Monthly Archives: November 2009

Jim Pickard

The mistake of the last Speaker, Michael Martin, was to refuse to recognise the head of steam building up over MPs expenses.

The new one isn’t going to repeat that error. John Bercow – currently speaking to the Hansard Society about the need for reform post-Expensesgate – is bending over backwards to convince that he is a reformer.

“I cannot think of a single year in the recent history of Parliament when more damage has been done to it than this year, with the possible exception of when Nazi bombs fell on the chamber in 1941,” he says in his speech.

“We have to make it crystal clear that we will dynamite the past arrangements, practices and, crucially, cultures that allowed the expenses disaster to take place and will do so with as much vigour as Guy Fawkes intended to apply here in 1605.”

But what kind of changes is Bercow in a position to implement? His ideas include a more open Parliament (in terms of external visitors), a new education centre for Westminster, more engagement with universities, getting the public to chip in to select committee inquiries.

He will also set up a “Speaker’s Advisory Council on Public Engagement” featuring external figures with “stellar careers”. Bercow will name the chairman of the group shortly.

“It will doubtless be denounced in some quarters as public relations and not what it really is, public engagement,” he will say this evening.

I’ll leave you to judge whether this “outreach agenda” is enough to remove the taint of the expenses revelations. Personally I suspect that the departure of several hundred MPs next summer may have more of an obvious “cleansing” effect.

Jim Pickard

Some bemusement around here about the new figure of 10,000 British troops in Afghanistan.

The old figure was 9,000, and we are sending another 500. Now Gordon Brown feels the need to reveal the fact that 500 special operatives are at work in the mountain state. The prime minister told the Commons that it was unusual to talk about the activities (of the SAS etc) but he wanted to show the nation’s appreciation.

Or was this just another symptom of Gordon’s love of round numbers? Here is a reminder of some other big figures from the past. And here are some others.

Here is one of my favourites: “750,000″ English teachers for India. And here, Alex recalls the use of round numbers over troop withdrawals from Iraq.

UPDATE

We are told that some members of the SAS are seething over the announcement. “Seething, furious and livid”, is the report from one source with friends in the elite special forces regiment.

Jim Pickard

Tim Yeo unveils portrait of David Cameron

Alex Salmond makes the case for Scottish independence

Michael Spencer ups the pressure on the Tory leadership to promise cuts in business taxes

Is “Building Britain’s Future” a Labour slogan or a Whitehall slogan?

Jim Pickard

I’ve just been pointed to the website for the Richmond Park Tories which lays out recent Conservative policies. Such as….

6. Tax the Super Rich and “non-domiciles”.
The over-seas population, living in this country, would make a financial contribution to it. Tax loopholes for the super rich would be closed by reducing the complexity of the tax system. This will pay for the previous two measures.

It is, of course, hugely embarrassing for the Tories that Zac Goldsmith – candidate in the seat – has emerged as a non-dom, meaning that he does not pay tax on earnings from outside the UK. (Yesterday the 34-year old said he did pay income tax on UK-generated income.)

It is a striking hit for Lord Oakeshott, Lords Treasury spokesman for the Liberal Democrats, who helped unturf the revelations. And it adds to the anti-Tory narrative which depicts the party as lotus-eating, fox-hunting, Bullingdon Club toffs.

So too does David Cameron’s attempt (tongue-in-cheek or otherwise) to persuade Annunziata Rees-Mogg to campaign under the name ‘Nancy Mogg’.

The Lib Dem attack would have more bite, however, if Goldsmith had spoken out against non-doms in this country. Endorsing the Tory policy of charging such residents £25,000 a year does not make him a hypocrite. An analogy: you can drive cars and fly in planes and still accept the need for green taxes.

What would also be awkward is for someone to find a quote from the party leadership castigating non-doms. Are there any out there?

UPDATE

Well yes, it transpires that David Cameron has explicitly said that non-doms “don’t pay sufficient tax in this country” – even if he hasn’t quite derided them as ghastly sponges.

