The Queen's Speech and the digital economy

Start-ups will cheer, but our copyright system remains a mess.

As soon as the Queen began to list her government’s priorities on Wednesday it came as no surprise to hear that the Government’s top priority in the next parliamentary session is going to be delivering economic growth. When the Government comes to look at which industries that growth will come from, they will undoubtedly turn to the growing potential of digital businesses and the Internet.

The UK economy has the most Internet-dependent economy of all the industrialised nations. A study by the Boston Consulting Group found that the Internet is currently worth £120bn to the UK Economy, or 8 per cent of GDP, and is forecasted to rise to 12 per cent by 2016. The only other nation coming close to this high a percentage was South Korea with 7.3 per cent. We are world leaders in digital start-ups and SMEs across the UK are the job creators and wealth creators of the future.

The Government signalled in the Queen’s Speech its plans to introduce some really helpful measures for digital businesses. The Enterprise and Regulatory Reform Bill being introduced to Parliament holds some real potential. We understand the Government intends this to be a wide ranging bill and will include key issues such as employment regulation, which is a huge concern for a small business needing to scale up rapidly. This will definitely be one to watch as there is a great opportunity for the Government to provide real benefits to startups and SMEs. Business owners face heavy administrative burdens and significant risks if they get it wrong, so allowing entrepreneurs to do what they do best and grow their businesses more easily will help push forward the growth the UK desperately needs.

Also included was a reference to the much-trailed Draft Communications Data Bill. This refers to plans to allow intelligence agencies to collect data on communications, including across the Internet, also known as Communications Capabilities Development Programme (CCDP). The bill is likely to come up against significant opposition, and not just from free speech advocates. We are yet to see the details of the plans but there will be key questions over who the financial burden of data retention will fall upon, and whether Government intends to break SSL, the system used for secure communications which underpins businesses and e-commerce sites.

However, absent from the speech was any reference to reforming Britain’s outdated copyright law. The purpose of intellectual property protection is to foster innovation, but many aspects of the current copyright regime are having the opposite effect for digital businesses. Innovative entrepreneurs are creating brilliant new models for distributing creative content, yet they have to spend too long navigating complicated licensing schemes rather than developing and growing their business.

Implementing recommendations from the Hargreaves Review, commissioned by the Prime Minister in 2010 and accepted by Government last year, will allow today’s technology start-ups to compete with their European and US rivals.

The Queen’s speech is designed to set the parliamentary agenda, but Government and Parliament are still free to respond legislatively to issues as they arise. We hope they will realise there has never a better time to reform copyright law than now. The recommendations are raring and ready to go and they will allow Britain’s vibrant digital businesses to be able to harness the web’s potential to contribute to deliver the vital economic growth the UK economy needs.

The Queen and Prince Philip at the state opening of Parliament. Photograph: Getty Images

Sara Kelly is the Policy and Development Manager for the Coalition for a Digital Economy.

Photo: Getty Images/AFP
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Is Yvette Cooper surging?

The bookmakers and Westminster are in a flurry. Is Yvette Cooper going to win after all? I'm not convinced. 

Is Yvette Cooper surging? The bookmakers have cut her odds, making her the second favourite after Jeremy Corbyn, and Westminster – and Labour more generally – is abuzz with chatter that it will be her, not Corbyn, who becomes leader on September 12. Are they right? A couple of thoughts:

I wouldn’t trust the bookmakers’ odds as far as I could throw them

When Jeremy Corbyn first entered the race his odds were at 100 to 1. When he secured the endorsement of Unite, Britain’s trade union, his odds were tied with Liz Kendall, who nobody – not even her closest allies – now believes will win the Labour leadership. When I first tipped the Islington North MP for the top job, his odds were still at 3 to 1.

Remember bookmakers aren’t trying to predict the future, they’re trying to turn a profit. (As are experienced betters – when Cooper’s odds were long, it was good sense to chuck some money on there, just to secure a win-win scenario. I wouldn’t be surprised if Burnham’s odds improve a bit as some people hedge for a surprise win for the shadow health secretary, too.)

