Monthly Archives: May 2009

Jim Pickard

I’ve written in Saturday’s FT that Ukip is becoming increasingly confident of its ability to beat Labour in Thursday’s European elections. The implications for Gordon Brown’s credibility hardly need spelling out.

A couple of recent have already put the two parties close. Tomorrow will see a Populus survey in The Times which puts Ukip ahead of Labour by several points (19 per cent to 16 per cent).

The strange thing is that the anti-Europe party is picking up thousands of votes in a backlash against Westminster sleaze. Yet Ukip itself has not been immune from expenses scandal; this will give you a flavour. Or this.

The Tories recently launched a scathing attack on Ukip, claiming a third of the 12 MEPs elected in 2004 had “disappeared, some to prison [for expenses abuses], some to the furthest reaches of rightwing lunacy”. The broadside doesn’t seem to have worked.

What made me think the party might be enjoying a resurgence? I spent much of yesterday talking to dozens of voters in Staffordshire, one of the county councils set to be lost by Labour next week. The Tories seem to be riding out the scandal. Ukip are benefiting. Labour, perhaps unfairly, are getting it in the neck. Here is my report from the west Midlands.

Jim Pickard

TSSA are the white collar transport union* who have been leading the drive for Network Rail to come clean about six-figure discrimination payments made to former members of staff several years ago.

It emerged in recent reports that some of the departees had made claims about a senior director of the rail operator allegedly involving highly inappropriate behaviour.

The director in question was investigated but no action was deemed necessary.

Network Rail aren’t being very forthcoming about why the payments were made. “I’m not going into the question beacuse these are confidential (agreements)”, says a spokesman. “I can’t get into individual cases at all.”

*

Separately, TSSA is keen to know what payment was received by Iain Coucher, chief executive, and Victoria Pender, head of government affairs, for their role in setting up Network Rail. The pair’s private company, Coucher Pender – which is now dormant – received a bonus after the group was successfully established from the ashes of Railtrack. The size of the payment seems to be a mystery.

Jim Devine MP**, who has been asking questions in Parliament on behalf of TSSA, has demanded to know how big – or small – it was.

No one seems very keen to give the answer. Network Rail said: “I don’t have that to hand at the moment.” It suggested calling the Department for Transport.

The DfT said the payment was made by the Strategic Rail Authority. But it had no details. “We don’t have records of how much was paid. It was seven years ago so….”

This lack of disclosure does seem to be a curious by-product of Network Rail’s structure, whereby it is a private company but backed by public money. The group does not have to respond to Freedom of Information requests, for example.

* TSSA’s critics accuse it of waging a bitter campaign against Network Rail because of job cuts at the operator. The union denies this.

** (UPDATE) Worth pointing out that Mr Devine now has some other issues on his plate, namely questions about his expenses. He is to be dragged in front of Labour’s ominously-named “star chamber”, according to this report.

Jim Pickard

Julie Kirkbride’s resignation yesterday seems to have lowered the bar at which MPs are expected to step down (by the next general election, that is).

Her expense claims were arguably as credible – or more so – than many others who are still happily clinging on to power, as Iain Dale points out. (He accurately points out that public/media judgments on the affair have become increasingly subjective).

It had seemed curious that some of those facing much more damning allegations were untouched. But that could start to be remedied tonight when Elliot Morley faces his constituents. The rumour (not rumour, unvarnished truth, Paul Waugh tells me) is that he will step down, or promise to do so at the next general election. You may remember that Morley stands accused of claiming £16,000 for a mortgage which no longer existed.

The former agriculture minister has already been suspended by the Labour Party and Scotland Yard is considering whether to launch a criminal probe.

I’ve put a call in to Labour to ask whether David Chaytor is considering a similar move – and will update.

Meanwhile a great piece in the Guardian about scores of Labour MPs begging to be let into the Lords.

UPDATE

It’s Friday evening and Morley has gone. Here is the BBC story.

Jim Pickard

It transpires that Cash rented his daughter’s flat even though he owned an apartment in Pimlico which was apparently not being used at the time*. Here is the story in full.

UPDATE, 11am FRIDAY

David Cameron says that Cash has “very serious questions” to answer.

This could indicate that the veteran eurosceptic is for the chop. If so, however, it is likely to raise further questions about whether Cameron is coming down harder on the “old guard” than his younger “modernisers”.

* Cash has just explained (11.40am) that the Pimlico flat was occupied by his son at the time. Thus the fog lifts somewhat.

It still seem however that there will be more “Questions for Cash” (joke copyright Nigel Morris, Independent). ie, how come you didn’t live in Pimlico and let your son pay his own way somewhere else?

Jim Pickard

The scene: an elections hustings in a market square. Senior MPs are surrounded by a baying mob.

The crowd: String ‘em up, string ‘em up, string ‘em up.

David Cameron: I hear your cries. I feel your pain. No one is more appalled than I.

