Tag Archives: Labour

This week’s media

It’s been  a short week, but here are a few articles worth reading if you missed them:

FT:Labour urged to court business

Former Labour Cabinet minster, Alan Milburn, has risked stoking tensions between New Labour-ites and Milibandists, by calling on the party to “embrace an avowedly pro-business agenda.” In a Financial Times article, he says that there are encouraging signs that the Labour leadership is trying to rebuild bridges with business, but they need to go “further and faster”. Ideas he suggests include supporting a Heathrow third runway, HS2, being tough on public expenditure, while using public funding to support high-tech innovation. A Labour insider, dismissing Milburn, said: “We’re not going to get into a game with the Tories where they get a load of business people to write a letter to The Times and we try to match it.”

The Times:Shale gas can help to prevent global warming

A report by the United Nations’Intergovernmental Panel on Climate Change (IPCC), says that shale gas can help the world avoid climate change, but only if it displaced coal. IPCC report co-chairman, Professor Ottmar Edenhofer said: “The shale gas revolution…can be very consistent with low-carbon development…Gas can be very helpful as a bridge technology.” However, as regards the UK, IPPC report member, UCL Professor Jim Skea said that exploiting the UK’s shale gas reserves would not reduce its emissions, as it would simply displace imported gas.

The Guardian:The shirt on your back: the human cost of the Bangladeshi garment industry

One year on from the Rana Plaza disaster, which killed more than 1,130 people, The Guardian traces, in video, words and pictures, the life cycle of cheap garments from Dhaka to the West. The video illustrates, for the duration of your progress through the feature, how much a worker will have earned and how much the industry will have sold in the UK – take a guess before you start. Although the Bangladesh Accord is not mentioned, workers, trade unions, clothing companies and NGOs are now looking to it to make a difference.

This week’s media picks worth a read

We found these articles worth reading, you might too depending on your interests.

FT: Criticism of energy groups overshadows good news in [wind] sector

The changing view of the “big six” energy companies is symbolized by a recent Mirror front page headline that showed Centrica CEO, Sam Laidlaw as the “blackout blackmailer”. Commons energy select committee chairman, Tim Yeo, cannot remember energy being such a high-profile issue in his 30 years as MP. The CMA referral and the Tories proposed block on onshore wind farms have exacerbated fear in the sector. But Siemens’ Yorkshire wind turbine factory and the investment push by Dong, Statoil, Statkraft and Vattenfall show that “the big six are not the only game in town.”

FT:Labour vows to spread wealth away from London

In a little-noticed speech Ed Miliband confirmed Labour’s move away from the old regional development agencies as a means of generating growth in the English regions. Instead, the new local enterprise partnerships (LEPs) would be retained and the focus would be on cities, city-regions and partnerships of councils.

The Guardian:Government contractors begin to realise public trust is an end in itself
Jim Bligh, head of public services at the CBI, writes that the private sector is starting to recognise that building public trust is a worthy end in itself. The risks of not being transparent – of hiding behind bureaucracy or commercial confidentiality – far outweigh the risks of the alternative. Transparency ultimately shines a light on good performance and bad performance alike, which means that it can greatly improve the competitive dynamic. The losers will be companies and public bodies which simply aren’t performing well enough.

The New Yorker: Heartbleed: an example of ungovernability

You may not yet have heard of Heartbleed, the latest cyber-threat, but you are probably already a victim of it. The New Yorker reports on why one respected cryptography expert describes the threat of Heartbleed as 11 on a scale of one to ten. Was it on the Government’s cyber-crime radar? And even if it was, what can one Government do to tackle what is a global threat?

The Independent: Over here for the beer

A bevy of brewers is increasingly flocking to London from overseas. Discover why the English beer regulations make the capital the place to be for German and US brewers thirsty for innovation

The Independent: Erdogan: from model strongman to tinpot dictator

The Turkish premier’s decline into authoritarianism has dangerous geopolitical consequences.

This week’s media selection: London advances on digital, retreats on financial; Budget politics; “clicktivism”

Evening Standard: Tech City boss: Britain can now follow London’s success

The new CEO of London’s Tech City, Gerard Grech, said that Britain can now cement its place as a global player in digital technology and entrepreneurial industries. Tech City has grown from 200 digital companies at launch in 2010, to 1,300 today. Grech will work on the “four Ps”; policy, partnerships, promotion and programmes, and will relay entrepreneurs’ concerns to government.

