FROM BALFOUR TO TRUMP

 

THE PALESTINIANS NEED SOMETHING TOO

A hundred years ago a western statesman intervened in the cauldron of Middle East politics and we’ve been living with the consequences ever since. I fear Donald Trump’s recognition of Jerusalem as the capital of Israel, with no simultaneous effort to broker a general settlement to the Palestinian issue, will lead to another century of conflict.

In 1917 the British Foreign Secretary Arthur Balfour declared that Great Britain would look favourably on the creation of a national home for the Jewish people providing nothing was done to prejudice the rights of non-Jewish people. The declaration was made at a difficult time in the First World War when Britain was fighting against the Ottoman Empire which was allied with Germany. There were worries that the Germans were wooing the growing Zionist Movement.

The declaration begged many questions including did a “national home” mean a state? How would Arab and Christian interests be protected? What would the borders be and what would be the status of Jerusalem? 100 years, three wars and much violence later, many of these questions remain unresolved.

So why has Trump acted now? He rightly says it has been Congress policy since 1995 to move the US embassy from Tel Aviv to Jerusalem but without prejudicing final status. Previous Presidents have not enacted the resolution because they feared it would indeed prejudice final status talks and give no incentive to Israel to negotiate with the Palestinians who want East Jerusalem as their capital.

The other factor is Saudi Arabia. Although they have joined the rest of the Arab world, the EU and Britain in criticising the move, the Saudis have grown close to Trump. This is because of the President’s tough stand on Iran, Saudi Arabia’s enemy. Trump has calculated that the Saudis will make ritual noises but will not really back a backlash against America.

All that said I have an awful sense that within weeks we will see a terrorist outrage in Israel, Europe or America with the extremists citing this move as the reason for it. They will have no justification for violence. It solves nothing.

What needs to happen is a two-state solution. Jerusalem is the very difficult issue Could it be divided city again with West Jerusalem, the Israeli capital, East Jerusalem the Palestinian capital with the Holy Places under United Nations control?

UNIVERSITIES IN THE CROSS HAIRS.

It is a difficult time for our universities. Vice Chancellor’s pay is under scrutiny and rightly so at a time when their students are racking up big debts.

Most of the coverage has centred on Bath University where the VC’s pay was ludicrous. Apart from Sheffield University’s Sir Keith Burnett £422,700, none of our northern universities VCs are in the top ten. This even though Janet Beer at Liverpool and Nancy Rothwell at Manchester are doing great jobs with huge responsibilities.

But they will be aware of the issues circling around this sector of higher education. With students paying big fees, the degree courses need to fit them for the modern world. The institutions need to be accountable to the communities they serve, and the campuses need to be centres of free speech. That is a challenge for student leaders as well as university staff. No platforms for Israeli politicians or people with differing views on transgender matters are a violation of everything a university should stand for.

 

WILL INDUSTRIAL STRATEGY HELP PRODUCTIVITY ?

 

 

 

WILL IT LAST ?

The latest government industrial strategy was launched this week. Let’s hope it lasts. History tells us it won’t. Business is certainly sceptical having made investment decisions in the past based on Whitehall plans which ministers lose interest in after the first sound bites have gone away or a new set of young advisers have come up with a new plan for a new minister.

The other reason past initiatives to boost productivity, wages and the Northern economy have disappeared is because of changes in government. The use of state control during the war led to the Attlee government’s confidence in a nationalisation programme. The Thatcher government reversed this and until 2008 it was generally accepted that capitalism and the private sector would guarantee economic success. All that changed after the crash and ten years on we are reaping the whirlwind of people’s distrust in markets, experts and globalisation.

This Industrial Strategy shows that the Conservatives are now committed to the state having a real role in intervening in the economy. To a considerable extent this has been driven by the success the Labour leader Jeremy Corbyn has had in identifying people’s distaste for rampant capitalism.

