Category: Europe

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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‘ELF AND SAFETY JOKE ANYONE ?

 

CHANGING TIMES.

The General Election result indicated a turning of a corner in the sentiment of the nation, the reaction to the dreadful Grenfell Tower fire, confirmed it.

The tide of anti-State, anti EU feeling is on the ebb. People are beginning to realise that a lot of “red tape” is there to protect people and keep them safe. I doubt if ministers will be calling for three regulations to be abolished for every new one in the future. That’s not to say business should not continue to identify silly or bureaucratic impediments to commercial transactions. But where regulations are in place to protect people, we should recognise their purpose and remember the poor victims of Grenfell Tower.

On Europe, a YouGov poll this month showed most people now think it was wrong for us to vote to leave the EU.

Tory and Labour politicians need to take this changing world into account. There are signs from the Queen’s Speech that the Conservatives will modify their austerity agenda and use some of the £23bn slack in the government coffers available to 2021 to fund schools and public sector pay rises.

It is going to be down to Labour to reflect the changing sentiments on Europe. Apart from that poll, there were two developments this week which show the stupidity of leaving the EU. On the very first day of the Brexit talks we had a taste of the EU’s strength. The idea that we could negotiate future trade in parallel with the divorce terms was blown out of the water. Then came the Queen’s Speech and the revelation that eight huge pieces of legislation are going to be needed over the next two years to implement this wholly negative exercise.

So, whilst we fail to deal with pressing issues like the future of social care, MPs will be up all night repatriating powers over nuclear waste or money laundering which having a glaring need to be done across the EU.

THE CROWNLESS QUEEN.

The low-key State Opening of Parliament seemed appropriate. The Queen didn’t ride to Westminster in her golden carriage and the crown rested on a table beside the monarch as she delivered the paired down proposals of the government. She looked as if she was being delayed in getting to Ascot and the whole occasion which usually anticipates a new government with interesting proposals was flat and dreary.

There is considerable anxiety that government momentum behind the Northern Powerhouse has drained away. We’ll get a better sense of that following an important transport conference in Manchester on Monday. But in the Queen’s Speech I only noticed a bill to extend HS2 from Birmingham to Crewe and a reference to the new industrial strategy.

Business needs to speak out about issues around skills, productivity and the Northern Powerhouse. I don’t know if bosses felt restrained by the election campaign. They shouldn’t have been because that is the very time to speak out. Anyway, the net result has been that business and the economy were topics that dare not speak their name.

Theresa May could stumble out of office at any time but I still think she’ll last two years. People who think Boris Johnson is the answer should listen to his car crash performance on “PM” on Radio 4 on Wednesday. His “wing it” approach to policy was effectively exposed. The nation should tire of this clown.

 

MAY TO LAST TWO YEARS ?

 

 

WHO WANTS THE JOB NOW ?

Theresa May could remain as Prime Minister for at least two years. Does Boris Johnson, David Davis or most likely someone we’ve never considered really want the job at the moment ?

The Brexit talks will be long, tiring and are very unlikely to end well. There will be vicious recriminations from both sides in two years’ time. The hard Brexitiers are already expecting betrayal. The open Brexitiers won’t satisfy us Remainers even if they get some compromise on the single market and customs union. Whoever is Prime Minister in March 2019 will not receive the plaudits of a grateful nation but will be blamed as the country expels itself from the European Union in economic uncertainty and mutual recrimination.

So, it looks as if Mrs May will stagger through with the help of her friends from the Democratic Unionist Party. Jim Callaghan survived in minority government for three years in the seventies as did John Major when the Tory Euro rebels made life hell for him. How right Lord Heseltine is, Europe is the cancer at the heart of the Conservative Party.

There is talk of an all-party effort to try and reach consensus on what Britain wants in the Brexit talks. I think it unlikely Labour will enter that trap partly because hard left politicians never like to do deals with Tories and because Labour’s position on Brexit is confused. The party needs to realise that a lot of their new young supporters would prefer to stay in the EU. In these fluid times Kier Starmer, the able Shadow Minister for Exiting the EU should position the party so that if it becomes clear to most people that Brexit isn’t going to work, Labour can say that whilst they respected the 2016 vote, circumstances have changed so much that another vote is needed. This could provide the basis for a popular alliance when the next election comes.

FIRST PAST THE POST STRONG AND STABLE?