The Independent: New York replaces London as financial capital of the world

New York has over taken London as the world’s leading financial centre as the City’s reputation has been hurt by banking and market scandals, uncertainty over EU membership and the referendum on Scottish independence.

The Times: Osborne’s Budget gives the Tories new hope

Former Conservative Home editor, Tim Montgomerie, argues that while George Osborne may not have conquered Britain’s economic challenges he offers the best policies.

FT: Tories should not expect an election dividend

In contrast to Tim Montgomerie, University of Essex professor of government, Anthony King, argues that voters are more impressed by the squeeze on their real incomes than by Osborne’s triumphalist rhetoric. What makes matters worse, is the electoral system, which requires the Tories to be at least 11 points ahead in order to win a majority.

FT: Web activists tear down corporate walls

Large corporations are being forced into climbdowns by partly by social media and “clicktivism”. Twitter and Facebook are turbocharging critical messages as never before, making it harder than ever for companies to control the terms of public discourse. Companies are being dragged into a new world of “private politics”, which is led by activists, not government. This is forcing them into positions on issues that are only tangentially related to their businesses.

This week’s media picks

From a selection of media stories: Labour gives itself a little bit more definition. Do senior Tories think they will fail to win the next election? Here comes the Budget…

FT: Political risk rises high up the agenda in boardrooms

Business leaders are feeling under pressure on a range of political/policy issues, eg energy prices, immigration, Scottish independence, EU membership, the “debacle” over airport development, or the “complete failure to deal with planning”. As one FTSE chairman put it: “It is so difficult to know whether the rhetoric is reality.” (A perennial problem when it comes to politics.)

FT: City on alert for Labour’s political reckoning

Recent bank bonuses seem to have emboldened shadow chancellor, Ed Balls, to tolerate, or is that, promise, a bank bonus tax. Labour is hoping to raise up to £2 billion, which would be used to fund its job guarantee for the young jobless. This may harm Labour’s business credentials, but will it be a vote winner?

FT: Ed Miliband: Europe needs reform but Britain belongs at its heart

In a further attempt this week by Labour to define its political positioning, its leader, Ed Miliband outlined his stance on the EU. He committed Labour to holding an in-out referendum, were there to be a further transfer of powers from the UK to the EU, something which is unlikely in the next Parliament. He conceded that the EU’s reputation is at a low ebb, and that “if Britain’s future in Europe is to be secured, Europe needs to work better for Britain.” To this end, a Labour government would seek tougher EU rules on immigration and foreign benefits claimants.

Guardian: Have Boris, Gove and Osborne written off the 2015 election?

Conservative Home editor, and former Tory MP, Paul Goodman, argues that the outbreak of infighting among senior Tories over the future leadership of the party betrays a lack of confidence in David Cameron’s ability to pull off a majority election win in 2015. By contrast, whatever the views of senior Labour politicians on Ed Miliband’s leadership, they are doing a good job at keeping them private. The more that Conservatives ventilate their problems publicly, the more likely that they will help Ed Miliband win.

 

Daily Telegraph: Budget 2014 announcement: What to expect

George Osborne will deliver the 2014 Budget at 12.30 Wednesday March 19. Here are some of the things to look out for, not that any of this has been pre-briefed, of course…

Chancellor confirms nothing new under The Sun

On Wednesday, the Chancellor of the ExchequerGeorge Osborne, fulfilled his constitutional duty by confirming the past few weeks’ media speculation on what changes there should be to tax rates and allowances and how they would be funded. This is known as The Budget.

Each year beginning in early March, we avidly read the papers to see what lies in store for us and on Budget day, the Chancellor confirms that he has read them too.

Of course, Chancellors always mange to pull some rabbits out of the hat and catch us by surprise with a gleeful “tah-dah!” Although pensioners might be thinking that the freezing of their tax allowance looks more like a poisonous snake than a fluffy white rabbit. If this group of voters were less steadfast in their voting allegiances, it might have more of ta-ta effect. The self-same well-briefed papers seem to think so and have branded it straight away as “Granny Tax”.