That brings me back to the question businesses are asking, will it last? Possibly if Greg Clarke, one of the abler members of the Cabinet stays in post and if Jeremy Corbyn doesn’t get into Downing Street. His industrial strategy based on nostalgia for the Attlee days would look very different.

PRODUCTIVITY.

The industrial strategy is targeted at the construction industry, life sciences, driverless cars and artificial intelligence. So, there is an emphasis on high tech jobs. The question is will this help with our chronic lack of productivity. Most companies in the North operating at the cutting edge of research are productive but 60% of jobs are in retail and manufacturing which is where the productivity problem really lies. There are 40% more jobs in retail than pharmaceutical. The industrial strategy is too narrow to address this widespread problem.

It is also in danger of being southern focused. Currently only 10% of research spending is in the North. The investment by healthcare giant MSD in Manchester is to be welcomed but confidence in the Northern Powerhouse is shaky at the moment. There is a growing sense outside the Manchester and Liverpool conurbations that the whole project is city based. Of course, one answer to that is for counties like Lancashire and Yorkshire to stop squabbling and get their act together. But the piecemeal approach of governments since 2010 to devolution has not helped. Transport for the North (TfN) is a big step forward but in outlining its new powers recently, the government document contained weasel words about “formally considering” TfN’s statutory transport strategy and TfN’s right to be “consulted” on rail franchises. It does not have the same powers as transport for London.

Finally, there has been a bitter reaction from local government. Whilst mayoral areas will have full control over their local industrial strategies, other councils feel they have been excluded from playing a role at the expense of the Local Economic Partnerships (LEPs). This despite the fact that ministers are calling on LEPs to address problems relating to their leadership, governance and accountability.

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HIKE INCOME TAX FOR THE CARE CRISIS?

 

 

THE UNMENTIONABLE TAX INCREASE.

An aide to former Prime Minister David Cameron has admitted that the promise not to increase income tax, VAT or national insurance was made to fill a gap in a stream of policy announcements before the last General Election.

Nevertheless increasing income tax has become an unmentionable subject even for Jeremy Corbyn who demands instead that the planned cut in Corporation Tax be scrapped in order to cope with the mounting crisis in elderly care.

The government are not handling the problem well. It was not even mentioned in the Autumn Statement. Now we see ambulances queueing outside hospitals because elderly people can’t be discharged. That’s because there are no home care packages for them. That’s because councils can’t afford them or are running out of private providers who say Town Halls can’t give them an economic rate. That’s because of government cuts.

Now in a panic local authorities are going to be allowed to raise council tax by an extra 2% in each of the next two years, but not in 2019-20 when the Local Government Association reckon the social care gap will rise from its current figure of £1.3bn to £2.6bn. Presumably by then the whole issue will have been rethought and refunded.

But even this panic measure by the government will help the south more than the north because of its low council tax base. The top three beneficiaries are Surrey, Kent and Essex whilst Manchester and Liverpool are in the bottom ten. This presumes that the councillors will automatically levy the extra precept. They are expected to because there are no metropolitan borough elections next year. However there are mayoral contests in Liverpool and Manchester City Regions.

One wonders whether Corbyn’s Labour Party might be the first to break cover and support income tax increases to deal with the growing crisis in elderly care.

BRUTAL TRUTH IN THE MIDDLE EAST.

The policy of using western influence to remove brutal dictators in the Middle East and North Africa has long been discredited. In the rubble of Aleppo we see its nadir. Saddam Hussein in Iraq, Mubarak in Egypt and Gaddafi in Libya were all removed. As a consequence their countries are riddled with Islamic extremists even worse than them.

Assad in Syria refused to go, found an ally in Russia, and seems to be prepared bludgeon his people into submission to remain in charge.

The West has lurched from bungling interference to incompetence, certainly in respect of Syria. We encouraged moderate rebels to revolt against Assad, then didn’t back them up properly as they became infiltrated by extremists. What help we did give allows Russia to suggest we are partly backing Islamist extremists against the official government of a country in Syria whilst doing the opposite in Iraq.