Once again, our first past the post (FPTP) system has thrown up monstrous unfairness with the SDP being generously rewarded with 35 seats for a million votes and the Green Party getting just one for their half million votes.

The Conservatives are the greatest defenders of FPTP saying it gives us stable government. Well that’s been blown out of the water by the 2010 and 2017 results.

The Tories would have won if just 401 more people had voted for them. They lost four seats by less than 31 and another four by less than 250. So, bring on those boundary changes! Remember the constituency boundary map was going to be redrawn for 2020 and would have helped the Tories. An election pundit friend of mine said it was “madness” for the Conservatives to go to the country again on boundaries containing undersized Labour seats.

The problem now is will Mrs May dare propose the changes in next week’s Queen’s Speech or will it be ditched like most of the manifesto.

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WHERE IS THE BRITISH MACRON?

 

THE EU STRENGTHENED.

The French people have turned the tide on the 2016 populist surge which led to reckless Brexit and reckless Trump in the White House.

Opponents of the European Union were forecasting it would break up following populist success in Hungary, Holland and France. All three countries have rejected a return to a nationalist Europe with all the potential consequences that could bring. With the UKIP style implosion of the Alternative for Deutschland Party in Germany I predict a victory for Angela Merkel this autumn. Then we will see how strong and stable Mrs May will be when faced with France, Germany and the other 25 European countries insisting that if you are out of a club you must have a worse deal than if you are in.

I saw a report this week on a Shropshire company that makes engine blocks. They must cross 5 European borders in ten days and time is vital. They are desperately worried about how they are going to operate outside the EU. That’s the reality facing business. Let’s hope Jeremy Corbyn’s refusal to rule out staying in the EU wasn’t just another blunder, although the Lib Dems offer the clearest policy on a second referendum.

 

 

BACK IN THE DRIVER’S SEAT.

Geoff Driver is the great survivor of Lancashire politics. After a controversial reign as Chief Executive of Preston Council, he made a successful change to politics leading the Conservatives to victory in the county in 2009. Thrown out of office in 2013, he survived a leadership challenge, police dropped an investigation into him over the One Connect Ltd issue and last Friday I was in County Hall for his return to office.

He faces big challenges to soften the cuts that Labour reluctantly made. Driver insists there will be no sweetheart deals with his government. A final word on this. Jeni Mein, the outgoing Labour leader was one of the most decent hard working politicians I had the pleasure to meet. Good luck to her successor, Nelson councillor Azhar Ali. He will prove a lively opponent for Geoff Driver.

MAYORS.

After snubbing Jeremy Corbin at a victory celebration, Andy Burnham was quickly down to work making two good deputy appointments. Sir Richard Leese is taking on the business portfolio. Does this show Leese is preparing to end his long tenure as leader of Manchester? Anyway, from Burnham’s point of view…..(fill in the tent and urination metaphor here). The other key appointment is Bev Hughes to look after crime and the police. The former Stretford and Urmston MP will be taking over from the ex-Police Commissioner Tony Lloyd who hopes to win the Rochdale seat.

That choice by a panel of Labour’s National Executive has been welcomed by the constituency whereas in Liverpool Walton the choice of a Unite placeman, Daniel Carden, at the expense of Liverpool mayor Joe Anderson has caused outrage. These panels should have the constituency chair as a member and certainly should not have a Unite member as was the case with Walton. But if a party is so dependent on one source of funding, this is what you get.

Joe heading for Westminster was a neat way of solving a

 potential conflict between him and newly elected City

 Region Mayor, Steve Rotheram. We’ll have to see if grown

 up behaviour prevails to the advantage of the city region.

 

GENERAL ELECTION POINTERS.

 

The local elections showed Labour’s fragility in the North

outside its urban heartland. A spectacular defeat to the

Tories in Derbyshire was followed by the loss of

Lancashire and largest party status in Cumbria. There are many marginal seats in these areas for the Conservatives to target.

 

The Lib Dems had a standstill election and will be hoping

for more support when the Brexit issue comes centre

stage in the General Election. UKIP had to rely on a

popular taxi driver in Padiham for their only council

success. They should have developed policies on non-EU

issues to offer a real alternative for blue collar Labour

voters in the North. Instead they squabbled over who

should be leader.

 

In Scotland, the Tories have become the rallying point for

opponents of a second independence referendum, and

even though the fall off in support for the SNP was slight,

that irresistible tide has peaked.

 

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