Osborne's anti-green crusade is self-defeating

The Chancellor appears intent on strangling one sector of the economy that is growing.

On the very same day it emerged that our economy has worsened and shrunk in the worst double-dip recession for fifty years, one sector of the British economy that is bucking the trend, providing new growth and jobs, is now under siege from the Chancellor.

According to the CBI this month, green business accounted for more than a third of all UK growth last year. In a keynote speech a couple of weeks ago CBI chief John Cridland said:

The choice between going green and going for growth is a false choice. Green and growth do go together...  The UK’s low-carbon and environmental goods and services market is worth more than £120bn a year. That’s equivalent to more than eight per cent of GDP… It’s made up of some 50,000 firms, between them employing 940,000 people - two-thirds outside London and the South East – across many different sectors.

You would think the Treasury would be delighted by this story of green jobs and British business success. Certainly William Hague recognised the political and economic attractiveness of this sector. A few months ago he wrote privately to the Prime Minister and his Cabinet colleagues, “The low carbon economy is at the leading edge of a structural shift now taking place globally … we need to stay abreast of this, given our need for an export-led recovery and for inward investment in modern infrastructure and advanced manufacturing.” Hague continued, “I believe we should reframe our response to climate change as an imperative for growth.”

But instead of heeding this advice and welcoming new clean tech investment in the UK, the FT’s Jim Pickard revealed on Monday how George Osborne has been secretly demanding Lib Dem Energy Secretary Ed Davey ditch renewable energy programmes as well as essential 2030 goals aimed at driving investment into advanced energy technologies and reducing carbon emissions from electricity generation. The leaked letter exposed how in an attempt to woo a narrow minority of frustrated Tea Party Tory backbenchers, the Chancellor has been seeking to pull the rug from under Britain’s clean energy industries for petty party politicking.  

The chairman of the energy and climate change select committee, Conservative Tim Yeo told the BBC: “The Treasury has clearly intervened in the draft (energy) bill in a way that will put up bills to consumers and put off investors by increasing their risks.” He added, “Under the guise of reducing bills for consumers, the chancellor will actually be increasing consumers' bills…I don't know if the back-benchers realise this but surely the Treasury does - yet it keeps pressing on with an action that's clearly political to assuage MPs who don't like turbines in the countryside.” It may also have a lot to do with his cosy relationship with the gas lobby.

The same Osborne who in opposition pledged, “I see in this green recovery not just the fight against climate change, but the fight for jobs, the fight for new industry,” has instead been fighting to abandon the framework his own advisers says is required to make carbon emission reductions set out in the Climate Change Act, and axe the schemes designed to boost the wind industry.

He’s turned the green economy and almost a million jobs into a political football, but the Chancellor’s anti-green crusade extends beyond interfering with just the energy brief. His efforts to appease his more swivel-eyed backbenchers means Osborne has even had his people briefing against the Transport Secretary Justine Greening for her principled refusal to U-turn on the expansion of Heathrow airport.

After the failed woodland sell off, the furore over planning reforms that looked like a developers’ charter, the plans to shoot badgers and capture buzzards, the Green Bank that isn’t actually a Bank at all, the taxpayer hand-outs to the oil and gas industry – and now most important of all, the Chancellor’s attacks on our national climate change commitments, David Cameron’s huskies are long slayed. But when will Nick Clegg and the Liberal Democrats stand up and say enough?

George Osborne has a "cosy relationship with the gas lobby". Photograph: Getty Images.

Joss Garman is associate fellow on climate change and energy at the Institute for Public Policy Research (IPPR).

Photo:Getty
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Why isn't Labour putting forward Corbynite candidates?

Despite his successes as a candidate, the organisational victories have gone the way of Corbyn's opponents. 

The contest changes, but the result remains the same: Jeremy Corbyn’s preferred candidate defeated in a parliamentary selection. Afzhal Khan is Labour’s candidate in the Manchester Gorton by-election and the overwhelming favourite to be the seat’s next MP.

Although Khan, an MEP, was one of  the minority of Labour’s European MPs to dissent from a letter from the European parliamentary Labour party calling for Jeremy Corbyn to go in the summer of 2016, he backed Andy Burnham and Tom Watson in 2015, and it is widely believed, fairly or unfairly, that Khan had, as one local activist put it, “the brains to know which way the wind was blowing” rather than being a pukka Corbynite.

For the leader’s office, it was a double defeat;  their preferred candidate, Sam Wheeler, was kept off the longlist, when the party’s Corbynsceptics allied with the party’s BAME leadership to draw up an all ethnic minority shortlist, and Yasmine Dar, their back-up option, was narrowly defeated by Khan among members in Manchester Gorton.

But even when the leadership has got its preferred candidate to the contest, they have been defeated. That even happened in Copeland, where the shortlist was drawn up by Corbynites and designed to advantage Rachel Holliday, the leader’s office preferred candidate.

Why does the Labour left keep losing? Supporters combination of bad luck and bad decisions for the defeat.

In Oldham West, where Michael Meacher, a committed supporter of Jeremy Corbyn’s, was succeeded by Jim McMahon, who voted for Liz Kendall, McMahon was seen to be so far ahead that they had no credible chance of stopping him. Rosena Allin-Khan was a near-perfect candidate to hold the seat of Tooting: a doctor at the local hospital, the seat’s largest employer, with links to both the Polish and Pakistani communities that make up the seat’s biggest minority blocs.  Gillian Troughton, who won the Copeland selection, is a respected local councillor.

But the leadership has also made bad decisions, some claim.  The failure to get a candidate in Manchester Gorton was particularly egregious, as one trade unionist puts it: “We all knew that Gerald was not going to make it [until 2020], they had a local boy with good connections to the trade unions, that contest should have been theirs for the taking”. Instead, they lost control of the selection panel because Jeremy Corbyn missed an NEC meeting – the NEC is hung at present as the Corbynsceptics sacrificed their majority of one to retain the chair – and with it their best chance of taking the seat.

Others close to the leadership point out that for the first year of Corbyn’s leadership, the leader’s office was more preoccupied with the struggle for survival than it was with getting more of its people in. Decisions in by-elections were taken on the hop and often in a way that led to problems later down the line. It made sense to keep Mo Azam, from the party’s left, off the shortlist in Oldham West when Labour MPs were worried for their own seats and about the Ukip effect if Labour selected a minority candidate. But that enraged the party’s minority politicians and led directly to the all-ethnic-minority shortlist in Manchester Gorton.

They also point out that the party's councillor base, from where many candidates are drawn, is still largely Corbynsceptic, though they hope that this will change in the next round of local government selections. (Councillors must go through a reselection process at every election.)

But the biggest shift has very little to do with the Labour leadership. The big victories for the Labour left in internal battles under Ed Miliband were the result of Unite and the GMB working together. Now they are, for various reasons, at odds and the GMB has proven significantly better at working shortlists and campaigning for its members to become MPs.  That helps Corbynsceptics. “The reason why so many of the unions supported Jeremy the first time,” one senior Corbynite argues, “Is they wanted to move the Labour party a little bit to the left. They didn’t want a socialist transformation of the Labour party. And actually if you look at the people getting selected they are not Corbynites, but they are not Blairites either, and that’s what the unions wanted.”

Regardless of why, it means that, two years into Corbyn’s leadership, the Labour left finds itself smaller in parliament than it was at the beginning.  

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.