Andrew Neil: If you had known about our financial situation then what you do now would you still have announced a cut in IHT?
David Cameron: Well as I’ve said, the only reason we were able to make that pledge even then and the only reason we are able to stick with it now – and remember it is a pledge for a Parliament – is because we have identified a rich group of people, non-doms who don’t pay sufficient tax in this country, in order to fund that pledge.
Andrew Neil and David Cameron, Daily Politics, 05 October 2009

FURTHER UPDATE

Irony alert. Zac is giving a speech tonight in which he will address the issue of “how do we spend our collective wealth?”

Jim Pickard

The Cabinet Office white paper on “Smarter Government” has been leaked by the Tories over the weekend. It is full of promises to make efficiency savings, move more civil servants out of London, sell public assets and the usual stuff.

It also has the whiff of a document cobbled together at short notice, judging by some of the promises in the draft (published after last week’s cabinet meeting where the strategy was approved).

For example:

“reducing the administrative expenditure of arms-length bodies by at least X% will save up to £Xbn a year”

“modernising working practices and the way we locate the business of government could save X%”

“we will reconfigure/merge (x) arms-length bodies. These are the (DN: to be confirmed by MISC38)

“(Prof X) has been appointed to advise the prime minister and chancellor on the scope for further relocations”

UPDATE

It also turns out that a lot of the “substance” of the document – out tomorrow – is recycled old numbers. £9bn of efficiency savings by 2013/14? In the last Budget. £16bn of asset sales? Several months old. Moving civil servants out of Whitehall? It’s been happening for nearly six years.

Jim Pickard

Fascinating account in the Sunday Times today of tensions between Gordon Brown and his defence secretary, who last week seemed to criticise President Barack Obama for his delay in sending more troops to Afghanistan.

Jonathan Oliver and Isabel Oakeshott write: “MPs claim Ainsworth is privately saying Labour would stand a better chance at the next election if Brown quit No 10 now.”

A spokewoman for the defence secretary denied the story.

But it rings true with an article I did in July revealing that Ainsworth had been widely expected to resign the previous month along with all the other rebel ministers. Instead he accepted a cabinet promotion.

This was what I wrote at the time:

Mr Brown’s premiership was at its most vulnerable in June when he survived the resignations of 11 ministers. Tessa Jowell, Olympics minister, has categorically denied a rumour that she came close to stepping down that month.

Bob Ainsworth, then a junior defence minister, considered resigning at the same time as the others, according to two separate Labour MPs who were involved in the rebellion.

A senior Labour source dismissed these claims as “pre-conference, silly-season mischief and naughtiness”. A spokeswoman for Mr Ainsworth said it was “just rubbish”.

Jim Pickard

It seems that Tory rising star Stephen Greenhalgh has been a little incautious in his choice of words, according to this trade magazine report of his comments at a recent event.

The Hammersmith & Fulham council leader suggested yesterday on a public podium* that some shadow Cabinet members may not have the experience to run the country.

‘My mates are all in the shadow Cabinet, waiting to get those [ministerial] boxes, being terribly excited. I went to university with them, they haven’t run a piss-up in a brewery,’ he said.

‘They’re going to get a department of state, in one case running the finances of the nation.’

Greenhalgh pointed to other countries, such as France and the US, where members of the government had typically served at a regional level earlier in their careers. ‘If you’re going to fail, fail running Alabama, fail running Texas, fail running the city of Paris – don’t just take over the country.’

Greenhalgh has a national role within the Tory party as head of the Conservative Councils Innovation Unit.

It is possible he may dispute the magazine’s report of his words; he’s not picking up the phone and hasn’t replied yet to an email I sent. If so, I’ll let you know.

Greenhalgh has just responded to me by email:

“I was trying to make a serious point about our current political system that I believe does not prepare national politicians of any party adequately for public office. The point if not the same words was echoed by Geoff Mulgan who worked for Blair in No. 10!