Pre-briefing (or spinning, if you prefer) of the Budget is not new. We can speculate how hard Charlie WhelanEd Balls and Alastair Campbell worked in advance of Budgets to secure the headlines they wanted. And this year’s process has been amplified by the dynamics of coalition politics. The well-informed press speculation has partly been a reflection of the internal negotiation between Conservative and Lib Dem ministers on what should be in the Budget and each party’s determination to show that they managed to put their stamp on the final package.

Speculation on the content of Budgets is not new and has always been driven by a combination of journalistic competition, political gossip and in recent decades, by politicians’ determined efforts to “manage” the media’s coverage.

It doesn’t always work, of course, and according to the Chancellor, the reason he is getting such bad headlines on the “Granny Tax” is because it was “the bit of news people didn’t have”. Shadow Treasury minister, Chris Leslie has said that the leaks were a “serious breach” and an “insult” to Parliament.

Chris Leslie’s criticism won’t hurt George Osborne, but as a mark of how far the conduct of politics has changed, just look at what happened to Labour’s first post-war Chancellor, Hugh Dalton, as described in meticulous detail in the late Ben Pimlott’s masterful biography of him.

As Dalton passed through central lobby on his way to deliver his 1947 Budget, he whispered a few of the budget details to a journalist on the Star, a London evening paper. The grateful recipient was able to phone through to his news desk just in time to catch the old Stop Press or “fudge” section of the paper before the presses started rolling. A few thousand copies ran with the line on gambling: “There will also be a tax on dogs and football pools, but not on horse racing.” Minutes later, the sub-editors removed the “will” and toned it down to “Also likely to be…”

The offending tip off appeared on the streets just 20 minutes before Dalton actually spoke in no more than 260 copies that were sold on Fleet Street, Middle Temple Lane and at a bus stop near Aldwych. Competing newspapers noticed it, brought it to the attention of suitably outraged opposition MPs, and an urgent Commons question was tabled the next day. Dalton defended himself as best he could but tendered his resignation that evening, as he believed that “one must always own up”.

Prime Minister Clement Attlee, possibly for a variety of reasons, accepted Dalton’s resignation, but stressed that “the principle of the inviolability of the Budget is of the highest importance and the discretion of the Chancellor of the Exchequer […] must be beyond question”.

The days of the inviolability of the Budget are long gone, but that can also mean that Chancellors’ “tah-dah!” moments are not always of their own planning.

Boris throws a FIT

David Cameron must getting used to being sniped at by erstwhile allies. His Liberal Democrat coalition partners have made regular show of objecting to their own government’s plans on the NHS, tuition fees, repatriation of powers from the EU.

I suppose that comes with being in coalition. The junior partner will genuinely take a different view in some policy areas. It will also be looking to the next election and will feel the need to do something to preserve its vote. What better way than to set position yourself against particular policies, particularly if they are controversial.

This has also been Boris Johnson’s approach, almost since the moment he was first chosen as the Conservative Party candidate for London Mayor in September 2007. David Cameron, his nominal leader, acknowledged this when he launched his first mayoral election campaign, saying: “I don’t always agree with him, but I respect the fact that he’s absolutely his own man.”

Whether it was suggesting a one-off amnesty for illegal immigrants or proposing a new airport in the Thames estuary to replace Heathrow, Johnson has frequently pursued his own unique policy lines. Some issues, like the future of Heathrow are a legitimate concern of the Mayor. Others, like the UK’s approach to the EU are, to say the least, stretching it a bit.

This week, he has been at it again. In a letter to the Chancellor that somehow found its way into the press, he threw a hissy fit (or is that a hissy FIT?) and attacked the Government’s decision to halve the feed-in tariff (FIT) for solar photovoltaic electricity. He argued that this will “slowly suffocate the growth that this policy has so far encouraged.” In his letter, he writes that “While the government will argue that the costs of solar panels have reduced, the costs of inverters, stands and labour have not.”

Boris Johnson’s intervention comes on the eve of a Labour Party opposition day debate on support for the solar industry in the Commons on Wednesday and a mass rally in Parliament today. Ministers will come under pressure to justify the cuts to FITs. The solar power sector will find some relief that such a senior figure in the Conservative Party is taking its side and not just the Labour opposition.

Of course, Johnson is facing London’s voters in just over five months, and is looking for ways to portray himself as not the Government’s candidate. It will be tempting to take a cynical view Johnson’s support for solar power subsidy, but right now the industry needs all the support it can find.

