Mehdi Hasan asks: Should social democrats mourn the departure of Chris Huhne?

The ex-Energy Secretary isn't exactly the lefty he's made out to be.

So Chris Huhne has gone off to defend his innocence in court. Arise Ed Davey!

If the former Energy and Climate Change Secretary is found innocent, will he become a lightning rod for left-wing, anti-coalition dissent on the Lib Dem backbenches? Much is made, for example, of his SDP past.

I was on BBC2's Daily Politics earlier discussing the fallout from the resignation, and host Andrew Neil made the same point on air that he'd made earlier on Twitter:

Clegg's nightmare: Huhne found innocent and rises from backbenches to lead social democrat wing of Lib Dems

It's a point also made by Benjamin Ramm, editor of the centre-left Liberal magazine:

Chris Huhne should not be underestimated: he remains a key figure in the party. Huhne successfully portrayed himself as an outsider, playing on his SDP background to appeal to the Left of the party - despite being a contributor to the Orange Book - and has made it known that he would have favoured a Lib-Lab coalition.

I'm not sure I buy this. Some points to consider:

1) Huhne, a multimillionaire ex-employee of the ratings agency, Fitch, was a contributor to the notorious Orange Book and is believed to have only adopted a leftist stance to try and justify his "insurgent" campaign for the Lib Dem leadership, up against the "Establishment" and centre-right candidate Nick Clegg, in 2007.

2) Huhne spent a great deal of time in the run-up to the 2010 general election briefing journalists that a deal with the Conservatives - whether confidence-and-supply or full coalition - was not out of the question and something he'd be happy to support.

3) Huhne, as David Cameron acknowledged in his response to the former's resignation letter this morning, was one of the lead negotiators on the Lib Dem side during the coalition negotiations in May 2010 and, thus, one of the architects of the subsequent, right-wing Con-Dem coalition.

4) One of the Labour negotiators told me once that he was "shocked" at how hostile Huhne had seemed towards a coalition deal with the Labour Party and how he'd walked into the negotiating room calling for Tory-style in-year spending cuts - in direct contradiction to the Lib Dems' own pre-election position on the timing of austerity measures.

5) In August 2010, it was Huhne who was put up by the Lib Dems alongside Tory chairman Sayeeda Warsi in the coalition's first, joint, party-political press conference. Huhne (falsely) claimed that Labour overspending, rather than a collapse in taxation, had been the cause of the record budget deficit and then nodded along as Warsi bizarrely accused Labour politicians of "illegal" and "criminal" behaviour over their handling of the economy.

6) Huhne voted for every single one of the coalition's "regressive" cuts to spending on public services, infrastructure and the welfare state over the past 21 months. As Labour peer Helena Kennedy told him on Question Time in June 2010: "You are providing the sheep's clothing for a very rapacious government that is going to cut spending." On the same show, Labour's Peter Hain rightly castigated the then Energy Secretary for trying to draw a (false) comparison between the British and Greek economies: "No serious economic commentator, and you used to be one before you got into government, believes our economy is anything like Greece."

Then again, having said all of this, I have to also admit that there was no one else in Cabinet who stood up to Cameron and Osborne in the way that Huhne did - over, for example, the negative Tory campaign during the AV referendum and over the Tories' links withe City - which is why the Cameroons won't be sad to see the back of him. Plus, given the size of his ego and his ambition, an innocent, revitalised Huhne could just choose to attack the coalition from the backbenches, and from the left, in order to further his own career, regardless of the fact that his recent record suggests he isn't a lefty. But my own suspicion is that his political career is over.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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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.