Daily Archives: June 30, 2010

Jim Pickard

Former Tory leader Michael Howard has been on the PM programme criticising Ken Clarke’s new, more liberal stance on prison populations (which is, of course, driven in part by cost-cutting concerns). His concerns are shared by many Conservative MPs.

It’s not long ago since Mr Howard, as Tory leader, accused the Lib Dems of being “soft on crime“. I wonder if he still believes that sentiment?

“If persistent and serious criminals are in prison the public is safe from their activities. And I believe the most important objective of the criminal justice system should be to protect the public.”

“I disagree with him (Clarke)…I think that if you’re dealing with serious and persistent offenders, and it’s those who are the offenders who are sent to prison, by people are intelligent, conscientious judges and magistrates across the country, people like David Cameron’s mother…these judges and magistrates don’t send people to prison without giving the matter a great deal of thought, without having in almost all cases having explored other ways of dealing with these offenders and having come to the conclusion, usually as the last resort, that they have no alternative.”

Jim Pickard

This announcement has been in the pipeline (ahem) for over a month, I’m told. Could it have anything to do with the fact that hiring the former chief executive of BP as a government adviser could be unpopular – given the environmental disaster befalling the Gulf of Mexico?

Lord Browne was a somewhat controversial figure even before BP’s current nightmares.

The Minister for the Cabinet Office, Francis Maude, has announced that Lord Browne of Madingley will become the Government’s lead Non-Executive Director. In this important new role, one of his first tasks will be to work with Secretaries of State to appoint Non-Executive Directors to the board of each government department. He will also work closely with the Minister for the Cabinet Office, Francis Maude, on overhauling how departmental boards are run and improving governance across Whitehall.

Jim Pickard

The Guardian had an eye-catching splash this morning warning that the Budget would “cost 1.3m jobs”. Particularly striking was the premise that more would be lost in the private sector than the public sector over the next five years as a result of cutting the deficit.

Read the story in detail, however, and it also emerges that 2.5m jobs will be created in the private sector in the next five years. The result (even presuming no new public sector jobs): a net increase of 1.2m jobs. This explains how the Office for Budget Responsibility can still predict unemployment to peak this year at 8.1 per cent and then fall to 6.1 per cent in 2015. (You may or may not find this all a little optimistic).

Every year – with or without recession – there is churn” in the workplace. That is, some companies and institutions take on thousands of staff. Others axe posts. Therefore we should not necessarily be quite so alarmed.

As John Philpott, chief executive of the Chartered Institute of Personnel and Development, tell me:

The rule of thumb answer is that in a ‘normal’ (i.e. trend growth) year around 500,000 jobs will be lost (as a result of productivity improvements) to the economy and about 750,000 created, enabling some amount of net job creation.”

Jim Pickard

We never resisted the chance to laugh at Gordon Brown for conjuring up schemes which always promised round-number cash figures, usually of £1bn or £10bn or £100bn. It gave him a certain Dr Evil from Austin Powers quality, as we frequently pointed out.

Therefore it would be unfair not to point out that David Cameron appears to be going down the same path; yesterday the coalition promised a £1bn growth fund for regions hit by public spending cuts.

No matter that the money will probably come from existing budgets including the £1.4bn spent on regional development agencies.

Other recent examples of Cameron’s round figure tendencies include a promise of a £1bn energy smart meter programme; his £1bn plan to help marriage via a tax break; an Olympics-based marketing fund worth…..cue sinister laughter…£1bn.

UPDATE

One Labour frontbencher says the growth fund is ludicrous given that it will come from other budgets being decimated. “Why not set up a new £1bn health fund and dismantle the entire NHS at the same time,” he says. Then again, still a bit early for New Labour to question this kind of double-speak given that they excelled at it.

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.

See the full list of FT blogs.

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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