I still don’t think that there is a plausible path to victory for Yvette Cooper

There is a lively debate playing out – much of it in on The Staggers – about which one of Cooper or Burnham is best-placed to stop Corbyn. Team Cooper say that their data shows that their candidate is the one to stop Corbyn. Team Burnham, unsurprisingly, say the reverse. But Team Kendall, the mayoral campaigns, and the Corbyn team also believe that it is Burnham, not Cooper, who can stop Corbyn.

They think that the shadow health secretary is a “bad bank”: full of second preferences for Corbyn. One senior Blairite, who loathes Burnham with a passion, told me that “only Andy can stop Corbyn, it’s as simple as that”.

I haven’t seen a complete breakdown of every CLP nomination – but I have seen around 40, and they support that argument. Luke Akehurst, a cheerleader for Cooper, published figures that support the “bad bank” theory as well.   Both YouGov polls show a larger pool of Corbyn second preferences among Burnham’s votes than Cooper’s.

But it doesn’t matter, because Andy Burnham can’t make the final round anyway

The “bad bank” row, while souring relations between Burnhamettes and Cooperinos even further, is interesting but academic.  Either Jeremy Corbyn will win outright or he will face Cooper in the final round. If Liz Kendall is eliminated, her second preferences will go to Cooper by an overwhelming margin.

Yes, large numbers of Kendall-supporting MPs are throwing their weight behind Burnham. But Kendall’s supporters are overwhelmingly giving their second preferences to Cooper regardless. My estimate, from both looking at CLP nominations and speaking to party members, is that around 80 to 90 per cent of Kendall’s second preferences will go to Cooper. Burnham’s gaffes – his “when it’s time” remark about Labour having a woman leader, that he appears to have a clapometer instead of a moral compass – have discredited him in him the eyes of many. While Burnham has shrunk, Cooper has grown. And for others, who can’t distinguish between Burnham and Cooper, they’d prefer to have “a crap woman rather than another crap man” in the words of one.

This holds even for Kendall backers who believe that Burnham is a bad bank. A repeated refrain from her supporters is that they simply couldn’t bring themselves to give Burnham their 2nd preference over Cooper. One senior insider, who has been telling his friends that they have to opt for Burnham over Cooper, told me that “faced with my own paper, I can’t vote for that man”.

Interventions from past leaders fall on deaf ears

A lot has happened to change the Labour party in recent years, but one often neglected aspect is this: the Labour right has lost two elections on the bounce. Yes, Ed Miliband may have rejected most of New Labour’s legacy and approach, but he was still a protégé of Gordon Brown and included figures like Rachel Reeves, Ed Balls and Jim Murphy in his shadow cabinet.  Yvette Cooper and Andy Burnham were senior figures during both defeats. And the same MPs who are now warning that Corbyn will doom the Labour Party to defeat were, just months ago, saying that Miliband was destined for Downing Street and only five years ago were saying that Gordon Brown was going to stay there.

Labour members don’t trust the press

A sizeable number of Labour party activists believe that the media is against them and will always have it in for them. They are not listening to articles about Jeremy Corbyn’s past associations or reading analyses of why Labour lost. Those big, gamechanging moments in the last month? Didn’t change anything.

100,000 people didn’t join the Labour party on deadline day to vote against Jeremy Corbyn

On the last day of registration, so many people tried to register to vote in the Labour leadership election that they broke the website. They weren’t doing so on the off-chance that the day after, Yvette Cooper would deliver the speech of her life. Yes, some of those sign-ups were duplicates, and 3,000 of them have been “purged”.  That still leaves an overwhelmingly large number of sign-ups who are going to go for Corbyn.

It doesn’t look as if anyone is turning off Corbyn

Yes, Sky News’ self-selecting poll is not representative of anything other than enthusiasm. But, equally, if Yvette Cooper is really going to beat Jeremy Corbyn, surely, surely, she wouldn’t be in third place behind Liz Kendall according to Sky’s post-debate poll. Surely she wouldn’t have been the winner according to just 6.1 per cent of viewers against Corbyn’s 80.7 per cent. 

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