Gordon Brown: It is fundamental that members on all sides of the house formulate a solution to this irksome crisis.

The crowd: What do we want? To get shot of you. When do we want it? Now!

David Cameron: I understand why you are so enraged. And that is why I want to give power back to the people.

Sir Peter Viggers: To the oiks? Are you quite certain?

David Cameron: I have listened. And this is why I can now promise you reforms that will banish the stain of this disgusting scandal.

The crowd: You’re sacking Francis Maude? Bill Wiggins? Julie Kirkbride?

David Cameron: I promise that I will let MPs choose the chairs of parliamentary select committees. And I will force the publication of expenses by all senior civil servants. These astonishing reforms will be a once-in-a-lifetime transfer of power from the centre to the fringes.

The crowd: Really? Are you sure?

David Cameron: And I will not stop there. I will even pledge to consider the possibility of fixed-term parliaments. Maybe.

The crowd: All we want is for MPs to stop troughing on free wide-screen TVs and moats.

Gordon Brown: The proposals from the discredited Conservative leadership do not go far enough.

Alan Johnson: That’s right. We want PR.

Harriet Harman: Public relations? More media training? Splendid.

Alan Johnson: Proportional representation. Power to the people. My idea is Alternative Vote Plus. It’s simple. Voters have two votes. With the first – for the locally elected MP – voters rank candidates in order of preference (like, a,b,c,d instead of “x”). The second is a top-up list, which means . . .

The crowd: (silent, blank expressions)

Ed Miliband: I have a better idea. Let’s give more power to councils. And stop calling each other “honourable members”. That’s terribly old-fashioned.

The crowd: We just want guilty MPs to step down.

Ed Miliband: My modernising ideas do not stop there. Replace Big Ben with a digital timepiece. Move the Speaker’s chair to the other end of the chamber. Rename Black Rod as “Manager of the Lords”.

Gordon Brown: Encourage elected mayors to use Twitter.

Alan Johnson: Change the benches from green to red. And maybe rearrange them a bit?

Jim Pickard

There have been serious questions over MPs paying capital gains tax – or otherwise- in the wake of the expenses revelations.

Their defence has been that individuals can decided which of their homes are “first” or “second”, and this doesn’t have to tally with what they tell the Commons’ officials.

It does raise questions over how easily everyone else can escape CGT. For example, if I sell my so-called “main home”, which is in another city (and is actually a buy-to-let, for argument’s sake) then I am by definition living in my second home. But surely after a certain period – a year, five years, 10 years – then why can’t I redefine the place I live as my main home? This seems like a strange grey area.

My colleague Matthew Vincent (our personal finance editor) has predicted that a crackdown on CGT could well be in the offing for everyone.

So how tough is HM Revenue & Customs at the moment?

Today I asked them how many people they fined last year for non-payment of CGT, whether on second homes or elsewhere.

They don’t keep a record of this. Or if they do, they aren’t sharing. However, HMRC said that they collected £59.7m (of fines, owed money and interest) in 2007-8. The figure is buried in this chart on page 43.

Jim Pickard

Labour and the Tories are falling over each other to claim themselves the party of reform (missing the whole point, as I explained earlier today).

Jackie Ashley, the columnist, can barely believe how nimbly David Cameron is dealing with the expenses issue despite many of his MPs being implicated in a big way.

Cameron has undoubtedly got the tone right. He sounds chastened. He sounds as if he’s listening. Yet, when you probe it a little, almost everything David Cameron is suggesting boosts his own position, from calls for an early election to the forced retirement of old buffers,” Ashley marvels.

She has a point.

Anyway, Cameron’s op ed in Tuesday’s Guardian makes the following promises. I’ll leave you to decide how many of these amount to radical change.

• Limit the power of the prime minister by giving serious consideration to introducing fixed-term parliaments, ending the right of Downing Street to control the timing of general elections.

• Give MPs free votes during the consideration of bills at committee stage. They would also be allowed to decide the timetable of bills.

• Boost the power of backbench MPs by letting MPs choose the chairs and members of select committees.

• Send out text alerts on the progress of parliamentary bills and by posting proceedings on YouTube.

• Publish the expenses claims of all public servants earning more than £150,000.

• Strengthen local government by giving councils the power of “competence”. (This would allow councils to reverse Whitehall decisions to close popular services, such as a post office or a railway station, by giving them the power to raise money to keep them open.)

Jim Pickard

Prepare yourself for a new MP expenses story; this time about Dennis Bates, an accountant who is married to Labour MP Meg Munn (pictured).

The Telegraph is set to publish a story querying why several MPs used his services; they include John Healey, Gillian Merron, Jim Knight and one of the Angela Smiths.

Their excuse – which seems reasonable enough – is that Bates worked for 12 years at the Inland Revenue as a specialist in the tax affairs of small businesses. Thus he was eminently qualified.