All this could have a major effect on the world power balance. Russia is economically weak but has a clear, if brutal, view of its own interests. China grows more powerful and assertive in the Pacific. America is in a state of uncertainty over Trump and the European Union is in great danger of collapsing in a wave of populism.

Follow me at www.jimhancock.co.uk

 

 

 

 

THE TORIES HAVE THEIR PROBLEMS TOO.

 

OSBORNE ON MANOEUVRES.

So the Conservatives arrive in Birmingham this weekend in a clear blue political sky. Their enemies are divided, they have a brand new leader and the UK is leaving the hated EU.

But look a little closer and things aren’t quite so simple. George Osborne, the former Chancellor, is on manoeuvres. He was not only sacked by Mrs May but she then made it clear that his pet project, the Northern Powerhouse, was sooo yesterday. Lord O’Neill of Gatley who was Osborne’s right hand man on the project has quit. From now on we have to talk about an “industrial strategy” which is far less Manchester focused. Osborne immediately set up his Northern Powerhouse think tank. This has as much to do with his power battle with the Prime Minister as it has to do with his ongoing commitment to the regeneration of the North. Proof of this comes from Judith Blake, the leader of Leeds City Council. Osborne was in such haste to put a shot across Mrs May’s bows, that she says Leeds knew nothing about the think tank.

Then there’s the former Education Secretary Nicky Morgan attacking the idea of more grammar schools and we are beginning to see a grouping of Osbornistas waiting to pounce if Theresa May should fail.

BREXIT MEANS TROUBLE.

The Anti EU Tendency has had as decisive a victory in the Tory Party as Jeremy Corbyn’s supporters have had in Labour. Over the years they have pressurised and outmanoeuvred the pro Europeans. They have brought down at least two Prime Ministers, engineered our Brexit and still they are not satisfied as you will find out in Birmingham. The conference fringe will ring to the repetition of the vacuous phrase “Brexit Means Brexit”. Now we have another one “Leave Means Leave”. The Anti EU ultras are just waiting for Mrs May to betray them on the terms of Brexit.

They won’t be satisfied until the tariff barriers are up, our universities are stripped of EU researchers and Nissan and General Motors are relocating in Europe.

CENTRE LEFT NO HOPERS.

After my dispiriting visit to the Lib Dems in Brighton looking for centre left solidarity, I headed off to Labour’s gathering in Liverpool and came away with the view that Jeremy Corbyn’s opponents are pretty clueless.

I am of the view that there is a huge opportunity for centre left politicians to emerge from their bunkers and unite to put up a common front to the Tories. When I asked former Lib Dem leader Nick Clegg about this , he went on about Labour’s bad behaviour in the electoral reform vote in 2011.

In Liverpool I decided to tackle Chuka Umunna. He’s the Labour MP who should have stood against Jeremy Corbyn but has funked it twice. At a fringe meeting he was regretting the referendum result, so I asked for his opinion on Lib Dem leader Tim Farron’s call for the Brexit package to be put to the British people. Umunna dismissed the idea as an attempt by Farron to get some attention for his party.

With some outrageous rigging of conference procedures the anti Corbyn forces are clinging on to control of the party’s National Executive, but they shouldn’t rely too heavily on Jeremy Corbyn’s promise not to introduce mandatory reselection for MPs. The left don’t need it, the boundary changes will provide the ideal opportunity to pounce.

At a fringe meeting I attended a platform speaker could not have been more clear when he dismissed the idea that Labour MPs should be elected in their twenties and stay until they decided to retire.

Meanwhile Jeremy Corbyn may be able to mobilise the dispossessed to vote in huge numbers to take him to power. A more likely outcome will be that the vision of high spending and no immigration controls that was approved in Liverpool this week will not appeal in Wirral, Morley and Nuneaton where Labour needs to win.