Council leaders should pay heed to Kinnock's warning

 Earlier this week I tuned in to an interesting radio discussion about whether, in the era of instant communication via text messaging, email and Twitter, set-piece political speeches still retained any relevance.

The discussion had been precipitated by perhaps the most long-awaited and over-hyped set-piece political speech of recent times – Prime Minister David Cameron’s planned address on Britain’s relationship with Europe.

The consensus was that, while such speeches still had their place, it helped if the politician concerned had something new and original to say – as for instance Margaret Thatcher did in her famous Bruges speech of 1988 when she set her face against a federal Europe.

In that respect, perhaps it was a good thing that Mr Cameron’s proposed speech ended up being postponed, given the expectation among commentators that it would say little to appease his increasingly Eurosceptic backbenchers.

But if Bruges was, for those on the right of politics, the setting for the seminal political speech of modern times, those of a Labour disposition tend to look to another town beginning with B – namely Bournemouth.

For that was where, in 1985, Neil Kinnock delivered the Labour conference address subsequently credited with launching the party on the long road to recovery after the wilderness years of the early 1980s.

The historical significance of the speech was that it marked the start of a fightback by Labour modernisers against a hard left faction which had rendered the party unelectable.

This process of internal renewal would eventually lead to the creation of New Labour and, electorally speaking at any rate, the most successful period in the party’s history.

But in an era in which a Conservative-led government is once again imposing spending cutbacks on Labour-run councils, could Mr Kinnock’s great speech have a new relevance for today?

What he was railing against in Bournemouth was the kind of gesture politics typified, not just by Militant-controlled Liverpool City Council, but by a host of other Labour authorities of the era who used budget cuts as a means of ratcheting up political pressure on the government.

The key sentence in the speech was Mr Kinnock’s warning – delivered in the face of a heckling Derek Hatton – that “you can’t play politics with people’s jobs, or with people’s homes, or with people’s services.”

And more than a quarter of a century on, it’s people’s services that are once again at stake in Newcastle, as the city council decides how to implement what it claims are the £90m worth of savings demanded by the Con-Lib coalition at Westminster.

Council leader Nick Forbes’ decision to target some of the cutbacks at libraries and the arts has caused deep and bitter controversy in the region, but is actually nothing new in the annals of Labour local authorities.

Whether consciously or otherwise, he has taken a leaf out of the book of David Bookbinder, the left-wing firebrand who led Derbyshire County Council at the same time as Mr Hatton was running Liverpool.

Faced with a similar set of cutbacks in the 1980s, Mr Bookbinder decided to take the axe to a series of libraries in Tory-voting middle-class areas as well as scrapping school music tuition.

But just as Derbyshire’s voters saw through his attempts to blame the government for the sorry situation, so Newcastle’s are increasingly beginning to question who is really to blame for the present-day cutbacks.

Save Newcastle Libraries campaigner Lee Hall has made clear his own view on the matter, accusing Councillor Forbes in a speech last week of wanting to “make a name for himself” and wanting “a platform to rail at the Coalition.”

“Instead of trying to protect our libraries, our enormously successful arts organisations, Forbes, for his own political aggrandisement, is trying to cut as much as possible,” he said.

David Bookbinder’s unique brand of showmanship made Derbyshire a great place to be a local government reporter in the 1980s, but ultimately his attempts to play politics with people’s services did Labour no favours in the county.

Perhaps Councillor Forbes, too, should now take heed of Mr Kinnock’s wise words of warning.

Taxi for Balls? My political predictions for 2013

Andy Murray will win Wimbledon, Roberto Mancini will be sacked as manager of Manchester City, David and Victoria Beckham will return to the UK, and the X-Factor will finally be canned after ten not always glorious years.

Those were just some of the predictions for 2013 made by members of the public in a recent poll on what we expect to see happening in the year ahead.

But so much for the sport and showbiz; what of the politics?  Well, in last week’s column looking back at 2012 I suggested that the next 12 months may well see the Con-Lib Coalition that has governed the country since May 2010 finally splitting asunder.

It seems I am not alone in this view:  the prospect of Messrs Cameron and Clegg going their separate ways was also mentioned in the aforesaid poll, along with a rise in interest rates, a strike by NHS workers and the prosecution of a major bank for fraud.

