BIGGEST CHALLENGE YET FOR THE LIB DEMS.

 

THE DISCREDITED CENTRE.

Britain is being run by a Prime Minister constantly looking over her shoulder at hard line Brexiteer Tories who want to not only get us out of the European Union but use the withdrawal legislation to dismantle many elements of social justice.

The Opposition is led by a left wing populist who promises the earth to public sector workers and students and who has skilfully captured the anti-establishment mood. However, a Jeremy Corbyn government combined with Brexit would have a hugely damaging impact on business and the economy.

So where is the centre ground when we need them? I’ll find some of them in Bournemouth this weekend under their new leader Vince Cable. The others may be in Brighton the week after at the Labour conference. You won’t see them on the platform, even Andy Burnham, the newly elected leader of Greater Manchester, is struggling for a slot. The moderate Labour MPs are being made to pay for their treachery against Jeremy Corbyn.

It is difficult for moderates in the Labour Party. They are embarrassed by Corbyn’s “relative” success. And it is relative, it was Labour’s third successive defeat. They have not won a General Election for twelve years. They want the party to oppose Brexit but are worried about breaking promises to the electorate and have a leader who is probably a secret Leaver. Then there is the Blair problem. The most articulate spokesman for their point of view is discredited in too many people’s eyes to get a real hearing.

Both the Labour centre, and the Lib Dems, are also burdened by the legacy of the financial crash of ten years ago. A moderate Labour government was in charge under Gordon Brown when it happened and the Liberal Democrats were part of a Coalition that used austerity to clear up the mess afterwards. The Tories are always expected to be tough on economics but the crash and its aftermath left Labour and the Lib Dems vulnerable to the populist rhetoric of Nigel Farage. He used the European Union as a lightening conductor for people’s mistrust of bankers, the EU and centrist politicians whose wishy-washy politics had let them down.

And yet my gut feeling remains that a majority of the British people, and certainly business, want centre ground politics. Economic realism with a social conscience and if we can sort immigration out, continued membership of the EU.

The Lib Dems are too weak at the moment for the Labour centre to take them seriously as a partner for a new party. Vince Cable’s task this weekend in Bournemouth is to show that they have a strategy to win back seats and be open to the idea of a new centre party that can offer an alternative to Brexiteer Toryism of hard left socialism.

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TRUMP DYNASTY OR QUICK EXIT ?

 

IMPEACH AT YOUR PERIL.

After the latest act in the extraordinary pantomime that is the Trump presidency, some are concluding that The Donald’s impeachment is just around the corner. I think they are wrong and if by any chance there were right, moves to remove the President, America could face widespread social unrest.

“It’s the economy, stupid”, was the quote hung on the Clinton campaign HQ in 1992 to keep everyone focused on what mattered. It is the same today. It is easy to get distracted by the comings and goings from the White House, but the American economy is doing well under Trump. The Dow Jones Index is at record levels, more jobs are being created, business confidence is high and growth for the year is predicted to be 6%.

Trump’s supporters in middle America either don’t care about the Russia scandal or see it as the liberal elite trying to get their hero. They voted in anger for Trump last autumn and would likely take to the streets if impeachment proceedings were started. That eventuality is unlikely anyway because both Houses of Congress are controlled by the Republicans. They are going to take some persuading to turn on their President despite his past strained relations with the party’s establishment.

So where does the Trump dynasty come from? I merely want us to think more widely about what might happen in America. It remains possible that the multiple investigations into the Russia business turn up some smoking guns that finish Trump or that his erratic behaviour becomes intolerable. It is also possible that the new Chief of Staff, John Kelly, will get a handle on the dysfunctional White House, Trump will quieten down and if the economy remains in decent shape, he could win a second term. After all there is no obvious Democratic Party challenger. Three women are being spoken of; Massachusetts Senator Elizabeth Warren, Michelle Obama (my choice) and Oprah Winfrey. Trump versus Winfrey would be a colourful race!

If The Donald successfully serves two terms, watch out for his daughter Ivanka who has far more political skill than her father. There, I’ve given you a scenario where Trumps could be in the White House till 2033. What a nightmare, no its goin’ to be great, goin’ to be great!

LABOUR CHALLENGE ON EUROPE.

The excellent people at the British Election Study based at Manchester University have just published their analysis of June’s General Election. One of the most striking findings was that Labour picked up substantial support from Remain voters. This despite the fact that the party’s position on Europe was, and still is, opaque and the leader Jeremy Corbyn has always resented the EU rules that prevent state intervention to protect failing industries unfairly. Despite also the clear offer from the Lib Dems of a second referendum

The vagueness is skilful politics to try to keep on board northern Labour voters worried about immigration and southern ones who want either a soft Brexit or none. On the latter point, a recent survey funded by the Economic and Social Research Council called the Party Members Project showed a majority of Labour members now want a vote on the final EU package. Jeremy Corbyn should be pressed to move to this position. If he refuses he will be exposed for the anti-EU politician he has always been.

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WILL CHANCELLOR HOLD HIS NERVE ON PAY?

 

LISTEN TO THE GREY BEARDS.

The minority Labour governments of the late 1970s were plagued with disputes with the unions over public sector pay. This Tory minority administration is facing the same problem. It seems that those who want to spend money the nation hasn’t got can sense the weakness and put pressure on the politicians.

