Cameron has morphed into the candidate the Tories wanted in 2010. What do they want in 2015?

The PM has found the campaign that the Tories wish they had used to win the last election. That is less than he needs to win the next one.

Three years late, the Conservatives are celebrating victory in the 2010 general election. They still don’t have a majority in parliament but they believe they have won the argument. Labour forfeited its right to govern – so the story goes – by presiding over economic calamity, squandering public money on benefits and opening Britain’s borders to an army of foreigners. The remedy was a Tory government that would cut spending, reform welfare and cap immigration.
 
At the party’s annual conference in Manchester, David Cameron and George Osborne will say their methods are vindicated by incipient economic recovery. Some Tories concede that the truth is more complicated but there is little doubt over who is winning the politics of blame and credit. “The economic argument is not as clear-cut as we’re making out but George has played it well,” says one Conservative adviser.
 
The Prime Minister and the Chancellor will avoid sounding boastful at the conference. They aren’t stupid. They know that the recovery is more legible on paper than it is palpable in pockets. Bills are rising; wages aren’t. In his speech at Labour’s conference, Ed Miliband accused the Tory leader of planning an undeserved “lap of honour”.
 
Cameron won’t oblige with crass claims of missions accomplished. Nor will he respond directly to the charge that the Tories are presiding over a “cost-of-living crisis”. Downing Street knows it has to do something to help struggling households but that task will be addressed later in the year, in a series of policy announcements building up to the Chancellor’s Autumn Statement.
 
At the Tory party conference, the message will be that the Conservatives are on the side of industrious people, while Labour favours freeloaders (domestic and foreign). What excites Tory strategists is that, after three years in office, they feel they have a record to support their argument. They also feel that the party’s MPs are happy with the message and well drilled at delivering it. Effort spent at summer garden parties mending relations between No 10 and backbenchers – the “barbecue offensive” – appears to have paid off. That doesn’t mean the Conservative Party automatically does the Prime Minister’s bidding, as his defeat in the vote on military intervention in Syria proved. But a year ago, such a rebellion would have triggered leadership speculation and lurid tales of panic in the ranks. This time, the disturbance was quickly contained. Cameron wriggled out of his foreign policy humiliation within 24 hours. His spin operation has become sharper and the number of Tory MPs who want nothing more than to hurt him has dwindled to manageable proportions.
 
Labour has watched this transformation with dismay. The Tories can no longer be relied on to deliver a steady flow of bungles. The new ruthlessness and discipline of the Conservative machine is noted with grudging respect by shadow ministers. Tories who once despaired of the way Downing Street was run now speak in reverential tones about Lynton Crosby, Cameron’s campaign director and the man credited with sharpening the party’s sense of strategic purpose.
 
But there is a difference between attacking the opposition harder and governing better. There are also great gaps between what Cameron and Osborne say they are achieving and what has actually been achieved. The deficit and public debt have not been trimmed to anything like the extent that was promised in 2010. Claims to have cracked down on immigration will look shaky when the controls that restricted labour migration from Bulgaria and Romania as a condition of their EU membership are lifted in January. The government’s flagship welfare reform – Universal Credit – has shrivelled from a national revolution in the benefits system to a pilot scheme in Ashton-under-Lyne. With it has shrunk the moral authority of Iain Duncan Smith, who sold Universal Credit as an emblem of “compassionate Conservatism” – easing the path from benefits to work, not just shredding the social safety net.
 
Labour has waited in vain for the public to recoil at the wounds inflicted by the Chancellor’s axe. MPs on both sides note the equanimity with which their constituents have tolerated the hardships of recent years. There is a stoical acceptance of financial insecurity as a force of nature rather than a consequence of government policy. As one Tory MP in a bellwether constituency tells me: “People don’t love us but I don’t get the sense that they are desperate to get rid of us.”
 
Others are less relaxed. “I’d like to show George around parts of my constituency to let him see what poverty really looks like,” says one Conservative defending a marginal seat. The Tories still struggle to shed their image as a favour factory for the rich and powerful. Cameron has steadied his party’s nerves but he hasn’t established what one influential backbencher describes as “a morality behind the narrative”.
 
In the conference hall, Cameron will be unchallenged. He will fight the next election as Tory leader. However, in the hotel bars, the gossip will revert to the discreet beauty contest among potential contenders for the succession – Michael Gove, Theresa May, Philip Hammond, Boris Johnson, George Osborne – because Tories also know that outright victory in the next election is still a remote prospect.
 
The criticism that Tories habitually level against Cameron is that he lacks fixed beliefs and that he changes his political clothes to suit the weather. With the help of Lynton Crosby’s natty tailoring, Cameron has at last found a costume to match his party’s tastes. He has persuaded the Conservatives that he really is their leader but he hasn’t imprinted his own politics on them. He is secure and confident because he has found the campaign that the Tories wish they had used to win the last election. That is less than he needs to win the next one.
David Cameron prepapres to greet his New Zealand counterpart John Key ahead of a meeting in Downing Street on September 18, 2013. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

This article first appeared in the 30 September 2013 issue of the New Statesman, The Tory Game of Thrones

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.