Mischievous Lib Dem chatter is a political gift for Osborne

Nothing is surer to mute Tory complaints about the Chancellor than wild speculation about Vince Cable as the alternative.

It is one of those peculiar permutations of coalition politics that George Osborne can consider himself very grateful to Lord Oakeshott, the Liberal Democrat peer and former Treasury spokesman, who has effectively called for the Chancellor to be sacked. Lord Oakeshott took to the airwaves (where he spends a considerable amount of his time) after the announcement of dire GDP data yesterday, to say that Osborne was performing as if on “work experience” and ought to be replaced by a more substantial figure. By that he meant Vince Cable, the business secretary, on whose behalf Oakeshott is often deemed to be speaking. Cable later on stirred the speculation further by suggesting immodestly that he “probably” would make a decent Chancellor, but this morning he publicly reined in his ambitions. He is a team player, he insisted, and Osborne leads the Treasury team.

There is, it has to be said, absolutely no chance of Cable being made Chancellor in this government. Really none at all. Zilch. The job would never go to a Lib Dem – its occupation by a Tory is part of the agreed fundamental architecture of the coalition. Cable will be lucky to stay in the cabinet at all in the next reshuffle. He has never been an ally of Nick Clegg in whose office he is seen as a grandstanding maverick and potential leadership threat. Even in opposition there was resentment of the way that Cable was held up as a mighty authority on economic matters – “St Vince” – poaching precious publicity from the leader. That feeling has since been exacerbated by a very personal irritation that Clegg has become the hated symbol of the u-turn on tuition fees, taking the full force of a vicious public and political backlash, when Cable ran the department that actually implemented the policy and yet escaped with hardly a scratch.

From the Tory point of view, Cable is a leftish fifth columnist. The recent revelation that he sends approving text messages to Ed Miliband will only reinforce the feeling among many Conservatives that the Business Secretary’s natural place is carping from the back benches.

But before the chatter about Cable started up, there were plenty of Tories willingly speculating about the need to move Osborne from the Treasury. Even quite loyal MPs were muttering about weaknesses in the heart of the machine and pointing accusing figures at Number 11 Downing Street. The charges are: the bungled budget, clumsy handling of the ensuing u-turns, suspicion that Osborne spends too much time in Number 10 plotting political attacks and not enough time running the economy, a broader feeling that there is no long-term strategy for winning an election other than hoping that Ed Miliband’s bubble bursts, over-reliance on short-term tricks and tactical manoeuvres, an obsessive personal animosity towards Ed Balls that is unseemly in one of the highest offices of state, a failure to develop a consistent message on what the government is doing to spur growth. There is a feeling on the Tory benches that Labour have been let back into the debate on the economy when they seemed wholly shut out of it a year ago.

In recent weeks I have heard William Hague, Michael Gove and Phillip Hammond all talked up by their fellow Tories as potential Chancellors. The surest way to kill that chatter is for a Lib Dem to pipe up and say Osborne should be sacked – and replaced with Vince, of all people.

There was never really any chance of Osborne being moved in the reshuffle. It would be an admission of economic failure on an epic scale and he is too close to Cameron. The Prime Minister is generally loyal to his friends – witness how hard it was for him to let go of Andy Coulson and how tenaciously he has clung to Jeremy Hunt. Of course in those cases there as an element of self-preservation. Losing high profile figures over phone hacking would have removed protective firewalls around Number 10. But it is also generally said of Cameron’s clubbable nature that he looks after his chums – which can, of course, be interpreted as a good a bad thing in politics depending on whether it is a mark of constancy or corruption. Cameron has ever fewer friends and Osborne is vital.

But it follows from that analysis that the Chancellor is practically unsackable. Yet he is also badly damaged and all those hostile whispers from his own side can’t be unwhispered. That leaves a feeling in Westminster at the start of the long summer recess that the Tory duamvirate’s strategy is essentially to build defences around the hole they are in and frantically keep digging.

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

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Calum Kerr on Governing the Digital Economy

With the publication of the UK Digital Strategy we’ve seen another instalment in the UK Government’s ongoing effort to emphasise its digital credentials.

As the SNP’s Digital Spokesperson, there are moves here that are clearly welcome, especially in the area of skills and a recognition of the need for large scale investment in fibre infrastructure.

But for a government that wants Britain to become the “leading country for people to use digital” it should be doing far more to lead on the field that underpins so much of a prosperous digital economy: personal data.

If you want a picture of how government should not approach personal data, just look at the Concentrix scandal.

Last year my constituency office, like countless others across the country, was inundated by cases from distressed Tax Credit claimants, who found their payments had been stopped for spurious reasons.

This scandal had its roots in the UK’s current patchwork approach to personal data. As a private contractor, Concentrix had bought data on a commercial basis and then used it to try and find undeclared partners living with claimants.

In one particularly absurd case, a woman who lived in housing provided by the Joseph Rowntree Foundation had to resort to using a foodbank during the appeals process in order to prove that she did not live with Joseph Rowntree: the Quaker philanthropist who died in 1925.

In total some 45,000 claimants were affected and 86 per cent of the resulting appeals saw the initial decision overturned.

This shows just how badly things can go wrong if the right regulatory regimes are not in place.

In part this problem is a structural one. Just as the corporate world has elevated IT to board level and is beginning to re-configure the interface between digital skills and the wider workforce, government needs to emulate practices that put technology and innovation right at the heart of the operation.

To fully leverage the benefits of tech in government and to get a world-class data regime in place, we need to establish a set of foundational values about data rights and citizenship.

Sitting on the committee of the Digital Economy Bill, I couldn’t help but notice how the elements relating to data sharing, including with private companies, were rushed through.

The lack of informed consent within the Bill will almost certainly have to be looked at again as the Government moves towards implementing the EU’s General Data Protection Regulation.

This is an example of why we need democratic oversight and an open conversation, starting from first principles, about how a citizen’s data can be accessed.

Personally, I’d like Scotland and the UK to follow the example of the Republic of Estonia, by placing transparency and the rights of the citizen at the heart of the matter, so that anyone can access the data the government holds on them with ease.

This contrasts with the mentality exposed by the Concentrix scandal: all too often people who come into contact with the state are treated as service users or customers, rather than as citizens.

This paternalistic approach needs to change.  As we begin to move towards the transformative implementation of the internet of things and 5G, trust will be paramount.

Once we have that foundation, we can start to grapple with some of the most pressing and fascinating questions that the information age presents.

We’ll need that trust if we want smart cities that make urban living sustainable using big data, if the potential of AI is to be truly tapped into and if the benefits of digital healthcare are really going to be maximised.

Clearly getting accepted ethical codes of practice in place is of immense significance, but there’s a whole lot more that government could be doing to be proactive in this space.

Last month Denmark appointed the world’s first Digital Ambassador and I think there is a compelling case for an independent Department of Technology working across all government departments.

This kind of levelling-up really needs to be seen as a necessity, because one thing that we can all agree on is that that we’ve only just scratched the surface when it comes to developing the link between government and the data driven digital economy. 

In January, Hewlett Packard Enterprise and the New Statesman convened a discussion on this topic with parliamentarians from each of the three main political parties and other experts.  This article is one of a series from three of the MPs who took part, with an  introduction from James Johns of HPE, Labour MP, Angela Eagle’s view and Conservative MP, Matt Warman’s view

Calum Kerr is SNP Westminster Spokesperson for Digital