The importance of a moment to account

The Institute of Chartered Accountants plead for reform of public accounting in the midst of economic flux

Sustainability, transparency and reform have been held up as the shining beacons of our economic recovery. Our politics, our budget and our ethos are placed back on drawing boards across the country in the quest to return the UK to its heyday of steady economic growth. The Institute of Chartered Accountants in England and Wales, however, offer some brief words of caution.

Whilst our wild ideas about the importance of spending or cuts, the role of elections and representation and the significance public or private sector investment are important, there are some basic changes which have to happen before they can make lasting change. We have to set our ideological angst and meta-debates to one side for a moment, and take a look at the books.

Architects of international financial reporting standards have responded to the crisis by reforming the information and presentation of accounts across the world. Britain seems to lack the political will to get behind this change, yet improved financial reporting would make the nation’s accounts more consistent with those of the fifty countries which have already adopted the new standards laid out by the International Public Sector Accounting Standards Board. Greater consistency and greater comparability gained from international financial reporting will help on the road to recovery by increasing confidence and transparency.

Better financial training for all public servants is an intrinsic part of this process, the ICAEW argue. This training, with a long-term change in attitude towards our accounts, will help to improve understandings of public sector finances and, with that, understanding of policy. Once our public servants, and the international community, can access accounts more consistently, we can report with greater confidence on the state of the economy.

Sustainability, transparency and reform have a right to be seen as a beacon of recovery. Passionate debates on the right course for the country need to be had but, for the sake of our understanding and the happiness of our accountants, let's take a look at the books first.

Dusty ledgers, sadly no longer the tools of accounting. Photograph: Getty Images

Helen Robb reads PPE at Oxford University where she is deputy editor of ISIS magazine.

Photo: Getty Images
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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.