Monthly Archives: July 2009

Jim Pickard

There’s a widespread idea that Team Cameron are obsessed with the West Wing, just as New Labour types have always been avid observers.

The idea has been repeated lately in The Guardian. Elsewhere it’s been reported that Cameron wants to model Downing Street’s layout on the West Wing if he becomes prime minister.

Andrew Rawnsley, in the Observer, recently pointed out that:

To visit Norman Shaw South is to see a political machine whirring beautifully,” writes Fraser Nelson in the most recent edition of the magazine. “It is like a British version of  The West Wing: the key players walking in and out of their rooms and having 45-second impromptu meetings in the corridor.”

In similar vein, a report in Friday’s Independent talks about “a cast of advisers, tacticians, policy wonks and spin doctors that would not look out of place walking the corridors of President Bartlet’s The West Wing”.

But does Cameron actually like the programme?

Er, no. I’m told that the Tory leader has watched a couple of episodes and “just couldn’t get into it“. Apparently he is more of a fan of The Wire. I don’t blame him.

George Osborne, however, does like the West Wing. So there you have it.

UPDATE

Cam has apparently told someone else that he may not be that bothered about The Wire, either. So what do we know for certain? That he enjoys Lark Rise to Candleford, whatever that is.

It appears to be a costume drama made by the BBC.

Jim Pickard

David Cameron’s European grouping is criticised in strong language from former Tory MEP Edward McMillan-Scott

Conservative HQ tightens its grip over candidate selection process

10,000 members quit Labour in one year

Is Cameron an “empty suit”? The view of one American

Jim Pickard

The man who runs the Local Government Pension Scheme has warned that public sector pensions need radical reform to meet critics who believe there is a growing “pensions apartheid”.

Bob Holloway, who manages the LGPS, is quoted in Public Servant magazine saying radical options must be considered. These could include:

1] increased employee contributions

2] raised retirement ages

3] public service cuts

4] council tax rises

This is radical stuff to come from a senior DCLG official (*although Holloway disputes parts of the article). His other suggestions – speaking at a conference of Whitehall types – included the idea of higher and lower membership bands. This could mean those earning £75,000-plus could have to pay higher contributions.

“The LGPS is under threat, something has to happen – things may even happen before a general election,” he said. “There will need to be something more major than a sticking plaster. Unfortunately, people are refusing to die.”

This is surely going to be one of the major battlegrounds before or after the general election. Philip Hammond has warned that it’s unsustainable for 90 per cent of public sector workers to have final salary schemes while only 5 per cent of private sector workers do. Watch this space.

UPDATE

Here is the government’s response:
“No changes have been proposed. There is an informal consultation going on with scheme administrators to gauge views ahead of the next year’s routine three yearly valuation. The Government will continue to make sure the LGPS remains fair, solvent, protected against risk, and affordable to the taxpayer.”

FURTHER UPDATE

* Holloway is disputing that he said points 3 and 4. And someone else who was at the speech confirms this, telling me that Holloway’s main recommendation was the increase in employee contributions.

Jim Pickard

Just perused the Tory accounts for 2008, which came out this morning.

There’s nothing to rival the Labour accounts, which showed a surprise £4m windfall for clawed-back VAT (part of a £6bn-plus payout by the government after a test case 18 months ago).

But there are a few interesting points:

* Donations for 2008 (£16.5m) were slightly down on 2007 (£18.9m) – but still double the Labour figure for £9.5m.

* Lord Ashcroft’s company, Bearwood Corporate services, gave £300,000 (£275,000) and donations in kind of £1.3m (£1.4m)

* The Tory pension fund has a £4.5m shortfall

* Net debt has increased from £4.97m to £5.69m

UPDATE

Should also mention that Lib Dem donations are down – from £1.9m in 2007 to £1.5m in 2008.

Jim Pickard

David Cameron’s use of the word “tw*t” has certainly generated some debate on a quiet news day.