What will be interesting is to know whether his advice was obtained in relation to office costs (as is clearly permitted in the Parliamentary Green Book) or for personal tax advice (which is more of a grey area).

BTW

If you haven’t caught up on today’s news about the Wintertons (both) resigning at the next election there is more here. They insist their resignation is to spend more time with their family and nothing to do with their controversial expense claims (which earned them a ticking off last year).

Jim Pickard

The editorial in the Times by Alan Johnson (proposing proportional representation) was seen by that paper as a covert bid for the Labour leadership.

Well, possibly. But the alternative theory is that Gordon Brown is desperate for Labour to look like it is doing something about the expenses scandal that he has authorised senior colleagues to “go out there and talk reform”.

My theory gets added credibility when you see that Ed Miliband has been on similar manoeuvres. He seems to think that giving select committees more power and abolishing ancient traditions (eg calling MPs “my right honourable friend”) will restore confidence in the Commons.

Even Johnson’s allies point out that if he wanted to challenge for the Labour leadership he might chose a slightly more winning argument than the oft-derided PR.

The mood of the public now is in favour of a root and branch look at how our democracy works and we are going to look at that – fixed-term parliaments, reform of the House of Lords, more power for Parliament over the executive,” said the health secretary. “It would be absolutely perverse if in the course of that debate we didn’t look at the fundamental issue of how people elect their representatives. Electoral reform has to be part of that debate.”

What both men have failed to grasp – it seems – is that the public is not up in arms over the first-past-the post system. Nor with an unelected Lords. Nor the fact that Parliamentary officials wear tights. People are angry about the lack of probity of individual MPs, many of whom have made ridiculous, greedy and – in some cases – downright illicit claims. Isn’t that obvious?

UPDATE

Paul Waugh explains why some people think PR = cleanup. Not entirely convinced myself.

FURTHER UPDATE

David Cameron has just published an article in The Guardian on why PR would be a mistake.

He argues: “Proportional representation takes power away from the man and woman in the street and hands it to the political elites. Instead of voters choosing their government on the basis of the manifestos put before them in an election, party managers would choose a government on the basis of secret backroom deals. How is that going to deliver transparency and trust?”

He does though have some other ideas for reform, unsurprisingly. The most unlikely is the idea that he would cut back the PM’s powers if he became PM: easy to say, harder to deliver.

Jim Pickard

I’ve heard of Esther Rantzen, obviously.

David Van Day, never. The former singer from Dollar, apparently an 80s pop duo, has said he could become the latest anti-sleaze parliamentary candidate. The 52-year old wants to stand against Nadine Dorries at the next general election.

Apparently he was appalled by Ms Dorries’ radio interview where she accused the Telegraph of “McCarthy-ite witch hunts” and warned that some of her MP colleagues were “beginning to crack”.

Van Day, an unsuccessful former Tory council candidate, wants to start a “No Expenses Party”.

Jim Pickard

In retrospect I chose the wrong fortnight to be on holiday. But from my Cornish vantage point I couldn’t help wondering who had inadvertently come out of the expenses saga smelling of roses.

Firstly the central London MPs. They couldn’t claim the additional cost allowance so there was never any temptation – unlike those in outer London. Thus Harriet Harman sails through unscathed.

Secondly is none other than Lord Mandelson, the business secretary and one of the most powerful members of cabinet. Mandelson had the good fortune of spending the four years in question in Brussels and therefore has no embarrassing expenses by default. He emerges squeaky clean.

On the subject of Europe, my colleague Jean Eaglesham reports today that Labour MEPs will have to publish receipts for claims made under their office allowance. They will also have to publish their travel costs and the number of times they have claimed the E298 daily attendance allowance. The catch? This will only apply to future expense claims.

Westminster blog

on the UK political scene

About this blog Blog guide
Jim Pickard and Kiran Stacey, FT Westminster correspondents, share the latest news and analysis on the UK's political scene.

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All posts are published in UK time.

Contact the Westminster blog team: Jim Pickard, Kiran Stacey, Nicholas Timmins, Elizabeth Rigby and Helen Warrell.

The illustrations of Jim and Kiran are by Nick Hardcastle.

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The authors

Jim Pickard joined the lobby team in January 2008. He has been at the Financial Times since 1999 as a regional correspondent, assistant UK news editor and property correspondent.

Kiran Stacey is an FT political correspondent, having joined the lobby in 2011. He started at the FT as a graduate trainee in 2008, working on desks including UK companies and US equity markets before taking over the FT's Energy Source blog.

Contributors

Elizabeth Rigby, the FT's chief political correspondent, joined the lobby team in September 2010. Elizabeth has worked at the FT for more than a decade and was most recently its consumer industries editor.

Helen Warrell is the FT's UK reporter, covering home affairs, crime and policing. She joined the FT in 2008 and has spent time as a reporter in the Brussels bureau and more recently, editing the paper's Asia coverage on the world news desk.

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