So what’s causing the present bout of Coalition-busting speculation?  Well, anyone who heard Nick Clegg’s speech at the Royal Commonwealth Society shortly before Christmas will not be surprised that talk of divorce is in the air.

The speech was less about Lib Dem achievements in government as about what Mr Clegg’s party had prevented the Tories from doing.

It was all a far cry from the government’s early days when the Lib Dem leader had been determined that his party should jointly ‘own’ all of the Coalition’s policies - not just those which it had specifically advocated.

But that strategy was only destined to work so long as the Coalition was popular.   Once it started to be unpopular – as has happened in 2012 – it was inevitable that Mr Clegg would begin to embark on a strategy of differentiation.

It has been my view from the outset that the Lib Dems would somehow have to find a way of getting out of the Coalition alive in order to stand any chance of maintaining a significant parliamentary presence at the next election, and I expect this process to be accelerated in the coming year.

The internal politics of the two parties will play a big part.   If Mr Clegg does not, by the time of his party’s annual conference, set out some kind of exit strategy, he will almost certainly face a leadership challenge before the election.

At the same time, those Tory backbench voices which loathe the Lib Dems and all their works will grow louder, as they seek to press David Cameron into the more orthodox Conservative position that they believe – mistakenly in my view – will secure them an outright majority next time round.

I would expect the upshot to be that the Lib Dems will leave the government within the next 12-15 months, with the Tories moving to a “confidence and supply” arrangement for the remainder of the five-year Parliament.

But while the Coalition may struggle to maintain the semblance of unity, Labour leader Ed Miliband will also struggle to present himself as the Prime Minister-in-waiting that Mr Cameron and Tony Blair so obviously were in their opposition days.

Mr Miliband has had his successes, but the full rashness of Labour’s decision to choose him over his brother David will become clear over the next 12 months.

Overtures will be made to the South Shields MP to return the frontline as Shadow Chancellor in place of Ed Balls, whose closeness to Gordon Brown and the errors of the New Labour years will ultimately prove a fatal barrier to the party’s attempts to regain economic credibility.

But a likelier outcome is a comeback for the respected former Chancellor, Alistair Darling, who has successfully managed to distance himself from Mr Brown’s mistakes.

Mr Balls may not be the only major economic player to be shown the door in 2013.  If the economy continues to stagnate, Mr Cameron may also be forced to find a new role for George Osborne as the election draws nearer.

And with Mr Osborne out of the Tory succession picture, attempts will be made to build up Education Secretary Michael Gove as the alternative contender from within the Cabinet to counter the continuing threat of Boris Johnson.

Unlike poor old Mr Mancini, I don’t expect we will see any of the three main party leaders actually losing their jobs in 2013.

What we will see, though, is each of them having to take fairly drastic action in order to save them.

Budget debacle that left Coalition floundering

Here's my annual political review of the year, published in this morning's Newcastle Journal.

Until the early months of this year, the Con-Lib coalition that has governed Britain since May 2010 had by and large done so with a fair wind behind it from the public.

Without ever reaching the heights of popularity enjoyed by New Labour as its zenith, David Cameron’s government appeared, at the very least, to have earned the benefit of the doubt, particularly when it came to the economy.

All that changed on Wednesday 21 March – the day Chancellor George Osborne delivered his third Budget.

To say it was the pivotal moment of the political year would be something of an understatement. In terms of its impact on public opinion, it may well prove to be the pivotal moment of the entire five-year Parliament.

In the space of a 59-minute speech, the Chancellor announced a package of measures which seemed almost deliberately designed to alienate as many sections of the electorate as he could find.

He slapped VAT on hot food and caravans, froze the age-related tax allowance for pensioners, removed a tax break on charitable giving that would have hit hundreds of good causes, and topped it off with a cut in the higher rate of tax worth £42,295 to anyone earning £1m a year.

It was the ‘pasty tax’ rather than the top rate cut which proved the most politically toxic, playing as it did into the ‘Tory toffs’ narrative which had increasingly started to dog Messrs Cameron and Osborne.

In the end, the plan was ditched following a campaign by this newspaper among others – one of a series of budget U-turns which left the Chancellor’s credibility seriously damaged.