I am a passionate localist and believe we need to reinvigorate local government so that it is a nursery for politicians to hone their skills in public administration. At the moment local government has become largely an agency of Whitehall and a political dead end.”

* A round table event run by Public Finance magazine.

Greg Pope, the Blairite MP turned blogger, is distinctly unimpressed with Sir Jeremy Greenstock’s testimony at the Iraq Inquiry today:

It sounded like he’d had a terrible time when he was our man at the United Nations: kept out of the Blair-Bush loop, considered resigning, thought the war lacked legitimacy.

Goodness knows what he’ll have to say about the aftermath of the invasion which most people think was not well handled.

Strangely enough, I visited Iraq in late 2003 and met a Sir Jeremy Greenstock who I think had something to do with running that country at that time. Obviously they can’t be the same person but, I think you’ll agree, it is a remarkable coincidence.

Meow.

But I can’t help but think that Pope’s beef is with the inquiry panel as well. Today’s session was once again distinguished by a series of soft-ball questions, delivered like a looping underarm to a swashbuckling Sachin Tendulkar. Sir Jeremy at times could barely disguise his disdain.

The “inquisitors” seem much more interested in hearing the civil servant’s “perspective” than holding them to account. Little wonder that the hearings have often seemed like a long, uninterupted self-justification. Even without resorting to full cross-examinations, things could have easily been very different. The inquiry has published hardly any Whitehall documents from the period, letting the mandarins have their revenge, largely unchecked.

Jim Pickard

Hopi Sen is not impressed with Philip Blond

Ann Treneman is not impressed with Philip Blond

The Bickerstaffe Record is not impressed with Philip Blond

Jim Pickard

I’ve just emerged from a stuffy Westminster room where Philip Hammond gave another of his “Doing More With Less”-type speeches.

His key point – apart from a new centralised property agency to rent out Whitehall back to the civil servants – was the claim that £60bn could be saved through greater productivity performance.

“Over the first decade of Labour’s rule from 1997 to 2007, according to the ONS, quality adjusted public sector productivity shrank by 3.4 per cent. Over the same period, productivity in the private sector of the economy grew by over 30 per cent.”

The shadow secretary to the Treasury said his team had modelled the savings if the public sector had enjoyed the same productivity savings as the private sector: a “startling” £60bn saving.

It was a journalist from Bloomsberg, Rob Hutton, who made two points which I’m not sure that Mr Hammond properly answered:

1] Productivity improvements in the private sector are misleading because failed companies drop out of the statistics as they go under. As a result, there is “survivor bias” which flatters the overall result.

2] Companies can choose to change what they do if society/markets/tastes change. If old people stop eating Werther’s Originals, for example, the manufacturer can start making a different type of sweet. Providers of prisons or schools don’t have quite the same latitude.

Meanwhile I asked how much of the £60bn would have to come from using fewer civil servants; the answer was as vague as they come.

MacDonald stands before hedge to lecture housewives on currency markets

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Tony Benn tests the amazing swivel chair at Labour HQ

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SuperMac is “united for peace and progress”

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Meet Neil Kinnock

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One woman saves Britain

Jim Pickard

Edward Leigh, chair of the public accounts committee, has written an angry letter to the Chancellor demanding to know why the £61bn loans to HBOS and RBS have only just been made public.

Alex suggested yesterday that the timing of the announcement could be related to an NAO report – out tomorrow imminently – which would have revealed the loan. Leigh has asked Alistair Darling to clarify if this is the case.

Here is the letter

Committee of Public Accounts

25 November 2009
Rt. Hon Alistair Darling MP
Chancellor of the Exchequer

TREASURY INDEMNITY

Thank you for your letter of 23 November informing me that the Treasury granted the Bank an indemnity in October 2008 against losses it might incur in providing emergency support to RBS and HBOS. I followed this up with you in the House today and I must say that I cannot regard your answer as a full and sufficient explanation. I shall therefore await your further advice before deciding how to properly discharge my responsibilities in this situation.

Westminster blog

on the UK political scene

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

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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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