Farage's hint of a pact with the Tories is a sign of weakness

If Ukip could find enough half-decent candidates the party wouldn't be angling to share with the Con

Nigel Farage is proving to be a very effective nuisance to the Conservative leadership. His latest bit of mischief is to revive in an interview with the Spectator, the idea of joint Ukip/Tory candidacies. This notion crops up from time to time and is quickly buried in an avalanche of scorn rolling down from the top of the Conservative party.

But as the Speccie’s James Forsyth points out, there is a growing number of Tory MPs who are finding it hard to mobilise a campaign on the ground when some of their activists and local association stalwarts have defected. The problem for Downing Street is that the segment of the electorate being haggled over here overlaps all too awkwardly with the group from whom Cameron energetically tried to distance himself as part of his “modernisation” of the party in opposition. In other words, wooing them back implies a repudiation of his entire political agenda. Tricky.

Tory strategists recognise that a conspicuous bid for Ukip voters would be electoral suicide. Andrew Cooper, Downing Street’s in-house pollster, is said to be the most consistent and influential voice urging Cameron not to go down that path. The important thing for the Conservatives to remember is that Farage’s angling for a pact of some kind is a sign of weakness not strength. He can disrupt the Tories by provoking their visceral hostility to the European Union and prodding other nerves along the way. What he cannot do is field a bunch of credible candidates to be MPs. Ukip’s strong performance in European elections (where huge numbers of sensible voters stay at home, privileging the turnout for fanatics) has produced some fairly dodgy MEPs.  

I have heard one senior Ukip official admit privately that the party’s biggest problem was that it became a magnet for “people who have failed in everything else in life and have an axe to grind”.

If Farage could muster a serious electoral battalion, surely an effective, dynamic, ambitious character like Dan Hannan would have defected by now. Wisely, he stays with the Tories hoping they will eventually swallow up the Ukip tendency (just as softer, liberal Tories hope the party can swallow up the Lib Dems). I am told Hannan is watched very carefully in Number 10 and not without some trepidation. He is seen as a useful indicator of feelings and loyalties in a certain quarter of the party.

The pressure on Cameron to give some concession on Europe keeps growing. As I wrote recently, the promise of some kind of referendum in the next manifesto is seen by most Tory MPs as the minimum required to buy loyalty and a semblance of unity. Ukip’s antics may be a sign of weakness; the question is whether Cameron is strong enough to ignore them. 

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.