From there on in, even though the festivities around the Queen’s Diamond Jubilee and the London 2012 Olympics provided useful temporary distractions, the government struggled to get back on the front foot.

And the slide in its opinion poll ratings was accompanied by increasing tensions within the Coalition itself – notably over Europe, welfare cuts, gay marriage and, most of all, Lords reform.

With his dream of a new electoral system shattered in the May 2011 referendum, deputy Prime Minister Nick Clegg was pinning his hopes of achieving lasting political reform on securing an elected second chamber - but the Tory backbenchers were having none of it.

The Lib Dems retaliated by scuppering the Tories’ plans for a review of Parliamentary boundaries that would probably have gained them 20-30 seats at the next election

Frustrated in his attempts to regain the political initiative, Mr Cameron resorted to the time-honoured tactic of a reshuffle, but some of his new appointments soon began to unravel.

He shunted Justine Greening out of the job of transport secretary on account of her opposition to a third runway at Heathrow only to see London Mayor and would-be leadership rival Boris Johnson rally to her cause.

His appointment of Andrew Mitchell as chief whip also swiftly backfired when he was involved in an altercation with police officers at the entrance to 10 Downing Street.

However in what has surely been the most interminable and convoluted political story of the year, Mr Mitchell now looks likely to have the last laugh, after it emerged that a police officer may have fabricated evidence.

In the North-East, the regional political agenda continued to be dominated by the fallout from the government’s spending cuts.

Newcastle city council responded to the spending squeeze by taking the axe to the arts budget – reminding those of us with long memories of the antics of so-called ‘loony left’ councils in the 1980s.

Yet at the same time, the year saw something of a rebirth of regional policy, driven by Lord Heseltine’s ‘No Stone Unturned’ report which was explicitly endorsed by Mr Osborne in his autumn statement.

The mini budget also saw the Chancellor forced to back down on plans to introduce regional pay rates following a fierce campaign by the unions.

The year ended with increasing speculation that the Coalition may not, after all, go the distance to the planned next election date of May 2015.

With the government seemingly stuck in a trough of unpopularity, the need for the Liberal Democrats to assert their separate identity from the Tories is growing.

Mr Clegg’s decision to make a separate Commons statement from the front bench on last month’s Leveson report into press regulation was unprecedented, but may well prove to be the start of a trend.

If 2012 was the year the Coalition lost the public’s goodwill, 2013 may prove to be the one that sees it splitting asunder.

At last: The beginnings of a regional economic policy

IN terms of the political big picture, Chancellor George Osborne’s autumn statement on Wednesday this week may well come to be seen as a pivotal moment in the next general election battle.

Whether the so-called mini budget will win or lose that contest for his party, however, is currently a difficult one to call.

On the one hand, the Chancellor was, against the expectations of most pundits and economists, able to reveal that the deficit is continuing to fall, and that government borrowing would therefore not need to increase after all.

On the other, he was forced to admit that the years of austerity would continue at least until 2018, that growth would continue to be sluggish, and that his original target of reducing debt as a proportion of GDP by 2015 would be delayed by at least a year.

Too much has been made of the fact that Shadow Chancellor Ed Balls, thrown by the unexpected news on borrowing, made an uncharacteristic hash of his set-piece reply to Mr Osborne’s Commons statement.

The truth is that only political anoraks get worked up about that sort of thing.  What will linger more in the public’s mind is the fact that Chancellor’s harsh medicine is still no nearer to bringing about a lasting economic recovery.

Of potentially much greater significance than Mr Balls’ incoherent ramblings is the risk that Mr Osborne’s failure to meet the debt reduction target will mean Britain losing its AAA credit rating.

Much of what Mr Osborne has done over the past two and a half years has been designed to stave off this very threat, and if the rating is indeed downgraded, it will surely be time for David Cameron to find a new Chancellor.

What, though, does it all mean for the North-East?  Well – and how many times have I had to write this line over the past 15 years? – there will be no dualling of the A1 north of Newcastle for starters.

Other proposals which failed to win the Chancellor’s stamp of approval included a £25m upgrade for the Tyne and Wear Metro, and a package of support for the region’s offshore wind industry.

