Margaret Hodge after her victory in Barking in 2010. Photograph: Getty Images.
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Margaret Hodge against the world

Caroline Crampton speaks to Margaret Hodge about the Google, the BNP and the "loony left".

Margaret Hodge is very sure of what she is trying to do. “I want to change the world,” she tells me over a mug of tea in the front room of her home in Islington. She is deadly serious.

As the chair of the House of Commons public accounts committee (PAC), Hodge is in a good position to realise her ambition. The PAC’s dry, procedural-sounding remit to examine “the accounts showing the appropriation of the sums granted to parliament to meet the public expenditure” gives her latitude to investigate every aspect of our government’s finances. When she speaks, everyone from Google executives to the BBC’s senior management pays attention.

Hodge is the committee’s first female chair, as well as the first to be elected, rather than appointed. Although she was a minister for 11 of the 13 years of Labour government under Tony Blair and Gordon Brown, she feels that what she does now has a greater impact. Issues such as tax avoidance by companies including Starbucks, Google and Amazon and, more recently, the pay-offs for BBC executives have resonated with the public.

She works hard – particularly since the loss of her husband, Henry, to cancer in 2009. “I’m on my own now, so that’s become a way of managing my life, focusing my life. I put a lot of work in.”

Hodge has recently enjoyed a surge in popularity, yet she cannot escape the legacy of her time as a minister – the first report the PAC published under her leadership looked at the failings of a welfare-to-work programme that she had helped to design.

Taking on Labour’s failures isn’t new to her. At the 2010 general election, she fought the “Battle for Barking” against the BNP (the party’s leader, Nick Griffin, stood against her). “I really think they [the BNP] had a chance of taking over the council and taking my seat . . . The underlying issue was Labour’s failure to connect with people on local concerns. We looked inwards; we didn’t look outwards.”

Hodge went on to double her majority in Barking; the BNP lost all 12 of its seats on the council. The answer to the kind of concerns that led to Griffin’s popularity, she says, is to focus on fairness. “If you’re coming in as an economic migrant, you’ve got to work your time, you’ve got to earn your rights, and I think people get that, whatever your race. For instance, access to social housing ought to be based on how long you’ve lived in the area, not just your need. When I first said that in 2008, it was very controversial but that’s the way you deal with racism.”

The role of PAC chair has freed her from party politics. Though still a Labour MP, she no longer attends Parliamentary Labour Party meetings and relishes the freedom to speak her mind. Once, during a committee hearing, she threw Google’s corporate motto – “Don’t be evil” – back in its executives’ faces, declaring, “I think that you do do evil.” This outspokenness isn’t new. “I say it as it is. That’s the joy of being my age [she is 69]. I’m not trying to climb any greasy pole any more. It always used to get me into trouble but now, in this new role, it’s a positive.”

Would she ever consider returning to the front bench? “I don’t think so. I’ve got lots of ambition . . . but I don’t think I could go back to that. Your life has to move forward.” Hodge speaks proudly of her socialism – formed, she says, by her background as an immigrant Jew, which had always made her feel like an outsider. Her family came to Britain in 1949 from Egypt, where increasing Arab-Jewish tensions after the creation of Israel made it difficult to stay. Laughing, she says of her father: “If he was alive today, I think he would be completely gobsmacked by me being such a member of the establishment.”

Before she entered parliament in 1994, Hodge worked for a decade as the leader of Islington Council. She and her Labour colleagues were nicknamed the “loony left”. Her handling of a child abuse case at a council care home (for which she has since apologised) is what her tenure there is principally remembered for, but she feels that a lot of the council’s other work has “stood the test of time”.

“We did a whole load of stuff around the equalities agenda that was thought to be off the wall at the time and which is now absolutely mainstream. We invented Sure Start [in Islington] . . . We worked on maternity rights, which were terrible at the time. All this stuff about one-stop shops for services – we created them.”

She has a long political career behind her but Margaret Hodge isn’t done yet. She will be standing again in 2015 and says: “We’ll just have to see what the electorate does.”

After all this time, has she worked out how to change the world? She smiles. “I haven’t got an answer but I’ve got a question,” she says.

Caroline Crampton is web editor of the New Statesman.

This article first appeared in the 23 September 2013 issue of the New Statesman, Can Miliband speak for England?

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The future of policing is still at risk even after George Osborne's U-Turn

The police have avoided the worst, but crime is changing and they cannot stand still. 

We will have to wait for the unofficial briefings and the ministerial memoirs to understand what role the tragic events in Paris had on the Chancellor’s decision to sustain the police budget in cash terms and increase it overall by the end of the parliament.  Higher projected tax revenues gave the Chancellor a surprising degree of fiscal flexibility, but the atrocities in Paris certainly pushed questions of policing and security to the top of the political agenda. For a police service expecting anything from a 20 to a 30 per cent cut in funding, fears reinforced by the apparent hard line the Chancellor took over the weekend, this reprieve is an almighty relief.  

So, what was announced?  The overall police budget will be protected in real terms (£900 million more in cash terms) up to 2019/20 with the following important caveats.  First, central government grant to forces will be reduced in cash terms by 2019/20, but forces will be able to bid into a new transformation fund designed to finance moves such as greater collaboration between forces.  In other words there is a cash frozen budget (given important assumptions about council tax) eaten away by inflation and therefore requiring further efficiencies and service redesign.

Second, the flat cash budget for forces assumes increases in the police element of the council tax. Here, there is an interesting new flexibility for Police and Crime Commissioners.  One interpretation is that instead of precept increases being capped at 2%, they will be capped at £12 million, although we need further detail to be certain.  This may mean that forces which currently raise relatively small cash amounts from their precept will be able to raise considerably more if Police and Crime Commissioners have the courage to put up taxes.  

With those caveats, however, this is clearly a much better deal for policing than most commentators (myself included) predicted.  There will be less pressure to reduce officer numbers. Neighbourhood policing, previously under real threat, is likely to remain an important component of the policing model in England and Wales.  This is good news.

However, the police service should not use this financial reprieve as an excuse to duck important reforms.  The reforms that the police have already planned should continue, with any savings reinvested in an improved and more effective service.

It would be a retrograde step for candidates in the 2016 PCC elections to start pledging (as I am certain many will) to ‘protect officer numbers’.  We still need to rebalance the police workforce.   We need more staff with the kind of digital skills required to tackle cybercrime.  We need more crime analysts to help deploy police resources more effectively.  Blanket commitments to maintain officer numbers will get in the way of important reforms.

The argument for inter-force collaboration and, indeed, force mergers does not go away. The new top sliced transformation fund is designed in part to facilitate collaboration, but the fact remains that a 43 force structure no longer makes sense in operational or financial terms.

The police still have to adapt to a changing world. Falling levels of traditional crime and the explosion in online crime, particularly fraud and hacking, means we need an entirely different kind of police service.  Many of the pressures the police experience from non-crime demand will not go away. Big cuts to local government funding and the wider criminal justice system mean we need to reorganise the public service frontline to deal with problems such as high reoffending rates, child safeguarding and rising levels of mental illness.

Before yesterday I thought policing faced an existential moment and I stand by that. While the service has now secured significant financial breathing space, it still needs to adapt to an increasingly complex world. 

Rick Muir is director of the Police Foundation