I don’t envy Philip Hammond. It is an open secret Mrs May wanted to sack him. Now he is being publicly undermined by flaky Cabinet Ministers hinting that they favour easing up on austerity for nurses and council staff. One would expect the Health Secretary Jeremy Hunt to be in favour of higher pay for NHS staff, but other ministers who’ve sought to pull the rug out from under the Chancellor include right wingers like Defence Secretary Michael Fallon and Transport Secretary Chris Grayling.

Those coming to the aid of Spreadsheet Phil are largely from the elder statesmen category. They include former Chancellors Norman “je regrette rien” Lamont and Ken Clarke. They know what they are talking about but don’t need the assistance of Call Me Dave. The ex-Prime Minister David Cameron’s demand for pay restraint whilst picking up a tidy sum for a speech in Seoul was unconvincing to say the least.

So, let’s consider what the former Tory Chancellors say. They point to the continuing deficit and to the fact that increasing public sector pay even by an extra 1% is very costly. They also have their eye on the politics. Cabinet Ministers calling for an easing of the purse strings are panicking in the presence of Jeremy Money Tree Corbyn. The Labour leader has skilfully captured the public mood for a splurge after years of austerity. But he’s at least 60 seats short of ever being able to do anything about it. Jez we can. Now we can’t. Lest we forget the Tories remain in power.

What will happen if Phil gives in to the pay review bodies who will now all recommend hefty increases? The Tories will avoid some criticism for being stony hearted but could lose their reputation for economic stability.

Public sector workers are suffering from rising inflation and economic uncertainty, both caused by Brexit which brings me to my second topic….

LABOUR EURO REBELS MAY BE DOOMED.

Seven North West Labour MPs defied the whip last week to support our continued membership of the Single Market. They were Luciana Berger (Wavertree), Ann Coffey (Stockport), Maria Eagle (Garston), Louise Ellman (Riverside), Kate Green (Stretford), Alison McGovern (Wirral South) and Barrow’s John Woodcock.

They moved too soon. They made themselves vulnerable to the charge that they had reopened the split between Corbyn and the Parliamentary Party in the hour of Labour’s election success. But more importantly they needed to wait till public opinion swings more clearly in favour of having second thoughts about the whole Brexit project.

What they have done is expose the euro sceptic credentials of Jeremy Corbyn. Sacking members of his shadow ministerial team for their pro-European views is far more honest than last year when he masqueraded as a Remainer heading Labour’s half-hearted campaign to stay in the EU.

The problem for the North West Seven and the forty other colleagues who rebelled is that they are in a party whose formal position on leaving the Single Market is the same as the Tories. All the stuff about a jobs led strategy and staying as close to Europe as possible is for the birds.

We need an opposition party that wants to stop the Brexit madness. I’m having lunch with Vince The Cable next Tuesday and I’ll tell you what he thinks in my next blog here.

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LAUGHING STOCK OF EUROPE.

 

THE WRECKERS: CAMERON AND MAY

 

David Cameron and Theresa May have reduced this country to a laughing stock in Europe. From being a leading member of an organisation of 500 million people, we are now reduced to being a disorganised beggar pleading for reasonable terms to leave.

Cameron called the referendum for narrow party advantage to fend off UKIP. May invented fictional opposition to her Brexit strategy to call an election when we all knew it was about hammering a Corbyn led Labour Party. They should never be forgiven for these actions.

I would like to claim that this result shows that the British people are thinking again about their decision to leave the EU, but voters have turned in greater numbers to Labour, who support Brexit, than the Lib Dems who offered a second referendum.

It is a fluid picture as I write but what sort of UK delegation will turn up in Brussels in a week’s time? The 27 are ready with their terms. What are ours apart from the fatuous mantra mouthed by the discredited May that “Brexit means Brexit”?

I suspect we will hear less insults hurled at our European friends as they present the departure bill and as the extraordinary complexity and difficulty of leaving the EU in these political circumstances become obvious even to Nigel Farage.

AUSTERITY BACKLASH: BUSINESS IMPLICATIONS.

Business was either ignored or threatened with higher taxes by all parties in this election. The fact that we have a huge deficit was also not discussed as we listened to a welter of promises of increased spending by all parties.

Jeremy Corbyn confounded my predictions as he benefited from a backlash against austerity, a poor Tory campaign and a surge of young voters. They were frustrated last year when the old took away their future in Europe and were determined to have a say this time.

But amid the Corbyn euphoria let us remember this is Labour’s third election defeat. They are still well behind the Conservatives in number of seats. Corbyn is claiming that he has reframed British politics. He means that there is an appetite for a high tax, big spending unilateralist government. I don’t believe it. This may be the maximum vote a fully socialist manifesto can achieve but Labour moderates are now trapped with Jeremy Corbyn as leader.

The net result is uncertainty at Westminster and uncertainty in the Brexit talks. The Confederation of British Industry chief, Carolyn Fairburn, said she was stunned.

LIB DEMS AND SNP.

The Lib Dems are in slow recovery. Tim Farron failed to sell the second referendum effectively and lacked the gravitas required. Vince The Cable is back in the Commons and should become leader.

One certainty in an uncertain world is that Scotland will remain in the UK. I’m a big admirer of Nicola Sturgeon but she misread the Scots appetite for a second referendum

“NOT ANOTHER ONE”!

I recall the famous Bristol lady’s reaction to May’s calling of this snap election as I wonder what her reaction would be to another General Election in the autumn.

There is already talk of another poll to achieve a government with an overall majority. I think that would be very unpopular with people who in various parts of the UK have been voting continuously since 2014.

Also let us remember 1974. The voters delivered a hung parliament in February and changed their mind very little in October when they gave Labour a majority of three. We have to try and make this awkward result work.

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