BUDGET EXPOSES BREXIT MADNESS

 

 

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BREXIT WOES.

In his Budget the Chancellor set aside three billion pounds more for the mounting cost of Brexit. Three billion pounds that could have been spent on the NHS (as promised by the Leavers) being put aside for more lawyers and civil servants to deal with the complexity of leaving. Being put aside to build huge car parks at Dover to cope with the hundreds of lorries held up by customs controls. And let us not forget the £40bn exit bill.

But Brexit is hitting us in a far more serious and widespread way. Look at the woeful forecasts for growth and productivity. It is true that these problems pre-date the EU Referendum, but I suggest the dramatic worsening of the forecasts are related to the uncertainties of Brexit and the perception that the UK is cutting itself adrift from the EU, many of whose members are in the Eurozone where the currency has strengthened considerably in the last year.

It is almost too late for the British people to wake up and turn against Brexit. The warnings are there for anyone who wants to see. This week the European Banking Authority and European Medicines Agency were relocated out of the UK. The latter is the most serious and will be a blow to our pharmaceutical industry quite apart from the fact that we will need to create our own expensive drug regulation body. The government should have faced far more criticism for this. They thought the future of these agencies would be part of Brexit bargaining. The arrogance! The ignorance! It was never going to be possible to keep EU bodies like these in a UK outside the EU.

Oh! but we will be playing on the global stage in the future say the Leavers. Is that the stage where the UK has just lost its place on the International Court of Justice?

PHIL SAVES THE DAY.

As I said last week, I respect the Chancellor. In a Cabinet of misfits his calm integrity stands out. After the Budget perhaps all the hysteria of him getting sacked and Theresa not surviving till Christmas will calm down.

This lot are in it for the long run. Locked into the messy Brexit process and tinkering with a weak economy, but still there. After all, where is the threat. Tory Remainer rebels probably lack the courage to torpedo Brexit and the government can always on Labour MPs like Frank Field and Kate Hoey to come to their aid. Meanwhile Shadow Chancellor John McDonnell struggles to convince us that Labour’s programme could be paid for without hugely adding to the National Debt. It pains me to say it, but the Lib Dems under Vince Cable seem to be fading away just when we need a strong party for Europe.

The Chancellor took some action on the immediate issues facing the country. Housing, Universal Benefit and the NHS but he is locked into Tory ideology by not sanctioning local councils to undertake a massive programme of house building. He is also averse to general tax increases, but why? A cross party panel of voters in Bury voted unanimously for such a move on Newsnight after the Chancellor had sat down.

Thank heavens the Chancellor has stuck with the £85,000 limit on VAT, but for how long will micro businesses be spared the bureaucracy of quarterly accounting. The moves on business rates have been generally welcomed but three-year reviews may be a mixed blessing, as will stamp duty relief for first time buyers. Will youngsters benefit or will house prices just rise. Council house building is the answer.

It now seems highly unlikely the Chancellor will be sacked now that he is “Eeyore No More” according to the Mail. So, the government is set to stagger on as the darkening days bring the reality of the consequences of Brexit ever closer.

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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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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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FINAL SURGE TO MAY ?

 

THE LAST LAP.

The Prime Minister didn’t expect it to turn out this way when she called her snap election in April. The campaign was meant to deliver her a majority of 100+ so that she could go and sock it to those arrogant Europeans.

In fact, there has been very little discussion about what sort of deal we might get from the EU negotiations. We can’t get past the slogans of hard and soft Brexit. That’s deliberate as Mrs May wants to go off for two years negotiating with little challenge from a parliament with a thumping Tory majority. Her speech in the North East on Thursday, specifically on Brexit, clarified little.

Unfortunately for her other issues have intruded into the campaign. Tragically terrorism and security came to the fore after the Manchester outrage, but also the future funding of social care. She came a cropper on this issue and there seems to be a lot of support for a general sharing of the cost of care above £72,000.

Then there’s Jeremy Corbyn who has campaigned well with policies that are individually popular. Also, bullying questions from Jeremy Paxman and daily vilification in the Tory press have provoked a closing of the polls.

All that said I think wider truths will bring a Conservative majority of around 50 next Thursday. Labour cannot be serious in asking the British people to elect as Prime Minister a man with an ambiguous attitude to IRA terrorism. Also, nobody believes Jeremy Corbyn would ever launch our nuclear weapons. He has very honourable feelings about the issue, but the whole concept of deterrence would be undermined with Corbyn in No 10. Personally disorganised, he does not have a credible team of Shadow Ministers around him to form a government.

Perhaps reluctantly the British people will elect Theresa May hoping that she can display the strong and stable qualities that she has not projected during this campaign

THE NORTHERN BATTLEFIELD.

So, which seats should we be watching out for in Downtown areas of the North? The gloomiest of Labour insiders think any seat with less than a 10,000 majority is potentially vulnerable to the Tories. Those would include Huddersfield (welcome back to the Premier League by the way), Leeds North East, Lancashire West and Ellesmere Port and Neston. In relation to the latter I have picked up strange rumours that Justin Madders with a six thousand majority could be in more trouble than Chris Matheson in neighbouring Chester on ninety-three.

If we come on to constituencies with a Labour majority of less than 5000 they include the popular Deputy Speaker of the Commons, Lyndsay Hoyle, in Chorley, Bolton North East which is being heavily targeted, Wakefield and Wirral South where Alison McGovern is putting up a determined fight.

Right in the front line is Chester which I have already mentioned. The city is on the up, symbolised by the recent opening of the brilliant Storyhouse theatre complex. The seat went against the trend of the Cameron victory in 2015. Could it possibly stay Labour this time? Nearby another constituency that went against the trend was Wirral West. The 417 Labour majority should be overwhelmed by the able and popular Tory candidate, Tony Caldeira.

Other seats held on slim majorities by Labour include Lancaster and Fleetwood. The incumbent, Cat Smith, is a big Corbyn supporter which certainly can’t be said of John Woodcock in Barrow. His leader’s views on nuclear weapons are toxic in the submarine building town which went Tory in 1983 when Michael Foot was in charge of Labour.

I had hoped the Lib Dems would do well with their promise of a second EU referendum. It appears they have been squeezed as people polarise between Labour and the Conservatives. This means the Lib Dems are unlikely to reclaim Burnley or Cheadle. Indeed, they look likely to lose Southport where they only have a 3% majority over the Conservatives and have been damaged by the decision of the long serving MP John Pugh to retire.

FINAL THOUGHT.

Might this happen on Thursday night?

BONG

It’s ten o’clock and the BBC predicts the Conservatives have won the General Election with a comfortable majority.

BONG.

Jeremy Corbyn vows to fight on for socialism.

BONG

Tony Blair and Nick Clegg announce the launch of a new centre party for Britain.

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