Not sure it quite rivals the John Spellar incident 10 years ago, however, when the then armed forces minister declared: “These cuts must be stopped”. At least that’s what he meant to say. An erroneous “n” crept in to the word “cuts”, giving an entirely different meaning. As Paul Linford points out, the phrase never made it into Hansard but has still become a Commons legend.

Here is the Wikipedia definition of the T word. Its origins lie in Ancient Norse word for “forest clearing.”

Jim Pickard

David Cameron’s Sex Pistols moment as he uses swearword on live radio

Labour under fire for playing field sell-off

Opinion Poll in the Indie puts the Tories in line for a landslide

Geoffrey Wheatcroft doesn’t seem to like David Cameron. To put it mildly.

Jim Pickard

The new Speaker has let it be known that he will investigate the fact that MPs can claim the new £25 a day subsistence allowance without receipts. John Bercow will hold a meeting with the members estimate committee next week to raise the issue. “He is conscious of public concern,” says a spokeswoman.

This morning I suggested that the idea of MPs each claiming £9k from the subsidy seemed a tad far-fetched.

The MEC has gone through the books and says “fewer than half of members have so far claimed the subsistence allowance and of those that have claimed for the first quarter of this (financial) year the average claim amounts to 8 days a month.”

Jim Pickard

MPs have given themselves a new £25 “subsistence rate” for any night spent away from their main residence. This fact had passed most people by until the Telegraph’s splash today.

Most controversial will be the fact that MPs won’t need any receipts for this subsidy, for all the talk in recent weeks of the need for total transparency. Bear in mind that MPs made a big deal about the fact that “all” claims from zero upwards would now need receipts.

Yet MPs are furious about some of the claims in the article. Nick Harvey, the Liberal Democrat MP – and formerly on the “members estimate committee” – has made counter-claims on several key points.

1] The Telegraph says this decision was “drawn up in secret” and “published discreetly” on July 13.

Harvey says that the allowance was in the revised “Green Book” of parliamentary expenses, published in March (five months ago). July saw a further revision of the Green Book but this was already in the text. Dizzy has already spotted this.

2] In the hours after Michael Martin’s resignation, the departing Speaker and Harriet Harman both made statements setting out new rules governing the additional cost allowance. The Telegraph claims that neither mentioned overnight subsistence.

Harvey says this is not true. According to Hansard for May 19, Mr Martin said at 7.31 pm: “The following only should be claimable: rent, including ground rent, hotel accommodation, overnight subsistence, mortgage interest, council tax, service charges, utility bills (etc)”

Arguably Martin could have been more specific that the overnight subsistence would not require any proof of spending, however.

3] The Telegraph claims that MPs could claim £9,125 a year without any receipts whatsoever.

Harvey points out that this would mean claiming for all 365 days of the year. By definition, however, MPs can only classify a building as their main residence if they spend more than half of their time there. This implies that it would be impossible to claim much more than £4,600 of the subsistence allowance without breaching the rules. After all, it would be paper proof that the “main residence” was nothing of the kind.

4] The Telegraph claims that John Bercow has “done nothing” to prevent the new payment.

Harvey points out that this was all agreed long before Bercow became Speaker. He adds that it was suggested by the National Audit Office – Whitehall’s auditors – as a more acceptable arrangement than the former £400 a month “food” allowance which involved no receipts. Originally the subsidy was suggested by the members estimate committee in July 2008 (over a year ago) at £30. It was revised downwards after it emerged that the Whitehall norm for civil servants is £25.

*

Leaving aside Mr Harvey’s protestations, however, this is still a valid story. As the Telegraph points out, Harman had specifically promised “there would need to be receipts for all claims“. Alan Duncan described as “unacceptable” that the second home allowance was paid out without receipts. Harvey told me it was wrong to expect MPs to keep receipts for newspapers and orange juices acquired “between Paddington and Westminster”. But we were told that the expenses threshold had been brought down to zero.

You would have thought that MPs’ reputations couldn’t fall much further, but perhaps not.

Jim Pickard

There has been low-level speculation for ages that George Osborne may not necessarily end up as chancellor of the exchequer, an idea rubbished by senior Tory officials.