Johnson may also be looking to elections much further in the future that would give him power over more than just bendy buses and pay-as-you-go bicycles. The trick for the industry is to keep his support over the long-term, that is, if it survives that long.

Justice is justice, whatever the political climate

One of the Altitude directors recently came across the Labour Party’s 1990 policy programme and searched for the party’s policy on Cyprus:

“Labour believes that Turkish troops must withdraw from the island and that Cyprus should be reunited on a federal basis which restores the unity of the island with full safeguards for the Turkish minority.

“A Labour government, as one of the guarantor powers, will use its influence at the United Nations and elsewhere to help bring this about. Meanwhile, Britain should not agree to Turkish membership of the European Community.”

An easy bit of internet searching brought up the Conservative manifesto pledge on Cyprus from 1992, which reads:

“We seek a solution to the dispute which has divided Cyprus since 1974. A settlement must recognise that Cyprus is indivisible and that the rights of both communities must be assured. We will support the UN’s efforts to secure a fair and lasting solution.”

Of course, we now view things in the context of a world changed by the horrors of 11 September 2001 but should our principles as an international force really have changed so much to have diluted these stances down to what is now essentially a state of political ambivalence on Cyprus?

I think not. Justice is justice, and we should seek to impose it constantly and without wavering. Tell your MP.

X Factor politics, Hammer Horror policies

I attended a Conservative Party business event this morning, addressed by David Cameron. It was billed as Supporting Small Business and Building the Big Society. Unfortunately, the clamour from the media throng for his answer to the X Factor-like surge from the Liberal Democrats, meant that there was precious little space for him to say much about business.

But beyond the brouhaha surrounding National Insurance Contributions, you will learn little from the media on what each of the parties are offering business. The curse of reality TV politics, is that there is now even less space for policy debate in any area, let alone on business issues.

True, David Cameron did mention cutting Corporation Tax and exempting new businesses from paying National Insurance on the first 10 new jobs. But it was hard to get away from hung parliaments and attitudes to Nick Clegg.

Each of the parties has dedicated sections in their manifestos and websites on policies for business. The Conservatives will reduce red tape and form filling, simplify business taxes and make rates relief automatic for small business. Labour’s proposals include cutting regulatory costs, doubling the capital gains allowable under Entrepreneur’s Relief and temporarily increasing small business rate relief. Like the two main parties, the Liberal Democrats say that they will remove unnecessary regulations. They will also establish local enterprise funds, stimulate bank lending to business and part-privatise the Royal Mail.

As with manifestos as a whole, the wording can often be couched in such general terms that the promises can, sometimes, mean anything to anyone. People running businesses will make their own judgements on which party they would prefer in power. But regardless of which party wins, scrutinising manifestos will not be enough for business to ensure that the new Government implements policies that enable them to flourish. Businesses, whether individually or through trade associations, will need to engage with policy makers as soon as possible after the election. The purpose is not just to anticipate policy but to try and shape it before it is finalised.

Forecasting the election result has now got a lot more complicated. We may even be facing the prospect of a hung Parliament, with either a minority Government or a coalition. In these circumstances, and especially in the latter, manifestos go out the window to be replaced by policy programmes based on political horse-trading.

Businesses, as well as the financial markets, don’t like uncertainty. But post-election uncertainty is also an opportunity for business to exert its influence on future policy. But they must engage proactively with policy makers, be they ministers, advisers or officials if they want to see a policy mix that enables British business to thrive and expand. Failure to do so could result in the X Factor politics being generated by the leaders’ television debates, producing a Hammer Horror for business.

Cadbury’s Law is a fruit and nut case

“There’s no difference between any of them” is, we’re often told, how electors view the political parties. But ever since the days of “Butskellism” there have been more similarities than differences between the parties.

And while there is not a revolutionary gulf between the 2010 election Labour manifesto and Conservative manifesto, there are some clear differences. One significant difference for business interests is on takeovers.

Labour holds that many takeovers are good for neither predator nor prey and that the system needs reform. By contrast the word “takeover” doesn’t even appear in the Conservative manifesto.

Labour is playing to the gallery, substantially orchestrated by the Unite trade union’s anger over Kraft’s hostile takeover of Cadbury. Labour wants to introduce a higher threshold of support among shareholders to agree a takeover; increasing it from a half to two thirds. It also says that the case for limiting the right to vote to those on the register before a bid “should be examined”.

