Trouble in Manchester

The RSA's Matthew Taylor on the whispering cabinet minister, an antagonisic local and the train that

Sunday was just one of those days. I was booked to chair a fringe meeting for the New Statesman at lunchtime and so got to Euston in good time for the Manchester train. That’s when it all started to go wrong. The train ‘wasn’t ready’ which, given that Virgin had presumably had since Saturday night to prepare it, was hard to understand.

When we finally did board the train it was chronically overcrowded. There were three announcements from the buffet (or ‘shop’ as it is now called)) one to say it was opening late, another to say it couldn’t take charge or credit cards and a third to say it had closed down due to ‘unforeseen’ problems.

The train then stopped and we were told it would arrive at least an hour late. But at least something was working; the air conditioning in our carriage was set so high that people were scrabbling around in their luggage for woollies.

I arrived in Manchester far too late for my meeting but in time to run to the Piccadilly Sports Bar and watch the last five minutes of my beloved West Brom losing to Aston Villa. Thoroughly grumpy and miserable I walked the streets of Manchester. Eventually I found a pub with the Chelsea v Man United game but distracted by the match I accidentally picked up someone else’s drink at the bar.

As the rather large person in question was remonstrating with me Chelsea equalised an event in which I could immediately tell he somehow felt that I as a Londoner was somehow implicated. I beat a hasty retreat.

Of course, I could have gone to the conference but ever since the Observer printed a tendentious piece two weeks ago suggesting I had been appointed to advise David Cameron I have been getting funny looks from my old comrades.

Eventually it was time for the RSA World at One fringe meeting at the Raddison Hotel. The room was packed and hot and the audience having to be patient as we had pushed back the start time by half an hour to accommodate David Miliband.

Our first speaker was supposed to be Ben Page from IPSOS MORI but for reasons best known to them, the Social Market Foundation had taken his pass and despite my pleadings were utterly indifferent to the fact that he was stuck outside the security cordon with minutes until our meeting.

As the minutes ticked away Ben kept phoning to say the police were getting increasingly suspicious of his story and he was starting to worry about the prospects of a full body search. At this point I snapped, losing my temper with various SMF staff and bellowing (mild) obscenities in front of several rather startled members of the Cabinet.

Eventually I tracked down the pass and Ben and I ran up five flights of stairs to a meeting room so hot that it could only have felt tolerable to anyone who had just stepped of the super cooled 8.36 Euston to Manchester train.

Ben was a star and entertained everyone with his slides showing the contradictory nature of public opinions. I made my short comments. But RSA and WATO staff were frantically waving at me to indicate that the Foreign Secretary was ten, no fifteen, no five, no ten minutes away so I slowed down and extemporised.

After 25 minutes which ranged over my life at the RSA, Number Ten, the Labour Party and Bootham Street Junior School I dried up so we had to move to questions.

Eventually, after very enlightening exchanges about how to canvass in Mitcham, the design of leaflets and engaging with your local park, Mr Miliband showed up looking relaxed and commanding. After he had made a few comments Martha Kearney started to quiz him, presumably aware that we were by now running well over time and that several people were showing signs of heat exhaustion. But the conference delegates have been well briefed so the moment Martha mentioned the leadership issue she got drowned out by a combination of booing and the soft clump of expiring bodies falling to the carpet.

So that WATO could get something to tape for today’s programme there was no choice but to overrun, anyway, we couldn’t get out of the doors until all the people on stretchers had been carried to safety. Suddenly I realised I had fifteen minutes to get the last train back to London. There was no choice but to run. As I sprinted past a Cabinet minister I can’t be sure but I think she murmured ‘that’s right Taylor you can run, but you can’t hide’.

I made it to the station with two minutes to spare. My body was steaming, my shirt was soaked and there was sweat running in rivulets off my forehead as I sat down in the carriage. ‘Ding dong’ went the announcer ‘welcome to the 20.10 to Euston. Unfortunately, due to unforeseen circumstances. the air conditioning will not be working on this journey’.

Matthew Taylor became Chief Executive of the RSA in November 2006. Prior to this appointment, he was Chief Adviser on Political Strategy to the Prime Minister.
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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.