Clegg must give a straight answer

Hints are not enough -- the Liberal Democrats must clarify their position on a power-sharing agreeme

Quite the centre of attention yesterday, Nick Clegg moved today to make his voice heard amid the cacophony, writing an article in the Times, and declaring on Radio 4's Today programme that "I'm not a kingmaker . . . The people are the kingmakers."

Yesterday's speculation centred on what the party would do in the event of a hung parliament -- something our Leader this week calls on the Liberal Democrat leader to clarify.

But did he clarify anything at all?

Ostensibly, he remains committed to the position of "equidistance" from both parties, established before Christmas. His Times piece, along with the usual Lib Dem fodder that a vote for them is not wasted, shows a real -- and probably valid -- edgy feeling that the very public attempts by both Cameron and Brown to align themselves with the Lib Dems could remove a portion of their vote.

But what about the question on everyone's lips: Where would the Lib Dems' alliances lie if a power-sharing agreement became necessary? Despite the fighting talk that "the Liberal Democrats are not for sale", Clegg remains frustratingly reticent, writing:

We will respect the will of the public. The voters are in charge and the decision is theirs. If voters decide that no party deserves an overall majority, then self-evidently the party with the strongest mandate will have a moral right to be the first to seek to govern on its own or, if it chooses, to seek alliances with other parties.

Come on, Nick. This is spectacularly vague -- as I pointed out yesterday, it all depends on how you define the will of the public.

His second point is that, in the event of a hung parliament, the actions of the Lib Dems will be governed by their commitment to four central principles: fair taxes, a fair start for children (with smaller class sizes and a "pupil premium" favouring poorer children), a sustainable economy, and clean politics.

But hang on a minute -- aren't some of these goals completely incompatible with those of the Tories? The fair-tax proposal centres on raising the point at which people start paying income tax to £10,000, by increasing taxes on the rich. This doesn't sound like a great fit with cuts to inheritance tax that would enrich the country's wealthiest 3,000 estates.

And on cleaning up politics, Clegg says he wants to "stop tax avoiders from standing for parliament, sitting in the House of Lords or donating to political parties". I can't help but wonder whether this sounds a little pointed, given the dubious tax status of Lord Ashcroft, Conservative peer and donor extraordinaire.

As my colleague James Macintyre suggests in his fantasy politics piece in this week's magazine, Labour is the more natural ally for the Lib Dems. Clegg's comments today imply that he feels the same way -- on the Today programme, asked if this was a "centre-left agenda", he replied: "It's a fair agenda, yes." In yet another tantalising hint, he said of the Tories: "At the moment, of course, the differences are more striking than the synthetic similarities."

From a political perspective, perhaps it is astute -- necessary, even -- for Clegg to hedge his bets, refusing to publicly rule out a union with the Conservative Party now in case the Lib Dems come to regret it later. But, as he wrote today: "In the event of a hung parliament, the British people also deserve to know how the Liberal Democrats will respond."

Everything Clegg has said today implies that a Lib-Lab pact is more likely than a Conservative one. Now he must come out and say so.

 

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Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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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.