Speaking for the Conservatives, Shadow Business Secretary, Ken Clarke dismissed these proposals as “populist nonsense” and vowed to adopt a “hands off” approach to business.

Labour is clearly throwing a sop to unions, leftwingers and little Englanders, upset about losing control of a British-owned chocolate manufacturer. But it is short on specifics and clearly wants to avoid joining France in regarding the British equivalent of yoghurt makers as a strategic interest of the national economy.

No one is seriously proposing the “Cadbury’s Law” that the unions were looking for. Nevertheless, Labour is more likely to place some restrictions on takeovers, even if they turnout to be a lot weaker than its supporters hope for and that business fears. A two-thirds rule would enable at least some inefficient managements to use minority coalitions of shareholders to protect themselves from proper scrutiny, and dismissal. But it is not in the interests of businesses or the UK economy to enable blocking minorities to protect weak, inefficient or incompetent management.

Earlier this year, the Takeover Panel announced a consultation on the Takeover Code to look at how shareholders decide on the merits of takeovers. Labour’s manifesto partly pre-empts this consultation and should the Conservatives win the election, it may never see the light of day. But the political difficulties that come with some takeovers cannot be wished away.

Most business takeovers run their course without much discussion beyond the City pages of newspapers, but there will be some that run the risk of public controversy and a minority Conservative Government or one with only a small majority could come under political pressure to protect, so-called, vital British interests.

Under such circumstances, whether a takeover bid is accepted or resisted, all parties involved will need to explain proactively to all stakeholders, the case for or against a bid. Whoever forms the next Government will not thank the combatants in takeover battles for dragging them into political controversy. If that happens, they may yet find the Takeover Panel stepping into the ring to call time out.

Manifesto makes a point

The Labour, Conservative and Liberal Democrat manifestos will be published next week. These will provide an invaluable resource for insomniacs and political anoraks around the country, as well as giving us an insight into the likely policy priorities of the next Government.

Manifestos are necessarily limited in what they cover, with the infamous exception of Labour’s 1983 offering, “the longest suicide note in history”. They are usually confined to broad policy statements and worded with enough ambiguity to allow future ministers a liberal interpretation of what exactly are their commitments.

But elections also provide an opportunity for outside interests to enter the policy debate. That’s why the run-up to the General Election has seen various businesses and campaign organisations put forward their own manifestos, visions and policy demands.

One valuable contribution comes from vaccine manufacturer, Sanofi Pasteur MSD’s manifesto, Putting vaccines at the heart of health care. It calls for a full-scale review of vaccination policy to give it a more central role in the provision of health care.

In his first speech as Health Secretary in June 2009, Andy Burnham said that prevention is a “long-term insurance policy against spending challenges”. The focus, however, has been on attempting to change life-style choices. No one is arguing against this, but if policy makers want to enhance prevention, then greater importance should be given to vaccination, which is a far more effective means of preventing ill-health than relying on people to change their eating and drinking habits.

Vaccination can prevent more than 20 infectious diseases and has helped eradicate smallpox. Only the provision of safe water has done more than vaccines to reduce mortality. But too often it is seen as something that is only for children. The NHS Choices website lists 17 vaccines (including next stage doses and boosters) that are offered routinely to “everyone” in the UK. Yet only two, flu and pneumonia, are for adults.

Our immune systems decline with age, which leads to more frequent and more severe infections. And with the over-60s population predicted to increase by 160% between 1999 and 2050, increasing infections in the older population will increase the burden on the NHS.

That’s why Sanofi’s manifesto echoes the calls of European health academics for a “life course” approach to vaccination. Vaccination programmes should start from 50 years of age, before age-related decline in the immune system begins. The recent approval by the Joint Committee on Vaccination and Immunisation for a shingles vaccine to be available on the NHS, albeit from the age of 70, is a start. This could help reduce the incidence of this debilitating disease by half, and thereby save the NHS care costs.

Judging by the three-way bun-fight between Andy Burnham and his Conservative and Lib Dem shadows, Andrew Lansley and Norman Lamb on Newsnight yesterday, the election campaign is unlikely to see serious debate on the future of health policy.

Officials and health professionals will read Sanofi’s manifesto with care but will politicians get the point about vaccination? Perhaps when the election is over, they will read other people’s manifestos.