Furthermore the proposed welfare cutbacks, with benefit rises for the next three years capped at a below-inflation 1pc, will also disproportionately hit those regions with higher rates of unemployment such as this one.

But amid all this, there are continuing signs that this government – more so than its recent predecessors – is starting to take the idea of regional policy seriously.

The most obvious indication of this came a few weeks when Lord Heseltine, the arch-interventionist of Tory politics in an era where the free marketeers held sway, published his ‘No Stone Unturned’ report.

The Chancellor has explicitly backed its call for a single funding pot covering housing, skills, transport and job creation as well new powers and funding for local enterprise partnerships.

Significantly, the government is to give each LEP the chance to nominate a single major infrastructure project which will then be eligible for a new concessionary public works loan rate, up to a value of £1.5bn.

In addition Whitehall will provide a further £350m towards the Regional Growth Fund, to provide support for jobs and growth across the English regions until 2015.

While the impact of those changes remains to be seen, a more immediate boost to the region came with the announcement that  - 54 years on from the opening of the Preston by-pass - Newcastle will finally join the motorway network, with all stretches of the A1 south of the city to be upgraded to motorway standard.

And the spectre of regional pay, which could have led to teachers and nurses in the North being paid less than their Southern counterparts, has also receded in what was a notable victory for both the unions and the Lib Dems.

It was surely coincidence that, on the day the Tories were pushed into fourth place by UKIP in the Middlesbrough by-election last week, Mr Osborne appointed a new adviser in Neil O’Brien who has previously warned that the party risks ‘pariah status’ in the North.

If the autumn statement is anything to go by, maybe he is already making his voice heard.

The hard choice facing Justin Welby

The reaction of the North-East media to the recent appointment of Dr Justin Welby as Archbishop of Canterbury says much about the unusually high regard in which he has come to be held in the region since becoming Bishop of Durham last year.


An editorial in The Journal described his appointment to Canterbury as a significant loss to the North-East and, with due respect to other church leaders in the region, few of them would merit such an accolade.

I have to confess I am a little biased where Dr Welby is concerned as we went to the same London church in the 1980s before he received the call to ordination, although I doubt he would have much cause to remember me.

There are many reasons why he will make a first-class archbishop, but in an age when many young people go straight from university into church leadership without the intervention of a career in the real world, the best thing about him is the grounding he gained from 11 years in the oil industry.

But if Dr Welby’s appointment was greeted by a general chorus of media approval, the universal disapproval that greeted this week’s decision by the church’s general synod to say no to women bishops highlights the extent of the challenge facing him.

It must be a moot point as to whether he or the new director general of the BBC, Tony Hall, has been handed the more poisoned chalice.

Whatever the rights and wrongs of the issue itself – and the beliefs are passionately held on both sides of the debate – it seems beyond doubt that the vote will make it harder for the church to get its message across.

The national and broadcast media has given the church a fearful kicking over the issue in recent days, and it didn’t take long for the politicians, from Prime Minister David Cameron downwards, to start joining in.

The broad thrust of their criticisms is that the church has shown itself to be out of touch with modern values and, as the former Labour Home Secretary Jacqui Smith put it, no longer reflects society as it is.

However it is by no means axiomatic that any faith community should be required to conform to the prevailing culture. Indeed, its belief system may at times require it to be vigorously counter-cultural.

To take a different example, there is a widely-held view in society that the accumulation of wealth and possessions is a good thing, and that our political and economic systems should be so arranged as to promote and encourage this.

Christianity, however, takes a different view, arguing not only that you can’t take it with you, but that, in the eternal scheme of things, the abundance of possessions may actually be more of a hindrance than a help.

So for politicians to suggest that a church should necessarily buy in to politically fashionable causes without reference to its teachings and traditions is too lazy an assumption.

No, the real difficulty arises here because of the particular nature of the Church of England as the established church and the role of its all-male bishops in the legislature as members of the House of Lords.

In this regard, it is surely significant that, while MPs mutter dark threats about subjecting the Church of England to equalities legislation over its failure to ordain women bishops, no-one is suggesting doing the same to the Roman Catholic Church over its refusal to allow women priests.

Indeed, if anyone were to suggest that the government should start regulating churches in this way, I suspect the resulting uproar would make the row over whether it should regulate the press look like a vicarage tea party.