It is in the spirit of mischief-making that someone has passed me the fringe agenda for the Tory conference in October.

Some of the most senior Tories will speak alone: William Hague, Ken Clarke, Alan Duncan. Others are in pairs; “Villiers and Shapps”, “Grieve and Grayling”, “Clark and Herbert”, “Willetts and Miller”.

A Tuesday session on the economy features an appearance by “Hammond and Osborne“. Shouldn’t that be the other way around?

Jim Pickard

Lord Mandelson recently batted away the prospect of his becoming Labour leader by pointing out that he couldn’t leave the House of Lords. (I am trapped. I believe it is for life.”) . Since then, of course, the legislation has been changed – co-incidentally they say – for peers to become commoners again.

But who would want Mandy as prime minister, for all his manifold strengths?

Step forward Peter Slowe, recently re-appointed as chairman of the Labour Finance and Industry Group – which contains 300 business supporters.

Mr Slowe told the Scotsman this morning: “(Lord] Mandelson is the only one in the Labour ranks who could realistically take on the Tories and win.” Slowe is an arch-Blairite who first led the Labour Finance group in the 1990s.

The Herald has a similar story, with Slowe quoted as saying Mandelson had the “clout, intellect and charisma” to take on the Tories.

Not sure that the appointment would go down well among the Campaign group or other left-wing corners of Labour.

Jim Pickard

The Conservative candidate, Chloe Smith has won 13,591 votes – a concrete majority of 7,348.

The Tories will be more than relieved: delighted in fact. I’m not sure anyone really expected such a thumping victory.

Labour escaped the indignity of coming third. But its 6,243 votes – less than half of the Tories – will depress activists and MPs alike.

The figure is barely ahead of the Lib Dems (4,809) and Ukip (4,068).

Here is my full news story.

Paul Richards, former special adviser to Hazel Blears, compares Labour to the Black Knight in Monty Python and the Holy Grail:

“When Labour lost in Crewe in May last year, with a 7,000 Labour majority turning into a 6,000 Tory majority, we shouted ‘’tis but a scratch.’ When we lost Glasgow East in July last year with a drop of 19 percentage points, we said it was just a flesh wound. But Labour can’t keep on hopping on one leg after the loss of Norwich North. It might be that Labour voters in Scotland, the north of England, and now East Anglia, who deserted us in their thousands when given the opportunity in a real election, are trying to tell us something.”

UPDATE

Ben Bradshaw, culture secretary, claimed the result was not as bad as the loss of Crewe & Nantwich last year.

Maybe. But the swing of 16.5 per cent was pretty close to the Crewe swing of 17.6 per cent.

FURTHER UPDATE

Curiously, Ms Smith received about 2,000 fewer votes than the Tory candidate in 2005. So it’s not all smooth sailing for the Tories.

Then again, Ian Gibson got 21,097 votest in 2005. Ostrowski must be feeling very, very sore.

Jim Pickard

It seems likely that a Labour defeat in Norwich North would stimulate renewed talk of a plot against Gordon Brown. No doubt some of the serial Gordon-haters will revive speculation of a leadership challenge.

But if June’s uprising – with numerous ministerial resignations – couldn’t dislodge the prime minister, what would it take? Short of a Lord Mandelson “Brutus” moment it’s hard to picture a successful coup any time soon.

Several of the rebellious MPs from last month have told me in private that they are now reconciled to Brown leading the party into the next general election.

One to speak out in public is Paul Farrelly, who criticised the PM on the morning of James Purnell’s resignation. Now he is in a more conciliatory mood.

He tells me he was “severely provoked” by the “coterie” around Brown. You may remember that he was among about five MPs named by Nick Brown, chief whip, as rebel leaders.

Farrelly now hopes that the European elections – and tomorrow’s likely Norwich defeat – will be remembered as the “low point” of Labour’s fortunes.

The MP for Newcastle-under-Lyme told me the prime minister had made welcome overtures to backbenchers in recent weeks.

“If this (rebellion) comes up again at conference there will be ennui and boredom about it that actually it is being done in a mechanical way just because it can be, rather than for any reason.”

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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