the newspaper claimed to be his "secret lover" and "long-term partner", James Lundie. They were not in a civil partnership. The Daily Telegraph had not intended to reveal his sexuality, but Laws himself did so, in a public statement shortly before the newspaper's publication of the story.[18] Lundie is a former Liberal Democrat Press officer and now works for the Political Affairs team of public relations and lobbying firm, Edelman.[19]

Laws misclaimed second home allowances of between £700 and £950 a month rent between 2006 and 2007, plus typically £100 to £200 a month for maintenance, to rent a room in a flat as the flat was owned and lived in by Lundie (in Kennington, south London).[18] Lundie replaced his property with a house in 2007. Laws then recovered from the second home allowance the rent for its "second bedroom" at £920 a month, until September 2009. Laws afterwards rented another flat not owned by Lundie, who remained at the Kennington house. Since 2006 the relevant rules banned MPs from "leasing accommodation from... a partner."[18] He claimed small amounts in respect of his main home in Chard in his constituency and holiday home in Provence, France.[2]

Laws resigned as Chief Secretary to the Treasury on 29 May 2010,[20] stating that he could not carry on working on the Comprehensive Spending Review while dealing with the private and public implications of the revelations.[21] He claimed that his reason for the way he had claimed expenses had been to keep private details of his sexuality and that he had not benefited financially from this misdirection.

In May 2011 the Parliamentary Commissioner for Standards reported to the Standards and Privileges Committee on the investigation into his conduct. The Committee concluded that Laws was guilty of breaking six rules with regard to expenses. The Commissioner reported that none of the claims for the London properties was acceptable under the rules but that he had not intended to benefit himself or Lundie directly. In addition to finding against Laws with regard to the payment of rent to his friend, the investigation also found irregularities in phone bill and building work expenses.[22] The Committee concluded that "... the rental agreements submitted [by Laws] between 2003 and 2008 were misleading and designed to conceal the nature of the relationship. They prevented any examination of the arrangements that in fact pertained over the entire period". Further, his claims for rent were in excess of market levels for a lodging agreement and a market-level agreement would not have included contributions from the lodger towards building repairs and maintenance which were claimed. The Committee concluded that it was inappropriate to judge whether the claims on a particular property were appropriate by reference to potential payments on another property, which was not in fact claimed for.[1]

The commissioner stated "I have no evidence that Mr Laws made his claims with the intention of benefiting himself or his partner in conscious breach of the rules."[23]

Being found in unintended breach, Laws was suspended from the House of Commons for seven days [24] by a House of Commons vote on 16 May 2011.[25] Laws gave costed estimates to the investigation showing his expenses could have been almost £30,000 higher over 2004–2010 if renting or claiming mortgage payments on his Somerset home which he owned outright.[26] Olly Grender, journalist and former party Communications Director echoed this argument an article in 2011 in the New Statesman stressing that "If he had allocated his constituency home as his second home he would have still been in the cabinet, having claimed £30,000 more".[27]

The Committee mentioned the conduct of Laws after May 2010, stating: "We have also considered whether there needs to be a stronger sanction than repayments. Not only has Mr Laws already resigned from the Cabinet, his behaviour since May 2010 has been exemplary. He quickly referred himself to the Commissioner, has already repaid allowances from July 2006 in full, and has cooperated fully with the Commissioner's investigation". The Committee's conclusion was however that a stronger sanction than repayment was indeed needed. This led to the vote temporarily excluding Laws from the House of Commons.[1]

Laws returned to Government as Minister of State for Schools in the Department for Education and Minister of State in the Cabinet Office in September 2012.[28] He was permitted to attend Cabinet, not as a full member but because of his strategic portfolio. He was also responsible for implementation of the coalition agreement and contributed to Liberal Democrat strategy in the run-up to the 2015 election.

Laws lost his seat in the 2015 General Election and declined an offer to be seated in the House of Lords.[29] When CentreForum was rebranded and refocused in 2016 as the Education Policy Institute, Laws was hired to lead it.[30][31]