Of course, a move to a democratically elected House of Lords, minus the bishops, would remove part of the problem at a stroke.

But Tory MPs foolishly voted down that option as part of their petty feud with the Liberal Democrats, and it is unlikely to come back onto the table before the next election.

The upshot is that unless Dr Welby and his colleagues can find some way of revisiting the women bishops issue, preferably before another five years of argument and bloodletting have passed, the church may be forced to make a hard choice.

Either accept the increasing and unwelcome intervention of politicians in its affairs – or take the nuclear option of disestablishment.

A welcome report - but why is Heseltine having to reinvent the wheel?

OF all leading Conservative politicians of the past half century, the former Deputy Prime Minister Michael Heseltine is perhaps the one who has enjoyed the most complex relationship with his own party.

To some, he will be remembered as a spellbinding orator and party conference crowd-pleaser par excellence – or as the late former MP Julian Critchley memorably put it, the man who “always knew where the find the clitoris of the Tory Party.”

To others, he will forever be the dark villain at the centre of what they would see as the most shameful episode in the party’s recent history – the defenestration of Margaret Thatcher after 11 years as Prime Minister in 1990.

Perhaps his most lasting legacy to the party, though, will be to have kept the flag flying for what became some distinctly unfashionable causes in Conservative circles – Europe, state intervention, and above all, regionalism.

Lord Heseltine’s long advocacy of regional policy as a way of promoting both economic growth and social cohesion dates back to his time as the ‘Minister for Merseyside’ in the wake of the Toxteth riots in the early 1980s.

But is a concept that fell so far out of favour among his colleagues that practically the first thing the Tory-led Coalition did on coming to power in 2010 was to abolish the regional development agencies.

In the light of this, perhaps the most surprising thing about Lord Heseltine’s report on industrial strategy published this week under the title ‘No Stone Unturned’ is that he was asked to write it at all.

Is it a sign of a new open-mindedness on the part of Prime Minister David Cameron and his Chancellor George Osborne - or merely a sign of desperation in the face of the country’s continuing economic plight?

Either way, it was inevitable that Labour would seize on Lord Heseltine’s headline statement that the UK currently “does not have a strategy for growth and wealth creation.”

This is, after all, exactly what Shadow Chancellor Ed Balls has been saying all along – that the government needs an economic ‘Plan B’ that puts more emphasis on generating growth and slightly less on cutting the deficit.

Labour leader Ed Miliband is also understandably keen to appropriate the ideas of a One Nation Tory like Heseltine in order to bolster his own attempts to seize the ‘One Nation’ mantle from the Conservatives.

Indeed, it is a measure of how far politics has shifted on its axis since the early 1980s that talk of measures to promote economic growth and wealth creation is now regarded in some circles as “left-wing.”

Some of Lord Heseltine’s proposals have a familiar ring to them.  Since the early 1990s he has viewed elected mayors as a general panacea for everything wrong with local government, and it was no surprise to see him giving this another airing.

The idea of conurbation-wide or even region-wide mayors have also been batted around before, and has some attractions as a halfway house between an elected regional assembly which might be too big to care and local authorities which are too small to cope.

A Mayor of Tyneside, for instance, would have the requisite critical mass of political and financial clout to make a difference while still retaining an element of local accountability.

As I have noted before in this column, it isn’t regional government as we once knew it, but it may be the best, or indeed only, form of regional government that’s ever likely to be on offer.

Lord Heseltine has also advocated handing over responsibility for billions of pounds of central government expenditure to the Local Enterprise Partnerships set up last year following the demise of the RDAs.

But this nothing terribly new either.   Moving power and budgets out of Whitehall was exactly the idea behind the creation of the Government Offices for the Regions in 1994 by the Major administration in which Lord Heseltine served, and also New Labour’s establishment of the RDAs in 1999.

The GORs were wound up by the Coalition in March 2011, exactly a year before the RDAs closed for business, but now Lord Heseltine proposes to turn the LEPs into something that looks suspiciously like a recreation of the two.

While it will be welcomed by those who bemoaned the loss of this institutions, it surely also begs the question why it has been necessary for him to reinvent the wheel.