UK government

Anglo-French relations could hamper negotiations over UK nuclear power stations. Image by Getty

Another European summit, and another step in the progressive disengagement of the UK from the core of Europe. I wonder if the UK government appreciates the impact of what is happening on the real world of business? Let’s take just one example. Relations between Britain and France are at a very low ebb. No one is throwing plates but there is now a mood of mutual indifference, which, as anyone who has lived through a bad marriage will tell you, is worse.

I was in Paris this week visiting the Banque de France. The Banque’s senior management were as ever exquisitely polite, but the sense of distance from the UK was unmistakeable.

Anglo-French relations are always complicated but the current round of problems really began with Franςois Hollande’s visit to London at the end of February. Mr Hollande was at that time a candidate rather than Le President de la Republique. He was clearly ahead in the polls and judged likely to win by the most experienced observers of the French scene. But Mr Cameron, usually a model of politeness when it comes to personal relations, refused to see him. Read more

David Cameron is the first prime minister in living memory who has not employed a business policy adviser in Number 10. The lack of such an adviser is all too evident in the continuing shambles around the UK’s energy policy.

Picking up public irritation with rising electricity and gas bills, the PM declared that companies would be compelled to supply customers on the basis of the lowest tariff available. This signals a real lack of understanding of how business works. The rapid consequence of such a policy would be to push all tariffs up and to remove any incentive on any supplier to provide competitive packages to end users. Read more

The Department of Energy and Climate Change survives. For the moment. One of the subtexts of last week’s government reshuffle in the UK was whether this was the right moment for a change in the layout of Whitehall with both the culture and energy departments abolished and their functions distributed elsewhere. In the end, the politics of the coalition made that too difficult. Instead, the DECC is being emasculated with several of its powers transferred elsewhere. What does this mean for energy policy and for companies and investors? Read more